The Multinational Corporation (MNC)

  • Operates across
  • Products
  • Markets
  • Nations
  • Cultures

Each Subsidiary Has Its Own

  • Geography
  • Goals
  • Policies
  • Procedures

Special Information Processing Needs Influenced by
Administrative heritage
Internal conditions

  • Firm’s assets
  • Distribution of power
  • Corporate culture
  • Management style

External Conditions
Exist within the firm’s environment

  • Global

Uncertainty – Difference between:

  • Information required and
  • Information possessed

Need to make good use of information technology to achieve good performance

Types of MNC Organizational Structure Classifications
Each structure requires its own information processor
Worldwide functional divisions

  • Organized along functional lines
  • Marketing in subsidiary reports to marketing in parent company
  • Strategic planning done at top executive level

MNC Classifications (continued)
International regions

  • International division separate from domestic division

Geographic regions

  • Each region responsible for its subsidiaries
  • No communication between regions

Worldwide product divisions

  • Product division responsible for operations worldwide

Need for Coordination in an MNC
Greater need than domestic companies

  • Flexibility in responding to competitors
  • Ability to respond in one country to a change in another
  • Ability to keep abreast of market needs around the world

Advantages (continued)

  • Ability to transfer knowledge between units in different countries
  • Reduced overall costs of operation
  • Increased efficiency and effectiveness in meeting customer needs
  • Ability to achieve and maintain diversity in firm’s products, their production, and distribution

Global Business Strategies
Use global information systems (GISs)

  • Multinational strategy
  • Global strategy
  • International strategy
  • Transnational strategy

~ oleh bangzabar pada Agustus 9, 2009.

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