A multinational company should take specific measures to achieve successful results in an international location. This statement denotes that its chief executive officer (CEO) should create a strategy and competitiveness plan to operate in this environment. That is why the CEO needs appropriate regulations and advice to succeed with the task. Scientific evidence and various visuals demonstrate that a suitable plan includes licensing, innovation, training, cost leadership, and differentiation.
A CEO is responsible for introducing effective practices to gain a competitive advantage. A study by Akinbola et al. (2022) relies on 234 administrative staff members from PZ ltd and Nestle to determine what strategies are beneficial for multinational corporations. Figure 1 by Akinbola et al. (2022) represents the findings that the scholars have managed to achieve. In particular, the authors asked the respondents to assess the importance of specific phenomena regarding competitiveness (Akinbola et al., 2022). The mean values demonstrate that the staff members highlighted the significance of licensing because its value was in the middle between the minimum and maximum, while the other mean values were below the middle (Akinbola et al., 2022). This information demonstrates that the CEO can allow other parties to use its brand for certain fees to achieve a higher market share.
Additional efforts are also needed to generate a competitive advantage for a multinational company. According to Adiguzel (2019), a CEO should organize regular training for all employees. The rationale behind this statement is when individual workers have the required skills and competencies to perform their duties, the business’s overall performance is higher. Furthermore, the CEO should utilize an appropriate management approach to create an organizational culture that would promote productivity and efficiency. A suitable option is to implement innovation and appropriate technological solutions to ensure that the corporation can have an edge over its competitors (Adiguzel, 2019). These interventions should be a part of a management plan to lead a multinational company.
Furthermore, it is possible to use one of the strategies that have already been created. For example, it is reasonable to focus on the suggestions of Michael Porter, a Harvard Business School professor. According to Figure 2, he offered three strategies to achieve a competitive advantage, and they include cost leadership, differentiation, and focus (consists of cost focus and differentiation focus) (Peterdy, 2022). Firstly, cost leadership implies that the corporation should deliver decent-quality goods or services at the lowest possible price. Secondly, differentiation means that the business should rely on providing unique goods or services. Finally, a focus strategy denotes that the CEO should deal with cost leadership or differentiation in a narrow market segment (Peterdy, 2022). These findings demonstrate that the CEO can rely on various strategies to gain a competitive advantage in the market.
In conclusion, the findings have demonstrated that the chief executive officer can use different strategies to prove that the multinational company has a competitive advantage. It is challenging to state which option is the best because they rely on various aspects of doing business. This information denotes that if one company has benefited from cost leadership, it does not guarantee that all the organizations can utilize this strategy and expect the same improvements. One should highlight that the fictitious scenario does not provide a description of the business under consideration. That is why the chief executive officer should analyze the abilities and resources of the multinational company to identify the most suitable intervention.
References
Adiguzel, Z. (2019). Competitiveness of international business: Management, economics, technology, environment, and social study of cultural perspective. In H. Dinçer & S. Yüksel (Eds.), Handbook of research on decision-making techniques in financial marketing (pp. 68-91). IGI Global.
Akinbola, O. A., Olabiyi, J. O., & Akinbola, O. S. (2022). Global strategy and competitiveness of multinational corporations. Journal of Economics and Management, 1-20.
Peterdy, K. (2022). Competitive advantage. Corporate Finance Institute. Web.