3.1 Political ideologies, influence of government actions, policies and legislations of Sweden, Belgium and UK
When operating a multinational organisation (MNC) the management of the headquarters (HQ) would need to consider the hosting country’s government, political and business policies when invading the hosting country’s market. Because those specific factors would define the business functions in those countries (Baylis, 2017). The organisation would have to face various boundaries and challenges in the international countries (Baylis, 2017). Management of the organisation would be familiarised with the home country’s culture, market conditions, legal and political environments (Ghauri and Cateora, 2007). But the organisation would have to adapt different improvements to the management functions in the organisation when functioning in the hosting country’s market to level up with its political, governmental and policy expectations (Baylis, 2017).
In Sweden the country is experiencing high level of impact on capitalist democracy in the country (Rourke, Boyer and Rourke, 2000). But the country is ensuring the highest level of social security to its population. Mainly the government, business legislation policies and politics of the country is focusing on the improvements of the business organisations (Freeden, Sargent and Stears, 2015). The entrepreneurs are encouraged to conduct businesses and the country is encouraging the business to go in the international scale. The organisations are focusing on the market demand and provide innovative service and product solutions to the market to gain high level of profits to the organisations. Apart from that the country is maintaining an open economic conditions but the government has limited some import functions to the country to limit the flow of currency to the foreign nations and to improve the domestic production by facilitating the local business organisations (Rourke, Boyer and Rourke, 2000). The business freedom can be seen in the country and when Sweden is entering into a trade agreements the country would always look for the capitalist benefits to the country to encourage the local businesses to expand its roots internationally (Rourke, Boyer and Rourke, 2000).
Belgium is ensuring high level of freedom to its population. It is a federal state which has multi party political system in the country. The country’s political background has high level of impact on church oriented conservative and liberalism (Rouček, 2013). The country has high level of security in the businesses and they would encourage the competition in the market by inviting international businesses to the home country (Freeden, Sargent and Stears, 2015). The country is encouraging the business organisations while ensuring the stability of the country. Government would define the code of conduct to ensure the satisfaction of all the parties of the country (Rouček, 2013). The federalism has ensure the power to all the parties and all the parties would get a chance to express their perception. But the government would not afraid to say “No” to the harmful suggestions even though it would improve the country’s economy alone. The government would consider overall development in the industries of the country while ensuring the quality of life of its population (Rouček, 2013).
The UK is experiencing conservative, liberalism and socialism political ideologies in the country. The country is highly traditional oriented and appreciate the high level of living standards to its people (Freeden, Sargent and Stears, 2015). The country would not afraid to go away from the international unions when it has conflicts with the cultural and national expectations. As an example Britain quit the European Union recently even though that has a major impact to the country’s economy and business functions. The international organisations would have to respect the country’s traditions and national policies and entertain the needs of the democracy in the country (Rourke, Boyer and Rourke, 2000). The country has high level of freedom and everyone would get the chance to express their feelings and perceptions. The trade freedom can be seen in the country but the government would not highly consider about the business development but the development of the quality of life of the population (Rourke, Boyer and Rourke, 2000).
The management of the ABC has high level of experience in functioning in the Sweden business environment. Those experiences would give both advantages and disadvantages. When approaching the international market the organisation has to consider about the hosting country’s political ideologies, government considerations and policies (Ghauri and Cateora, 2007). Since Sweden has much business encouraging culture the organisation should not think similarly in the other countries. In Sweden all the parties would work towards to come up with negotiation. But this was not true in Belgium. The Belgium national would not afraid to say no and that has risen several conflict in the organisation.
When functioning in the UK the organisation would require to salute the customs of the country. The language style barriers can be seen in the country as well. The hosting market expectations would be differ according to the national expectations of the country. Not all the countries are focusing on the economic development (Ghauri and Cateora, 2007). When the countries have the economic development they would more think about the quality of life and the freedom.
These changes should be identified by the management of the MNC’s. The hosting market would be much different than the home market (Ghauri and Cateora, 2007). The management should adapt changing policies in the organisation to tally with the national expectations of the country. When the management is failed to adapt such changes in the organisation they might feel high level of resistance from the employees of the organisation (Root, 1998). The organisational management should consider of implementing much contingent approach to managing the organisation until they are familiar with the conditions of the host country’s national and business culture (Root, 1998). After getting familiarised with the situation the management can adapt individual management models to the individual branch locations of the international markets (Rourke, Boyer and Rourke, 2000).
Baylis, J. (2017). Globalization of world politics. Oxford: Oxford university press.
Freeden, M., Sargent, L. and Stears, M. (2015). The Oxford handbook of political ideologies. Oxford: Oxford University Press.
Ghauri, P. and Cateora, P. (2007). International marketing. 1st ed.
Root, F. (1998). Entry strategies for international markets. San Francisco: Jossey-Bass.
Rouček, J. (2013). Contemporary political ideologies. New York, New York: Philosophical Library.
Rourke, J., Boyer, M. and Rourke, J. (2000). World politics. [Guilford, Conn.]: Dushkin/McGraw-Hill.