Managing a multinational corporation - Essay Example

Multinational corporations bear certain peculiarities which should be taken into account when developing management strategy for any of them. The topic of the present work is relevant in the framework of the existing numerous multinational corporations for the better understanding of the management processes which take place in them. The topic of the present paper is closely related to the field of management. Managing multinational corporations means applying the general notions of management, accounting the peculiarities of the multinational corporation operations and implementing the innovations which ultimately improve the general work of the corporation.

Any multinational corporation needs thoroughly developed strategy of development and coping with difficulties which arise at the way of this development, and what else except management notions and theories may be applicable here It is obvious, that the field of management knowledge represents vast opportunities for the successful management of multinational corporations, for the development of innovative strategies, which will ultimately positively influence the profitability and market position of the product.

Despite the fact that multinational corporations take significant part of the market and are huge structures, their development and perspectives are at best viewed from the viewpoint of an individual manager. (Mockler 2002, p. 10) However, to find the best solutions and to create the most successful guidelines for the development of any multinational company this manager should possess deep understanding of the basic processes taking place inside the company, and the impact the external factors create on its business activity, but even understanding these processes and factors, without knowledge of management, its notions and theories it will hardly be possible to create a solid base for the successful management of so large companies, especially bearing in mind that multinational corporations usually deal with production of various, often not even related each other, products; for their stable market position successful management is crucial, and the field of management is closely related to the narrow topic of multinational corporations' management.

(Buckley & Carter 1999, p. 227) Modern companies try to respond to the emerging open market opportunities, and for the aim of winning better market share and higher profits, have to pay their attention to the globalization and the need for creating large multinational corporations. A bright example of such changes may be represented by the German Hoechst chemical company, which at the beginning of the year 2000, admitting the rapidly changing positions on the chemical market and understanding the new accents on the global cooperation and production, decided to take this step and create a new structure.

Through the 2001 and 2002 it has sold twelve of its businesses in Germany for being no more profitable, and has bought four new pharmaceutical firms outside Europe. Hoechst in Europe was the pioneer of such drastic changes in the multinational management trends. Though the Hoechst's labor force in Germany was decreased almost twice, it became possible to increase the sales over the US continent from 6 to 33 percent of the market share by the end of 2002. These actions could be