Abstract
Till a few years back, the term “MNC” (Multinational Corporation) in India meant an organization with its headquarters located outside of India, and having a presence in India as a part of its global network. In other words, in Indian eyes, “MNC” meant a “foreign” company which has come into India.
In recent times, however, the business world has seen the emergence of a new breed of companies which is beginning to be referred to as “Indian MNCs.” The Indian MNC is a company which is Indian in origin, now spreading its wings to set up operations in various markets around the world. Increasingly, Indian MNCs have resorted to mergers and acquisitions (M&As) as a favourite method for jump-starting their global expansion. Tata Steel, Hindalco, Suzlon, Bharat Forge, and Sundram Fasteners are typical examples of such Indian companies.
As more Indian companies push ahead with their aggressive global growth strategies, many middle and senior management personnel in these organizations are faced with significant challenges. They have to “go global and take charge” in a very short time, and learn how to manage complex businesses on a global scale. They need to acquire the managerial skills needed to deal with varied customer needs and diverse competitive forces; learn to work with team members from different cultural backgrounds; and also learn how to manage the companies that have been acquired through the M&A route.
In this article, we take a look at these new challenges the Indian manager has to face in this era of globalisation of emerging Indian MNCs, and suggest some strategies to cope with them. We examine the elements of the “global mindset” that is becoming essential for the Indian manager's success, and explain the key dimensions of three research-based models that will help him understand cultural differences that prevail across the globe. We also examine some real-life examples of the strategies that Indian MNCs have begun to adopt, as they pursue their vision of becoming global leaders in their industries.