Issues faced by multinational companyies Essay Example | Topics and Well Written Essays - 1500 words

Issues faced by multinational companyies - Essay Example In this present day context, companies are eager to earn an extraordinary reputation for themselves in the global market, which further encourages them to diversify their respective business operations. The issues that face by the multi-national organisations might impose considerable impact upon the reputation along with the overall performance of their business in an unfavourable way. In recent years, multinational companies are dealing with critical issues while performing their respective operations throughout the globe. This can be owing to the reason of their wider operational network and prevalence of extreme business market competition among others. A few of the challenges that face by multi-national companies include incessant alteration of business environment, changing trends in the preferences of the customers and rising competition among others (Sabir , 2013; Elnaugh, 2008). Contextually, this paper intends to evaluate the present issues and challenges facing by multinat ional companies in the global business environment. The evaluation will be conducted through reviewing several noteworthy literatures and critically comparing different concepts or theories related to the subject matter. Critical Evaluation of Issues/Results As discussed above, multi-national organisations on the modern day environment often face several issues that impose unfavourable impacts upon their operational performance. With the advent of globalisation, the companies have to deal with stern competition, forcing them to adopt unconventional strategies for the purpose of overcoming the identified issues and attaining sustainability. Apart from this, companies also need to move parallel with the changing demands of the customers. Additionally, constant advancements in technology present another major challenge for companies in this present day context (Slideshare Inc., 2013). The challenges that are currently faced by the multi-national companies have been illustrated hereunde r with reference to the relevant theories. Comparing and Contrasting Different Theories, Concepts and Research Findings Multi-national companies are observed to remain continuously under immense pressure in order to perform effectively in an evenly poised competitive global market. According to the study conducted by McDonald & Burton (2013), there are certain major challenges that companies face when they perform their respective operations in several regions of the world, which can be explained with the assistance of the globalization and international theories. Emphasising the same context, Hennart (2000), affirmed that the foremost among them is the changing economic conditions that have been explained as ‘market imperfections’ in Hymer’s international theories. In this regard, the global financial conditions fluctuate quite frequently due to gaining momentum of globalisation and other crucial factors mainly owing to two driving forces, viz. ‘boundedly rational’ and ‘opportunistic’ forces, influencing companies to change their strategies on a constant basis in correspondence to their transaction costs (Hennart, 2000). Moreover, McDonald & Burton (2013) also affirmed that volatility in the political conditions of various nations also forced multi-national co