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Examine five challenges that a multi-national organisation might face.


Examine five challenges that a multi-national organisation might face.



People from different countries always have different traditions and attitudes towards business. S
For example culture has influenced strongly the international business operation in Chinese
market experienced by multinational companies. So first of all the should study the business
culture if they have desire to start business in china.
ii) The differences of social environment
While operating the business in other countries there are lot of things that may be different from
the company's local market like culture difference, labour market and the system of employment in targeted country this creates huge challenge for the multinational countries to operate the
business in such country. So in this situation, the efficiency of work would be much lower than
the company's expecting from the employees.
iii) Short of talent
There is another problem when multinational companies going to start business in the other
countries on the time of recruiting of qualified managerial that is shortage of talent due to some
reasons, this might be include the unbalance in the choosing of education field. The talent could
iv) Foreign Government Regulations
A multinational firm faces the challenge of dealing with different sets of government regulations
that may cause it to incur additional costs. That is foreign governments are increasing valueadded
taxes in goods and services, in addition to tightening compliance regulations. A change in
compliance regulations often means that a firm has to adapt its operational strategies and the way
in which it delivers its goods and services. This may require increased costs to hire local
specialists who are able to keep abreast of changes and deal directly with local government
v) Human Resource Challenges
The need of highly qualified staff in multinational companies has been increased. Multinational
companies choose regularity of human resource management in beginning. which supposed
coordinate practice and consistency in strategy can direct to operatiohal value and efficiency.
People in different places have their own culture and conception on organization behaviour. For
multinational companies this reason of diversity of cross-nation and cross-culture may cause in
strategy conflicts for multinational companies at the time of international standardization human
resource management.
Kavungya answered the question on May 18, 2019 at 08:17

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