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Multinational corporations are some of the most complex and extensive organisations in the world. Giants like Apple, Amazon, Microsoft and Coca-Cola operate across the globe, with each region or continent usually representing its own subsidiary in the corporate system. Managing such an operation is incredibly complicated and tens of thousands of employees are employed to play their part. Delegation is a key element in managing such a significant system, but what are some of the general challenges of operating a multinational corporation for executives?
Managing Operations
Different Markets
Foreign Regulatory Controls
Labour Market Challenges
For a multinational to succeed, it must employ locals in each of its regions. However, labour markets and employment laws can represent a significant challenge. Some countries such as the USA include employee benefits like healthcare in their employment packages, whereas countries like the UK typically just provide a remuneration package. Other regions may have a completely different pay scale and average wage or salary too. This makes it difficult to standardise employment across a corporation and can have an impact on company culture. Attracting educated or qualified employees can also be difficult in some countries more than in others.
Running a multinational corporation is a complex and relentless task, but the responsibility falls on many shoulders. Those in charge must be experienced enough to take responsibility for the challenges or be competent enough to delegate to the right people.