Telenor i.e. Grameenphone as a Multinational Company achieving competitive advantage through high level of adaptation and local responsiveness in an emerging country like Bangladesh.
Mohammed Sabirul Islam, ID: 072 195 530
Course Code: MGT 372
Course Title: International Business
Mr. Jasim Uddin
Lecturer School of Business
North South University
Date of Submission:
August 30, 2012
The point of doing this research paper is to help you find out how Multinational Companies could achieve competitive advantage in 3rd world emerging economies like Bangladesh. A sneak peek into one such company which has been doing business successfully in Bangladesh for the past decade. A critical analysis where one on one interview an employee of the company to better understand the company in focus and to find out recommendations to make MNC’s obtain sustainability.
II. Research Topic
Grameenphone as a Multinational Company achieving competitive advantage through high level of adaptation and local responsiveness in an emerging country like Bangladesh.
III. Research Objective
The main objective of this paper is to find out the local responsiveness and high level of adaptation of Grameenphone in order to achieve competitive advantage in an emerging country like Bangladesh.
IV. Research questions
Can Multinational Corporations achieve competitive advantage through high level of adaptation and local responsiveness in the emerging country like Bangladesh?
V. Literature Review
A corporation that has its facilities and other assets in at least one country other than its home country and such companies have offices and factories in different countries and usually have a centralized head office where they co-ordinate global management are known as multinational companies. Very large multinationals have budgets that exceed those of many small countries. Multinational firms arise because capital is much more mobile than labor. Since cheap labor and raw material inputs are located in other countries, multinational firms establish subsidiaries there. They are often criticized as being runaway corporations. [Howard V. Perlmutter, "The Tortuous Evolution of the Multinational Corporation,"Columbia Journal of World Business, 1969, pp. 9-18.]
An MNC consists of a group of geographically dispersed subsidiaries with a wide range of goals. Given the increasing globalization of the competitive environment, the dual imperatives of global integration and local responsiveness are becoming more critical than ever before for the survival and growth of MNCs (Bartlett &Ghoshal, 1989; Doz &Prahalad, 1991; Kobrin, 1991; Roth & Morrison, 1991). Global integration concerns the coordination of activities across countries in an attempt to build efficient operations networks and to take maximum advantage of similarities across locations. In contrast, local responsiveness concerns the attempt to respond to specific needs within a variety of host countries. Local responsiveness is mainly influenced by situational contingencies at the subunit level (Ghoshal&Nohria, 1989). [http://www.accessmylibrary.com/article-1G1-77627392/determinants-local-responsiveness-perspectives.html]
The global integration-local responsiveness (I-R) paradigm (Doz&Prahalad, 1991; Prahalad, 1975; Prahalad&Doz, 1987) has proven to be a robust framework for describing and analyzing MNC strategies at the both corporate and subsidiary levels and influencing factors while attaining competitive advantage. This has been empirically validated by Jarillo and Martinez (1990), Johnson (1995), Roth and Morrison (1991), and Taggart (1998), among others. [http://upetd.up.ac.za/thesis/available/etd-04072010-133307/unrestricted/dissertation.pdf]
The MNCs routinely evaluate their adaptation level in terms of self maintenance, satisfactory...