Structure and Strategies in Multinational Enterprises
Chapter One
OBJECTIVE OF THE STUDY
The study will investigate the following objectives
- To investigate the relationship between firm strategy and the growth of the multinational enterprise
- To investigate the relationship between firm strategy and the multinational enterprise commercial achievement
- To investigate the relationship between firm strategy and multinational enterprise information management
Chapter Two
REVIEW OF RELATED LITERATURE
INTRODUCTION
The term of strategy was initially used in Military field when leading an army facing the enemy with the purpose of attaining the victory; with the passing of time it was also used in governing a region or for global governing and planning, being afterwards transferred to the business environment. There are several definitions used for the term of strategy, out of which we will point out below the most significant ones. A strategy can be formally considered as “a function defined on information taking values on all the multitude of alternatives existent at that moment” (Zahiu & Nastase, 2005). In games theory strategies are viewed as optimum earnings function. A strategy is composed of four elements according to I. Ansoff : Ø The array of geographical growth based on the couple product / market which leads the direction of the enterprise
- Gaining the competitive advantage by identifying the strengths of each couple product / market
- Using resources efficiently
- Flexibility, based on resources and interdisciplinary knowledge (Stoicescu, 2009).
Hofer and D. Schendel define the strategy as the fundamental structure of allocating the resources, the present and forecasted resources, their interaction with the environment, and indicates the way it will attain its objectives (Stoicescu, 2009). H. Mintzberg gives a complex definition of strategy as a: 1) plan to solve a situation, 2) tactic to uncover the intention of competitors, 3) model of actions, 4) position on the market, 5) perspective as a way to perceive the external environment (Stoicescu, 2009). A synthetic and clear definition is given by O. Nicolescu and it highlights the long term time period: the assembly of major objectives of the organization on a long term, the main ways to accomplish them together with the allotted resources, in order to obtain the competitive advantage according to the mission of the organization. A strategy includes the following components according to the authors (Stoicescu, 2009): mission, objectives, strategic options (diversifying production, specialization, new markets penetration, offering new products), resources, deadlines, and competitive advantages. The well-known LCAG (or SWOT) model of the enterprise strategy of Learned E.P., Cristiensen C.K., Andrews K.R., Guth W.Q., is based on internal and external analysis (environment, respectively, the enterprise itself) pointing out the strengths, weaknesses, opportunities and threats of the enterprise. By integrating the values of the society and the one of the managers, the analysis leads to the final decision and format of the strategy (Therin, 2003). A strategy is exogenously conditioned by: the environment (politics, climate) where it operates and endogenously by: the owner/s, the management, the dimension of the enterprise, the age of the organization, the complexity of the firm, location, technical and technological capacity, human capital, information management, economic potential, organizational culture (Stoicescu, 2009). Starting from the objectives and taking into account the means, the strategy offers the enterprise the direction needed to obtain a competitive advantage and obtain the desired results so that it can adapt to the environment where it operates. Three main elements can be thus derived: purpose, objectives and means. Efficiency, prioritizing and risk analysis play a key role in forming a strategy. Competitive strategy of an enterprise aims at establishing a profitable and sustainable position against competitors (Ogutu & Samuel, 2007). Chandler had long ago shown the importance of congruency and consistency between a firm’s strategy and organizational structure needed for implementation, taking into account the response to environment as well (Heather, 2009). An enterprise should engage itself in the field where it can make a difference through quality, low cost, service provided, proximity toward the client for example, and should have very well clarified the following issues: direction, the amount of investments and the mean to materialize the strategic investments. There are two key elements determining the success of the strategy: first, sector’s attractiveness and profitability, and second, competing position of the enterprise. Global strategy consists of strategic objectives and it is based on commercial strategy containing the following elements (Zahiu & Nastase, 2005):
CHAPTER THREE
RESEARCH METHODS
This chapter examines the various methods and procedures that will be adopted in carrying out this study. These include the following: design of the Study, area of the study population of the Study, sample and sampling techniques, instrumentation, validation of the instrument, reliability of the instrument, method of data collection, method of data analysis and decision rule.
METHOD OF DATA ANALYSIS
Correlation coefficient will be used in answering research questions while all hypothesis will be tested using Pearson Product Moment Correlation Analysis (PPMC) will be used in testing the hypotheses. All hypotheses will be tested at 0.05 significant levels
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