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Strategic Issues In Large Business Essay

2011). Following the guidelines and supporting research provided in this article can help large enterprises avoid such pitfalls (Newman et al. 2011). An article that recently appeared in the Sloan Management Review examines the internal rather than the external risks of an organization. This article divides these internal risks into three categories: risks created by the unwanted/unauthorized actions of employees, risks of not achieving strategic objectives that are inherent to any "interesting strategy," and risks caused by completely uncontrollable external events (Mangelsdorf 2011). It is only by understanding how each of these risks might affect the organization and by working to achieve a minimization of exposure to each type of risk -- often through the creation of contingency plans -- that organizational success can be assured (Mangelsdorf 2011).

In another article appearing in the summer issue of the Sloan Management Review, the ever-important issue of information is addressed. Information is key to the survival of any organization, and the features of its acquisition, transfer, communication, and utilization are all essential to organizational success; this is especially true in the complex networks of larger multinational organizations (Riaz et al. 2011). Many corporations are finding that being bogged down by too-great attention towards the precision of data is slowing them down relative to their competitors, and those interviewed for this article assert that what is needed is "fast info," not "perfect data" -- overall trends and indications need to be captured, but exact quantifications do not need to be achieved, in other words (Riz et al. 2011). This does not suggest that having accurate or precise information is not beneficial, but rather that it is important to act quickly once enough information is at hand to gain a reasonable appraisal of the situation rather than taking extra time to make measurements ever more precise and detailed (Riaz et al. 2011). Essentially, this article stresses the need for efficiency rather than...

2011).
So What?

The above articles identify five distinct yet ultimately related issues facing managers in large-scale multinational corporations in the current era. Establishing greater social consciousness and predicting and adapting to failure ensure the long-term success oc companies. Assessing immediate external risks of foreign investment and internal risks promotes short-term success, as does faster information processing.

It is when taken together, however, that the issues as defined and dealt with in these articles paint a very vivid picture of what managers in large multinationals must contend with -- and how they should contend with them. Managing risks in both the internal and external environments means properly and efficiently processing information, and includes identifying and dealing with interpersonal issues and other aspects of potential organizational failure. Foreign investment decisions depend on both the internal strengths of the company as achieved through information processing and problem identification/correction as well as on the information assessed in the external environment and even the cultural and interpersonal conflicts or issues likely to be confronted in foreign countries. All of these factors are ultimately inextricably intertwined in building effective managers and leaders for large multinational corporations, and thus in creating profitability, stability, and success for these large business enterprises as they move forward.

Conclusion

Understanding the key strategic issues that businesses are facing is the only way to develop effective strategies and objectives for any organization. For large multinational enterprises, establishing such strategies and ensuring that he are properly implemented could mean the difference between immense profits and bankruptcy. The lessons of the current era can do much to strengthen individual businesses and the business of business itself, if properly applied.

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