Management practices in the economic crunch: Case studies of the Multinational firms

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Table of Contents

CHAPTER 01: INTRODUCTION3

Background3

Problem Statement6

Aims and Objectives6

Research Questions7

CHAPTER 02: LITERATURE REVIEW8

Global Economic crisis8

Effects of Global economic crisis on management practices of multinational companies9

Role of information in the change management control10

Limits of traditional costing11

Evolution in practices of management control12

Impact of economic crunch on Human Resource Management13

CHAPTER 03: METHODOLOGY16

Research Methodology16

Research Design17

Data Collection18

Ethical Considerations18

References20

CHAPTER 01: INTRODUCTION

Background

The current era has witnessed many advancements and innovations in the business and economic sector. The global economy has gone through various stages and has affected the internal operations and management of the business organizations. In the past few decades, the businesses have struggled to maintain their operations and services in alignment with the situations of economy locally as well as globally. They adapt the best management practices in order to keep the organizations surviving and meet the challenges that the upcoming problems are likely to pose.

The organizations across the world should essentially survive and manage the economic crisis in order to sustain and manage successfully. There have been recent cases in the Eastern Europe, Asia and South America that hold the demonstration to this point. The global economy has integrated the economic weak spots into itself; it has become timely to establish the understanding and materialization of the organizational capabilities which may help the multinationals to pave their ways out of such economic crunch. In building up such practices of management, the strategic flexibility and market orientation play a supportive role in the building up of multinational firms in order to deal with the global crisis (Miller, Rich, 2008).

There has also been a contingent nature that the impacts of strategic flexibility and market orientation on the performance of organziation after the occurrence of the crisis. The adaptation of the market orientation strategies imposes worst impacts on the performance of organziation after the economic crunch (Shiskin, Julius, 1974). The technological unpredictability and the consumers' demands has moderated the effects and boosted the competitive intensity of the organizations. The strategies of the strategic flexibility generally pose a positive influence on the performance of the multinational organziation during the times of economic crunch, and this is augmented by the competitive intensity and is modified by the technological unpredictability and consumer demand.

An economic crunch is the specific situation which demands all the organizations to review and revise their management practices and business operations in order to ensure their continuity in the long run. There is a general slowdown in the economic activity and the business cycle contracts tremendously (Shiskin, Julius, 1974). It refers to the fall in the macroeconomic indicators like employment, GDP, capacity utilization, business profits, investment spending, inflation and household income fall, while there is a rise in the rate of unemployment and bankruptcies. The economic crunch usually takes place in circumstances where the adverse demand shock is accompanied by an extensive drop in spending. Numerous events including an external trade shock, financial crisis, the bursting of an economic bubble or an adverse supply shock ...