Understanding Mnc Typology Essay Example

each subsidiary makes a valuable contribution to the overall competence of the company” (para 2. 3. 2. 3).

Geocentric typology also includes Global and Transnational typologies. Global typology is defined as “relating to, or involving the entire earth; worldwide” (Unknown, 2008). The Free Dictionary (2008) defines Transnational as “reaching beyond or transcending national boundaries; relating to or involving several nations or nationalities. When looking at these two typologies and comparing them with the Geocentric typology there are three major similarities;

1. they have strong top-down commands,
2. they seek the best personnel for their organization regardless of their nationality, and
3. the organizations' headquarters has a high degree of control.

The main difference between organizations that practice these typologies is their perspective on how they employ command and control. The last two typologies are Ethnocentric and International. Ethnocentric typology is the “belief in the superiority of one's own ethnic group” (Unknown, 2008).An organization such as this believes that their key management positions “in both the HQ and subsidiaries” should be filled by Parent-Country Nationals that live locally or within their nation (Morris, 2004, para 2. 3.

Organizations that participate in Ethnocentric typologies are most commonly found in an International organizations.

Conclusion

When discussing MNCs it is this student’s opinion that these typologies are interconnected to some degree. However, these MNCs do provide a fairly clear identification of which MNC is operating based on their typology.

Understanding these typologies will allow a leader to distinguish the differences of an MNC before they make a move to lead an organization such as this and will give them the tools needed to make valued assessments so they can better lead any of these organizations to success.

References

1. Power,
   

P. (2006). Multidomestic Industry. Retrieved September 7, 2008, from Planning Skills Web site: http://planningskills. com/glossary/54. php Morris, K. (2004).