Management in Molex
Molex is an American company based in Illinois and is also listed in the NASDAQ. They primarily specialize in providing interconnectors as well as a range of well over 100,000 products. They also serve a huge range of industries; such as, telecom, computer, automotive, industrial, premise wiring, military markets, medical, peripheral, and datacom to name a few. They specialize in producing a wide range of connectors; which are also known as the Molex connectors across the world. The main aim of this paper is to analyse the legal, ethical and cultural challenges which they might encounter while doing their business globally.
The primary challenge of Molex was to ensure their compliance with the local rules and laws, in whichever country they went and entered in. The Human Resource department of Molex was responsible for ensuring that they comply with the terms and conditions of the state as well other employment and business laws of that country. For this reason, their HR department ensured that they customized their operational and strategic policies according to the place in which they are operating. This ensured that they have a better compliance with the country’s regulations. It is a crucial component for any business which is operating in the global market. For survival into a foreign country, it is imperative that the company focuses on the individual regulations and acts accordingly. To make sure that they have sufficient knowledge of the country in which they operate; they are inclined towards hiring the local employees of the host country. This helps them bring in practical and local knowledge of the host country, therefore, ensuring a smoother performance for them.
Cultural Issues
Another major factor that must be considered by them is the cultural factors of the country. It is extremely important that a company operating at a global scale gives heed to the cultural sentiments of the country. One of the major strengths of Molex is to hire experienced employees from renowned local companies in the country in which they operate. This allows them to have firsthand knowledge of the country’s legal system as well as the cultural environment. These managers also have in-depth knowledge of the compensation policies, law policies and also people’s attitude towards multinational companies.
The host governments undoubtedly play an important role in the existence of foreign companies. Until or unless the rules and regulations are not flexible enough for foreign firms, any multinational country cannot survive in that country. Therefore, wherever Molex went and started their operations, the host government was lenient and supportive to a certain extent. Otherwise, it would not have been possible for them to go and operate in that country. In order to ensure their successful operations in one country, Molex also ensures very active and frequent level of communications between the various subsidiaries it has across the world.
The Chinese and the government in the European Union for instance have played an important role in supporting the operations of Molex in their respective nations. The inclusion of local people into the workforce has ensured that they are better able to comply and fulfil their strategic as well as the operational goals of the company. Detailed analysis of the country in which they intend to enter has always allowed them to enjoy a stronger foothold in that specific company.
References
- Molex. (2012). Retrieved on 15th February 2013 from http://www.molex.com/molex/index.jsp
- Molex has replicated its Dutch operation model globally. (2012). Retrieved on 15th February 2013 from http://www.foreigninvestments.eu/testimonials/molex.html
