strategies and options that are available for companies

In this regard, the present strategies and options that are available for companies in industries that are advantageously significant to their governments can consider the following strategies:

Stay home

The main agenda of many multinational companies is investing in the retail industry which is currently politically sensitive especially in the prospective emerging markets (Bremmer 1). Therefore, a company that is entering a strategic sector in an overseas country, should develop a set of guidelines that show the policy changes that might force the company to exit the market. This will also ensure stakeholder rights and interests are protected.

Become more “strategic” at home

Apart from promoting value back in their home countries, a company that chooses to concentrate on a specific sector back at home can avoid foreign competition and also increase profits by ensuring closer links with the government of the day. This will boost social needs and interests as well as address any market dysfunctions (Bremmer 1).

 

Use the state to fight other states

The use of state to state links to solve problems can also go a long way to address the problem of market dysfunctions. A good example was the use of positive relations between UAE and Britain to solve the BP licensing issue in 2012 (Bremmer 1). This has catapulted BP back to the top thus solving the problem.

Strike alliances

Joint ventures can proof to be profitable in the long run. In such ventures, numerous companies partner and share profits with the local players in the industry(Bremmer 1). Additionally, such ventures also foster societal needs and interests in the long run which would take longer if left to the central government.

Add value to the state

It is crucial for a company operating in a foreign country to find a way to contribute to the development of the sector it is engaging in. A good example is IMAX which has contributed in media development in China and hence adding value to the society. The government can therefore concentrate on other sectors of the economy (Bremmer 1).

Become too diversified to fail

Since a number of developing countries provide many prospects for conducting business by multinational companies, it is wise for these companies to diversify their businesses to avoid the ever changing policies (Bremmer 1). This will help protect stakeholder rights and interests while promoting development in different sectors.

 

Build it so that you can stay

Public-private partnership especially in the developing world are becoming more and more communal. Therefore, multinational companies should strive to do provide their best particularly in terms of technology in such businesses (Bremmer 1). This will help protect stakeholder rights and interests, as well as societal needs and interests.

Capitalize on state capitalism

Pledging to employthe local workforce as well as ensuring the continued use of local materials will guarantee that social needs and interest are met (Bremmer 1). This will also aid in solving the burning issue of unemployment.

Works Cited:

Bremmer, Ian. The New Rules of Globalization.2014. Accessed on 28th March 2016 from https://hbr.org/2014/01/the-new-rules-of-globalization