OUTSOURCING AN MNC- PART 2: PRESENTATION Overview
In this assignment, you will condense information from Outsourcing an MNC Part 2 assignment to create a PowerPoint presentation.
Create an 11 slides PowerPoint Presentation in which you:
Provide a title slide
Create a slide to introduce your presentation
Summarize your response to each of the criteria in Outsourcing an MNC Part 2—one slide per criterion, for a total of seven slides.
Provide a summary slide which addresses key points of your paper.
Provide a slide capturing the strategies you feel will lead to a successful outsourcing venture.
Narrate each slide indicate what you would say if you were actually presenting in front of an audience. Note:, please provide what you would say for narration in the notes section of your PowerPoint presentation. Each slide should have a notes section that would equate to two minutes of recorded narration.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Design an entry and implementation plan that ensures an MNC’s new outsourcing strategy is executed effectively. Running Head: OUTSOURCING 1
WEEK 8 ASSIGNMENT – Outsourcing An MNC- PART 2
ITB 300 – Fundamentals of Global Management
Professor Peter E. Freeman
September 8, 2021
The corporate entity I selected from my previous assignment was Montreal Technology & Business Consulting Company. Montreal assists businesses in all their endeavors to run a successful company. Furthermore, Montreal has highly qualified and experienced personnel that works closely with clients to fulfill their objectives and realize their goals. Montréal offers unique customer experiences, enhances operations, and creates strategies that are beneficial for any business. With its multitude of expertise, Montreal has become a preferred consulting partner.
The majority of the leading companies today are outsourcing their business process due to the numerous benefits that outsourcing offers. Outsourcing involves the manner in which different organizations delegate the processes of their business functions to various external dealers. According to studies, it was discovered that any process in a business that can be carried out from an offshore location could be outsourced (Gerbl, Mclvor, & Humphreys, 2016). Based on the several benefits of outsourcing, the management team in MNC has accepted my recommendation to outsource and offshore the information technology department to India. Implementing the outsourcing process will significantly help in faster and better services, access to skilled labor, saving on infrastructure and technology, focusing on the core areas of the company like building our brand and investing in research, cost advantages, and increased efficiency.
The current culture of India
India’s culture is thought to be diverse and distinct, and it has developed over many years, although it varies from region to region. The culture of India is centered on faith, food, the arts, architecture, clothing, and languages. Many of the world’s major religions originated in India, including Hinduism, Buddhism, Sikhism, and Jainism (Mustafa, & Sohi, 2017). Although these religions were born in India, other religions such as Christianity and Islam have entered the country, although Hinduism has remained popular.
India has a range of foods, including the heavy herbs and spices used in their cuisine. Some of the visitors in the country might find it hard to adjust to, although those Indian spices are legendary for their medicinal purposes, flavor kicks, and food-preserving powers. Many religious groups are vegetarian or have some limitations in relation to what meat they can eat, and chicken and lamb are common for those who do not consume meat (Mangalassary,2016). India has a wide variety of languages because it is the second-most populous country in the world. Its constitution recognizes fifteen regional languages, although the official languages that have been recognized are English and Hindi. In relation to clothing, men commonly wear a dhoti while women wear silk saris which vary from five to nine yards long.
Managing multiculturalism and diversity
In order to promote the efficiency of a multicultural team, there are some steps that must be taken by the company to manage multiculturalism and diversity. Our company will manage diversity and multiculturalism by striving to overcome language barriers, considering various cultural communication styles, being open to all cultures and their differences, performing cross-cultural training, practicing empathy, and avoiding stereotypes. Language barriers between employees are the most common challenge when working in a multicultural team; hence it is necessary to find a common language that each employee will use in order to communicate with much ease. Since every culture nurtures its own styles of communication, the company will consider various communication styles that can enhance effective communication. It is vital to understand diverse communication styles between cultures and speak to others in relation to the provided rules.
Strategies for global integration
. Global integration comprises certain basic strategies such as transnational, global, multi-domestic, and international strategies. An international strategy denotes the plans that are presented by strategic managers to monitor commercial transactions which take place between companies in various nations. It involves ways through which a company decides to acquire and utilize resources to attain international goals. A global strategy is a company’s strategic guide to globalization which links the organization with the rest of the world (Peng, 2021). It includes the plans that have been developed by a company to develop past its local boundaries by aiming at increasing sales of goods or services offered.
Additionally, a multi-domestic strategy is used to customize processes to the specific conditions in every country. This strategy is commonly used by retailers since they need to meet the tastes of local customers. The general management is centralized in the home country, although nation managers are provided with the freedom to make adaptations. Companies can benefit because the country managers usually understand local regulations and laws, tastes of consumers, and customs and can freely decide on how to meet those needs.
A transnational strategy is a combination of multi-domestic and standardization strategies. It is commonly used when an organization faces great cost pressure from international rivals, although the company has to provide products that meet the wants and needs of local customers. It is challenging to maintain a transnational strategy since an organization must attain economies of scale through standardization and be flexible in reacting to local conditions. The strategy that would be most suitable for our new venture is a global strategy since it aligns with the plans of our company to grow beyond our local borders hence looking forward to outsourcing in India. This strategy will help our company to increase its sales abroad besides being connected to other parts of the world.
Environmental scanning analysis
There are various both internal and external environmental factors that could impact the organization in its recommended new operating location, India. Some of those internal environmental factors include employees, managers, money and resources, and the culture of the company. Employees are important people in the internal environment of a company; hence they all should be good at their works. Managers also have to be good at dealing with lower-level employees and supervising other areas of the internal setting. Lack of money usually determines if a business will survive or collapse since when money resources are inadequate, it affects the number of individuals one can employ and even the quality of the equipment that can be used.
The external environmental factors that could affect the company consist of consumers and suppliers, politics, government policies, competition from other companies, and the economy. In case there is a bad economy, the company cannot survive. Additionally, in case consumers lose their jobs, they will spend less on the company’s business. The company will have to deal with competition by fighting against well-established and more experienced organizations in a similar industry.
Ownership structure and organizational structure
The ownership structure for operating the MNC in the new market will be a corporate group. A corporate group comprises many companies with subsidiary corporations and parent corporations. MNC will work together with the other corporations as one economic entity through a common source of control. The company will have numerous groups of shareholders, although not every person will be given the rights and control over the whole company group. Some will have complete control, while some will only have some little control, thus making the ownership of the company to be diverse.
The organizational structure for operating the MNC in the new market will be the functional organization structure. This will be a suitable structure because it starts with positions with the upper levels of responsibility from top to bottom. The staff members are also organized based on their definite skills and their matching function in the organization. This structure has some advantages like being easily scalable in any sized company, help teams and departments feel self-determined, encourage specialization and allow employees to concentrate on their roles.
Political risk analysis
Some of the political risks that might be experienced in the new country are political violence, transfer and conversion, and interference from the government. Transfer and conversion can occur during an economic crisis in which foreign governments or even central banks might choose to enact limitations on the conversion of native currency to hard currency or inhibit the hard currency from leaving the nation. Foreign governments can also seize or expropriate the investment of a company with no justification. They might even adopt several procedures that will have the impact of expropriation, making the company lose its investments overseas. Political violence, including war or terrorism, can destroy the organization’s assets and inhibit it from carrying out operations that are vital to doing business.
An implementation strategy that considers the essential alliance partners
An execution approach that will consider the important alliance partners includes the evaluation of resources, combine strategy with the management, creating sustainable goals, and communication. Evaluation of resources involves considering all the constraints and elements that can assist the company in implementing its strategies. It includes dependability of essential stakeholders, corporate culture, sets of skills, human resources, and budgeting. Combining the strategy with effective management through continuous oversight and managerial direction can greatly help in implementing the strategy. Some of the major obstacles to developing mutually beneficial relations with the alliance partners will be a language barrier, the presence of different beliefs and ideas, and poor decision-making due to multiculturalism and diversity. However, there might be opportunities to forming mutually beneficial relationships such as sharing tasks, increase productivity, and provision of more resources that can be used in the company.
Strategies in entering the emerging market
To enter the emerging market, first, the organization should identify its target market, conduct market research, select a market entry strategy and then develop a business plan. Some of the strategies that will have to change in order to suit the emerging market include exporting, licensing, and franchising. Exporting will help the company to enter into several markets instantly by assigning local distributors to carry out transactions with the buyers. Licensing will involve giving other parties legal rights to use the name of the company, while franchising will involve entities using the name of the company for a fee.
1. Gerbl, M., McIvor, R., & Humphreys, P. (2016). Making the business process outsourcing decision: why distance matters. International Journal of Operations & Production Management.
2. Mangalassary, S. (2016). Indian cuisine—the cultural connection. In Indigenous culture, education, and globalization (pp. 119-134). Springer, Berlin, Heidelberg.
3. Mustafa, F., & Sohi, J. S. (2017). Freedom of religion in India: Current issues and Supreme Court acting as clergy. BYU L. Rev., 915.
4. Peng, M. W. (2021). Global strategy. Cengage learning.