MULTINATIONAL CORPORATIONS

What are the implications for managers of Multinational Corporations (MNCs) with regard to new strategies and organisational structures when dealing with Governments & Companies in Emerging Market?



What are the implications for managers of Multinational Corporations (MNCs) with regard to new strategies and organisational structures when dealing with Governments & Companies in Emerging Market?

Introduction

Evolution of the organizational structure of multinational enterprise organizational structure is an important part of the evolution. As the business continues to evolve, growing scale, the organizational structure must be adapted to different stages of business development needs. While, it expands the business scale also promote the continuous adjustment of the organizational structure (Barney 2001, p. 45)

99. The organizational structure from the original increase in overseas marketing its main function is to sell products or services overseas with the continued expansion of overseas markets. It takes into account for the staff costs that are under a gradual transition of centralized headquarters subsidiary, a subsidiary of the country or region of production and sales.

With the further expansion, of the market, the urgent need for coordination between the various subsidiaries and optimize resource allocation. In order to form a more rational organizational structure to meet the increasingly fierce competition, the establishment of an international business point's ministry of the major business of multinational corporations on the basis of unified decentralized management (Barney 2001, p. 45). It increases with the degree of economic globalization, information technology development, global organization came into being, adapt to new economic environment and globalization strategies of multinational corporations of the new organizational structure.

Discussion

When carrying out organizational restructuring, multinational corporations faces with a dilemma. Stressed that the division of labour, have resulted in management divides, prone to lead to inadequate control; emphasis on cooperation, have resulted in unclear responsibilities, it is difficult for performance appraisal. As multinational companies continue to push forward global strategy, global business expanded exponentially, assets overseas employees, overseas assets and a growing proportion of overseas sales. The original functions of international business management and the horizontal division of each vertical in the management of conflicts around the world will become increasingly prominent. How to coordinate vertical and horizontal relationships, and improve cross-border business networks to become leading issues in multinational companies(Barney 2001, p. 45). The latest trend is the establishment of vertical and horizontal multinationals in the management of the organization. It is trying to overcome fragmentation and achieve the organic combination of vertical and horizontal two directions to form a sound global management system.

Trends In The Organizational Structure Of Multinational Companies

The organizational structure of multinational companies showing simplified. With the rapid development of the information superhighway, the Internet's widespread use, people realized that the neighbors of meaning. Changes in the organizational structure of multinational companies show flat and lean characteristics.

The presumed flat refers to the middle management reduces, so that a directive from the top of the pyramid originally reached the production line workers must go through the lengthy process to be shortened, the flow of information to be more efficient, ...