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Discuss the Management Problems Facing Multinational Companies and Companies with an International Dimension in Various Parts of the World

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Discuss the Management Problems Facing Multinational Companies and Companies with an International Dimension in Various Parts of the World
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as ‘multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.

Tylor(1977)has pointed out that "culture is complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a member of society". According to this definition, it is easy to know that every nation has different cultural preferences, national tastes and value standards. These factors impact on every part of management in multinational companies, especially on marketing management, human resource management and alliances management. Thus, multinational companies have to consider the cross culture issues when they run multinational business.

Marketing management
Different national culture causes different consume behaviors. According to Gogel and Larreche (1991), "marketing across cultures is a complex



References: Berrell, M., M. Gloet & P. Wright (2002). ‘Organizational learning in international joint ventures: implications for management development ' The Journal of Management Development 21(2): 83-100 Gogel, R. and Larreche, J.C. (1991). Pan-European Marketing: Combining Product Strength and Geographical Coverage. San Francisco, California: Jossey-Bass Miroshnik, V. (2002). ‘Culture and international management: a review ' The Journal of Management Development 21(7): 521-544 Tylor, Edward B. (1977). Primitive Culture: Researches into the Development of Mythology, Philosophy, Religion, Art, and Custom. London:John Murray Sonderberg, A-M & N Holden. (2002), ‘Rethinking cross cultural management in a globalizing business world ' International Journal of Cross Culture Management 2(1): 103-121 Wright, P., Geroy, G. and Baker, D. (1996), Management Training Challenges in Vietnam, Corporate University Review, July/August, pp. 40-1.

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