GLOBAL_COMPETITIVE_PRESSURES

The article, “Global Competitive Pressures and Host Country Demands,” outlines why competing demands result in administrative problems for most multinational companies and presents four managerial solutions to the problem. “A company wishing to be successful in the increasingly competitive global market needs to take full advantage of its global resources and multinational position,” (pg. 64). Becoming a global company can help a business retain its competitive advantage. That is, it can allow that business to take advantage of global manufacturing and allow them to find cost savings or product differentiation. What is most important though is that each multinational company has a clear and consistent global strategy. With that being said, that global strategy is at the mercy of the host country’s demands. “Host country demands put global coordination and integration of the company’s resources and capabilities in jeopardy,” (pg. 65).

One of the largest managerial challenges multinational companies face is how to operate in different countries successfully. Some managers are more in tune with the local needs and understand the power of the host government and national interest groups are in favor of more autonomy and greater freedom when responding to national demands. Other managers who are more concerned with worldwide competitive strategies are more interested in increasing coordination and integration across geographic boundaries. The management style that they choose allows them to “unearth different facts, analyze them differently, and propose different strategic decisions,” (pg. 65).

This article classified four administrative solutions to manage tensions. The first solution is substantive decision management. “The simplest of the four management modes described, top management simply ensured that the management groups representing each of the critical decision perspectives were strong enough to develop and advocate its particular viewpoint,” (pg. 67). Substantive decision management retains direct central control over the key decisions. This decision process would be best suited for industries/companies where conflicts between countries and global demands are few and far between. The company in this article’s sample that best illustrated the substantive decision management was a “pharmaceutical company that had grown from a fine chemical business with large-scale, centralized manufacturing and research and a few large customers,” (pg. 68). The finance, legal, and personnel was centralized at the corporate level and managers with different viewpoints on global issues were escalated to the International Executive Committee.

The second solution is substantive decision arbitration. “A simple answer to some of the problems of substantive decision management is to delegate the important balancing responsibility to trusted arbitrators,” (pg. 69). This method adds a screening level with top management only intervening in decisions only when the decisions are not balanced effectively. This solution has the potential to divide the organization.

The third solution is temporary coalition management. This has been most helpful in companies facing complex technological or competitive environments and those where top management had to withdraw from direct involvement in critical decision-making processes. This solution allows people to be placed on ad hoc teams, project teams, joint task forces, etc. to help solve some of the company’s problems. These teams are formulated based on legitimacy, differentiation of information, and commitment.

The final solution is decision context management. “Like the temporary coalition, decision context management describes an environment in which top management is concerned with the process of decision making as much as substance,” (pg. 71). One of the best parts of this solution is that it gives intermediate managers the ability to negotiate and resolve intermediate level issues without involving top management.

Although this article gives multiple viable solutions to how a company can manage competing demands in a global market, I believe that the best thing a manager can do is remain flexible especially when they’re operating in a global market. Building up managers who move with or are ahead of the change is the greatest thing when considering how to build strong leaders in any market.

References

Doz, Y. L., Bartlett, C. A., & Prahalad, C. K. (1981). Global competitive pressures and host country demands managing tensions in mncs. California Management Review, 23(3), 63–74. https://doi.org/10.2307/41172603

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To begin this section, please read Chapter 9 of your textbook. Then read the following article. After reading this article, please complete a summary and evaluation of it: That is, summarize the content of the article in 1.5 pages, and in .5 pages evaluate its content. You can find the article here:

Remember that your evaluation should include problems/concepts/ or points that you think the author should have addressed but didn’t. These problems/concepts/points should also have an impact on the article’s conclusions – and you should explain the mechanisms by which they affect the author’s conclusions. (See the Summary and Evaluation description and rubric for an explanation.)

Requirements

Your summary and evaluation assignment will involve summarizing the article (in roughly 1 to 1.5 pages) and then writing your reaction to its content (in ½ to 1 page). Your summary should highlight the key arguments and conclusions of the research paper in a logical manner. Your evaluation should then critique the article.

For your critique, you will need to do the following: (1) Identify a problem, concept, or variable that the author did not address in his article, and (2) describe how that problem/concept/variable would impact the author’s conclusions. Note that this will require you to carefully read the article in order to understand exactly what arguments the author does (and does not) make to support the conclusions in their paper. You must then identify something that the article is missing that is relevant to the conclusions of the article. This will be quite difficult, and you should focus on one (no more than two) problems/concepts/variables that you think should have been addressed in the article.

The purpose here is for you to carefully read original academic research and to think critically about the arguments and conclusions contained within it. Each S&E should be (roughly) 2 pages long, with 1.5 spaced lines, 1-inch margins, and Times New Roman size 12 font. Please be prepared to discuss these readings in the session where they are due.

The attached rubric describes how this summary and evaluation will be graded. Each S&E is worth 100 points. The Summary part of the S&E will be based on three elements: Content, Organization, and Grammar. Your critique will be based on two elements: Actionable critique and Justification. Each of these elements is described below.

• Content: This refers to the information contained in your summary. Your summary should only describe the key insights and contributions of the paper. In general, the articles will be somewhat long and your summaries short: Therefore, you must think carefully about which information should be included here. In short, you will want to identify all the key points of the article and omit information that is only tangential to the conclusions of the paper.
• Organization: This refers to how well you convey the information contained in the summary. Here you are required to logically present the key information of the article, typically with a paragraph devoted to each of the main ideas. Paragraphs in your summary should follow the standard conventions of written English: For example, there should be a topic sentence that clearly orients the reader to the topic of each paragraph, there should be no run-on sentences, etc.
• Grammar: This is the simplest of all elements: Here, your paper should contain no typos or ungrammatical sentences. This element can usually be fulfilled by running a spell-checker (in Microsoft Word) and proofreading.
• The two elements below are used to grade your critique.
  • Actionable Critique: This refers to whether you have identified a problem, concept, or variable that is (1) not addressed in the article, but (2) has an impact on the conclusions of the article (at least one of the conclusions of the article).
  • Justification: Here I am looking for how well you justify your critique of the article. That is, after you have identified something missing from the article, you need to carefully explain exactly how the factor you have identified would affect the author’s conclusions. Often, these papers will have several conclusions or insights, and it is fine if you identify a missing concept or variable that would only affect one of them – you just need to explain how.

 

Assignment Rubric

CriteriaRatingsPts

This criterion is linked to a Learning OutcomeContentThis refers to the information contained in your summary. Your summary should only describe the key insights and contributions of the paper. In general, the articles will be somewhat long and your summaries short: Therefore, you must think carefully about which information should be included here. In short, you will want to identify all the key points of the article and omit information that is only tangential to the conclusions of the paper.

20 pts

This criterion is linked to a Learning OutcomeOrganizationThis refers to how well you convey the information contained in the summary. Here you are required to logically present the key information of the article, typically with a paragraph devoted to each of the main ideas. Paragraphs in your summary should follow the standard conventions of written English: For example, there should be a topic sentence that clearly orients the reader to the topic of each paragraph, there should be no run-on sentences, etc.

20 pts

This criterion is linked to a Learning OutcomeGrammarThis is the simplest of all elements: Here, your paper should contain no typos or ungrammatical sentences. This element can usually be fulfilled by running a spell-checker (in Microsoft Word) and proofreading.

10 pts

This criterion is linked to a Learning OutcomeActionable CritiqueThis refers to whether you have identified a problem, concept or variable that is (1) not addressed in the article, but (2) has an impact on the conclusions of the article (at least one of the conclusions of the article).

20 pts

This criterion is linked to a Learning OutcomeJustificationHere I am looking for how well you justify your critique of the article. That is, after you have identified something missing from the article, you need to carefully explain exactly how the factor you have identified would affect the author’s conclusions. Often, these papers will have several conclusions or insights, and it is fine if you identify a missing concept or variable that would only affect one of them – you just need to explain how.

30 pts

Total Points: 100

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