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    Inter-Culture Management

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    1. In the case The EC Shatters Microsoft's Window

    a. What are the background reasons behind all these different historic, political, legal, and business practices that gave rise to this situation?

    b. Are there any differences in the approach to globalization?

    2. Describe the term Managing Interdependence in Global arena and how the profitability of individual companies depends on cooperative attitudes toward global interdependence.

    3. What are your recommendations for the MNC in Managing Interdependence between MNC subsidiaries and host country companies?

    4. Evaluate Hofstede' four value of dimensions. How this knowledge will help the Managers of Multinational Corporations?

    5. Interpret Trompenaar's Findings in cultural values and suggest strategies for managing MNC based on Trompenaar's Findings.

    6. What is meant by the culture of a society, and why is it important for international managers to understand it? Do you notice cultural differences among your classmates? How do those differences affect the class environment? Your group projects? Your work environment? What are your suggestions you can provide to minimize disagreements and maximize productivity in corporations that lack diversity?

    7. Discuss the role of information systems in a company, how and why it varies from country to country. Describe the effects of these variations in companies in different countries.

    8. Discuss the stages in the negotiations process and how culturally based value system influence these stages. Explain the role of relative importance of relationship building in different countries explained in your textbook. Discuss the various styles and tactics that can be involved in exchanging task-related information.

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    Solution Preview

    The response addresses the queries posted in 3114 words with references.

    //As per the directions, in this part, we will talk about the European Commission (EC). In this section, we will also talk about the various reasons behind different historic, political, legal, and business practices. So, we will write about the EC and reasons behind this situation under this part. //

    Answer 1

    Part a

    European Commission (EC), the executive branch of European Union (EU) gave the order to the Microsoft to open up its technology to its competitors and provide the European countries with a version of its Windows operating system without a media player. The reasons behind this situation can be categorized under the following heads:

    Business practices: Microsoft failed to share the technical information with its rivals in the EU and illegally integrated its media player into its dominant Windows operating system. The competitors will face unfair disadvantage due to Microsoft¡¦s withholding codes that allow windows based computers to work better with servers (Dombey, 2004).

    Political and legal practices: The US antitrust regulation focuses on the company¡¦s consumers and European antitrust regulators focus on the harm to the business competition. The political and legal practices of the EU also gave rise to the situation. The EC tried to define a new law, which will have adverse effect on intellectual rights and the ability to innovate. It will also affect the European and global economy. The assertion of a broad and ill-defined duty on dominant firms is not a legal practice. These practices affect dominant companies¡¦ operations in global market (Dombey, 2004).

    //Above, we talked about the background reasons behind this situation. Moving to the next part of instructions, now we will talk about the approaches to Globalization and their differences. This part makes you clear that how these difference create barriers to the approach to Globalization.//

    Part b

    Yes, there are differences in the approach to globalization. The EU is putting restrictions on technology import and innovative products. The EC is trying to change the intellectual property rights and the ability to innovate, which puts barriers in the way to globalization. The product integration will benefit the developers as well as consumers but EC is opposing this technology innovation.

    These political and legal differences are the barriers to the approach to globalization, which restrict strategic options and growth opportunities present in the global market. The basic requirement for globalization is the removal of all geographical, political and legal limits to the economic activities of global market (Cherunilam, 2005).

    //As per the instructions, in this part, we will understand the term 'Managing Interdependence in Global Arena'. In addition, we will also discuss about the profitability dependence on cooperative attitudes toward global interdependence. I am just providing you a brief overview. You are free to add more to this part. //

    Answer 2

    Managing Interdependence in Global Arena

    With the increasing globalization of economic and social activities, the world has become interdependent. Globalization has generated increased demands for multinational enterprises (MNEs) to formulate and implement international strategies that respond to pressures on external flexibility and internal efficiency. Multinational enterprises are more complex than domestic firms due to the complex issues related to global business like economic development, cultural issues, additional stakeholders, legal issues, etc.

    Managing Interdependence: Managing interdependence refers to the management of different business issues favorable or unfavorable in the global arena. Globalization implies emergence of a borderless, hurdleless, competitive economy in which survival of the fittest is the order. Interdependence management aims at managing the diverse operations globally in such a way so as to achieve overall optimum results consistent with the objectives and strategies of the firm. All the multinational firms show global interdependency (Cherunilam, 2005).

    In this world of globalization, the profitability of each company directly or indirectly depends on the cooperative attitudes towards global interdependence. One of the things that great companies have in common, or at least companies that are great at product development, marketing and customer service, is that they have a genuine empathy for their customers. The companies depend on other nations for the fulfillment of their requirements of resources such as food or oil or water and to overcome the natural and unexpected damages like disasters, wars, etc. If the company¡¦s requirements are not fulfilled on time, it faces delayed processing, which definitely affects its profitability (Cherunilam, 2005).

    //Above, we discussed about the meaning of Managing Interdependence in Global Arena, which is mainly the direction of different business consequences. Now, we will write about the managing interdependence among the MNC subsidiaries and host companies. In this part, we will also render some recommendations for the MNC.//

    Answer 3


    Solution Summary

    The response addresses the queries posted in 3114 words with references.