You Are Employed at the Headquarters of a Large MNE

question 25

Essay

You are employed at the headquarters of a large MNE.While visiting one of the firm's foreign operations,you overhear the following comment,"Top-level corporate management has become an increasingly burdensome cost centre in the modern transnational.Our company employs well-trained and highly skilled individuals as global business managers,worldwide functional managers and geographic (country)managers.To enhance performance,our firm should thin the ranks at the corporate executive level and allow the business,functional and geographic managers more liberty to coordinate their own activities." Upon returning to headquarters,you are advised that you are being promoted to a country manager position within the MNE.However,you have been asked to prepare a report on your observations from your recent trip before you leave to start your new role.Use this report as an opportunity to discuss your position in support of,or against,this perspective regarding top-level management.

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Definitions:

Shipping Cost

The expense associated with transporting goods from one location to another.

Net Investment

The total amount invested in a project or asset after deducting depreciation or other capital allowances.

MACRS Depreciation

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation in the U.S. that allows for the accelerated write-off of property under certain conditions.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.