Globalization and Multinational Corporations Essay

Globalization and Multinational Corporations - Essay ExampleThe globalization innovation does not reveal the ch wholeenges leaving the companies to look at the positive side of the concept. There be very more charge challenges due to polar cultural issues and government intervention in diverse nations. As it will be discussed in the paper, countries differ in their levels of technology, development, availability of labour and resources and policies targeting trade and taxation. two local and global companies normally do not have the right information concerning such issues thusly end up making the wrong decisions in location and strategies (Karsten, 2000, pp.120-134). The best example of a international company to use is the Coca Cola Company as it has gone through very many challenges as it was in its race to meeting the global concept.Global strategy is defined in crinkle as guidelines of an organisation to globalisation. For a firm to succeed in expanding globally it requ ires to define the extent to which it send packing expand its service and products provision. Local and global enterprises are facing a lot of challenges in expanding globally and this does not leave out the Coca Cola Company. The decisions Coca Cola makes on where it needs to turn up its business are highly affected by the fact it usually defines how far it needs to allocate. many an(prenominal) multinational organisations that are failing expand unnecessarily. This occurs because of the lack of complete information on the different frugal status of different nations. This limits them in attaining competitive advantage within the corporate world (Gupta, 2008, pp. 20-21). Strategic perplexity Strategic centering entails to plan and forecast, command, control, co-ordinate and organize. It is important for organizations to practice effective modes of management to ensure that at the end of the day they achieve their main objective profit making. Though strategic management entai ls all this conditions, it is unequivocal that they are not practised in all organisations globally. This is so because countries differ in their bridal of management strategies. This makes it hard for an organisation in a well established country that practises high management concepts to incorporate the concepts in another country that has not yet implemented them (Ghoshal, 1987, pp. 425-440). However, with Coca Cola organism a multinational company for a very long time, it has identified that different areas need different ways of management though people are being urged to embrace global ways of management. rail line courses and beliefs are very different in all nations. For instance, in developing countries, the business courses are noncurrent and it is only recently that they are trying to educate its people on the global strategic management principles. Many organisations that want to expand globally are misled by believing that all nations embrace the concept globalisatio n thus they set up their businesses in different localities only to find that they do not use the global strategies of management. This makes them to lag behind in making profits because they lack competent individuals to employ. It is evident that for a business to flourish there must be availability of labour within the area. whatsoever multinational entities are forced to employ individuals from other countries which is a more expensive strategy because they necessary a high pay for relocating from their native homes (Ghauri, 1995, pp.