Ib zhuang 2500 Essay Example

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Analysis of the firm-level and country-level factors that have contributed towards the success of TMT Companies in Australia

MNC refers to those firms with more subsidiaries in more than one country apart from its country of origin (Sola et al 2013). Without assuming the Western ethnocentric convention of the market power notion, there has been a hasty growth of Transnational Corporations from emergent markets which have steered to grander, concentration and enthusiasm in budding a better fond of the disposition and transmission of administrative approaches as of their perception. According to the world investment report from UNCTAD (2010), there is a clear indication that although the developed nations multinational corporations (MNCs) credit for themselves a loose of international foreign FDI, emergent and changeover markets have come in and they are also presently claiming a significant portion of the revenues in the market (Williams and Lee, 2016). The emergent markets have significantly claimed almost a quarter of the international or global flows in 2015 (Williams and Lee, 2016).

This bulk flow came from Asia and Australia by the year 2015. These outcomes can be accredited to the changing trends of the fluctuating Western economies and the well-positioned of these new entrants into the market. Meaning new firms specifically from Australia have well identified the market niche that the giant corporations have either failed to provide or they have been providing partially. This essay seeks to analyze the global emergent markets in brief and analyze the corporation-level and nation-level aspects that have aided regarding the success of TMT IT Company in Australia (Williams and Lee, 2016).

Over the past fifteen years, statistics have indicated that there are more MNCs coming up from developing markets as compared to the already established markets. They indicate that the dominance of these new entrants is from both Asia and Australia. The emerging markets are highly investing in low-income host nations guaranteeing themselves higher revenues while generating a considerate South-South venture capital flows (UNCTAD, 2012).

There are more anticipations that India and China are likely to take over the global economy in the near future and a shift of power from the already established MNCs to the East. The two countries keep growing as the most outward appealing and the inward destination for Foreign Direct Investment.

The emergent MNC markets considerably possess fewer resources and international experience on how to accomplish as compared to those from established markets. Whereas there have been increased research about the markets in the developed markets like Taiwan and Korea, there have been insignificant research steps on these two promising giant nations that is China and India (Depeige and Sindakis, 2014).

MNCs face one major challenge on how to balance between local adaptations and the international amalgamation. The MNCs national origin is regarded as the major stimulus in determining the anticipated balance (Depeige and Sindakis, 2014). Contrary to Ohmae’s opinion of a business without of a border and stateless firms, institutional determinants and cultural in the state where the companies initially situated are considered to be most significant to the success of the firm (Williams and Lee, 2016).

According to studies, there is a positive correlation between a firm’s country of origin and how MNCs accomplish their international subsidiaries in that the country of origin as the main inspiration to the TNCs exertion to take a measure of regulation over their subsidiary (Djordjevic and Djordjevi, 2012).

Analysis of the entire market has shown that all MNCs have a trace to their mother country with evidence which depicts that there are subconscious choices influenced by the cultural setting of the firm hence; the traits of the home country’s firm could be transferred via the employees of that firm (Zhao, Park, and Zhou, 2014). Example, where the US MNCs have the tendency of having the elaborate mechanism in terms of operation with a standardized level of operation globally (Depeige and Sindakis, 2014),the Japanese MNCs have a tendency of being strong but with informal alliance though with strong linkages worldwide. Contextually the cultural settings of the Western MNCs have little influence of cultural setting as compared to the Eastern MNCs (Djordjevic and Djordjevic, 2012). Thus, the interplay being cultural and social setting will influence the success of the firm for global acquisition, alliances and mergers.

The following is an in-depth analysis of the case study of TMT companies from Australia firm level and country level factors that had spearheaded its success in the 21st century (Williams and Lee, 2016).

As a representative of the global MNCs, TMT is a global emerging market from Australia that deals with IT services. It operates three commercial segments; Business Process Outsourcing, Software products, and IT services. The Company’s turnover was announced to be almost $2.5 billion in the financial year 2015-2016 with almost 40000 employees globally. TMT operates in more than 44 nations (Williams and Lee, 2016). TMT’s market covers a wide range of segments ranging from banking, manufacturing, healthcare, infrastructure and transportation and retail markets. The company’s vision is to be among the most valued and integrated global BPO and Information Technology providing firm in the next few periods eventually take over the largest market segmentation.

TMT has established centers in most developing markets where demand for IT facilities are inarguably in large demand due to the setting in the remote areas of the world (Williams and Lee, 2016). This would be taken as the market niche because the underdeveloped nation’s rural areas have inaccessible roads thus providing a market for the IT products as a means of communication as in the case of Namibia where TMT Company has recently ventured. It has markets in the Middle East and the Pacific regions and North America for TMT products of Outsourcing. TMT services over 500 global firms as at the end of 2015 (Williams and Lee, 2016).

With a diversified notion of the market, the firm has tried to reduce dependence on a single market on any particular part of the world. It’s fully operating in Australia, United States of America, Belgium, Germany, China, and Mexico. It has affiliates in UK, Africa, and Malaysia.

TMT companies have successfully established its market in both developing and developed markets: Australia as the developed and Shanghai china as developing market. The company’s protocol of operation in terms of induction practices including talent allure, holding strategies and commercial culture, coordination mechanisms, internationalization strategies have contributed towards the success of the firm (Zhao, Park, and Zhou, 2014). The above strategies are described below:

TMT Organizational Structure & Systems:

TMT’s organization apex lies the administrative council consisting of almost 40 managers from the global and business support roles. The administrative unit is solely charged with the responsibility of formulation, implementation, and reviewing of the deliberate policies, prioritizing the on the regular basis. Customer Facing Units is the major concern of TMT’s organizational structure which consists of Regional Business Units and Vertical Business Unit. Horizontal Competency Units (HCUs) equally offer the support of suitable reserves to the CFUs who are responsible for the whole field of clients’ affiliation and management (Zhao, Park, and Zhou, 2014).

At TMT, the culture of developing leaders who globally fit the market and the administration herein encourages every employee to think like the CEO of every task they are accountable of. The leadership in TMT exemplifies the motto of accountability of all individuals which has enabled the firm’s success fast (Djordjevic and Djordjevic, 2012). Their motto of developing and building leaders is supposed to be ingrained in every leadership that comes up, aiming at developing leaders faster than competitors. TMT’s organizational setup and routines are ingrained in the philosophy of enabling new bosses with the basic idea of ‘full life cycle leaders’ (FLCL) and ‘full life cycle business’ (FLCB).

Every employee at TMT is supposed to have the same performance and need to be accessed on this basis on every location and position. Similar working metrics are expected to be pertained to each member of staff and rank at each locality. The quantum measure of the accomplishment of every employee on particular built extents, such as process, product and people against each particular result, namely, larger, better, cheaper, and repeatable (Depeige and Sindakis, 2014). The above measures portray the firms U.S based Australia-based firm where all of their employees perform their tasks with expertise and ability. The global metrics head of Human Resource points out on their website that metrics are the most familiar consultative asset of TMT IT Company

The top TMT corporate managers have been to warrant that each participant in the brininess plus customers, members of staff, managers, and contractors obtain similar One TMT understanding exemplified in a physical manner through its worldwide transactions. The firm’s corporate management center is targeted to train current and forthcoming administrators in the firm’s values. Spreading the organizational culture to every unit is the major firm’s mission.

The management in every subsidiary has a decentralized form of leadership where decision making is spearheaded by the subsidiary management. Research points out that culture or country of origin has neither influence nor impact on the mode of operation in the subsidiary branches but solely determined by the locality or place of operation (Williams and Lee, 2016). However, the Australian senior management in their website says that the code of operation in the mother country has been always determined by the culture of Australia.

TMT’s International Business Strategies:

TMT has remained to focus on its ambitious and entrepreneurial corporation all through its history. It’s understood that it had to surpass the established firms of the U.S since its promulgation and move beyond the MNCs of other established markets rather than venture into the emerging markets like India and China (Sola et al 2013). This has made TMT more competitive emerging MNC with perfect storm entrepreneurship, excellent domain and vision of what a successful TMT is at the present.

TMT’s Global Staffing & HR Systems:

According to the senior management mindset website, the firm has operated as a global corporation with the interception of deliberate and working policy building.TMT employees stand at almost 40000 who have been globally. This portrays its large pool of talents amid of the corporation. In Australia, the percentage is almost 50% of locals. This means that the firm is embracing the international standards to combine various skills and talents to have a comparative advantage to its competitors. With the global staffing mechanism, the corporation has a wider likelihood to expand more as it has proved to stand at the present.

The corporation has maintained a similar recruitment process throughout the globe therefore; a similar performance has been spearheaded thruogh this mechanism to put TMT IT firm at a better place in undertaking their operations globally. Just as obtained from one of the subsidiary firm website located in India, they had a challenge initially to adopt the staffing policies of the Indian society at first because the firm was affiliated to the policies of Australia, but they have been flexibly adjusted to the changing trends of the competitive and vibrant needs of the labor market of the Indian community in training and retaining talent. This global social amalgamation of the HR managers of TMT IT Company has enabled the corporation to meet the standards of their talented employees who have fostered its success.

TMT’s Managerial Relevance

While traditionally the established economies of the Western MNCs take their home potencies to the rest of the globe, TMT MNC have remained relevant in the established economies through leveraging on their domain expertise and skills by establishing the art of offshore services using a combination of near-shore, offshore and coastal situational methodologies (Zhao, Park, and Zhou, 2014). The firm had established subsidiary outsourcing and has steadily grown over the last decade to reach the wider network of service delivery to reach the present successful TMT.

From these analyzes, it is evident that emerging MNCs face greater hurdles in trying to further their internationalizing strategies. Example, despite the growing reputation of the Australian IT companies and the rest of the global companies, TMT faces the challenge of recruiting local managers in their subsidiary markets. Their expectation of recruiting talent at higher levels is influenced by their Australian mother country’s management perception (Zhao, Park, and Zhou, 2014). This leads to the extent of the expatriates from Australia to move in and manage these subsidiary firms. This is a wrong perception of lacking faith in the local global markets therefore, denial of opportunity to the citizens at the subsidiary corporate. TMT IT Company faces the same hurdles that an emerging firm would face in the foreign markets like poor road networks in the developing nations and thus a challenge to reach the rural market economy.

Similarly, from the discussions, TMT IT Company has adopted the art of performance metrics based on the U.S customer strategy. This means that the corporate is making the art a central management system. This means that TMT is leaving the running of the subsidiary mainly to the running of the locals while the central oversight left to the experts from Australia. This kind of management system does not convey the real ‘exportive or ethnocentric ’with regard to the underpinned approach to managing affiliates in emerging markets,


In spite of the fact that there have been advancing trends in globalization, there still remains a challenge towards trade of emerging MNCs and cross-national merging arising from different countries position and strategize themselves in the international world. Suggestive variations have remained in the way the transacting firms have organized their commercial activities and particularly the mode of management of their working staff. The pioneered cultural values convey the universalistic limitations of IHRM which may be stressing the only one method of operation that is rigidity in business management. However, more contestants have argued about the indulgence of the culture from the mother country as significant in the operations of the subsidiary corporates. Pressure on the differences on country of origin as the country-level factor should not be too much emphasized especially in the subsidiary affiliates.

Equally, there should be a coordinated effort by the established MNCs and the MNCs to develop training for international HR program that will meet the requirements of the MNCs globally. For too long developed MNCs have had the poor perception that the top management of the corporates have to be managed by the foreigners from the country of origin. However, this is a wrong model that denies the talented subsidiary locals the opportunity to develop and grow their talents. If then means that the affiliate companies cannot be managed by the foreigners in the affiliate firms in the developing markets, it is then advisable to develop a training program to meet their requirements.

There are more trends coming up this 21st century that requires re-examining of the old models that used to be efficient in the past decades (Sola et al 2013). This ought to be done such that more focus on the emerging markets can suit all of the participants be in the country of origin or at the subsidiaries (Williams and Lee, 2016). The new emergent systems are tilting in new opportunities like ease of access of the internet with increased online marketing and the data provision available. This should be a market niche for other entrants into the emerging markets for the data bundles .It should be encouraged to ease the cost of establishing in foreign nations from scratch because the IT firms like TMT Company can easily sell online.


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