ISSUES AND CHALLENGES OF MNCs MANAGEMENT
Prof. Gouher Ahmed; PhD, PMP
Professor of Strategic Leadership & International Business
Skyline University College, Sharjah, UAE
Multinational Corporations (MNCs) are a class of business corporations' themselves-sui generic, with many issues and challenges of management of their own on which there is a growing management literature. MNCs are companies with the multi-nation presence. In the globalized world of today with open-arm or even red-carpet invitation for FDI by the emerging market economies (MNEs), the sway of MNCs is justly growing, which however is no smooth with a looming suspicion regarding MNCs in host countries and in some cases in home countries too. MNCs are mega or super companies, often viewed with awe and suspicion and reservation at home abroad for their alleged 'sharp' business practices and marketing very dexterous management is called to own to be economic power houses wielding enormous economic resources war chests which are greater than the economies of many countries, making many nation very wary of the MNCs. The age of trillion USD MNCs may not be far away.
Hence, MNCs face a number of issues ranging at home and abroad that range from 'distrust' to high costs and prices, profiteering, high IPRs, BPO, tax dogging's, no CSR, etc., in 'home' countries to 'hostility', monopoly, high costs and profits, disregard of local customs, traditions and culture, unfair trade practices, disregard of labor laws and welfare and others in host countries. Nevertheless, the MNCs appear to be going from strength-to-strength all over. There are issues and challenges of operating in different climes and cultures and socio-economic and political setups. As such, all over, the MNCs and their management need to change their style or model of management from profit orientation to people friendliness, environmental welfare, social concerns, CSR respect to local values and non-superiority that will go a long way in meeting the MNCs issues and challenges. In sum, MNCs management calls for an enlightened, concerned, inclusive, innovative and humane and urban management model for them to feel at home and abroad.