Question

one major problem facing MNCs is that they sometimes attempt to manage across cultures in ways similar to those of their home country.MNCS assume strategic pre-dispositions towards managing across cultures.These different approaches shape how companies adapt and adjust to cultural pressures around the world.Discuss the four strategic pre dispositions in terms of how they shape cultural orientations.

Answer 1

The four strategic predispositions that MNCs have guiding their cultural orientation are:

A. Ethnocentric predisposition: This predisposition led management's nationalistic view. The management follow their values and interests to guide their strategic decisions over the countries.

B. Polycentric PreDisposition: Under this predisposition, the management uses the culture of the home country to make all its strategic decisions and use it over all the countries where it is operating.

C. Regio-centric predisposition: Under this predisposition, the management tries amalgamating the interest of the parent company and the interest of its subsidiaries based upon the region in which they are operating. So, in region A, the MNC will have different decisions than for region B even if the situation is same.

D. Geocentric Predisposition: Under this Predisposition, the management has a global view. And all its strategic decisions are made keeping in mind the global view.