Research Korner: Dissertation Research Methodology

Multinational Companies in the Context of Globalization

CHAPTER 1: Introduction   Multinational Companies in the Context of Globalization               The proliferation of multinational companies is attributed to the process of globalization. Globalization is an evolving, continuous and multi-faceted process covering political, economic and socio-cultural changes driven by technology (, 1983). In international relations, the United Nations established in 1945, embodies the cooperation of states towards a standard for political and economic development (2001). The establishment of venues for cooperation resulted to the conduct of political and economic activities of states and other entities in the context of international relations ( 1998). In international economics, production and trade is no longer limited to a country. International political cooperation led to agreements for the opening up of economies to accommodate the international flow of goods and investment from other economies. ( 1999) The General Agreement on Tariff and Trade 1947 is an agreement that facilitates free trade among the signatory countries under the capitalist system. (2005) Countries engaging in trade related agreements are considered as contracting parties with the freedom to stipulate the provisions of the agreement subject only to the limitations of the laws of the contracting states and international law. In international relations, businesses conducting international operations or multinational companies are accorded legal personality to contract with other companies or states.              Globalization translates in economic terms as capitalism, liberalization, and privatization. Capitalism is an economic system where most, if not all, resources are privately owned and where prices and the mode of production is determined by the free market. Liberalization refers to the process of relaxing state restrictions or regulation in certain activities. Privatization covers the transfer of the control and management of resources from the government of the private sector. (2003) Globalization means that the private sector control and direct economic activities. These activities are not only limited to the state but to other countries. Multinational companies emerged segmenting production in different parts of the world where production resources are competitive making production more profitable. This situation led to the competition of states for international investments, especially countries with underdeveloped economies that depend on foreign investment to sustain the economy. (1998)               Developing countries, that are not industrialized and overflowing with human resource, compete to provide investment opportunities to companies who want to engage or expand into other economies.  States who have resources but unable of efficiently manage their endowments become dependent on foreign investment as a source of revenue for the government and a source of finances for private businesses. This situation melts the economic restrictions and barriers in economic relations because the basis of dependence is need. While developing countries are dependent on large companies for investment, the large companies are in turn dependent on these countries for more profitable conditions for production. The private characteristic of the parties in the relationship of dependence excludes the control of the government over private transactions. The government exercise restrictions only to the extent of the limitations of laws but then again laws are changeable. (2002)   Multinational Companies in the Global Market   It is in the context of globalization that multinational companies developed and persisted and it is also in the context of capitalism, liberalization and privatization that the strategies of multinational companies are based. Multinational companies are business firms that controls and managers manufacturing processes in two or more countries. Multinational companies are multiplant firms operating in more than one state. (1996) Multinational companies are large firms operating in two or more countries through subsidiaries. Subsidiaries are companies controlled by a larger corporation. Control and ownership of the company may be shared with other companies. If the larger corporation fully owns and controls the subsidiary then the latter is a wholly owned company. (2001)   There are different categories of multinational corporations. One type is the horizontally integrated multinational corporation involved in the production activities located in more than one country for the manufacture of similar products. Another is the vertically integrated multinational corporation engaged in the production or manufacture of products in one country to be used in another production activity in another state. In the second category, the company produces or manufactures raw or processed materials in one country to be used in the production of a final product produced in another country. Still another category is the diversified multinational corporation involved in the management of production firms in different countries that are related neither horizontally nor vertically. (2003)               Multinational companies developed into competitive forces in the world economy. The focus of the operations of multinational corporations is on the coordination of the allocation of resources in its international operations in order to minimize production cost and maximize revenue. However, before companies can operate as multinational businesses, these firms also have to develop market-entry strategies to become competitive forces in a foreign economy. There are different strategies that multinational corporations may utilize to enter into a foreign market. The common strategies used in market entry are either marketing or operational. Marketing entry strategies include exporting and licensing where the company does not have to establish a physical base in the new market. Operational entry strategies include franchising, joint venture and foreign direct investment. After all these considerations, the multinational company can now concern itself with building a business structure, actual production, direct marketing as well as financial planning. Globalizing or Internationalizing a Business               The endeavor of entering and developing a foreign market is not easy because at the start of the process, the company is like starting a business and there are no sales or marketing structure in place and there is limited knowledge of the market. There is also a difference between domestic and international operations due to the difference in the operating environment and the strategic requirements for success. Although there is no actual difference between domestic and international operations in relation to marketing and operations theories, there are factors in global operations that affect management decisions. ( 1996)             Penetrating an international market involves a process with zero-base because the business does not have an existing business in the market, there is limited knowledge on the market and lack of managerial competence to operate in the new market. This situation implies that the business introduced in a foreign market is likely to experience a greater rate of change than the change in the business environment because there are many internal adjustments to be made by the business organization. The company has several options to address the situation. One option is entering into partnerships with local firms for the distribution of products. Another option is speeding up the process of changing the marketing strategy through a new product or expanding distribution or changing the marketing organization by acquiring sole distribution of products. (1996)   Globalizing a business involves the development of a multi-market network because of the influence of its previous experience in its businesses in other countries. The more international businesses that a company has, the more that operations will be done in an aggregate level. In terms of price, the company may apply a uniform price for its products with minimum influence by the domestic market or it may also vary price in the different markets especially in cases where one business is incurring increased sales and another suffering losses. International operation influences decision-making in different way than in domestic operations. (2003)   International business operations involve rapid changes in marketing strategy as the company grows or fails. Decision-making on strategies is affected by market factors as well as organizational development. Thus, in studying the strategies applied by existing multinational companies, market factors and organizational characteristics are the two major points to be considered. These two factors co-exist in the process of entering and developing an international market. In determining the strategies that contributed to the success of international businesses, the common experiences of these businesses are important to learn the evolution of marketing and organizational strategies from the initial entry until the successful introduction of the company. (2002) Justifications for Global Business Operations                         There are several justifications that support the strategy of some companies to enter the global market. First is to find cost-effective sources of raw materials that support the increasing production needs of the company. The domestic economy may not be able to provide the requirements of the company for raw materials and labor or the cost of raw materials and labor is too high making it not rational for the company to depend on the domestic economy for its raw material needs. When cost-effective sources of raw material and labor are available in other economies, companies expand into other economies to take advantage of cheaper raw materials and labor. One of the first companies to operate as multinational companies are those engaged in oil exploration such as British Petroleum and Exxon. (, 2003)               Second is to find new markets for their products. There are companies that experience decrease sales due to market saturation. Market saturation refers to the extent that a particular product is diffused or distributed into the market. The extent of distribution determines the remaining portion of the market for business expansion. Market saturation depends upon the following market factors: 1) the purchasing power of consumers; 2) competition; 3) prices; and technology. In the case of television, almost all of the households in industrialized countries such as the United States and Britain own television resulting to a very high diffusion rate. Companies manufacturing televisions are forced to compete based on innovations to attract households to purchase new television sets. Most companies selling televisions are multinational companies offering their products to new markets in developing countries. (, 2003)               Third is to rationalize the firms operating cost. Business firms with seeking to achieve cost-efficient production are attracted to expand their operations to other countries not only to lessen the cost of raw materials and labor but also to minimize cost required in production such as taxes and policy restrictions. In minimizing cost, the business firm is able to remain as cost competitive. Multinational corporations consider cost minimization in terms of its internal operations as well as the external factors that affect production. High business taxes and strict industry standards or restrictions are the most salient business environment features that repel business firms. Less tax and less stringent policy restrictions are the factors that multinational companies look for in choosing a country to expand its operations. Business firms that primarily became multinational companies to minimize operating cost are Texas Instruments, Intel and Seagate Technology. (, 2003)   Objectives of Global Business Operations               The justifications of business firms in internationalizing their operations are related to their objectives for growth and expansion. The most common manner of market entry is commenced through product distribution through local businesses or partners to gain entry in a short period. After introducing the product to the market, the business firm takes a more involved action by producing and marketing the product through a subsidiary. This is applied because it enables products to gain easy entry into the market even before the company has established its operations in the market. This also involves minimum risk since the company is given time to assess the acceptance of the market to its products. The reasons for market entry and development are to gain access to cost-effective sources of raw materials and labor, create demand or market for products and services and minimize cost.               These justifications are related to the objectives of investment decisions. First objective is to learn in lead markets (, 2001). There are business firms who incur cost in market entry primarily to learn from market conditions and secondarily to earn profit. Koc a Turkish conglomerate sought to enter Germany, considered as the leading global market for refrigerators, freezers, dishwashers and washing machines in terms of product specification and consumer sophistication. At the start of the endeavor, the company recognized that its brand is unknown in the market and great effort is needed to penetrate the market. However, the company also recognized that if its market entry strategies work it would gain great insight into the marketing situation in Germany and global market entry as well. The lead market differs in different countries. Software is the lead market in the United States, electronics and telecommunications in Japan and fashion in France and Italy.             Second objective is to pursue a competitive attack or competitive defense ( 1994). The investment decision to penetrate a market is a response to the earlier move of a competitor to enter a new market. The business firm takes the position of a follower. This is done when the company that previously entered a market is a major competitor and the entry is deemed as giving the competitor a great advantage. Apart from the great advantage that the competitor is expected to experience in terms of revenue, the company also perceives that leaving the company to operate alone in the new market will eventually lead to inequality in status to the disadvantage of the business firm. Another scenario that influences the decision to enter a new market is a defensive stance against the move of a major global competitor to enter the domestic market where the business firms are based. The business firm enters the domestic market of the competitor to force the competitor to incur increased cost in an intensified competition in the same way that it incurred cost in responding to the earlier move of the competitor.                Third objective is to take advantage of opportunities offered by a new marketing environment through incentives from domestic and foreign countries.  There are countries that encourage businesses to export by providing different kinds of support making it easier for business firms to expand into the global market. There are also countries that give incentives for foreign investments paving the way for the smooth entry of business firms into the market. (, 2000) CHAPTER 2: REVIEW OF RELATED LITERATURE   Entry Strategies in the Global Market               Entering another economy requires the transfer of financial resources, management skills and technology to another market. There are several ways of gaining market entry for multinational firms, which are exporting, franchising, licensing, joint venture and foreign direct investment. Foreign direct investment provides greatest control of production by the foreign company but requires the greatest use of resources. Franchising and joint venture involves moderate degree of control as well as a moderate infusion of resources. Licensing offers the least level of control because it also involves the least utilization of resources. The entry strategy of a multinational corporation depends upon its business objective and the availability of resources.               Exporting refers to the process of marketing and distributing products to a foreign market. This activity involves the interaction between the exporter, importer, transport provider and the government of the foreign country. The goods distributed are not produced in the foreign market so that there is no need to establish a physical structure in the new market. Costs involved covers marketing activities of the company. This market entry strategy is ideal for business firms with limited knowledge and experience on international operations. ( 2003)             Piggybacking is an exporting arrangement that involves taking advantage of the channels of distribution in the global market instead of targeting a particular market. A company that successfully used this strategy is F&P Gruppo, an Italian rice firm that owns the Gallo brand. The company entered the Poland through its subsidiary in Argentina because the Argentinean air force was sending empty air freighters to Poland that comes back with imports. Food companies took advantage of the cheaper way of exporting products.  Another manner of piggybacking is the joining of two companies to take advantage of a channel of distribution. This is applied by IBM and Minolta with the latter taking advantage of the established distribution channels of IBM and the former welcoming a firm to share the cost of distribution. (2003)               Franchising is a market entry strategy as well as a hybrid manner of organizing the business by establishing a relationship of agency with the franchisees ( 1988). Franchising involves the convergence of a parent company and several small businesses. The parent company sells to the smaller businesses the right to distribute its products or use its trade name and processes. The agency relationship established between the parent company and the franchisee is governed by a contract ( 1992). The franchise contract defines the conditions of the agency and the duration of the relationship. ( 2004).               McDonalds celebrated its 50th anniversary in April 15, 2005 and remained true to the statement "As far as I can tell, the only place you can't get a Big Mac is in outer space." ( 1990, ) The company operates as a global business through franchising. In 2004, the company reported to have established 30,000 local restaurants located in 115 countries across five continents. It is the biggest fast food retailer conquering markets worldwide. In almost every country in the world, there is a McDonalds restaurant and in a single state or region, there are several branches. The company has spread so widely that the term “mcdonaldization” ( 1998,) was coined to describe the organization and culture of the company. The term has evolved to refer to the general business strategy of expansion.               Licensing is the process of permitting a local company to use the property of the licensor in exchange for a fee. The property refers to intangible things such as patents, trademarks as well as production techniques. This arrangement involves the infusion of little resources enabling the licensor to obtain a high return on investment. However, there is a risk of revenue loss because the licensee produces and markets products and collects revenue. ( 1999)   Licensing also refers to the market entry of business firms with a distinct legally protected asset that constitutes their distinction in the market. Distinct protected assets covers brand name, technology, product design and manufacturing or service process. Licensing is not an exclusive strategy in global marketing. (  2004) Disney is a company renowned for licensing cartoon characters to manufacturing and other firms within and outside the United States. The central activity of Disney is its media productions while marketing is done by the business firms permitted to use Disney cartoon characters. In department stores cartoon characters are found in children’s clothing, shoes, bags, pens and toys  while in supermarkets Disney characters are used in shampoos, soap, diapers, milk, cereals and a wide array of other products.               Joint venture refers to the management arrangement that involves the partnership of a foreign company and a local company based on the sharing of capital, technological resources and other benefits. The foreign company benefits from the relationship by gaining entry into the market and taking advantage of the expertise of the local company on the political and economic environment while the local company benefits from enjoying the infusion of capital and technological innovations into its operations. The extent of control of the foreign and local firms in the joint venture depends upon the agreement and the legal limitations. ( 1999)                The New Corporation by its strategic joint ventures became a multinational company. Its corporate projects started out as a drive to expand its reach to other countries apart from Australia. It ventured into the UK purchasing newspapers both national and local and then it set foot in the United States to introduce his company as a potent competitor to existing companies. The most recent venture is developing its business in Asia particularly in China and Hong Kong, India, Indonesia and the Philippines which catered not only to the English speaking locals but also accommodated and aired the local events and locally produced movies and television programs. In countries where there are established broadcasting companies the strategy of The News Corporation is to gain control of the channels of distributing televised news by gaining controlling interest in  influential cable companies through joint ventures. When satellite television was introduced, it also acquired interests in satellite corporations. After being assured of the means of showing its programs, the company had the freedom to create and develop its shows. The company is known for hit movies Titanic and Independence Day and the kids channel Fox Kids. ( 2006)                         Foreign direct investment (FDI) is “a category of international investment that reflects the objective of a resident in one economy (the direct investor) obtaining a lasting interest in an enterprise resident in another economy (the direct investment enterprise)” ( 2003). Foreign direct investment implies the development of a lasting interest in the establishment of a continuing relationship of the direct investor with the enterprise including influencing the management of the firm to a certain degree (1996). Foreign direct investment allows the direct investor and the direct investment enterprise to experience certain economic benefits from the relationship. On one hand, the direct investor is able to engage in new ventures or expand into other economies by sharing capital, management expertise and technology to the direct investment enterprise (2003). On the other hand, the direct investment enterprise benefits from capital infusion, technological transfer and management skill acquisition necessary for growth. (1998) International business firms that fared well through foreign direct investment include General Motors that established a plant in the Philippines as well as Coca-cola and Pepsi with processing plants in every geographical region for cost-efficiency.   Operational and Marketing Strategies of Multinational Corporations               The success of the marketing strategy of multinational corporations depends upon the manner that the company takes advantage of the different opportunities and tools to improve its gain a place relative to its competitors and the market. Marketing efficiency means creating a market in the local economy by introducing and promoting products with the objective of extending product life cycle or introducing products that reached high levels of saturation in other markets. Strategy in global marketing considers the first mover advantage of the company. The multinational company may also take advantage of the higher price that people expect from new products. Risk as a strategy consideration refers to the benefits that the multinational company gets by spreading the operational and macroeconomic risks in different economies. Learning is a benefit achieved by the multinational company because management is able to expand its experience by operating in different economies and markets. Reputation is the benefit experienced by the company in increasing its brand equity in the global market through the influence of crossover customers. ( 1998)               Operating in the global market requires strategies based on accurate information about the marketing environment worldwide. The company can utilize marketing and operations theories but it should apply these in the context of the local environment. Operating strategies revolve around diversity. The company needs to consider and integrate three sources of information: firm-specific knowledge or information on the local market environment, country specific knowledge or information on the political and economic characteristics of the local environment, and knowledge of global environment to determine trends that affects decisions on business operations.  (, 1999)               Marketing strategy should focus on mass-marketing competence and establishing marketing channels. Mass-marketing competence is an important because this is the strategy demanded by the emerging market and it is the best way of fulfilling the objective of the business firm to develop a market for its products. Companies seeking entry into new markets initially price their products higher than local counterparts in order to maintain global price consistency and to prevent parallel importing threats. This results to their products accessible only to the elite segment of the market. In the long run the company does not obtain projected sales and it also allows local companies time to develop their products and brands. Establishing marketing channels is an important factor in market penetration because this strategy links the offer of the company to the demands of the customer. ( 2001)                         Kellogg, a cereal firm in the United States had trouble in marketing its products because it failed to consider the distinct marketing demand in India. The company wanted to increase its profit through the potential of developing a global market for its breakfast products. In 1995, Kellogg introduced its cereal products by exporting to India and selling it at its standard global price. After three years of marketing the product, the company was still unable to reach its projected sales. Kellogg has gained a measly $10 million in sales after three years. The company later found out that the low sales was attributed to the higher price of its products compared to other alternative breakfast and the market did not relate to the convenient breakfast advertising claim because people prefer to buy biscuits and tea in roadside stalls. In the next years, the company introduced varieties of biscuits in convenient packaging at an affordable price in roadside stalls. Kellogg’s is still in the Indian market and it has entered other markets through both exporting and foreign direct investment. ( 2003)               Unilever is a multinational company that succeeded in market development through mass-marketing and marketing channel competencies. When Unilever unveiled its new global brand in 2004 in South Africa, the company stressed that its objective is to stay relevant to consumers. Thus, the company launched a campaign to illicit funds for its HIV/AIDS advocacy based on the rationale that healthy and economically empowered people constitute a vibrant market. The advocacy program includes livelihood program for the community. The company also utilized mass distribution channels such as supermarkets and department stores. Unilever is present in almost every region in the world. Consumers belonging to different income groups buy its products. ( 2004)               Globalizing business firms may also consider transferring their brands to the local market or acquiring local sources of advantage. The decision is based on the objective of the company to compete either with other foreign companies or with local business firms or both. Transferring company assets into the market is done by marketing a brand in different markets or using the company name in the different physical structures. ( 2003) Coca-cola and Pepsi transfer company assets to different markets by introducing uniform brands and products worldwide.   Localization is the process of taking advantage of marketing opportunities in local markets. This is done by either taking an international brand or product and fitting these into the demands of the local market or acquiring local brands or products and integrating this into their brand and product portfolio. (, 2003)  The first strategy was used by Kellogg’s in India, when it introduced biscuits but marketed the products in smaller packages at a lower price in roadside stalls to become a significant breakfast supplier in the market. The second strategy was implemented by Coca-cola in Japan by acquiring the local brand Georgia iced tea to meet the demands of the local market. Heineken also utilized the second aspect of localization through the strategy of selling a combination of local brands and international brands, but maintaining Heineken as the flagship brand. Heineken also achieves broader positions and remain in the top or secondary positions in any market of local beer. ( 2005)   Another aspect of localization is taking advantage of distribution assets in the local market. Procter & Gamble earns $50 billion dollars a year in global sales. When the distribution channels of Eastern Europe collapsed during the transformation from communism to democracy, P&G developed local channels of distribution by funding several distributor businesses by providing vans, training and information technology capabilities. (, 2003) Palm, Inc. is a global computing company that succeeds in market entry through the acquisition of local computing companies and their products and merging these into a strong business firm so that the company takes advantage of the channels of distribution of these local companies. The firm is also engaged in innovations and product development to differentiate its products in the global market. ( 2003)   CHAPTER 3: METHODOLOGY   This study will be conducted to determine the success factors of most multinational companies and organizations in internationalizing their business operations in other countries/continents. In this study, the interview method of data gathering will be utilized, with a combined total of 50 employees from both Palm, Inc. and Heineken as participants. The research plan will proceed guided by the following conceptual framework:                                               Research Methods       The research will utilize the descriptive method in learning the strategies and techniques utilized by Palm, Inc. and Heineken in their international operations. The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena (, 1994). The researcher opted to use this kind of research to obtain first hand data from the respondents as basis for formulating rational and sound conclusions and recommendations for the study.   To come up with pertinent findings and provide credible recommendations, this study will utilize two sources of research: primary and secondary. Primary research data will be obtained through the questionnaire survey and in-depth interview. Secondary research data will be obtained from books, journals and studies on the same topic. Secondary data include raw data and published summaries, as well as both quantitative and qualitative data (2003). Research Design In order to come up with the most suitable research approach and plan for the study, the “onion” research process will be utilized. According to (2003), in order to come to the central issue of how to collect the data needed to answer one’s research questions, there are important layers of the onion that need to be peeled away: the first layer raises the question of the research philosophy to adopt, the second considers the subject of research approach that flows from the research philosophy, the third examines the research strategy most applicable, the fourth layer refers to the time horizon a researcher applies to his research, and the fifth layer is the data collection methods to be used.             Figure 1 shows how the researcher conceptualized the ‘onion’ research approach to be applied in this study. The first layer involves the application of the research philosophy of positivism where the researcher works in an actual observable environment (1998) and acts as an objective and independent analyst ( 2003) using a highly structured methodology (1997) to arrive at valid generalizations. Meanwhile, the second layer involves the deductive approach that has five sequential stages: deducing a hypothesis; expressing the hypothesis in operational terms; testing this operational hypothesis; examining the specific outcome of the inquiry to either confirm the theory or indicate the need for its modification; and finally, modifying the theory in the light of the findings whenever necessary (1993). Instruments to be used A self-administered questionnaire, or the type of questionnaire that is usually completed by respondents (2003), was constructed by the researcher to gather data. A survey questionnaire using the Likert Scale was prepared asking respondents to rate given statements according to their level of satisfaction.             Range                                                Interpretation                          3.50 – 4.00                                       Very Satisfied             2.50 – 3.49                                        Quite Satisfied             1.50 – 2.49                                        Quite Dissatisfied                               0.00 – 1.49                                        Very Dissatisfied             The survey-questionnaires contain open-ended questions to be used in a semi-structured interview. Interviews will take one and two hours. The questions that will be used in the interview are based on the research questions that have been reviewed, refined and approved by the project supervisor. Validation and Administration of the Instrument For validation purposes, the researcher will initially submit a sample of the set of survey questionnaires and after approval; the initial survey will be conducted to the 50 respondents.  After the questions are answered, the researcher will ask the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument.  Afterwards, the researcher again will examine the content of the interview questions to find out the reliability of the instrument. The researchers then will exclude irrelevant questions and change words that would be deemed difficult by the respondents, to much simpler terms. The researcher will also tally, score and tabulate all the responses in the provided interview questions.             Apparently, there have been issues on the validation on using self-assessment as against an observer rating. The use of either one will significantly change the result of the findings. This study will opt to use both. While there are strengths of the approach, scholars have also presented future impediments and limitations of using this type of methodology.             Furthermore, the researcher will adopt the three-stage process devised by (2003). The first stage is assessing the overall suitability of data to research questions and objectives. In this stage, the researcher will pay particular attention to measurement validity (measuring / estimating whether the secondary data will result to a valid answer to the research questions and objectives) and coverage (this includes ensuring whether or not the data is wanted and can be included, as well as making sure that sufficient data remain for analyses to be undertaken once unwanted data have been excluded). The second stage is evaluating precisely the suitability of data for analyses needed to answer and meet the research questions and objectives. In this stage, the researcher will ensure the validity and reliability of the secondary data by assessing how it was previously gathered, who are its sources, and the likes. In addition, the researcher will be cautious not to commit measurement bias (which can occur due to deliberate distortion of data or changes in the way data are collected). Finally, the researcher will judge whether to use data based on an assessment of costs and benefits in comparison with alternative sources. Data Representative and Reliability             To ensure the reliability of interview results, test-retest will be conducted, or the administration of the same test to the same set of interviewees on two different occasions will be conducted.  This approach assumes that there is no substantial change in the construct being measured between the two occasions.  Thus, two tests will also be conducted: a pretest or a pilot test shall be done and a post-test.  Interviewees will be questioned twice. Furthermore, the proposed approaches, structured interview and telephone questionnaire will be interview-administered.  This part will encourage credibility and accuracy in the interviews. Ethical Considerations             In keeping with the procedures and in the interest of maintaining the integrity of the proposed research, the researcher will make every effort to ensure that the ethical guidelines in research will be strictly followed.  All data collected from the respondents will be kept in confidence. The names of the respondents and their answers will not be revealed. The appropriate measures of the data will be obtained with the selected statistical instruments, and all results of the study will be open to the respondents and the public.

Multinational Companies in the Context of Globalization

CHAPTER 1: Introduction Multinational Companies in the Context of Globalization The proliferation of multinationa...

Chapter 4:An Investigation On Green Marketing – Case Comparison Of Two Industries

CHAPTER 4 – METHODOLOGY   4.1 Research Methodology 4.1.1 Overview This study was conducted for the purpose of identifying the different strategies that are used for applying green marketing in telecom industry. This research also aimed to focus on the different processes and aspects that are being applied. This study used data and information gathered from the employees and staffs of two well-known respective industries in the telecom industries, and focus on the different strategies that are being applied in the entire system of the respective industries. 4.1.2 Design A comparative approach was used, together with the descriptive research design in order to present current facts regarding green marketing principles and strategies of Nokia and Sony Ericsson. According to Creswell (1994), a descriptive research intends to present different facts which pertains on the nature and status of a situation, as it exists at the time of the study. Best (1970) also added that descriptive studies focuses on the relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt or tends that are developing. Thus, the comparative approach will focus on comparing and analyzing the differences and similarities of principles of green marketing in the two said respective industries. Case study method was also applied. Robson (2002) defines case study as a “strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence.” Case study approach is considered as most appropriate to exclude occurrences of green marketing in electronics industry with its two primary players as Nokia and Sony Ericsson. One of the threats to reliability which is subject of participant error will be addressed by means of conducting survey at the closest time possible. 4.1.4 Sample and Participants The population of the study is made of marketing staffs in these respective industries in the UK. These types of respondents were utilized by the research author of this study considering that the staffs have the necessary information about the objectives of the study. A total of 10 pre-designed questionnaires were randomly distributed for the sample selection. The marketing staffs were chosen because they are knowledgeable in terms of marketing effort of their respective industry. The random sampling technique was conducted where each member of a population has an equal opportunity to become a part of the sample.              For this research the author considerers 30 employees each from both respective industries, which means that 30 employees of the mobile respective industries will answer the queries and survey and 30 employees from the automotive respective industries. 4.2 Data Collection Primary and secondary data was collected. Primary data was gathered by survey and interview to, while secondary data was gathered by previous studies, reports, journal contents and statistics. In addition, annual reports, marketing reports, respective industry statistics was also obtained by using the respective industry website of the mobile respective industries like Nokia and Sony Ericsson and also website of automotive respective industries like BMW and other auto industries, together with different articles that are tackling green marketing activities of these respective industries. Internet databases were also consulted which include Questia, Highbeam and Emerald. 4.2.1 Survey The survey questionnaire was used as the main data-gathering instrument in this study. The survey focuses on the perceptions of the respondents regarding the implementation of green marketing in their respective organization or respective industry. The questions were structured and developed in Likert format. The respondents rated each question or statement with accordance to his or her degree of agreement or disagreement. This will enable the respondents to answer the survey in easy and fast manner. To test the validity of the questionnaire, it was tested to five respondents. The said respondents and their answers were not part of the actual study process. They were asked for any aspects of the questionnaire that are needed to be improved. The research author of this study then excluded unrelated questions and changed unclear or complicated terminologies into simpler ones in order to ensure understanding. The questionnaire was constructed in such a manner that telecom and automotive employees will easily understand and answer it. Hence, the set of questionnaire consider the use of the Likert approach which is a rating that indicates the level of agreement or disagreement of to a given statement.  With this semi-structured questionnaire, the participants from each industry were provided with five-response choices. Such options performs as the quantification of the choices of the. The table below shows such designation. 	 		 		 		1 		 		 		 		Strongly Agree 	 	 		 		 		2 		 		 		Agree 	 	 		 		 		3 		 		 		 		Uncertain 	 	 		 		 		4 		 		 		 		Disagree 	 	 		 		 		5 		 		 		 		Strongly Disagree 	     4.3       Instrumentation 43.1. Content analysis For this research study, the use of content analysis was considered to determine the communications to be able to answer the two levels of queries for this study: the descriptive as well as the interpretive.  Herein, the first one give emphasis on what the communication is all about and the second one give emphasis on what the contents was likely to describe.   The approach entailed finding through one or more approach of communication to answer the queries that the research bring to the topic (Brubaker & Thomas, 2000). The consideration of the content analysis was utilised to analyse and interpret the answers of the interview section.   4.4.2. Statistical Treatment Accordingly, the use of Likert scale was considered for the interpretation of the items in the structured survey questionnaire. The answers were practically based on the assessment of the telecom and automotive employees on the green marketing approach within each industry. There were moments that telecom and automotive employees were asked to rate why this approach is considered within the industry.   Table 1: The Five-point Likert Scale 	 		 			 			 			 			Scale 			 			 			 			Range 			 			 			 			Interpretation 		 		 			 			 			1 			 			 			 			0.00-1.49 			 			 			 			Strongly Agree 		 		 			 			 			2 			 			 			 			1.50 – 2.49 			 			 			 			Agree 		 		 			 			 			3 			 			 			 			2.50 – 3.49 			 			 			 			Uncertain 		 		 			 			 			4 			 			 			 			3.50 – 4.49 			 			 			 			Disagree 		 		 			 			 			5 			 			 			 			4.50 – 5.00 			 			 			 			Strongly Disagree 		 	   In this study, the use of weighted mean are also considered for the measurement of the general answers of the survey samples, whether they believe a given statement or not. To compute the weighted mean, the following formula will be used:                                       Where:           f – weight given to each response                                                             x – Number of responses                                                             xt – total number of responses In this regard, the results of the survey process were shown in tables or graphs.   4.2.2 Interview Aside from the survey method, the study also applied the semi-structured interview method. This was done in order to come up with issues regarding the strategies, requirements as well as challenges that are being encountered of the respondents and the respective industries towards green marketing. With the use of semi-structured interview, respondents will be able to express their feelings, concerns and opinions. In this paper, all interviews have been done via telephone as well as through email. IF the research author of this study of this dissertation were aware of the lost of the body language analysis, the research author of this study opted to consider telephone interview for practical reasons. Because of the distance and the hectic schedules of the interviewees, it was indeed very impossible for the author of this investigation to interview each individual face-to-face. Nevertheless, one advantage of this kind of interview is that it reduces the tendency to affect the participants. The contact individuals in both the telecom and the automotive industries were either their marketing manager or other marketing staffs.  Even if the interview duration were inconsistent, the research author considered an average of 15-20 minutes for the interview. Nonetheless, it must be noted that the participants already had general idea regarding the issue that the interview were supposed to be given emphasis. Herein, during the first contacts, the research author of this study of this investigation has informed various individuals that this interview will be regarding their adherence to the context of green marketing.  As mentioned, this interview is a semi-structured interview which includes the main topic but staying open to any other path that occurs through the participant’s response.  In this interview, the research author of this study who is also the interview have been able to list general queries regarding the topics which needed to be achieved in this dissertation. Such list is known as the interview guide, which provide the interview the support needed but also enables both parties to have a great deal of leeway in how to response (Bryman & Bell 2007, P474). In this dissertation the interview guide includes the following. 1.    Could you describe in your own words the importance of environmental protection within your industry? 2.    Besides your automotive products, which ecological solutions did you consider in your industry? (production chain, employees, waste, buildings) 3.    Is it important to include environmental protection in your marketing communication? 4.    What is your main approach and marketing strategy for your future products? 5.    What made your respective industry decide to adopt green marketing approach? Why? 6.    What were the factors that you considered before venturing into green marketing approach? 7.    What were the problems you encountered while on the process of implementing green marketing approach? 8.    How did you deal with these problems? 9.    What are the benefits of implementing green marketing approach?   4.2.3 Ethical Consideration The study involved the use of human participants and the acquisition of some confidential respective industry data. Therefore, ethical considerations had been identified and prioritized. The research author of this study ensured that these factors were safeguarded during the duration of the study. Thus, in order to obtain consent of the marketing staffs of the two respective industries, the research author of this study secured an approval from the managements by written letter of permission. Aside from that securing the permission of the participants was also given importance. The written letter explained the details of the research including its objectives, purposes and procedures. This help to ensure that the connection and trust between the research author of this study and respondents which lead to cooperation. Respondents were also informed that they can quit the study anytime they want. Their privacy and the confidentiality of their data were also prioritized.  Above all, the respondents were informed that all of the information gathered from them will be used for this study alone. 4.2.4 Data Processing After gathering the completed questionnaires from the respondents, total responses for each item will be tabulated. To use the Likert-scale for interpretation, it is important to use weighted mean to represent each question. Weighted mean is the average where every quantity to be averages has a corresponding weight and represent the significance of each quantity to the average. To compute the mean, this formula will be used:

Chapter 4:An Investigation On Green Marketing – Case Comparison Of Two Industries

CHAPTER 4 – METHODOLOGY 4.1 Research Methodology 4.1.1 Overview This study was conducted for the purpose of identifying the di...

RESEARCH METHODS & DISSERTATION PROPOSAL: Multinational Culture: The implications for selection, development and introducing new employees in a multinational organisation, Toyota Europe Brussels Head office, Toyota Motor Europe Manufacturing (TMEM)

RESEARCH METHODS – DISSERTATION PROPOSAL   1.         Title   Multinational Culture:  The implications for selection, development and introducing new employees in a multinational organisation, Toyota Europe Brussels Head office, Toyota Motor Europe Manufacturing (TMEM) Section only.   2.         Research questions and objectives   Research Questions:   	<li class="MsoNormal"> 	 	What are 	the demands when selecting employees for Human Resource professional?</li> 	<li class="MsoNormal"> 	 	What 	expectations after selection, do new members have to ‘live up to’?</li> 	<li class="MsoNormal"> 	 	What 	methods of development are in place for employees?</li> 	<li class="MsoNormal"> 	 	What are 	the causes of failure for employees?</li> 	<li class="MsoNormal"> 	 	What is 	done to prepare new recruits into the organisation?</li>     Research Objectives:   1.    To establish what criteria is used for the recruitment process (skills, knowledge or ‘fit’). 2.    To identify any development tools for employees. 3.    To investigate the causes of employee failure in Brussels head office. 4.    To consider the effectiveness of Toyota’s introduction of new employees into the head office.     3.         Rationale   Over the last 20 years, multi-national culture has been a topic of significant interest in studies and there continues to be recent items, which support my case for this paper.  Kranias, 2000 states culture is always an important aspect within an organisation.  Its importance is further emphasised in the case of the Japanese multinational companies and how their culture affects the relationship between the Japanese parent companies and their subsidiaries overseas.  From 3rd February 2003, I will commence employment with Toyota Head office, which is a Japanese subsidiary in Brussels.   The reason behind my proposal is based on the experience I had during the recruitment process, what my experience has been during the acceptance of my contract and the process for me when joining a multinational company – my first day and onwards.  The other factor, which has been of interest to me when completing additional literature review, is the impact that Japanese cultural requirements may have on the employees at Head office, Brussels, including myself.   I will commence with the recruitment process, which took 6 months and involved three interviews and an assessment day.  Toyota’s recruitment process objectives appeared to be aimed at selecting the right people for the roles available and this could be said that all organisational objectives should be to recruit the right people that match the skills and knowledge required for the vacant position.          My experience during the interview process posed some difficult hurdles due to the questions posed and I felt this was due to language and cultural differences.  During all interviews, there was a panel of three interviewers who were Japanese, German and Dutch.  Various questions had to be repeated or expressed in a different manner for all individuals to completely understand the context, even between the interviewing panel.  The main focus around questioning during my interviews was based on my values rather than technical competence.  This questioning technique came predominately from the Japanese interviewer.   Due to this experience it led me to question if some people may be unsuccessful to join Toyota predominately due to potential cultural differences that may be deemed not to fit with the corporate philosophy.   During the assessment process whereby there were six delegates, the assessors informed us that they were looking for strengths that match the ‘Toyota Way’ but no one to date has informed me what that is and once again is this more a cultural fit rather than on technical ability?   Currently at Toyota head office there are approximately 250 employees and have over 10 nationalities working within the company.  Predominately the mix is British, Dutch, French, German, Japanese, Italian, Turkish, Polish and Spanish therefore there is a large mixture of different cultures within the head office and potential major differences in cultural backgrounds.  I anticipate experiencing some of the difficulties posed by cultural diversity, which based on the literature research may include communication, values and social culture.  Based on this information I feel these three area’s will be of significances to me as the team I will join consists of 11 human resource employees and I will be the only English person within this team and I do not speak another language.      However, the complexity of cultural differences eludes easy understanding and remains obscure in the complexity of daily life and as this is my first international assignment and based on the significant research already completed regarding multinational culture, this leads me to know there is further research into how culture plays a part in recruitment and development and how individuals fit within the organisation.    Kranias, 2000 states ‘The use of cultural control has great implications for the selection and training and selecting employees is critical’, and this research will aim to establish the basis of selecting employees, what development takes place and what form of assistance does Toyota provide when you join the company.   4.         Theoretical Underpinning   There are many different definitions of multinational business and Frayerweather, 1978 says that multinational business has ‘only one central distinguishing characteristic – it is business, involving two or more nations’.  Dresser and Carns, 1969 states ‘Culture is the way of life of the group of people’.  Does this mean the group of people are from the same nationality?   Handy, 1999 makes a statement that different nationalities prefer different organisational cultures and that this should not be a surprise but it is only recently that organisational studies have been able to spell out the difference in any detail. For example, cultural theorists like Hofstede believe that cultural influences play an enormous part in the way employees behave in organisations.     Therefore prior to being offered a contract with Toyota that is owned by Japanese, I worked for an American company.  Will I be able to support this with evidence obtained during my research when I review the selection, development and the introduction of the new employee into the workplace?   Recent research carried out by Miroshnik, 2001 regarding culture of multinational business states certainly the economic and physical environments are important issues but the cultural environment - communications, religions, values and ideologies, education and social structure has special importance in multinational business.    Analysis of problems and failures of multinational business abroad has shown that the first dominant factor is culture.  The old Japanese parable about monkey’s and fish’s management style dramatises the consequences of ignorance of the cultural factor in business and it is an appropriate metaphor for the kinds of problems that can arise when people of diverse cultures come into contact without preparation.   Employers should understand this, as culture is an integrated phenomenon and by recognising and accommodating taboos, rituals and many other components they may pave the way toward greater harmony.  Sherman, et al., 1995 states ‘Managing relations between multicultural organisations is a matter of accurate perception and appropriate adaptation.   A large part of the literature review was concerned with the failure of assigning and devising methods to prevent failures.  Much of this is focused on the difficulties in terms of culture clash, Torbiorn, 1982.  Failure of assignments does also impact the company regarding costs, image of the organisation and will potentially affect the individual concerned.     Based on the research it is evident that considerable attention should be given to recruitment, selection and training, and introduction into the organisation for employees to reduce the risk of failures and costs.   During the module Human Resource International, we reviewed a report held in Teesside University library, 658.311 GLY 02, issued by Roffey Park Management Institute.  The title was ‘Towards Global Leadership, Recruiting and Developing International Managers’, Glynn and Holbeche.  Their literature research showed the issues that surround international assignments from selection, training, development and repatriation to the impact of the family and the importance of career management.  They also state the criteria on which successful international employees are selected is still an issue which has not been resolved.  They also found that most multinational companies agree that their managers need international expertise; but their survey revealed that more than half of the large European corporations participating in the study lacked a strategy.  It does not provide which organisation participated.   Based on the findings during the literature review and my own current experience there remains gap in multinational organisations regarding preparing for cultural difficulties during selection, when developing and especially for the preparation and introduction into the organisation.  This report will explore the gaps and provide recommendations to Toyota Head Office, TMEM section.         5.         Methodology   Due to the change in my employment, I have based the methodology on the following.  I commenced employment with Toyota on 3rd February 2003, and due to the lack of in depth knowledge, I will commence my research from induction – building theory due to requiring building knowledge at this stage about the organisation and the culture.  I will commence collecting primary data by meeting people and interviewing a sample of the employees who have had the experience of joining this company and I will commence with the expatriate population of approximately 40 employees (the number concerned had been obtained from the Human Resource department).  My basis for this decision is to establish and gain a feel of issues (understand what is going on), so as to understand better the nature of the difficulties regarding culture people face during the selection process and when joining a new company.  I will then commence to make sense of the interview data by analysing the information and the result from this will be the basis of my theory.    The interview will be based on semi-structured interviews with employees who have joined as expatriates and are from TMEM, which is the division I have joined.  The interviews will last approximately one hour and will be semi-structured.  I will use an a list of themes and questions based on my own experience and issues obtained during the Roffey Park research but during the interview process I will use follow-up questions when relevant if further exploration is required.    To aid my research I will establish from the Human Resource department if they conduct any form of analysis in order to record the different nationalities that have joined the company and if they conduct any exit forms when assignments have failed to establish reasons.  This would assist with researching different cultures and problems that have been encountered.  I know they do not have at this stage a Human Resource database but I will establish if they record using excel or access package.   To establish how recruitment is conducted, I will conduct a semi - structured interview with the head of the recruitment and selection team to verify the criteria they use and to confirm if they are looking for the ‘fit’ rather than based on a criteria of establishing a persons skills, experience and technical ability.  Again the interview guide will be based on my own experience with follow-up questions when necessary.   The interviews which I will undertake of the expatriate populations will be aimed at establishing a variety of aspects of their experience during the recruitment process and when joining the company by giving personal experiences.  Thus the interviews will consist to some extent of story telling; personal accounts of an experience.  Bruner, 1986 and Polkinghorne, 1988 state ‘story telling is a generic human approach aimed at structuring and ordering reality and individual experience and is a deliberate research method increasingly used in organisation studies.  Gabriel, 2000 has used story telling when researching organisational communication and culture.  I will use this information to formulate the image of the culture and the ideas and beliefs and group the views, for example, managers will be in one group.   A problem that may arise when carrying out interviews is if the interviewer is inexperienced with the possibility of interviewer bias.  I intend to carry out the interviews myself, I am a trained and experienced interviewer, (for recruitment and industrial relations), and would therefore hope that these problems could be minimised.    The other factor, which I felt was evident during my interview process, is an individual’s perception of the question posed.  I must continue to establish the question asked in English means the same to the individual during interview.   The current methods of managing selection, development and preparing new employees will be identified and reviewed prior to structuring the interview process and I will also use my own experience for this process.    There is also an intention to carry out qualitative interviews with other parties including the HR Manager and HR Director and will be conducted face to face as I have been informed the department structure is open plan and regular open communication meetings take place therefore I do not envisage a problem organising time to hold these interviews.    It is my intention to use Excel to analyse my data.  Excel will be used to produce graphs and tables.  The data gathered via the qualitative interviews will be used in a descriptive way to enhance the quantitative data gathered by evaluating the information obtained from the semi-structured interviews, and recording which of the experiences were referred to by the expatriate employees.  This will show the frequencies clearly experienced by the sample group.   6.         Timetable   February      analysis of current procedure for selection, development and introducing new employees into the organisation. March           identify gaps, prepare script for interviews and classify them. April              Complete interviews collate and analyse results and record results. June             first draft, proof reading and rewriting August          final proof reading, final copy printed and bound     7.         Resources   Access to tutor, which will be by telephone and e-mail due to geographical reasons. Time (of researcher and those to be interviewed) Computer facilities, (will use own laptop)   8.         Ethical Considerations   Due to people providing their own experiences and the fact that the interviews will seek their own personal experiences, reassurance must be given to all participants that confidentiality is of the utmost importance.  They may be concerned if they are critical of the process, that this may affect their future with the business and relationships with their manager.   It will be made clear that the purpose of this research is purely a study for the purpose of this dissertation and that recommendations will be made.  They will be notified that findings will lead to recommendations to help with future selection, development and introducing individuals to the organisation to achieve a better process.   It must also be made clear that invited participants have a right to refuse to participate, or to answer any particular question during the interview.     9.            References   Dresser, D & Carns, D., 1969, Sociology the Study of Human Interactions, Intercultural Press   Glynn, C & Holbeche, L., Towards Global Leadership: Recruiting and Developing International Managers, Roffey Park Management Institute, 658.311 GLY 02   Frayerweather, J., 1978, International Business Strategy, Ballinger, Cambridge, MA   Handy, C., 1999, Organisational Changes,   Harvey, F., 1997, National cultural differences using Hofstede’s national culture, Information Technology & People Journal Vol.10 No.2, pp132 –146   Helms, M., Exploring the factors that influence employees’ perceptions of their organisation’s culture, Journal of Management in Medicine, Vol.15 No. 6, 2001, pp. 415-429   Hofstede, G., 1980, Culture’s Consequences. International Differences in Work Related Values, Sage Publications   Holden, R., Managing people’s values and perceptions in multi-cultural organisations, Employee Relations Vol.23 No.6, 2001, pp.614-626   Miroshnik, 2001   Sherman et al., 1995   Torbiorn, 1982   Roffey Park Article, GLY 02

RESEARCH METHODS & DISSERTATION PROPOSAL: Multinational Culture: The implications for selection, development and introducing new employees in a multinational organisation, Toyota Europe Brussels Head office, Toyota Motor Europe Manufacturing (TMEM)

RESEARCH METHODS – DISSERTATION PROPOSAL 1. Title Multinational Culture: The implications for selection, developme...