- Case study question 1-3
- Activity 1
- Activity 2
Case study : Question 1
- Local responsiveness requires MNCs to make strategic decisions based on local context (Roth and Morrison, 1990).
- Differences in customer needs.
- Market structure,
- Local regulations
Case study : Question 2
In early years: Ethnocentric
In ethnocentric firms, key points in domestics and foreign operations are held by managers from heasquarters. Subsidiaries are managed by staff from the home country (Dowling, Festing and SR).
Now: Geocentric
With a geocentric approach, the MNE is taking a global approach to its operations, recognizing that each part (subsidiaries and headquarters) makes a unique contribution Dowling, Festing and SR).
Case study: Question 3
Advantage：
1. reduce the possibility of corruption due to the person recruited has been scrutinised by the headquarter and thus is more trustworthy
Disadvantages:
1. Employees from headquarters know little about local markets.
2. Avoid being affected by the limitations of local employees' talents.
3. Insufficiency of the recruitment process.
I would recommend to recruit locally for a better adaptation to local markets. To recruit from the headquarter may use up the talent in the headquarter.
Activity 1
- PCN:
Advantages
Familiarity with the home office's goals, objectives, policies, and practices
Skilled technical and managerial competence
Quickly control the business of subsidiaries
Disadvantages
Difficulties in adapting to the foreign language and the socioeconomic, political, cultural and legal environment
Excessive cost of selecting, training and maintaining expatriate managers and their families abroad
2. HCN
Advantages
Familiarity with the socioeconomic, political and legal environment and with business practices in the host country
Provides opportunities for advancement and promotion to local nationals
Low cost of employment
Disadvantages
Difficulties in exercising effective control over the subsidiary's operation
Lack of opportunities for the home country's nationals to gain international and cross-cultural Experience
3. TCN
Advantages
It will be the best compromise between securing needed technical and managerial expertise and adapting to a foreign socioeconomic and cultural environment.
Disadvantages
Not easy to promotion in other multinational companies.
4. SIEs
Advantages
Better cultural adjustment.
Highly motivated individuals eager to get international exposure
Disadvantages
Young people are lack of work experience
May bring some adverse effects to the market
5. SMs
Advantages
Highly educated and skilled individuals
Disadvantages
Strict immigration legislation may prevent immigration of skilled individuals
Activity 2
1． marketing manager, and IT associate PEST analyses
2. accountants
3. shopping mall head
4. 6 line managers and 75 sales staff
5. secretary