Question-   Assignment on Multinational Companies - Cadbury

Solution-

Introduction:

The multinational company can understand which is operating business in global and domestic market. They also try to spread business in several areas. Cadbury chocolate company is a multinational company. It provides several products such as roses, dinky-decker’s, Cadbury dairy milk giant buttons, owl cake, milk tray bake, crème egg toastie etc. It operates business in more than 50 countries.

The major reason for multinational company Failure

Business environment is indispensable for successive multinational company. The reason of failure is given below-

The focus resources on the wrong things:A multinational company must focus on market condition otherwise it fails while operating the product in the market. For example, Cadbury company has chosen Chinese market and provide UK food. But, Chinese people like own cultural product. It fails the company in the market.

Poor Management:Without practicing human resource, the company cannot success in global market. Because HR practice is necessary for the best management. It helps to remove any types of conflicts.

Lack of Flexibility and Adaptability:Multinational company operates business in globally as a result it should flexible business rules in a specific area. For example, Indian market wants to own culture if the company fixed its culture then the company will fail.

Negative Government Policies:Government policy is different in several countries. It makes policy such as tax, operating issues, licence, land use and others. The negative government policy fails to operate business.

Corruption:It makes a loss company because it turns aside main motto.

Critically discuss the key factors that underpin the differences between domestic and international HRM

Some difference shows in operating domestic and international market those are given below-

International Human Resource Management

Domestic Human resource management

1. It operates business in global and domestic market.

The business is operating in domestic market.

2. International laws are affecting the company

The company must follow own country law in the market.

3. It recruits more employees.

It has needed low employee.

4. Competitors and external environment needs to consider.

This is needed to internal employee.

5. All types of cultural employee can joint here.

Local cultural people are priority.

6. It impacts by crime, terrorism and corruption   

It can influence by corruption.

7. It is complicated process.

It is easy process.

 

Conclusion:

The main purpose of the report is finding fails factors while operating business in the global market. Most of the companies are not aware of the management, focusing market, government policy and others. Cadbury chocolate company wants to success from considering the failure issues in the global market.

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