BRIEF COMPANY PROFILE
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company_profile_guidelines_-_fall_2014.docxMAN 4633 Company Profile Guidelines
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MAN 4633 – STRATEGY IN THE MNC
COMPANY PROFILE GUIDELINES (TOYS R US)
I. GENERAL INSTRUCTIONS:
1. Company will be “TOYS R US “
2. Prepare a 2-3 page report as detailed in Section II. The page count excludes the cover page, reference list, pictures, and graphs.
II. REPORT CONTENT:
1. Chapter 8:
Describe the company’s relationship with outside entities such as NGOs, host governments, etc. How would you classify these relationships, according to the categories covered in Chapter 8? Cite examples.
III. RESEARCH/SOURCES :
Although not the norm for conducting research, you are to use only Internet sources, along with the notes and the recommended text. All websites used MUST be in English and MUST be those of reputable organizations and companies.
HINT: After going to the Fortune website, a good place to continue your search is your company’s website. Also, use the textbook as a source.
IV. REPORT FORMAT:
1. The report must be double-spaced, using a Times New Roman, 12-point font.
2. Be sure to cite your sources (in-text) and in a reference list, preferably using APA format.
CHAPTER 8 – THE FUTURE OF THE TRANSNATIONAL
A. GROWING DISCONTENT WITH MNEs
1. Opposing Views of Globalization:
a. View from developed countries:
i. Globalization seen as driving force behind economic development
ii. Globalization necessary to spread capitalism and free market around the world
b. View from developing countries
i. Globalization just another means by which MNEs exploit poorer countries due to the perceived widening of the gap between rich and poor
2. Consequences of Discontent
a. Blockage of “unfair” WTO rules by delegates from poorer nations
b. Violent protests at WTO summit (Seattle 1999)
c. Hypocrisy of “First World” remains – Developed countries advocate free market but still subsidize some industries (e.g., agriculture, textiles, apparel)
B. THE CHALLENGE FACING MNEs
1. How to deal with the failure of government-funded aid programs. Failure due to:
a. Paternalistic view of aid programs (i.e. they define the problem and propose the solution)
b. Aid programs provide no accountability or feedback
2. Expected Roles/Responsibilities of MNEs
a. MNEs expected to continue playing role in economic development using their:
i. financial resources (e.g. via FDI)
ii. managerial talent
iii. technical expertise
C. MNEs’ RESPONSES TO NEEDS OF DEVELOPING WORLD
Four categories of responses (postures):
1. The Exploitive MNE –
a. “Takes advantage of disadvantage”
b. Primary motivation for internalization – to seek low costs of production (especially labor)
c. Takes advantage of:
i. Low labor rates
ii. Poor working conditions (e.g. long work weeks)
iii. Weak legal climate (e.g. lack of, or poor enforcement of workers’ rights)
iv. Poor living standards
d. Based on Milton Friedman’s view of managerial capitalism (i.e. stockholder is the only legitimate stakeholder)
e. May resort to illegal tactics (especially in 1970’s)
f. Likely have adversarial relationship with NGOs.
g. Rare today (especially due to media exposure)
2. The Transactional MNE:
a. Has non-oppressive relationship with governments of emerging markets.
b. Does not pursue profits at all cost
c. Willing to make changes to products to suit local market if changes will result in higher market share/profits (e.g. McDonald’s, KFC)
d. Relationship with NGOs based more on “monitoring and challenging” than on “confrontation and accusation”
3. The Responsive MNE
a. Increase in awareness of “sustainability”
b. Makes conscious commitment to be a “corporate citizen”
c. More sensitive to needs of stakeholders in developing countries
d. Sees market in “Bottom of the Pyramid”
4. The Transformative MNE
a. Takes initiative to solve root causes of problems in developing markets (e.g. illiteracy, hunger)
b. Often done through foundations created by founder (e.g. Bill Gates)
c. Will develop products to satisfy needs of developing nations even if it is not profitable (e.g. Nokia)
d. Works in partnership with NGOs (NGOs are better at implementing social development programs than the MNE)
