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Free «The Multinational Organization» Essay Sample

The Multinational Organization


The AMZ Corporation is taking into consideration the opportunity of expending their water purification equipment business in Nigeria. Before entering in a global market AMZ Corporation should have a serious look at those considerations that a company must consider when they make the decision to go Global. “These are those areas that must be addressed as AMZ Corporation moves the water purification equipment into Nigeria” (Travis, 2009, 48-52). By tackle the Global considerations it will obviously show the areas of hazard for management of the AMZ Corporation. This will analyze if there are loop wholes that require to be filed before AMZ Corporation continues on with their venture into Nigeria.


The rational of choosing Nigeria as the first country to expand their business overseas is because AMZ Corporation has been highly successful in the United States. Nigeria is a growing economical market. There are many small companies but no major national companies. Nigeria is presently an attractive business point for fresh companies. The economy is prosperous and numerous global companies are targeting this primeval country for upcoming investments, due to Nigeria’s huge market, cheap labor cost, fast economic expansion and its improving investment surroundings. The main considering areas of AMZ Corporation while spending in global market are:



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Cultural Factors

Recognizing and understanding the Nigerian culture will also provide insight to AMZ Corporation. The Nigerian people believe that greetings are important and highly-valued; which should be a significant consideration to the sales staff in Nigeria. Another interesting fact is that the Nigerians identify themselves through first their ethnicity, second religion, and lastly their nationality. Furthermore, the Nigerians place significant emphasis on education for their children, and many of them grow up to become intelligent individuals within the Nigerian workforce. The previously mentioned examples of the Nigerian culture further demonstrate that it is critical for AMZ and their sales staff to understand the Nigerian culture in detail

Finding the way the boundaries among correct and incorrect can establish difficult for the AMZ Corporation. “Ethics is necessary to economic growth” (Adekola &  Sergi, 2007, 98-102). Ethical questions variety from realistic, barely defined matters, such as the AMZ Corporation's responsibility to be sincere with its consumers, to broader philosophical and social questions, such as a responsibility of a company to protect the situation and defend workers rights. Several ethical disagreements expand from clash among the conflicting interests of organization workers and their owners and close to community. Ethical matters in business have developed into extra complex because of the diversified and global nature of numerous big businesses and because of the difficulty of government system that describe the restrictions of criminal behavior. Managers within the AMZ Corporation have to stable the perfectness beside the requirement to create a realistic profit for the organization’s shareholders with truthfulness in company practices, security in the work environment, and superior social and environmental questions. The organization has to settle on whether to stick to stable ethical principles or to control to the local rules to capitalize profits.

Defining Customers Profile

Customer’s knowledge facilitates organizations to analyze the market size and what establish their power of buying. “It offers information which will help in deciding a location, examine services or product to be presented, set up pricing and prepare a selling strategy” (Peng, 2008, 322-328). To analyze the customer profile we have to segment the market to: Geographic, Demographic and Psychographics.

This step will recognize the market trends and size, segmentation of production, industry infrastructure, international trade, production, company report, competitors' analysis, global market etc. This study offer present and predict market principles across a 10 year phase. Analyze the functioning of the market products above the previous five years, together with product segmentation, market trend expansion and area analysis of sales.

Industry structure

Company must qualify and quantify the industry development and also examine the industry infrastructure by turnover and workforce criteria. This analysis also comprise outline of some distinctive firms who are active in the industry, detailing financial strength and strategic growth of them.

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Competitor’s analysis

To successfully compete in a global market AMZ Corporation must identifies their competitor market share, strengths and weakness. This analysis will help them to strong their product as compare to their competitors and they make there salve ready to their rivalry.

There are all the time hazards when a company moves into the international market, particularly with a country similar to Africa, and it’s a lot of challenges. The risk can be decrees by applying a strategic move when entering another area of the globe. Since AMZ Corporation has never market product to Nigeria, they should consider above mention factors professionally. “It is significant to appreciate the hazard connected with competitor, market analysis, cultural factors, market trends and ethics and legal of the region the company is being ready to enter” (Travis, 2009, 48-52). Analyzing the hazard could be the dissimilar among a company being gainful or failing and dropping the whole thing in a new country.

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And after launching of the company in the new market all the information's must be full monitoring and controlled by the management in order to make the objectives up to real and make it happened. Modern organization must be aware of environmental considerations to survive and excel in the business arena. The nature of globalization, cultural diversity and technology advances force organizations be highly trained and in tune with their particular industry.


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