Question

1. How are the needs of MNCs and their host governments congruent?  How do they differ?  What concessions are typically made on both sides in order to reach an agreement?

2. What punitive measures might host governments impose upon MNCs that do not share the same goals with the host?  How do these measures help or hurt the host countries that impose them?

3. Describe the hybrid international strategy.  How does it differ from global standardization and host country focus strategies?

4. Differentiate between multidomestic and international industries.  Which strategy(ies) from the question above would be appropriate for each type of industry, and why?  

5. Why is it important not to confuse weaknesses with threats, and not to confuse strengths with opportunities?

6. What is environmental scanning, and how does this process differ across cultures?

Answer 1

The needs of MNC s and their host governments congruent on many aspects. The host government is answerable to the people of the country and the MNC. is answerable to the stakeholders and customers. Common points of agreement would be social commitment in work, maintaining environment, increasing revenues for the company as well as host government and basically should be in line with governments vision and work towards a developed economy and growth.

MNC s and host governments can differ on issues of labour and staff welfare policies. Lifestyles and cultures differ in all countries and continens. Like Asian subcontinent is very different from the European and North American and South American countries in the way they deal with their employees. In Asian subcontinent, more employee friendly policies are common whereas in western  countries mostly " hire and fire " policy is adopted.

Concessions in recruitment policies and employee welfare policies are reworked as per host governments needs and the host government will be more reasonable to understand the need for efficient and profitable work cultures in a business organisation. Agreement will be reached with both parties agreeing on common goals without compromising on the basic Vision of the Host Country and that of MNC.

Punitive measures host countries can impose on MNC. s can be imposing heavy penalty or completely banning the operations of the organisation. These measures will increase the confidence of the population in the host government. Some such measures can be hurting as well, as many jobs might be lost and the social and economic development which was expected will take a hit with such measures.

Hybrid international strategy is actually the most effective tie-up of an MNC. with a host country. Properr study of the local market is done before coming with a strategy to ensure a long term result oriented strategy is in place.  

McDonald's is a master of global marketing. McDonald's has blended elements of global standardisation strategy with localisation strategy to penetrate global markets and offer products that align perfectly with local appetites and preferences.

Multidomestic strategy is a. strategy by which companies try to achieve maximum local responsiveness by customising both their product offering and marketing to match differentnational conditions. International industries refer to industries that effectively operate in all, or most, of the markets across the world.  

It is important not to confuse weakness with threats, and not to confuse strengths with opportunities. SWOT analysis should be done on individual basis to come out with best strategy.

Environmental scanning is the process of gathering information about events and their relationships within an organisation's inerrnal and external environments. The basic purpose of envirronmenal scanning is to help management determine yeah future direction of the organisation.

Conclusion : The MNC. 's  have taken the business world to a different level. Huge markets are identified by MNC. s and different strategies are adopted depending on the host countries' environment, host governments and he local community and cultures.