Course name:| MBA522 International Business Strategy|
Section Number:| N71|
Instructor’s name:| Bonnie Russell|
Date:| July 11th, 2012|
Student’s Name:| Liuqing Yang (Stacy Yang)|
Individual Reflective Report
Instructor of MBA522 lectured the class in a conversional way that made the student really think about the cases presenting in class. After the study of the strategies and theories, students would be requested to discuss a case and answer certain questions. In this way, students learned how to solve problems in the real world by using the knowledge learned in class. This teaching style trained me to deeply think about cases I read after class. One of my readings, The tortuous Evolution of the Multinational Corporation from textbook explains the concept of multinational corporation and explores the three stages of minds or attitudes in international enterprises (Howard V., 1969). My understanding towards multinational corporation came from previous experience. Siemens, a German electronic company I worked for, I considered the company as a multinational corporation. I made that assumption only based by my poor understanding of the word “multinational”. I believed that a multinational corporation was a company in which employees have different nationalities and various cultural backgrounds. This paper I read elaborates that a firm could not be a genuine multinational corporation even if it claims it is. The reasons of that situation can be various. In the paper, the author sorted different situations of international companies into three stages. Taken the firm Siemens as example, if the company claims that electronics made in Germany are the best and it markets itself as “a German company”, then it may, in the first stage, called home country attitudes, which is also called ethnocentric attitude. Companies in the first stage are pervasive. The second stage is the stage of host country orientation, also known as polycentric attitude. If Siemens in this stage, it would emerges symptoms including applying “local in identity” policy, loose connection between subsidiaries and headquarters and empowered local executives. The reason is due to headquarters making assumption that host country cultures are different and foreigners are difficult to understand. However, the stage two attitude would cause a consequence of ethnocentrism among the country managers, incorporation would be revealed in different markets of countries. The third stage is a stage of world-oriented concept, also known as geocentrism attitude. The third stage is considered to be the best attitude or mind in an international enterprise. If Siemens in this stage, executives of Siemens would have different nationalities and they are not be judged based on nationality but on individual working ability. Subsidiary of Siemens (China) Ltd. would be seen as an exporter that brings hard currency, new skills, knowledge and advanced technology to China. Upon planning and executing strategies based on local competitive conditions, subsidiaries in China and headquarters in Germany are also well communicated and collaborate so as to purse its worldwide objectives.
To identify which stage of attitude or mind the company Siemens is in, analysis is to be done according to the descriptions discussed above. First of all, geocentrism attitude is revealed among the organization structure. Siemens is a leading company, which promotes itself as a global powerhouse in electronic and electrical engineering (Siemens, 2012). Its major areas of business include energy, healthcare, industrial productivity and intelligent infrastructure solutions (MacCormack, et al., 2002). Three major regions are organized in Siemens according to the different responsibilities and managerial roles. (MacCormack, et al., 2002). One region consists of Europe, Africa, and Middle East. The other regions are the Americas and Asia...