Global business strategies case study

Category: Case Study, Competition

Last Updated: 06 Jul 2020

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The Company operates in twenty one countries and has fifty manufacturing plants spread around in these countries. Different countries have different laws which govern the industries within their territories. In many countries the industrial laws are designed in such a way that they favor local industries. This is because the local industries are taken to be less competitive as they have insufficient funds for investing and expanding their businesses. Similarly, employment laws and competition laws vary from one country to another. This has therefore made the company to be very keen when opening manufacturing plants around the world.

However, laws change with time since the government can amend the old laws or develop and enforce new laws. New laws and policies are risky to a business as they can either harm or promote a business. Furthermore, in every country there are traditions and cultures which govern people's livelihood. They provide guidelines on how individuals should behavior or conduct themselves. This therefore implies that the company has to understand the culture of each country they have opened a business for it to be successful and attract more customers.

In solving the cultural challenges, the company has developed and implemented a policy that ensures that it hires professionals from that country in which it has opened a business (Molex, 2009). Additionally, the company transfers its employees frequently in order to give them experience. This can be ethically challenging as some people may not prefer to be transferred, the transfer needs be optional and not a must. The transfers might not respect human rights as individuals have free will and thus can choose what they prefer.

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