Multinational Companys and Marketing - Research Proposal Example

 Research Proposal On Multinational Companies and marketing 1. Introduction Multinational corporations can broadly be defined as the businesses that operate across the world and have operation units in different countries. In the rapidly changing environment of globalization, the dynamics of the business across the globe is undergoing tremendous transformation. The organizations need to implement necessary changes to not only survive but compete with their rival with confidence and effectively meet the challenges of the constantly evolving business environment. The highly competitive nature of emerging new models of global business has increased the risks and responsibilities of the organizations. The role of marketing strategy, therefore, becomes increasingly vital to the strategic management of the organization and projection of its aims and objectives in the eyes of the public and stakeholders, especially in different economies. 1 (a) Statement of the problem The compulsions of the present times require versatility in the work ideology and functioning, thus making it imperative that new skills and strategies are evolved to meet the emerging challenges with efficiency and unmatched proficiency. ‘Countries have different political, economic, and legal systems… All these differences can and do have major implications for the practice of international business’ (Hill, 2004). The wider perspectives of the changing paradigms of the business environment have become important ingredients of business to understand and address the emerging challenges in the dynamics of new business equations. 1(b) Purpose of the study The emerging new economies of the developing world have made the global market more competitive, challenging and interesting. It is for these reasons that the business houses need to become less rigid and change their business and market strategy as per the socio- economic compulsions of the host countries. Therefore, purpose of the study is to look at the factors that have significant impact on the business negotiations. Analysis of those factors for their role and impact on the company’s marketing policies and strategies in such market conditions is important because market strategies need to be tailored according to the environmental conditions of the place. The study would always serve as value addition to any work environment. 1(c) Research question 1. Do marketing paradigms influence business strategies of the organizations and to what extent do they impact the performance outcome of the MNCs? 2. What are the significant factors that hinder business negotiations in the developing economies? 3. How much macro environment factors impact the market strategies of the MNCs? 1(d) Hypotheses The rapid globalization has created a pluralistic society which has diverse needs and requirement. Understanding of socio-psychological needs and requirements of the host countries has become imperative for MNCs that are operating in different countries. They need to improvise techniques and strategies to encompass traits and behavioral pattern that facilitates better perception and understanding of people. ‘Organizations must change because their environments change’ (Bateman, 1990). Indeed, the non market factors, in global markets have become crucial because of the sensitive nature of the new market potential and the volatility of the market forces. The non market factors or the new macro environment factors have significant impact on the market strategies of the products, thus making it essential for the organizations to incorporate the vagaries of those environment elements into its marketing strategy. Therefore, one can also hypothesize that understanding of cross cultural values and macro environment factors are vital elements of any business negotiation. 1(e) Significance of the study With huge market potential and relatively low competition, global community is looking forward to tapping the emerging new market with zeal and interest. The emerging new economy has created potential in a wide ranging areas of business concern that includes construction, telecom, technology, consumer goods etc. and the recent times have seen a floodgate of foreign investors and business houses, eagerly exploring the opportunities there. The competition, within the global businesses has become extremely tough and needs to be approached with wider perspectives gain leverage in the global markets. The external factors become significant in evolving new strategies to meet the challenges of the emerging new dynamics of the business paradigms. The company needs to formulate marketing and communication strategy in a way that would not only uphold a high standard of corporate ethics but it must be able to ensure and exhibit understanding of the cross cultural values and demands of the people coming from different race, colour and culture. The study would provide the MNCs with wider perspectives of the changing paradigms of the business environment and help facilitate better options to address the challenges of evolving dynamics of international business. 2. Review of the literature The multinational corporations have critical role in the contemporary global business environment (Dunning, 1993). Strategies in the international business demand more careful considerations because of diversity of issues like different value system, socio-cultural perspective, currency, legal paradigms and market conditions. Thus, more competitive and sophisticated business strategies emerge in the global business (Bartlett and Ghoshal, 1988). Gupta and Govindrajan (2000) assert that existence of MNCs can primarily contributed to their better abilities to transfer knowledge across the international market. The imperatives of the global business environment have transformed the traditional business practices to suit the business and cultural compulsions of the host business partners. The business practices of the domestic market are inadequate in the global market and tacit knowledge of the new market is essential for expanding business across the globe. Zander and Kogut (1995) have argued that recognizing the power of tacit knowledge greatly facilitates competitive advantage. The non market factors are the socio-political environment within which the firm has to operate. ‘These are characterised by 4Is: issues, institutions, interests and information’ (Baron, p2, 1995). The role of government regulations and political dynamics combined with the media, public opinion and stakeholders are few other institutions that make up non market factors. Several academicians and experts have expounded on the varying cultural values that influence the negotiating techniques in business dealings. National cultures are known to determine the (business) negotiator’s assumptions and thoughts which help to form business strategy and behavioral pattern (Cohen, 1993; Rubin & Sander, 1991). There various macro environment like: economic; demographic trend; changing socio-cultural paradigm; developing new environmental compulsions; advancing technology; and political environment of the region, indirectly influence the performance outcome of the organization. Kotler et al assert that in the changing global scenario, demographic compulsions significantly impact market position and need to be taken into consideration in a company’s market strategy (Kotler et al, 2007). McCarthy et al (1997) also emphasize that socio-cultural imperatives are decisive factor in the pattern of consumer. Hence, the study of these factors is important part of business strategy in the international business. 3. Methodology and Procedure In order to meet the aims and objectives of the research proposal, the research methodology would mainly concentrate on the empirical research mainly based on qualitative research methodology. The proposed research study would be qualitative in nature but encompass elements of quantitative research also so that better and more accurate conclusions could be achieved. Qualitative research demonstrates and facilitates deeper understanding of the problem and helps to investigate the context in its entirety. 3.1 Data collection and Sample Measurement techniques would comprise of questionnaires and interview schedules. Since the research involves the study of the factors that have far reaching impact on the business negotiations, a large sample size comprising of people and organization in the developing and developed economies who have been directly and indirectly involved in the business negotiations, would be considered. The sample would primarily be collected from people who either do businesses directly or indirectly in the developing economies. The study would be taking into account the conceptual model as well as the theoretical model. The samples selection and the questionnaires would be prepared as per the theoretical model of survey and a wider conceptual model of the research would be used to analyze the data. Primary data collection would be collected through detailed and qualitative and quantitative questionnaires prepared, keeping in mind the need for appropriate negotiating techniques and the facilitating factors that would promote and improve business activities. Special interview Schedules would also be used to gauge the responses of the people towards global business practices and the improvisations that are needed to be made in the current circumstances of conducting business in the emerging economies. Secondary information sources such as libraries, commercial bibliographic databases for peer review, internet resources and e journals would be used for literature review. 3.2 Data Analysis Comprehensive data analysis would be undertaken (Michael). Data analysis synthesizes the huge data that is collected and puts them into coherent form by applying appropriate statistical techniques and developing patterns. Software like SPSS would also be used to analyze the data using different techniques and interpreting the data in the wider context to understand the intricacies of corporate governance paradigms that influence negotiations. 4 Scope and Limitations of the study Comprehensive sampling with wide ranging issues which influence the business outcome would be introduced in the questionnaires and interview schedules so that the scope of study is large enough to ensure the success of the research’s aims and objectives. The empirical method of the research is appropriate mainly because the aim and objectives of the research need a survey requiring qualitative analysis of the factors that have significant impact on the business strategies with various business partners in the global business environment. The study would be limited to the framework of developing economies’ paradigms that have impact on the international business negotiations and hence the sampling would be limited to the individuals and domestic and international businesses that are directly or indirectly linked with business negotiations with their counterparts in developing economies. Some people have criticised these methods because of lack of absolute validity of obtaining proof. The limitation of sample size because of financial constraints is also one of the reasons cited for accurate and efficient analysis of the factors that may have significant impact on the negotiations. 5. Work plan and tentative time frame Serial Activity Days 1. Field Work 60 2. Compilation of data 30 3. Data entry and processing 15 4. Data analysis and evaluation 30 5. Writing and printing 60 6. Conclusion The proposal is designed to study the role of corporate governance on the business negotiations with the global business players. Though, many researches have been undertaken to study the various aspects that affect negotiations but the wider ramifications of the corporate governance and the hidden factors that considerable influence on the management strategies would be the main feature for this particular study. The research proposal would be making efforts to study the paradigm shift in the perspective of the discretionary business practices and changing trends of the global business, especially in developing economies. Special efforts would be made to study the rescheduled priorities in the business strategies by global business partners to influence the business processes at different stages of negotiation. The current research findings would facilitate further research into the role of macro environment and help understand the compulsions of the interlinking of socio-cultural and professional competencies. Reference Bateman, Thomas S., and Carl P. Zeithaml. Management: Function and Strategy. Homewood, IL: Irwin, 1990. Bartlett, Christopher A. and S. Ghoshal. (1988). Organizing for Worldwide Effectiveness: the Transnational Solution. California Management Review Vol. 31(1): 54-74. Cohen, R. (1993). An advocate's view. In G. O. Faure & J. Z. Rubin (Eds.), Culture and negotiation: The resolution of water disputes (pp. 22-37). London: Sage. Dunning, John H. (1993). Multinational Enterprises and The Global Economy. Addison-Wesley: Wokingham. Gupta, A.K. and Govindarajan, V. (2000). Knowledge Flows within Multinational Corporations. Strategic Management Journal Vol. 21(4): 473-49. Hill, Charles. (2004). International Business: Competing in the Global Marketplace. 7th ed. Irwin/McGraw-Hill. Kotler, Brown, Adam, Burton & Armstrong (2007). The Global Marketing Environment. Prentice hall. McCarthy, E., Perreault, W., & Quester. P. (1997). Basic Marketing: A managerial approach. 2nd edition, Irwin, Sydney. Rubin, J. Z., & Sander, F. E. A. (1991, July). Culture, negotiation, and the eye of the beholder. Negotiation Journal. 249-254. Zander, Udo and B. Kogut. (1995). Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test. Organization Science Vol. 6(1): 76-92. Read More