跨国公司策略与结构

1、Explore how the need to balance local and global requirements impacts upon the case study MNC s strategy and structureIntroductionThe American MNC Leisure Choice Internationa(lLCI) is a Sports & Leisure Company. Along with the further expansion of its business around the world, the company plans to

2、launch its new internal management concept The Global Oringaonrdizeartitoonsuppo rtits international business operation. In the global operation, both local and global requirements would impact on the company s strategy and structu.rHeence, they should be balanced well in the global operation. As a

3、multinational firm, the human resource management of LCI is faced with the recruitment, training, as well as remuneration of foreign staffs. This report discusses how the need to balance local and global requirements impacts upon the case study MNC s strategy and.structureMNC s choice of internation

4、al strategy and structureThere are many choices for multinational corporations to structure their global operations, such as transnational organizational model, multi-domestic organizational model, and so on (Harzing, 2004; Adler and Ghadar, 1990). The organizational structure of multinational corpo

5、rations determines the mechanism that they use to control and coordinate subsidiaries. It has been suggestedthat the global structure of international firms has great impact on global personnel policies (Marginson et al, 1995). As LCI runs a range of wellness and fitness centres in many countries, i

6、t is essential for the company to seek talents to manage the subsidiaries without regard to country boundaries. Therefore, geocentric staffing approach is an appropriate choice for the company as geocentric staffing approach is used when enterprises need the best staffs to work in their subsidiaries

7、. When LCI globalizes the operation, the force of local responsiveness is strong as it is essential for the company to understand the host country nastional economy, culture and employment characteristics. This suggests the need to seek talents across the world to support its global operation. In ad

8、dition, the case indicates that the company plans to launch its new internal management concept The Global Organizati.oTnhis m eans that it is also essential for the company to integrate human resource management at the global level. Therefore, multi-domestic strategy is suitable for the company to

9、facilitate its global integration.How the need to balance local and global requirements impacts upon the case study MNC s strategy and structureAccording to Bartlett and Ghoshal (1989), the balance between local responsiveness, global efficiency, and global learning greatly impacts on the success of

10、 multinational companies. Boyd and Richerson (2003) suggest that MNCs need to conduct effectively global integration in global business expansion process. When MNCs operate its business in a certain international market, needs for local responsiveness and needs for global integration are the key iss

11、ues to be considered. Besides that, MNCs also should balance global with local concerns, to maximize world-scale system and to encourage local autonomy (figure 1). As it presents above, multi-domestic strategy should be adopted by LCI to facilitate the global integration. This can cause questions fo

12、r the local autonomy (Taylor et al, 1996). For example, before the global integration, the subsidiaries of the company operate in the semi-autonomous way, meaning that the subsidiaries, to some extents, operate according to the requirement of the headquarters. However, the subsidiaries would become

13、more integrated after the implementation of the multi-domestic strategy. More importantly, the company also actively encouragesits national operation, carries out local autonomy and balances global with local concerns. Under this condition, both local and global requirements are important in the glo

14、bal integration. It is essential to consider the economic condition, culture, and employee characteristics in the host country; the mission and strategic goal of the headquarters,talent requirements of different subsidiaries, etc. The change in the operational direction would lead to the change in s

15、trategy and organizational structure. For instance, it is possible for the company to send talents from one subsidiary to another when the talents are hired without regard to country boundaries.Need for Global integrationGlobal StrategyMaximpeWQirld-galE systHaljsnrf 居InbH with UocaJ concernsITransn

16、ationalStrategyLowMulti-DomesticStrategyNeed for Global integrationGlobal StrategyMaximpeWQirld-galE systHaljsnrf 居InbH with UocaJ concernsITransnationalStrategyLowMulti-DomesticStrategyEncourage localmjionnmyNeed for Local Responsiveness5WT： sepoo酎 p研Figure 1: source: Begley and Boyd (2003)Accordin

17、g to Parry et al (2011), when an international company carries out its global expansion strategy, the international company should implement effectively international human resource management to support its international business operation and expansion. In addition, Benson et al (2011) also pointe

18、d out human resource management policies and practices are important factors that influence on the success or failure of a certain international enterprise when international enterprise operates its international business in a certain foreign market. This indicates that whether an international ente

19、rprise can achieve successful global operation depends on the effectiveness of the human resource managementpolicies and practices. According to the case study, currently, LCI plans to launch its new internal management cocept The Global Organizatiowhich involves the standardization of processesand

20、management practices representing best practice. This suggeststhat the company would integrate resourcesacross its subsidiaries at the global level. It means that it is important to ensure that resources at different subsidiaries can be shared. Human resource is a key example of the resources. The t

21、alents should be familiar with the local and global requirements, and are selected regardless country boundaries. The organizational structure and strategy should be developed to support this.ConclusionIn conclusion, this report has discussed how the need to balance local and global requirements imp

22、acts upon the case study MNC s strategy and structure. This report points out that the success of multinational firms is greatly impacted by the balance between local responsiveness,global efficiency, and global learning. As LCI plans to launch its new internal management concept TheGlobal Organizat

23、ion , the operation direct of the company would be changed. This change would further lead to the change in strategy and organizational structure. Organizational structure of multinational corporations determines the mechanism that they use to control and coordinate subsidiaries. The balance between

24、 local and global requirements would impacts on such mechanism so that the organizational structure would be also impacted greatly. This report also points out that Geocentric staffing approach is an appropriate choice for the company as geocentric staffing approach is used when enterprises need the

25、 best staffs to work in their subsidiaries. The global integration of LCI requires the company to seek talents without regard to country boundaries. Hence, Geocentric orientation is the appropriate structure for the company.ReferenceAdler, N and Ghadar, F (1990). Strategic human resource management:

26、 a global perspective, in Pieper, R.,Human Resource Management: An International Comparison2, 35-260.Bartlett, C and Ghoshal, S (1989). Managing across borders: transnational solution., Boston, MA: Harvard Business School Press.Boyd, R. & Richerson, P. J (2003). Shared norms can lead to theevolution of ethnic markers. Current Anthropology, 44, 122 T30Benson, G. P., and Scroggins, A. W., (2011). The theoretical grounding of international human resource