Be global and act local Essay

Explain the need for an MNC to â€Å"be global and act local.† How can a firm design its organization to enable this? In today’s business environment, globalization opens doors to new opportunities. More and more companies are going global, but not all companies are getting enough advantage of going global. Reason being, many firms are unable to respond to the local market. The company design that is in place fails to meet the needs and expectations of local consumers. A product which is very success takes into consideration the people they are soliciting and make sure the product is acceptable for the local market. A firm must make sure the company has leadership that represents the local market and allow them some freedom to meet the needs of the people. Discuss the implications of the relative centralization of authority and decision making at headquarters versus local units or subsidiaries. How would you feel about this variable if you were a subsidiary manager? Two major problems in reporting for subsidiaries must be considered: inadequate management information systems and the non-comparability across countries of the performance data needed for evaluation purposes. As an international manager, what would make you suggest restructuring your firm? What other means of direct and indirect monitoring systems do you suggest? As an international manager, I would feel the need to restructure my firm if it is inefficient, I see conflicts among the units, if there is poor communication and if several people have the same responsibilities. I would make sure to keep an eye on the financials of the firm and evaluate the foreign affiliates. I would make sure to take into account the market I am monitoring and make sure the data provided is comparable data. What is the role of information systems in the reporting process? Discuss the statement â€Å"Inadequate MIS systems in some foreign affiliates are a control problem for MNCs.† The role of information systems in the reporting process is to provide top management with accurate and timely information regarding sales, production and financial results to be able to compare actual performance with goals and to take corrective actions where necessary. The statement â€Å"Inadequate MIS systems in some foreign affiliates are a control problem for MNCs† means that some less developed countries are not used to the sophisticated information generation, analysis and reporting systems. They do not collect and  evaluate the same information are more developed countries and make it hard to compare data. The information collected depends on the culture and government in the country. Why is the HRM role so much more complex, and important, in the international context? The role of the HRM is so much more complex and important in the international context because they have to find employees to merge the local with the global. They have to find people who understand the company and are willing to relocate to share this knowledge with others. They are also challenged with finding local people who can help grow the company. The HRM is responsible for recruiting, training and compensating skilled employees. They have to understand the local laws, culture and what they practice. Explain the common causes of expatriate failure. What are the major success factors for expatriates? Explain the role and importance of each. The causes of expatriate failure include: poor selection based on inappropriate criteria, inadequate preparation before assignment, alienation from headquarters, inability of manager or family to adapt to local environment, inadequate compensation package, and poor programs for career support and repatriation. The major success factors include proper planning, training and assessment. Do not give up on the plan and follow it all the way through.