International Corporations Provide a Company

International Corporations

Provide a company overview, and identify the countries in which the corporation operates.

Microsoft is one of the largest companies in the world that was started in 1975. It currently markets a number of different products in nearly every single country around the globe. To include: the Windows-based operating system, various software programs (such as Excel / Word), they have a search engine called Bing, the company manufactures a portable game console called the X Box and the Internet Explorer web browser. ("Microsoft," 2010)

Identify the types of market systems and types of legal systems that exist in the countries where the corporation operates. What effect do these have on the company's operations?

Given the fact that Microsoft has operations around the world, means that they will be involved in host of different market and legal systems. The different market systems that the company will face include: socialism, capitalism and communism. The different legal systems that they will encounter includes: the accusatorial, adversary, Buddhist, Canon / Catholic, civil law, common law, customary law, indigenous / folk, Islamic, Napoleonic and Roman. ("Major Types of Legal Systems," n.d.)

This will have an effect on the company's operations, as the different practices and cultural traditions of each system must be taken into account. Where separate legal counsel, will be required to provide specific advice to Microsoft about: the laws and the legal system of the country.

Discuss the possible sources of political risk for: (a) the countries in which the company has a presence and (b) the basic nature of their products and operations. If you were a political consultant for the company, how would you suggest the company approach its political risk given trends in international political systems?

The possible sources of political risk that Microsoft could face in a country are: a backlash against American corporations, the possibility of seeing increased regulation on different products and the nationalization of key assets. This could have an impact on the products and operations of Microsoft, as changes in politics could have positive or negative ripples effects on the company. To protect against any kind of possible political risk, Microsoft can establish strong relations with various trade organizations such as: the WTO. At the same time, they could establish relationships inside the governments, in locations that the company has operations. This is important, because building ties with international trade organizations and improving relations within the local government, can help to reduce political risk (by having an effective channel of communication between the company as well as various politicians). (Daft, 2009, pp. 93 -- 98)

Identify the stakeholders the company must satisfy. Why is this process more difficult for companies operating internationally?

The different stakeholders that the company must satisfy are the various government officials. This is because outside of the United States, the government will play an increasingly important role. As the two entities will often have an interconnected relationship in most countries. This makes the process more difficult for most businesses, as they are forced to spend time developing a rapport with government officials. A good example of this can be seen in Korea and Japan; with both countries having a close relationship between bureaucrats and businesses. In the case of Microsoft, they have to spend additional time and resources developing these relationships, to achieve the organization's goals in the future. (Carroll, 2009, pg. 401)

Summarize the company's code of conduct. State the reasons why it is in the company's best interest to follow its code of conduct when operating in foreign countries.

Microsoft's code of conduct embraces a number of different principals to include: lobbying, regulatory conduct, political activities / contributions, trade controls, anti-boycotting requirements and bribery. In this case, all of these different elements are important, as the company demands that all employees will exercise the highest amounts of integrity, when interacting with various government officials around the world. This is important, because establishing high standards for executives to follow will help to promote the company's long-term interests. The reason why, is because these standards are guiding officials about how they should be interacting with various governments. When you are holding staff accountable for their actions (through the various standards that have been implemented), this helps to improve the image of organization and increase its dominance in key areas. Where, this is establishing a tradition of following the basic cultural standards within a particular region. Yet, it is drawing a line when certain activities can become unacceptable. When you put these two elements together, they are highlighting how the code of conduct will serve as a way of helping to support the most ethical activities (from company executives around the globe). ("Microsoft Standards of Business Conduct," 2010)

Does the company have any social programs in the country/countries where it operates? If so, briefly describe one.

In every country that Microsoft has operations, they are encouraging employees to support various social programs and initiatives. Part of the reason for this, is because these programs help to improve the image of the company and they allow executives to interact with various citizens. This is important, because it increases cultural understanding and can allow the company to cater products for specific geographic regions. A good example of this can be seen with Microsoft's Unlimited Potential Program. This is where the company will work with other businesses and governments, to bring affordable technology solutions to the general public. ("Unlimited Potential," 2010)