Essay On Multinational Corporation

The Multinational Corporation

A multinational corporation is a company that operates in more than one country but has its operations centrally controlled from its home country. For instance, Shoprite Chain Stores operates in many African countries such as Zambia but is centrally controlled in its home country South Africa. A multinational corporation derives a quarter of its revenue from outside its home country.

To function effectively, multinational corporations must manage their operations effectively and efficiently in many countries that they operate in. They have to do this by understanding the social-political , economic , cultural and regulatory environment that they operate in. They should direct and lead their sales teams to gain competitive advantage over local firms. To score effectively, this requires proficient management practices that

There are countries in this world where Multinational Corporations cannot not win a tender without offering a bribe to a government. It is prevalent globally and affects all levels of governance such as judiciary, legislature, large and small businesses .It affects the poorest global citizen most as it increases the cost of living. How does a manager in a multinational corporation deal with corruption? Should he or she offer a bribe in order to win that lucrative tender or should he go by the guidelines of good corporate governance. Some multinational corporations are at the fore front of perpetuating corruption in their globe deals. It takes strong moral personal will for a manager to resign from a multinational corporation that involves itself in corrupt transactions. The impact of good corporate management practices is to avoid corruption at all costs . This is why business schools must teach would be mangers to say no to corruption. This is one sure way we will have corrupt free corporate management