Globalization Strategies and Its Impact to The Operations of Multinational Companies: Basis for Strategic Plan
Published 06/30/2024
Keywords
- China; Competitive Advantage; Globalization Strategies; Multinational Companies; Strategic Plan
How to Cite
Copyright (c) 2024 The QUEST: Journal of Multidisciplinary Research and Development
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Abstract
This quantitative descriptive research study investigates the impact of "Globalization Strategies on the Operations of Multinational Companies: A Basis for a Strategic Plan" through a targeted examination of ten multinational corporations (MNCs) headquartered in Beijing, China, selected from the 2023 Fortune 500 Companies list which were selected through purposive sampling. The data gathering instrument used in the study was survey questionnaire. The findings reveal the diverse nature of MNCs, emphasizing the complexity and adaptability required for effective globalization strategies. Globalization strategies of MNCs in China are influenced by market demand, opportunities, competitive landscapes, regulatory environments, and cultural adaptation, underscoring the importance of market responsiveness, regulatory compliance, competitive differentiation, and cultural sensitivity. These strategies significantly impact MNC operations, enhancing market access, financial performance, productivity, innovation, and sustainability. However, MNCs face challenges in implementing globalization strategies in China, including political risks, cultural barriers, supply chain complexities, competitive advantages, and market expansion obstacles. The study offers a comprehensive strategic plan to address these challenges, focusing on political risk management, cultural adaptation, supply chain optimization, competitive approaches, and tailored market expansion to enhance MNC resilience and market success in China. Recommendations include recognizing the diversity of MNC profiles, prioritizing market responsiveness, leveraging globalization strategies, investing in risk management, and implementing the proposed comprehensive strategic plan. This research contributes to our understanding of how MNCs adapt and thrive in the complex Chinese market, offering valuable insights for academia and policymakers.
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