Rewards Program for MNC
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Integration into the world economy on the basis of cooperation between countries that are participants of the international market is a prospective feature of the United States market relations. The first step in the improvement of international marketing system is to determine the parameters of strategic international enterprises. Three basic parameters are usually used. First, it is necessary to analyze the external environment of Multinational Corporation. The efficient external analysis of the company should include an analysis of the global market to be aware of the new trends, potential competitors, and new market opportunities. Next, the strengths and weaknesses of the company should be analyzed in order to identify opportunities and threats, as well as global trends. Third, before breaking into new markets, company has to focus on the aims and expectations of all stakeholders (shareholders, managers, employees, customers). Commonly, different groups of stakeholders have different points of view regarding the size of the company, its profitability, and strategy (Eldridge, 2011). Thus, before developing a strategy of marketing systems in France or Japan, managers must ensure that the objectives to be achieved with this strategy are in line with the real state of the environment and business opportunities.
Before starting an analysis of the market expansion into Japan and France, MNC should determine its international marketing goals and objectives. Usually it makes sense to concentrate on the promotion of products in several international markets.
Our MNC has set a goal of breaking into markets of Japan and France. Attractiveness of these states is determined based on factors such as language, laws, geographic location, economic prosperity, similarity of cultural traditions, financial potential, perspectives, etc.
When the company creates subsidiary of business in other countries, it is important to clarify the issue of the motivation of staff. In my view, the motivation system and rewards program for employees solve at least three problems. The company is able to achieve the desired goals (for example, a certain amount of profit). Employees provide the company with a good reputation in the international market. The members of all teams abroad interact with each other effectively thus achieving the best results. Employees want to strength their positions in the company (so the company can save on hiring new employees to keep the accumulated experience and knowledge).
There is an issue that can never be the task of motivation. I believe that none of these systems makes an employee a devoted follower of the corporation. The best way to achieve this goal is to provide the conditions of labor in which employees in the foreign subsidiary want to carry out company’s plans (Sutherlin, 2012).
There is a proved way of motivation for employees who recently joined the team abroad. That is financial support to their families. An employee spends a lot of time working thus his family suffers from lack of attention and care. Another way to motivate is overtime remuneration. Employee has a set working 8-10 hours day. During this time, he should have time to complete all planned issues, or he would be fired (Gravelle, 2013).
The team will work more efficiently, if its members trust each other, and they do not have to choose a victim blaming that employee for their own faults. It is very important to choose the most appropriate way to manage the staff and appoint the best candidate as the head of the subsidiary. It is preferable to choose an honored worker of the company, which has an experience of breaking into the foreign markets. This may be one of the partners or representative of the top management. He will ensure that employees complete the plan of development, and intercultural features are included (Coghlan, 2011)
One of the chosen ways for our company is to expand in the Japanese market. In accordance with Japanese law, foreign company is permitted to engage only limited activities. Subsidiary may conduct market researches, collect data, and advertise products of its parent company. Subsidiary is prohibited from expanding its business activities. It is not subjected to taxation. The establishment of representative office in Japan does not require state registration as there are no requirements on hiring Japanese.
The subsidiary is not allowed to open bank accounts or rent a property on its own corporal name. These operations are carried out on behalf of the parent company. The legal capacity of the subsidiary is limited to activities that defined the parent organization.
Doing business in Japan has always had its peculiarities. It is essential to be sure that the staff is fully aware of the rules of business etiquette in Japan, known all over the world. Perhaps we should hold special training sessions, which will be an additional motivation for employees.
In France, there is one unified procedure for all commercial structures that may be established and functioned with foreign capital. Perspective of our MNC in France may be in the institutional and contractual forms. Employees will need to contact an attorney that provides such services for organizing and performing businesses in France. It is important to remember that owning a subsidiary in France does not mean automatically obtaining a residence permit.
France is part of the EU, and there may be difficulties with currency conversion. Choosing the head of the subsidiary, it is important to appoint a person who has experience of doing business in Europe. As for employees, it is necessary to provide them with access to international calls thus they can attach their families.
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