MNCs: Management, HR & Strategy for a Diverse Workforce - Research Paper

Introduction

Multinational companies have more to consider when it comes to their management practices, HR policies, and strategy decisions. The management practices in multinational companies have to take into consideration the different cultures involved in managing a diverse workforce and consumer needs (Deresky, 2017). Local companies just have to adhere to local, and they would still maintain their workforce and their company. The HR policies for multinational companies are also more open and stricter at the same time to accommodate diversity but still maintain sanity at work (Deresky, 2017). International strategies for international companies also differ in that; the companies have to worry about how the plan should work in all their locations which are influenced by culture, politics, finances, different economies and also various legal issues.

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Adidas may fail to acknowledge the diversity in the countries they go to. Although they are an international brand with consumers all over the globe, they could get a larger market share if they dealt with the cultural issues in their advertising and management. Most overseas markets don't work like the home markets (Deresky, 2017). Adidas should also learn that most developing countries have political matters affecting their reach including their finances in terms of taxes and revenue. There also exists financial issues when setting targets for their companies. The international environments usually have different competition which might make it hard for the company to set realistic financial goals as compared to their local market.

Adidas does not have local products, or rather, their business has always been appealing to the world. Nothing in their apparel speaks American. However, one can also argue that western ways have influences worldwide culture, especially with the younger generations. Therefore, Adidas does not have much related cultural issues to worry about. However, Adidas does have to formulate different marketing techniques to the different cultures in the countries. Therefore, part of their activities are internationally oriented; thus they have to ensure that to maintain the business objectives, they sell to the locals in the different countries.

Adidas' strategy is polycentric to some extent because the same products they sell in their home market are the same products they sell in the international markets (Wales, Gupta, Marino, & Shirokova, 2019). However, they use different marketing and sales techniques to sell to global markets. Suffice to say that that is what the consumers want since their brands are in sportswear and fashion. However, with regards to their products, Adidas uses the ethnocentric approach in that they sell the same products in all the countries in which they are located. Although, some of the products they have are mostly in their local state and they have not yet moved them internationally. Although, through online shopping, people usually shop internationally for the products they have and have them shipped to their home countries.

Adidas conducted a PEST analysis of the different countries that it wanted to venture in to. Combined with the SWOT analysis for the nations and the markets, Adidas was able to show which markets would be less problematic, more economical and also more profitable to get into. The political climates in the countries mattered a lot due to the policies and stability of the country (Aithal, 2017). The economic growth also determined whether the people in the nations would be able to spend on their products. Social factors decided whether people would accept and purchase the products including those that did not know about them while technological factors determined the ability to market and sell.

Yes, Adidas is an internationally recognized brand both for its sports and fashionable apparel. Popular culture, especially in the age of the internet, hinges on one's ability to stay current and stylish. Therefore, Adidas had the core capabilities to succeed in markets where consumers wanted to stand out and also be recognized. The opportunities were present, but Adidas also had to struggle with the political economic and social factors that prevented their expansion. However, through a tweak in the strategies and finances, they were able to overcome the barriers.

If I were in the competition, I would use joint ventures as an international marketing entry strategy. Most people even though they want to stand out, they also want to remain unique in one way or another. By focusing on the uniqueness and not the quantity I provided, I would have a significant market share, to begin with. Adidas is already renown and loved company. However, consumers still also want fresh new products to accessorize away from their style. Therefore, through a joint venture with related companies already the country, I would penetrate the market quicker.

The value chain dispersal strategy is the steps that involve producing the company product from the suppliers of the raw material to the final product and also the actions that include reaching the same product to the end consumers. The integration strategy of a value chain dispersal includes how a company plans of combining the goals of the value chain to the international strategy of the company.

References

Aithal, P. S. (2017). Industry Analysis-The First Step in Business Management Scholarly Research.

Deresky, H. (2017). International management: Managing across borders and cultures. Pearson Education India.

Wales, W., Gupta, V. K., Marino, L., & Shirokova, G. (2019). Entrepreneurial orientation: International, global and cross-cultural research. International Small Business Journal, 37(2), 95-104.