Print Email Download Reference This Send to Kindle Reddit This
submit to reddit

What defines a multinational enterprise and multinational entities

Introduction

Multinational enterprise if a particular company holds a manufacturing unit in more than two or more countries they are eligible to take over the title of being Multinational. Private bodies formulated with the consent of employment contracting among the company situated in more than one region is determined as MNE, it’s not rely on the fact if national body to consider the local dispenser outside the region cannot be termed as MNE. On the other hand holding an office outside the geographical area selling products in spite of manufacturing unit is deemed as Multinational entity. Hennart.J.F

The term MIS is defined as the management Information system where the detailed data regarding the planning, organizing, staffing and controlling comes under the MIS framework as it mainly deals with the control mechanism as it is confined to providing opinion regarding the performance figuring out some better communication within the organization structure. Thus, the role of MIS while reporting process among MNEs. CERIS

Thereafter critical study on inadequate MIS in foreign affiliates can be a control problem of MNEs with the help of detailed literature and supporting journals the essay covers all the aspects of International management.

About MNEs

A private body having a corporation dealing with the raw material supplies and utilizing better employment opportunities creating a environment entertaining opportunity regarding taxation benefits placed in context to provide a trading market for regional people taking effective management while managing barriers to trade. MNE is defined as an enterprise operating functions for more than one country leads to the emergence of multinationals within an efficient and effective organization. As they are involved at the senior level in the hierarchy regarding the decision making although, the enterprise should be act as a control mechanism placed as secondary to another firm. It provides a great help to the economy as it adds surplus to the profits of the organization. Proper regulatory bodies covering the foreign regime rely upon management issues. Caves.R.E. A Multinational enterprise opt the fairness of foreign bodies although some government rules and regulations are there helps in generating direct investments under the portfolio management. The company situated in more than one region is determined as MNE; it’s not relying on the fact if national body to consider the local dispenser outside the region cannot be termed as MNE. On the other hand holding an office outside the geographical area selling products in spite of manufacturing unit is deemed as Multinational entity .The extended rise and extension of MNEs motivates the research, science, technology, transport, communication, international trade and finance lies under the MNEs network. The main outcomes of the multinational enterprises leads to either affecting the social and the economic network imposed directly or indirectly affecting the environment. They have got a competitive edge are pooled together helping the production methods.

Role of MIS (Management Information System) in MNEs (Multinational Enterprises)

The MNEs start with the regional firms doing export activities, so in order to accelerate the pace of the company as the export is not easy to handle some rules and regulations are there to boost the morale of the particular region. Although to cope up with the knowledge of the exporting procedures a enterprise will definitely look forward to a regulatory body who can locate and give proper information regarding what exactly is done in the present market place. MIS plays a vital role while looking over the MNEs as they provide detailed data regarding the planning, organizing, staffing and controlling comes under the MIS framework as it mainly deals with the control mechanism as it is confined to providing opinion regarding the performance figuring out some better communication within the organization structure. Caves.R.E. The MIS act as experts in order to make export strategy familiar to the whole firm. Sometime they are expensive though they enjoy new firms offering new personnel’s regarding the new department. n. When considering the trade links between local suppliers, some research is been carried out putting stress over the sub-contacting relationship. That backward framework maintained by the MNEs apart from the growing economies follow the MIS approach to get the actual knowledge of the market. As the MIS will provide data to the enterprise and also some desired rules and directives are planned out to make a friendly environment around the trading nations. To form a relationship placed in relationship with each other indulging the enterprise of different region and the local market they have to keep a proper check over the emerging economies of scale having low impact over the native nation through a proper network. On the other hand the Foreign firms cannot go for direct input locally until and unless they are placed in relationship with each other hence transferring proper knowledge and technologies. In order to tackle many firms at one time and data analysis is there to judge the behaviour of the regulatory bodies from the foreign subsidiary.

The MIS helps creating scope for responsibility and control measures though the control is difficult as it change the foreign and other domestic operating regions. A new international division of management replaces the old division. The main role of the MIS as it acts as a supporting guide in order to analyses, deliver and growth among the organizations. It helps to manage solving the problems faced by the business. The term MIS used provide decision support and information system. It also includes the decision support, executive Information system, expert system, various levels of planning and control management by using different operational tools and long term planning. It also include various attributes like timeliness, accuracy, precision, completeness, conciseness, relevance and approximation system and tackles all the pros and cons of the organization. It helps the MNEs providing a PARADIGM providing support to economic profits. Clarify the main goals and objectives of the organization. Participate directly in the decision-making and strategy formulation. As an part of the enterprise it helps providing a systematic planning, data centre management and operations, management of remote equipments, identification of the new systems, distributed network IS standards of selection, purchase and ownership management. Last but not least MIS helps in the outsourcing controlling the cost reduction, budget reduction.

Engle off’s (1991) four types of Information processing relevant to MNEs

Routine

Non-routine

Sequential

Reciprocal

As a term global firm is concerned MNEs are relatively place to be routine and sequential. The multi-domestic strategies are place in relation to the non integrated informational technology however, the integrated strategies are kept in relationship between the interactive information technologies. The free flow of the information is necessary for successful operations as the MIS plays and important part in the management of the company providing directions and measures,

For the better allocation of resources, the government to boost the flow of the infrastructure

A number of studies have established that multinational enterprises to be more productive than other companies in the world. There is still considerable debate going on the same topic regarding the creativity advantage. MNEs are capable enough to takeover the non-MNE while making and clear network of planning. MNEs there in the USA derives an advantage gaining higher returns to IT investments and therefore presenting a framework to work upon suggesting that it might be happening due to the better management practices and organizational structures. They are more likely to implement organizational changes apart from the other change in the rules and the regulations of the organisation. The proper Information regarding the global size of MNEs could be of great relevance. The extent to which the productivity advantage of certain firms can help in the control management as they add to certain economies of scale apart from providing specific knowledge and practices about the firm or enterprise as they add directions to perform in this present world. Some implications are there so that to make both the facts easily understandable regarding the design of economic policies in order to improve the competitive state efficiently and effectively as a result of That backward framework maintained by the MNEs apart from the growing economies follow the MIS approach to get the actual knowledge of the market. As the MIS will provide data to the enterprise and also some desired rules and directives are planned out to make a friendly environment around the trading nations. Because there are potentially equal and thus the costs and benefits are kept to being large, it is not even clear that the correlation between productivity and size is positive. While a larger size potentially offers economies of scale and scope, it might also lead to higher co-ordination costs. These costs might increase if a firm is operating across different countries. It is therefore possible that returns to size are smaller for multinationals that spread their size across countries. Besides, the incidence of these costs and benefits might differ according to the internal organisation of multinationals. Despite the potential relevance of global size, studies of firm level productivity rarely take it into account. As so often in applied econometrics, this is due to lack of suitable data. A number of commercial companies provide firm level data typically derived from balance sheet information: while these contain measures of global size such as global turnover or employment they are often ill suited to compute good measures of productivity such as value added per employee or total factor productivity (TFP). The company became part of MNE competing on global markets within global industry value chain with strong competition. The resources used by competitors are to high extent similar (technology, people, money), difference makes how those resources are employed/managed. Nowadays financial markets are looking at a broader picture in order to understand the perspectives of businesses that are often not obvious from its financial statements. Intellectual capital that includes company information systems management abilities is often the distinguishing factor of perspective and profitable companies and drives companies value at the company has been traditionally focused on supporting internal efficiency. Firms must have trusting long term relationships with each other and with the B2B marketplace itself to allow members to penetrate this deeply into each other’s internal business processes.

Disadvantages of MIS for MNEs structure

As the Management Information system helps in testing the development, refining and the implementation of various information aspect for agriculture, the advancement in the technology on high pace on the basis of new system . But the main problem lies with the fact that even all the database fails to closely relate to the actual models defined in the system. Sometimes the analyses don’t match with the desired results or outcomes. Although the cash flow model helps to get the data fails to present the actual financial data which was expected by the company. Mostly the data is generated manually thus errors can be there while entering and re-entering the data. The method can sometime take more time to meet the market place. Some of the trade-offs have to be accepted in a significant manner, this can leads to effect the decision making power of the MNEs. Any results growth that might be taken into consideration regarding the anti-developmental procedure as the management information is based on the forecast however, they can be criticised on the basis of the criteria’s. For example if the company holds a information system in the states the management will deal with only one language, different culture , rules and regulations of the government bodies, common currencies and all lies under one geographic region. Parkinson, J Though if the company moves in the other region they have to face multilingual and different climate conditions apart from those of the states, the rules and regulation of the European government can be different than those of the states.

Conclusion

As a term global firm is concerned MNEs are relatively place to be routine and sequential. The multi-domestic strategies are place in relation to the non integrated informational technology however, the integrated strategies are kept in relationship between the interactive information technologies. The free flow of the information is necessary for successful operations as the MIS plays and important part in the management of the company providing directions and measures, A number of studies have established that multinational enterprises to be more productive than other companies in the world . There is still considerable debate going on the same topic regarding the competitive advantage. MNEs are capable enough to takeover the non-MNE while making and clear network of planning. MNEs there in the USA derives an advantage gaining higher returns to IT investments and therefore presenting a framework to work upon suggesting that it might be happening due to the better management practices and organizational structures. They are more likely to implement organizational changes apart from the other change in the rules and the regulations of the organisation. The proper Information regarding the global size of MNEs could be of great relevance. The extent to which the productivity advantage of certain firms can help in the control management as they add to certain economies of sale apart from providing specific knowledge and practices about the firm or enterprise as they add directions to perform in this present world. Some implications are there so that to make both the facts easily understandable regarding the design of economic policies in order to improve the competitive state efficiently and effectively as a result of That backward framework maintained by the MNEs apart from the growing economies follow the MIS approach to get the actual knowledge of the market. The MIS framework as it mainly deals with the control mechanism as it is confined to providing opinion regarding the performance figuring out some better communication within the organization structure. Thus, the role of MIS while reporting process among MNEs. CERIS. One can think of better control of the MNEs affiliated in the global scenario.

So, MIS and the MNEs placed in relationship with each other as “Inadequate MIS in foreign affiliates can become a control problem for MNEs.” More labour intensive production methods might be a more appropriate option for improve poverty and aiding development. Any results growth that might be taken into consideration regarding the anti-developmental procedure as the management information is based on the forecast however, they can be criticised on the basis of the criteria’s. For example if the company holds a information system in the states the management will deal with only one language, different culture , rules and regulations of the government bodies, common currencies and all lies under one geographic region. Though if the company moves in the other region they have to face multilingual and different climate conditions apart from those of the states, the rules and regulation of the European government can be different than those of the states. The currencies, multiple time zones and different approaches of the technology and the operating systems vary. Thus, it is very difficult for the MIS to operate under rapid changing environment, whereas both the telephonic and computer industries have to take immediate actions. one can only come up with the present as managerial position under such circumstances leads to high degree of risk factors, the venture capital for the new techno tends to enhance as fast as they can so that to cope up with the increased expenses. Thus the control mechanism of the MNEs has to face some problem while control mechanism.

Print Email Download Reference This Send to Kindle Reddit This

Share This Essay

To share this essay on Reddit, Facebook, Twitter, or Google+ just click on the buttons below:

Request Removal

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the link below to request removal:

Request the removal of this essay.


More from UK Essays