Using Government to Control Multinational Corporations

Multinational Corporations have a great influence on a lot of people, this is beneficial because it provides jobs and increases GDP, trade, and economy, however it does mean that businesses have a great deal of power, which when coupled with factors like political influence, pressure groups and the media can make a company very powerful, able to control potentially thousands of jobs and staff wages.

Common Pressure Influence

Pressure groups, though not always an insider in government can have a great deal of credibility in preventing the control from multinational corporations. Pressure groups may also incorporate radical action and anti-corporation tactics, such as driving slow through London streets or protesting on a runway. However, Pressure Groups tend to focus on the ethical activities of organisations over preventing monopolies or unfair business practices, however, there are exceptions, the majority of this work is undertaken by unions.

Consumer action by boycotting products, spreading awareness on unethical factors or irresponsible activities can make a product less profitable or cause a business to re-think its stance on a particular product or practice, however, this form of activism can sometimes have no effect on the performance of a product due to its massive success or meager opposition.

Using Government to Control Multinational Corporations

The Government is arguably the most important factor in controlling MNC’s, from maintaining fair work arrangements, breaks, pay and holiday to preventing global price fixing and implementing transnational tariffs to protect local business and economy, the government to some companies could be seen as enemy number one. It is necessary to control MNC’s to manage their growth and influence in a country. Similarly a multinational may move abroad to save money on things like manufacture, however, this is bad for local jobs, it may increase profitability for an MNC. For this reason, it is sometimes probable that a government may subsidise the company to prevent it moving abroad.

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However some massive MNC companies have profits each year greater than entire country GDP’s, this could be seen as a failure of the government to control its businesses. Finally, although MNCs need control they do provide massive benefits to a country in trade, prosperity and GDP that make them worthwhile today.

Access Control in Daily IT Organisation Tasks

Many Businesses use IT to manage their accounts, documents and decision-making. It is, therefore important that Access Control be implemented in Organisations to prevent unwanted modification or prying eyes from being able to commit computer crimes, such as the ones outlined in the Computer Misuse Act. Using Access Control can prevent these people and operational staff from being able to modify information that otherwise is not their place to edit. Some common implementations of Access Control could be limiting the information available to a customer about Transaction Processing Systems or Management Information Systems not allowing Managers access to manufacturer prices.

Access Control in Strategic, Tactical and Operational Management

In order to implement these features a common method of maintaining strict control is through a permissions model, where it is outlined to the computer what permissions a login has access to, such that they are able (like a file system) to edit, read or write a file or piece of information. Here are some common examples of Access Control;

  • A Supermarket Employee is not able to alter the price of products.
  • A Manager is not able to create new users for a MIS (Management Information System).
  • A DSS (Decision Support System) is not able to commit to a higher level of privilege without presenting documentation proving that that decision is possible, a good example of this could be a bank requiring an account number to confirm that the account is active before allowing the employee to make changes or a support agent requiring a pin from a customer before being allowed to view the customers details.

Strategic Operational and Tactical in Access Control

The three levels of control is a common (but not de-facto) model for systems management, however often these levels of tasks can become obscured by other factors. These tasks can often be divided up among IT departments in formal organisations, such as ‘Ops’ and ‘Licencing’. The use of Access Control can be used to coordinate effective ICT teamwork on large projects and in other departments, such as accounting.

Management in the Scale of Organisations

The IT of an organisation can also depend on the scale of its operations. Traditionally licences for software are based on the number of staff using the systems, even small organisations can have 50 (or more) staff members and still be classed as a small organisation. Generally, smaller organisations will have an informal structure and confined to a single site. Whereas Medium organisations may have a more formal procedure which adopts policies and organisational structure to ensure that systems are maintained and compliance is met where necessary. A large scale organisation may have IT as one of the core responsibilities of the organisation as it is likely that some locations may be off site or long distance where remote access is vital. They may also rely heavily on WANs and expanded LANs to ensure that their systems are accessible across the sites available.

Management Styles

Because large and medium size organisations need a leader or manager, they may adopt one of four management styles, the use of these management styles allows the business to maintain contact with its employees.

  • Autocratic, where a clear authority is established and decisions are only to be made by strategic or tactical individuals, operational staff may have relatively little power compared to the other management styles however, it may mean that staff may not feel demotivated if something goes wrong because they are not as involved in the organisation compared to the other leadership styles.
  • Democratic, is where management is taken by ‘vote’ of opinion and is useful when undertaking projects and allows people with specialisms such as networking and database design to cast their opinions and thoughts on a project.
  • Laissez-faire, is where management takes a smaller role and workers are expected to perform as they are needed and let their own ideas and creativity work to the task they are needed for, this should produce more individual work and is not always ideal for companies that do not require more than simple repetitive tasks.
  • Paternalistic, is where management will use a paternal view of management and only get involved when needed or when feedback is requested, this has the added advantage of giving the workers both freedom and encouragement, but when help is needed they aren’t far away. Additionally, this gives management the ability to delegate tasks and establish authority without appearing autocratic.

 

The management of an organisation can greatly depend on the scale and urgency of the work involved in managing IT. Organisations that also have to follow a lot of compliance, such as government offices must also maintain those constraints effectively.

Ansoff’s Matrix in the Development of Corporate Strategy

What is the Ansoff Matrix?

The Ansoff Matrix, developed by Igor Ansoff is a planning tool that can is used to help a business to determine what strategy the business uses by using the quadrants to determine how best to grow organically. ‘Existing’ categories often carry lesser risk than the ‘New’ categories as they will likely require greater capital investment for example.

Ansoffs Matrix

Market Penetration

Market Penetration is the least risky option in most cases because it most likely does not require much more than the other categories, This can be used when a business would like to expand whilst minimising the risk involved. The aim is to target existing customers and sell more existing products through things like promotion and marketing. If the product is successful then the business may sell more products to existing markets by opening new stores, an online shop or making their appearance more apparent by opening more outlets in an area. Using this method business can better calculate what their customers want based on past sales data from other locations within the market.

Product Development

Product Development is much more resource intensive as it will require innovation and the cost in terms or research and development associated with it will be much greater. However, it will most likely mean that the business has the first-mover advantage and can market its products to existing markets. This, however, could have its downfall as there is most likely greater loss if it does not work out, this can also be problematic as it is sometimes the strategy that failing business model companies undertake. It also may become exhaustive if products are not innovative enough to maintain customer numbers.

Market Development

Market Development is where a business changes its market strategy to bring its existing products to new markets, this could be through opening new stores abroad or far away from its domestic market. This could also be through e-commerce, by changing pricing, by changing quality or even changing its brand to localise the products it sells in an area or country.

Diversification

A business may diversify its products or brand in order to open up to new markets and new products, this may be organically by opening a new type of store or buying out another, Or changing its entire product range, an example of this would be new ‘vape’ shops opening as they respond to the death of the cigarette market as smoking becomes a social taboo.