QUESTION 1: (20%) Learning Outcomes: LO1 – Discuss the concept of culture and multinational management LO2 – Explain the
Posted: Thu Apr 28, 2022 3:02 pm
QUESTION 1: (20%)
Learning Outcomes:
LO1 – Discuss the concept of culture and multinational management
LO2 – Explain the relationship of culture, corporations, organizations, and management Session 1-4
Dozens of the world's biggest companies have abandoned or scaled back their operations
in Russia in response to its invasion of Ukraine. Ford (F) announced it was suspending its
operations in Russia. The American automaker has a 50% stake in Ford Sollers, a joint venture that employs at least 4,000 workers and is shared with Russian company Sollers. The company has plants in St. Petersburg, Elabuga and Naberezhnye Chelny but said it had "significantly wound down" its Russian operations in recent years. The automaker said it was "deeply concerned about the situation in Ukraine," and noted it has "a strong contingent of Ukrainian nationals working at Ford around the world."Boeing (BA) said it would suspend support for
Russian airlines.
A company spokesperson confirmed the aircraft maker was pausing "parts, maintenance
and technical support services for Russian airlines," and had also "suspended major operations in Amazon's (AMZN) cloud division, Amazon Web Services, said March 8 it would halt new sign-ups for the service in Russia and Belarus. The company has already had a "long-standing policy of not doing business with the Russian government" and does not have data centers,
infrastructure or offices in Russia, the company said in a blog post.
"AWS has clear terms of service where if a customer is using AWS services to threaten,
incite, promote, or actively encourage violence, terrorism, or other serious harm, they will not be
permitted to use our services," Amazon said. "Any customer we know of who is participating in this type of behavior will have their access to AWS suspended."Moscow and temporarily closed
our office in Kyiv."
Accenture is discontinuing its business in Russia as it "stands with the people of Ukraine,"
it said. The firm announced the move in a statement on March 3, where it thanked its "nearly
2,300 colleagues in Russia for their dedication and service to Accenture over the years."
"We will be providing support to our Russian colleagues," the company added.
Equinor will also begin to exit its joint ventures in Russia, the Norwegian oil and gas
company announced."We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world," said CEO Anders Opedal. The company said it had $1.2 billion in long-term investments in Russia at the end of 2021. It has operated in Russia for more than 30
years and has a cooperation agreement with Rosneft.
Visa (V) said it is suspending all of its operations in Russia. It will end all Visa
transactions within its borders, and Visa cards issued in Russia will no longer work outside of the country. In addition, all Visa cards worldwide "will no longer work within the Russian
Federation," Visa said.
Burger King said it is pulling corporate support from its businesses in Russia. Restaurant
Brands International, which owns the burger chain, said it "has suspended all of its corporate support for the Russian market, including operations, marketing, and supply chain." That doesn't necessarily mean that Burger King restaurants will be closed in Russia, however, as the company said the chain's roughly 800 locations there are "fully franchised and managed by a local master franchisee." This means that the company cannot simply pull the plug on those restaurants as
other brands such as McDonald's have done.
Hilton has shut down its corporate office in Moscow and is suspending all new
development activity in Russia, the hotel company announced Wednesday. The moves will not end the Hilton (HLT) brand in Russia, where there are 26 Hilton hotels. The company does not own any hotels in Russia. The 26 Hilton hotels in Russia are managed or franchised and represent a small percentage of the company's worldwide footprint of more than 6,800 properties, a
spokesperson said.
Questions:
To what extent do multinational corporations' actions against the Russian invasion influence globalization? And do you agree with the arguments that said multinational corporations' sanctions against Russia are in line with international codes of conduct for Mnes ?
Learning Outcomes:
LO1 – Discuss the concept of culture and multinational management
LO2 – Explain the relationship of culture, corporations, organizations, and management Session 1-4
Dozens of the world's biggest companies have abandoned or scaled back their operations
in Russia in response to its invasion of Ukraine. Ford (F) announced it was suspending its
operations in Russia. The American automaker has a 50% stake in Ford Sollers, a joint venture that employs at least 4,000 workers and is shared with Russian company Sollers. The company has plants in St. Petersburg, Elabuga and Naberezhnye Chelny but said it had "significantly wound down" its Russian operations in recent years. The automaker said it was "deeply concerned about the situation in Ukraine," and noted it has "a strong contingent of Ukrainian nationals working at Ford around the world."Boeing (BA) said it would suspend support for
Russian airlines.
A company spokesperson confirmed the aircraft maker was pausing "parts, maintenance
and technical support services for Russian airlines," and had also "suspended major operations in Amazon's (AMZN) cloud division, Amazon Web Services, said March 8 it would halt new sign-ups for the service in Russia and Belarus. The company has already had a "long-standing policy of not doing business with the Russian government" and does not have data centers,
infrastructure or offices in Russia, the company said in a blog post.
"AWS has clear terms of service where if a customer is using AWS services to threaten,
incite, promote, or actively encourage violence, terrorism, or other serious harm, they will not be
permitted to use our services," Amazon said. "Any customer we know of who is participating in this type of behavior will have their access to AWS suspended."Moscow and temporarily closed
our office in Kyiv."
Accenture is discontinuing its business in Russia as it "stands with the people of Ukraine,"
it said. The firm announced the move in a statement on March 3, where it thanked its "nearly
2,300 colleagues in Russia for their dedication and service to Accenture over the years."
"We will be providing support to our Russian colleagues," the company added.
Equinor will also begin to exit its joint ventures in Russia, the Norwegian oil and gas
company announced."We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world," said CEO Anders Opedal. The company said it had $1.2 billion in long-term investments in Russia at the end of 2021. It has operated in Russia for more than 30
years and has a cooperation agreement with Rosneft.
Visa (V) said it is suspending all of its operations in Russia. It will end all Visa
transactions within its borders, and Visa cards issued in Russia will no longer work outside of the country. In addition, all Visa cards worldwide "will no longer work within the Russian
Federation," Visa said.
Burger King said it is pulling corporate support from its businesses in Russia. Restaurant
Brands International, which owns the burger chain, said it "has suspended all of its corporate support for the Russian market, including operations, marketing, and supply chain." That doesn't necessarily mean that Burger King restaurants will be closed in Russia, however, as the company said the chain's roughly 800 locations there are "fully franchised and managed by a local master franchisee." This means that the company cannot simply pull the plug on those restaurants as
other brands such as McDonald's have done.
Hilton has shut down its corporate office in Moscow and is suspending all new
development activity in Russia, the hotel company announced Wednesday. The moves will not end the Hilton (HLT) brand in Russia, where there are 26 Hilton hotels. The company does not own any hotels in Russia. The 26 Hilton hotels in Russia are managed or franchised and represent a small percentage of the company's worldwide footprint of more than 6,800 properties, a
spokesperson said.
Questions:
To what extent do multinational corporations' actions against the Russian invasion influence globalization? And do you agree with the arguments that said multinational corporations' sanctions against Russia are in line with international codes of conduct for Mnes ?