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Strategic Management of International Enterprises - Essay Example

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Liberal trade policies, incentives, growing foreign direct investment (FDI), advancement in information technology and communication have all stimulated the process of globalization (Lee & Tai, 2006). Multinationals, before venturing into a foreign market have to take into…
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Strategic Management of International Enterprises
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(Savitsky & Burky, 2004). Globalization continues to grow in its effort for a coherent global economy previously separated by culture, geography, or nationality. Global competition, entry strategies, strategic timing and positioning, the government rules and policies, the local culture, investments, and the target market are some of the issues that confront companies wanting to expand overseas. Due to globalization, situation has altered to keep pace with the changes. Nevertheless, challenges remain and this report presents how Motorola faced the challenges like ethical and corporate social responsibility, cultural diversity, and marketing strategies.

Motorola is a global leader in wireless, automotive and broadband communications. Motorola possesses world class technologies in global procurement rules and channel which it applied globally. It has an excellent marketing strategy. Motorola has established themselves as quality leaders and were early winners of the Malcolm Baldrige National Quality Award in the USA. Motorola is admired as the role model for corporate excellence. According to the Fortune Magazine, Motorola is the titan of TQM, the epitome of empowerment, tribune of training, icon of innovation and prince of profits (Winston, 1996).

Reconciling with the local government is an important factor for any MNC to enter a market. Motorola identified telecommunications as an important field which the government of any country is concerned about. Accordingly, they put the highest priority in reconciliation with the local government. It responded to China’s reform and liberalization policies and formulated strategies to target China’s domestic market. Before entering the market it determined certain investment fields and investment amounts with a clear vision from the beginning of the position it wanted to attain in China.

Its clear-cut investment policy and insiderization efforts contributed to its success in China (Hara & Nakanishi, 2004). It

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