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System Theories and MNCs

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1.Should a multinational organization operate as a tightly integrated, worldwide business system, or would it be more effective to let each national subsidiary operate autonomously? Why?

2. What would be consider an "off the cuff" definition of systems theory (don't simply refer to the definition in the text). Informally assess your organization's process efficiency with regard to departmental/functional interconnectedness based upon this definition. If you are not currently associated with an organization - informally assess an organization with which you are familiar. Remember - this is simply an informal and/or opinion-based assessment. We will be comparing your final thoughts on systems theory again at the end of the course.

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Solution Summary

The Solution discusses multinational organizations and the autonomy of national subsidies, as well as the definition of systems theory.

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1. Why should a multinational company operate as either exclusively? The overall business model should include elements of both. Autonomous operations would allow for the hiring of locals and regional workers with the appropriate skill sets and familiarity with the culture of the community. It would also help to find and source local products and materials needed to do the job the company requires. Additionally, those negotiating prices, working with local governments, and hiring workers would be more familiar with the accepted protocols and norms of the region the company is working in for ...

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