Every program has risks associated with it. This week, I want you to review your idea and provide a risk analysis. What are the potential risks involved with this program, and what processes can be put in place to manage these risks? One specific risk that I want you to discuss is related to cultural differences. Please assume that your company is a multinational corporation…will this program work in all areas of the business? If not, how can it be adapted for the other country/countries involved?
Potential Risks Involved
Multinational companies are faced with many challenges/ risks in their programs, which if not well taken care of can eventually lead to negative implications such as losses. One such risks are the cultural diversity since such corporations work in global fronts and hence have to be in a position to sail through the diversities witnessed from country to country. It is always a dream of every multinational company to realize an expansion to new markets or opening of new branches. Even as this becomes increasingly necessary (in the wake of competition), challenges and risks cannot be wished away. As a way of evaluating this and many other risks, I will critically evaluate an expansion strategy of a multinational company as part of its strategic plan in a supposed two-year blue print.
Evaluation of The Program
As suggested in the introduction section, I hereby assume that there is a multinational company stationed in the US that seeks to expand its operations to other markets and specifically in the Middle East. The company deals in the production of jewelry and other ornaments and also has an online platform for easy marketing. However owing to the increased demand for beauty products in the Middle East, the multinational company wishes to tap into this opportunity and expand its operations. I believe this is a noble idea which if well tapped by the company may result in good profits. Being a two-year blueprint program, the company will start by undertaking directs sales through its online platform before fully establishing various outlets in the Middle East. To me, this is an excellent idea and can be executed as planned. Just like in any program though, challenges or risks such as challenges of cultural differences are bound to come up and as such cannot be avoided (Stahl, Miska, Lee, & Luque, 2017).
As explained before, seeking to gain access in a foreign and presumably cultural sensitive country/ region may be an uphill task for any multinational corporation. Some of the risks are as explained in this section.
Cultural Differences The issue of cultural differences is arguably one of the most sensitive for a company that wishes to expand to other settings. It is not easy for a company to fully understand the culture of another country/region. The challenge may easily come up when the company fails to adapt to the global business models that exist in the local market. It is also not easy to adapt to the local legal and ethical concerns that define the business practices in the new possible markets. Other regional and local challenges entail difficulty in understanding the language of the people, which implies that marketing may be a bit of a challenge. There is also a challenge/ risk with adapting to management practices across different cultures. It is important to unders…