Expanding an MNC Essay Example | Topics and Well Written Essays - 1500 words

Expanding an MNC - Essay Example In this paper, China would be analyzed in terms of its suitability for the company and an implementation strategy would be developed with respect to the analysis conducted. Organizational Culture The Organizational Culture for NestFree Limited would be developing keeping in mind the Hofstede Cultural Dimension Theory. Thus the cultural would be developed keeping the following five dimensions in perspective: Individualism-Collectivism China is a collective society as its score a 20 on this scale. In this country, people act keeping in mind the interest of the group rather than an individual. They keep in mind their families, their elders etc. The people here look towards giving more preference to the people they associate with; this would be family, friends, community etc. The Chinese are more comfortable in working in groups that they identify with. Therefore the culture for the company would have to be strongly non-diverse in nature. Uncertainty Avoidance This refers to the societyà ¢â‚¬â„¢s tolerance towards uncertain conditions. Since the Chinese believe in karma strongly, they have a low uncertainty avoidance scores. The Chinese are not were strongly opposed to uncertainty; rather they expect it. Power Distance This refers to the society acceptance of power roles. The Chinese have a very high power distance score. This means that the society accepts that certain people are more powerful than others because of their position within the organization. As employees become more powerful, they expect their subordinates to comply to their dictates without questioning them or even discussing with them. The subordinates also understand that people in high position should be listened to. There is a formal chain of command in organization and it is adhered to quite strictly. The company, therefore, would fare well with a vertical organizational structure as opposed to a horizontal one. Masculinity-Feminity The Chines society is a masculine society. This means that the society is strongly competitive and driven by achieving success. For an organization to develop an effective culture, they need to work out on building a competitive environment where worker are often placed in competition with each other to draw out the best of their abilities. Long Term Orientation This refers to the long term values of a given society. China ranks high in terms of long term orientation as family is more important than any other group. Also elders and men of authority yield more power in the society. They respect traditions and are down to earth people. A strong work ethic is prevalent in the society where loyalty, hard work and commitment are duly rewarded. Keeping the above in view, the organization should develop a vertical organizational structure where the information flows from top to bottom. Also the environment should be competitive so as to allow employees to remain motivated. Furthermore, hardworking employees have to be duly rewarded. Environmental Scan ning Analysis- PEST Analysis Political Politically, China enjoys a relatively strong position when compared with other emerging markets. The country has a one party system where opposition is quite low. The Political makeup of the country is therefore quite stable in the form of the Chinese Communist Party or CCP. Also the government is open to foreign direct investment. The communist party along with other political institutions has