Multinational Enterprises: General Motors

Multinational enterprise development has become an important trend in the market today. Different companies dealing with electronics and automobiles opt to establish multinational enterprises in order to promote the performance of their businesses. They consider this as an appropriate approach other than establishing numerous business branches. This is done by such organizations to maximize their profits while at the same time minimizing on intermediaries. This gives marketers the power to market their products thereby becoming effective business players with an international recognition.

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When companies establish a multinational organization, they do not have to rebrand their products every time they change the location for doing business. They also do not have to design different advertisements for their products became they have a global presence. The brands of the company and their stand becomes internationally recognized and accepted in areas where they are located. However, it is not a guarantee that a multinational enterprise will succeed in its operations. There are multinational enterprises that have not gained the advantage of business location. Generally, the marketing skills of business organizations and companies is what determines the success of companies and if they will be accepted in the market place.

The article by Srilata and Lilach on multinational enterprises highlights some of the success stories whereby some firms have gained ‘location advantage’ and how this has worked to their advantage. The article also takes us through a critical review of some multinational enterprises that have not succeeded in their areas of business location despite the marketing efforts and costs incurred. In comparison with other firms that do not employ specific marketing strategies, it is observed that business location is important if the companies are to be accepted internationally. Multinational organizations are started as subsidiary companies.

This means that new branches are initiated in different locations thus making it possible to pursue the goals of the organization. These businesses are motivated by the need to deliver their products to other nations. Launching a product internationally requires a comprehensive field study whereby the culture and taste of potential customers is studied and carefully analyzed. There is no guarantee that a product provided within a given location will be profitable and increase the sales of a company. There is a lot of ground work that has to be done to ensure the product has been accepted by the potential customers. For automobile companies, it is more about the test of potential customers and what they can obtain from machine than factors such as price.

A good example which can be given here is that of General Motors (GM). As a company, GM has succeeded in its international operations by providing quality services to its clients. The company launched its services with the intention of selling its vehicles in different parts of the world. The secret behind the GM’s success can be attributed to its approach in handling employees and customers. Today, the company boasts of the most satisfied employees in terms of remuneration and good working conditions.

The employees are always motivated to work for the company while knowing that they have the best value for the work they do for the company. In most cases, companies put their customers before their employees not realizing the vital role of employees in connecting them to their customers. The company has in fact used some of its loyal employees to market its activities in other nations. This is done by establishing good goodwill between employees and customers. After all is done and the customer is need of similar services, they will go back to the company based on how they were treated by an employee.

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General Motors also considers organizational culture and diversity. The company recruits employees from different backgrounds who play a vital role towards introducing new products into different locations in the country and internationally. The diversified workforce also promotes performance thus making it possible to realize the company’s goals and objectives. Because of this, the company never encounters any hardships whenever it is conducting its field studies. They make use of the resources they have to obtain more information, which has always facilitated the success of their business.

The articles, using examples of other multinational companies such as Ford and GM, have highlighted some of the marketing strategies used by the companies and how successful they have been. Establishing relationships with local firms has also been one of the main strategies of General Motors in enhancing its business activities. The company puts itself in position where they can always be consulted and called upon when a local firm is in need of services. Realizing that the company has many other competitors, outstanding performance is paramount in ensuring that they remain at the top of its business practices.

Being a multinational enterprise mainly gives the company the advantage of transporting numerous products to different destinations. While at it, if such qualities are compromised, another company is likely to rise up and compete in its shares. Managers of multinational enterprises should always realize that they are in unpredictable business environment. Any mess, however minor and simple it may seem could work to its disadvantage.

The management has it in mind that there are upcoming business enterprises eying different positions in the organization. The company always conducts market research to monitor the acceptability of its product and any changes in the marketplace. Since the tastes and expectations of consumers change every day, the company always considers the need to analyze the market in order to retain its market share.

According to Allan Rugman, succeeding in multinational enterprises also requires the organization to establish good relationships not only with local firms but also with the, local leaders and residence. It will save the company a lot of hustles in terms of having to get the required materials. Establishing such relationships with the locals will also help the company to penetrate to other localities without any fear or limitations.

Local relationships are also important in ensuring the security of the company. Local residence will have more confidence in a multinational company when there are solid relationships between the management and the locals. One of the ways through which the relationships are established is by employing them. Multinational companies should ensure that most of its employees come from the area where they are located. In doing this, the residence will easily associate with the company as their own and not look at it as something foreign.

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The articles have therefore highlighted some of the critical issues that have been affecting multinational corporations, both positively and negatively. The authors have also analyzed the requirements for multinational companies to succeed in their business operations. The articles are based on case studies of multinational companies and strategies which can be adopted to ensure the organizations have been successful. It is therefore important for companies to learn from the success stories of others as well as their failures. Though it is also necessary for companies to employ new strategies, such strategies have to be tested to ascertain their applicability.

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