The Tortuous Evolution Of The Multinational Corpor Essay
412 Words2 Pages
Reading 1-1 The Tortuous Evolution of the Multinational Corporation
The reading passage explains about the tortuous evolution of the multinational corporation toward ethnocentric to polycentric, and polycentric to geocentric enterprise. The writer identifies three types of headquarters orientation toward subsidiaries in an international enterprise and analyzes international executive’s view of forces and obstacles toward geocentrism in their firms. Along with costs, risk, and payoffs of each stages, he demonstrates that movement from ethnocentrism to polycentrism to geocentrism is painful and requiring much effort from executives and headquarters but is necessary and inevitable process for multinational corporations. In my opinion, I think that as it is described in the title it is tortuous evolution but ultimate goal of multinational corporations to evolve. In the article, the statement of president of IBM World Trade, “it will sooner or later have to face the issue that the home country does not have a monopoly of either men or ideas” and “the future belongs to geocentric companies”, inspires me to think about importance of going global marketing and developing to geocentric corporation.
Moreover, there are many positive factors associated with stepping toward geocentrism. To be specific, there are the growing world markets, the increase in availability of know-how in different countries, advanced telecommunications, increasing desire to use human and material resources optimally, the observed lowering of morale after decades of ethnocentric practices, the evidence of waste and duplication under polycentric thought, the increased awareness and respect for good men of other nationalities, etc. Along with those positive factors, geocentric companies can achieve a more powerful total company throughout, a better quality of products and service, worldwide