Do you think the company should use geocentric approach

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Reference no: EM132878840

Establishing a branch of a family business

A family-owned carbon steel company (MNE that you choose) from (home country that you choose) has extended its business to (host country 1 that you choose). The owners bought a small traditional firm and decided to copy the successful structure they had developed at home. Since the company uses ethnocentric orientation, the subsidiary is headed by three general managers from (home country that you choose). They are equally shared the responsibilities for the business activities of the firm. The consequences were as follows.

1. Now the (host country that you choose) employees were assigned tasks by people they have never seen before and whom they did not understand. Many misunderstandings occurred, some were quite costly.

2. The three general managers back in (home country that you choose) were only concerned with whether the assigned tasks were completed. They did not consider any other obligations to the (host country that you choose) employees, such as taking care of the relationships with the government, banks, etc.

3. Eventually, the local employees became frustrated and were ready to leave the company. The result was that the management model was changed again. The (host country that you choose) managing director was accountable for all business activities in (host country that you choose).

Base on the above case answer the following questions:

a. Based on Hofstede country culture, described the situation to one of the cultural dimensions identified by Hofstede. Support your answer with TWO (2) related literatures.

b. How does this situation compare if the (host country that you choose) managers manage the company? Explain and support your answer with one (1) related literature.

c. Do you think the company should use geocentric approach in selecting their employees? Support your answer by giving an advantage of geocentric approach for the home country as suggested by one (1) related literature.

d. If home country insists used home country managers, advice TWO (2) crucial contents need to include in pre-departure training for the home country national managers. Support your answer with one (1) related literature.

Reference no: EM132878840

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