Navigate your company’s border crossing.
No business strategy is carved in stone. Every strategy is vulnerable to external and outside variables. Knowing how to adjust your company’s plan to overcome these obstacles is good management. Understanding how different these obstacles and their solutions can be when operating overseas is smart business.
Just as multinational companies are presented with opportunities domestic companies don’t enjoy, they are also faced with an additional layer of strategy decisions that must be made to meet the challenges of international business.
Using case studies to illustrate these challenges, MGT 556 turns your focus to the organizational and managerial issues facing multinational enterprises.
You’ll concentrate on the external and internal variables that can assert influence. The choice and outcome of specific MNE strategies can be affected.
- Entry into the international market
- Ownership of a multinational company
- Management control
- Human resources
- Public affairs
Internally, a multinational company can be challenged by its resources and capabilities, affecting its ability to compete in the market. Internal factors also include a company’s mission, values, and organizational culture. You’ll explore the reasons a company chooses to expand into the international market and how they make the decision to do so.
Outside forces include the industry and host-market factors, defining the broad framework within which MNEs pursue market opportunities. You’ll look at macro-level factors such as economic, cultural, geographical, and political issues, as well as industry-level forces such as demand, supply, and rivalry.
Regardless of where it’s headquartered, a multinational company is subject to the laws and rules set by the nation states in which they do business. You’ll realize that nation states must benefit from a multinational company’s presence and you’ll see how laws help achieve that, sometimes to the detriment of the company.
You’ll explore issues related to market selection and the due diligence process for choosing the best location and understand the major questions that must be answered before making a decision.
- What kind of business environment is most suitable for a company’s purpose and which of the prospective host countries provides the best opportunity?
- What criteria should a company apply in evaluating and selecting the most suitable host countries?
- How can a company leverage its bargaining advantages to get the best deal from the host government?
In some instances, firms in a host nations partner with multinational companies to form international joint ventures (IJVs). You’ll explore how these equity-sharing arrangements are negotiated and structured and you’ll come to understand the inherent instability of these alliances.
Discuss this and more in MGT 556.
Culture plays an important role in international management and you’ll appreciate the extra effort that must be made by all parties to overcome cross-cultural differences. There are four behavioral approaches that a multinational enterprise can take when staking a location in a nation state, each of which comes with its own set of internal and external issues.
You’ll view these approaches from the triple bottom line perspective as you examine the added responsibility corporations have when doing business in developing countries.
Sample Course Topics
- The Internationalization Process of Firms
- External Forces
- Multinational Enterprises and Host-Country Interactions
- Market Selection
- Market Entry Strategies
- Cross-Cultural Management
- Role and Responsibility of Multinational Enterprises
- International Strategy
What You’ll Learn
Using case studies, MGT 556 focuses on a set of strategy decisions facing multinational enterprises (MNE).
- See the role firm characteristics play in shaping the decisions and actions MNEs take.
- Understand how external forces influence the decisions and actions MNEs take.
- Gain an appreciation for the way host-country objectives and policies set the boundaries within which MNEs operate.
- Realize the issues that shape the competitive dynamics faced by MNEs in international markets.
- Explore the structural and organizational components MNEs create for implementing their international strategy.
- Know the corporate citizenship responsibilities MNEs have in a rapidly integrating and changing world.
Strategy decisions require specific expertise when played out on an international stage. For more information about The University of Scranton’s online Master of Business Administration degree, request more information or call us today toll-free at (866) 373-9547.
The content presented on this page is representative information for example purposes and is subject to change as course and student needs change over time.