Theoretical Analysis of Multinationals

Running head: CRITICAL ANALYSIS OF THE THEORIES
CRITICAL ANALYSIS OF THE THEORIES
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1CRITICAL ANALYSIS OF THE THEORIES
The evolution of the world and the change in the tastes and preferences of the
consumers have led to the rise of multinationals. The growth of the multinationals depends on
the availability of the resources and the preference pattern off the consumers. The
management undertaken by the organizations helps largely in their growth and nurturing.
Therefore, it can be concluded that the management plays a very important role in shaping
the organizational structure and influences the decisions that are taken by the organizations
for achieving the common goals.
The discussion that is being undertaken clearly portrays the requirements of the
decision-making and indulgence of the proper management in order to understand the
importance of management in the progress of the organization. The basic criteria of this
discussion is to understand and correlate the importance of management according to the
requirements of the organization (Callan and Thomas 2013). The theories of the management
help in setting the goals of the organization and thereby adhere to the organizational goals in
order to understand and take decisions accordingly. The needs and requirements of the
organization vary according to the objectives and the aims. Therefore, the choice of the
management principles suiting the purpose of the organization is an important consideration
that is to be undertaken by the companies. The progress that is being enumerated by the
company depends on the principles of management that is being adhered by the organization.
The influence of the strategic management is an important source of taking the decisions that
is being taken by the organization for the benefits. Strategy and proper planning helps the
organizations to set the goals of the organization and thereby make the progress accordingly.
It helps the organization in taking the significant decisions that are required to be taken in
order to achieve the common goal of the organization.
The discussion that follows will focus mainly on the theories of management based on
the deterministic theory and the strategic choice that a company must undertake in order to

2CRITICAL ANALYSIS OF THE THEORIES
make the significant progress in its processes. The outcome of undertaking the theories and
applying them on the management of the organization is also being discussed in the same
context.
The point of discussion for this section is based on the theories of strategic choice of
the management. The job role of the individuals and the leaders in influencing and motivating
the work force in order to make the most out of their efforts comes under the strategic choice
that is being undertaken by the entrepreneurs. According to the common thought process, the
organization acts on the requirements that are based on the external environments
(Christiansen and Fenchel 2012). The influence of the external environment affects the
decision making process of the organization. External environments like the change in the
consumer behavior or the political factors, the environmental changes and the quality being
delivered or the market considerations are the major external factors that affects the decision
making process of the organization. In order to undertake the specific functions and the
decisions, the organization must consider the requirements of the organization.
The strategic choice theory provided an alternative to the general thought process,
which dynamically supported the agency of individuals to undertake choices in order to make
significant advancements in the organizational structure (Zhang 2013). The strategic choice
of the organization not only helps in taking care of the external environmental considerations
but also helps in meeting the internal political discrepancies that might affect the work force.
It therefore supports both the internal and external factors and helps in undertaking the
efficient management of the organization.
The process that is being undertaken by the organizations in order to make sure that
the strategic choice is being undertaken is based on the steps that the organization must
consider (Hill, Jones and Schilling 2014). The steps helps in the efficient management of the

3CRITICAL ANALYSIS OF THE THEORIES
internal and the external factors and thereby helps in solving the discrepancies that might
affect the smooth functioning in the every day schedule (refer to Appendices 1, Figure: 1).
The alternative that is being provided to the organization is being focused on, as the first step
of undertaking the strategic choice. The alternative is being addressed and is identified as per
the relevancy of the alternative (Wheelen and Hunger 2017). It is being justified in order to
make sure that the alternative goes well with the decision that is required to be taken. The
organization then analyzes the alternative in order to make sure that the flaws of the problem
are being covered by the alternative or not. In order to make sure that the alternative goes
well with the decision, it is applied as a demonstration on the problem. It is like testing the
alternative on the problem and determining the efficiency of the alternative (Floudas 2013).
Evaluation of the alternative is another important step that is being undertaken by the
organization in order to make sure that the alternative fits in to the organizational
requirements. It thereby helps in maintaining the decision making functions of the
organization and thereby helps in the proper management. Choosing from the range of
alternatives is an important consideration that is being undertaken by the organization in
order to take hold of the right alternative (Hatch and Zilber 2012). The right alternative that is
being chosen from among the range of alternatives is an important step that helps in
undertaking the proper management of the firms.
The strategic choice therefore helps in maintaining the management functions of the
organization through a careful selection of an alternative, which is best suited, from among
the range of alternatives. It helps in the decision making process of the organization and
ensures that the discrepancies are solved accordingly. It helps in taking care of the internal
and the external factors that leads to the growth of the organization and improves the
adaptability of the organization (Kagel and Roth 2016). The importance of the management
functions helps in the undertaking of the probable cause of achieving the common goal of the