The report will take on the following structure - Using well accepted research literature, we will show that automotive firms face pressure to be both globally integrated and sensitive to local market needs. This results in the need for automotive organisation subsidiaries to take on different roles within the organisation. The Barlett and Ghoshal typology (a means of determining which roles subsidiaries take on) will be explained and tested on the automotive industry with particular reference to Toyota (the client's close competitor). The typology will then be accepted or refuted. If it is refuted, other explanations of the factors affecting subsidiary roles within organisations will be discussed and related back to the case study on Toyota.
Theoretical underpinning of the analysis.
The client's problem cannot be answered using traditional structure-strategy models (developed by Chandler, 1962). Their deficiencies lie in the fact that this analysis was conducted on firms operating in only one country (i.e. The US). It therefore fails to incorporate the richness of environmental factors that the multinational operates in and the less formal systems of organisation and control that are found in them(Hedlund and Rolander (1990)). The new body of writing has arisen from that of the global strategy literature (Rickard, 1997) and has dealt with the tension that the previous strategy-structure model could not - namely, the tension between the conflicting demands for national sensitivity and global integration. The literature recognised that to operate within a global market, firms have to reap economies of scale that are global in size - hence the need to keep the organisation as centralised as possible (Bartlett & Ghoshal, 1995). This is counterbalanced by the recognition that contrary to Levitt's claims - that tastes are homogenised to such an extent that we can have global brands selling the same product across the world (Levitt, 1983) - consumer preferences in different markets are important and therefore local responsiveness is needed.
Such power centres would of course include such institutions as non-governmental organizations (NGOs), inter-governmental organizations (IGOs) and multinational companies (MNCs). ... There is no doubt that the world economy is moving towards a "post-state" era where the role of the autonomous sovereign state is seriously undermined in light of this growing economic interdependence. ...
Many factors contribute to the exchange rate fluctuations for both currencies. One major factor includes unemployment. ... During the translations of the entire business exchange rate on the particular date plays a vital role of translation in the books of the company and would be prone to the exchange risk. ... Consider how the MNC could minimize any negative impacts of such movements. To this end, formulate at least (2) currency-derivative strategies that the MNC can use to foreign exchange risk management. ...
The reason for this is because, several technological develpments since last decades or so facilitated the expansion and integration of intra-industry trade, not only among OECD countries, but aslo between industrialized and developing countires; First, progress in transportation and communication systems has substatially reduced the transaction costs of factor mobility across national boundaries. ... Hence, a well integrated global production network, which was facilitated by mobile capitals from MNCs and financial liberalization undertaken in the NICs, was emerging rapidly. ... Therefore,...
In 2015, the International Monetary Fund reports that in the last two decades, the average GDP growth rate over 5.8% and this fast-growing economic of India has attracted many foreign companies to settle subsidiaries in the country. Based on this background, this report gives a detailed analysis about sourcing of human resources of subsidiaries and international training about subsidiary companies. ... It also analyses international training of subsidiaries in India and suggests the companies provide relevant training programs. 2. ... Its role is an advisor for informal sectors. ...
Nevertheless there are various external and internal factors that have a significant influence in how the company does its every-day business. ... The gains from its subsidiaries in regions experiencing economic prosperity are somewhat offset by the losses experienced by the subsidiaries economically depressed regions. ... With various new projects in planning for its product lines, employee benefits programs, and community sponsorship programs; Honda is putting itself in the best position ever to maintain its dominance in the automotive market. ...
A perfect example of this kind of problem caused by MNCs is the development of the oil industry in the Niger Delta. ... This is another account of environmental issues caused indirectly however, by MNCs. As demonstrated in the case of the Niger delta, MNCs can cause direct environmental problems through inadequate practices; however it is the long term, indirect effects of MNCs that also cause great concern for the future of the environment. ... Some evidence suggests that MNCs generate 50% of the greenhouse gases causing global warming, which isn't surprising when MNCs used to be the m...
The automotive industry has been advancing since its beginning just over a century ago. ... That same year, the patent for the drum brake system was granted to a Louis Renault and was used by the great majority of automotive producers. ... Currently, automotive companies are experimenting with a new set of brakes that increase the contract between the brake pads and the rotor. ... Advancing brake technology is just one way the automotive industry has increased the safety for all in and around vehicles....
This is believed to result in decentralisation of power to provincial governments and automotive industry departments. ... (www.english.peopledaily.com.cn) These market-opening policies are naturally also affecting tariffs and quotas. ...
After World War II, the automotive sector in South Africa expanded even more and quicker. ... In 2013, its follower, the Automotive Production & Development Programme was made. ... Opportunities also lie in the production of materials (automotive steel & components). ... The objective of the automotive industry is to keep production as stable as possible. ... Research is vital for this topic because it enlightens the reader about the importance of factors that influence buyer and seller collaboration in the South African automotive sector. ...
