Strategies Of Multinational Organizations In This World Of Research Paper

Strategies Of Multinational Organizations In This World Of Globalization - Research Paper ExampleThe emerging markets are those nations that are between the developed and the developing nations. uphill markets present tremendous opportunities for all multinationals as the purchasing power in these nations has been steadily growing. The emerging economies now account for 30% of exports compared to only 20% in 1970 (Wadsworth, 2010). However, their strategies are shaped by forces beyond their control but they must evaluate the business environment before moving ahead. To gain competitive payoff several theoretical perspectives are taken into account. The most commonly used analysis is Porters generic wine strategies (cost leadership, differentiation and focus). Porters generic strategies emphasize that only one strategy should be used at a time but others argue that a hybrid or a middle approach can be used (Baack & Boggs, 2008). Mintzberg et al (1998) suggest that the strategy shoul d act as a mediation force between the cheek and the environment. This implies that in a changing business environment the strategy too should be flexible enough and adapt to change. Organizations adopt a strategy fit to its internal and external environment. A global strategy treats the world as a single unified and homogenized world but a localise approach becomes essential when formulating the strategy. While McDonalds has achieved success through failures in localizing its product offerings, McDonalds has failed to respect the sentiments of the people. In Israel McDonalds has been accused of Americanization and of disregarding long-established traditions and conventions. The Golani Brigade in Israel is a disassemble of the Israeli military history. Moreover, this intersection in Lower Galilee has been named as Golani Junction as a mark of respect (Azaryahu, 1999). McDonalds intentionally ignoring and overlooking the local sentiments candid its restaurant next to the memoria l. This became a controversial issue as the restaurant seemed to overpower the memorial. This suggests that local factors in overseas expansion cannot be ignored. Competitive prefer among nations can be ascertained based on Porters Diamond Model or the theory of competitive advantages which places innovation in the affection of the process of development and competition (OConnell, Clancy & Egeraat, 1999). However, the national competitiveness does not depend upon the economy as a whole but can be industry-specific. Nations that occupy such strengths gain prominence in the world market. India demonstrated definite advantages over other nations in the field of IT and hence gained immensely when foreign firms entered India. India do tremendous progress in the field of telecommunications and in development of IT parks. The Indian government had opened up the economy and brought about a lot of reforms that render made India conducive to investments. Low labor rates, low labor turnov er, high quality of human resources and support from the government have all contributed towards the success of the IT orbit in India (Gonsalez, Gasco & Llopis, 2006). Lack of environmental analysis (PESTLE) can lead to errors and omissions. The Uppsala Model of internationalization suggests that firms should start expanding in