PR Crisis of Multinational Corporations in United States

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Introduction

Corporations became a part of the world sometime since the sixteenth century, and were prevalent in areas like England and Holland. They soon started spreading in other countries, and with the passage of time, a whole ‘corporate world’ has been formed. Corporations are bodies which use the private financial resources for public purposes.

Corporations are a major influence in our lives, whether we realize it or not. The world is full of large corporates, and amongst the hundred economies around the globe, 51 are corporations. Corporate-led globalization is availing and is being resisted by people all over, not knowing clearly how these corporations became such super powers in the first place.

Corporations are becoming larger and are also playing the roles of multinationals. With the progress taking place in such speed, they have started influencing people more, and some of the decisions they take for their benefit may affect the whole world. At times these decisions can prove beneficial to them only, and extremely harmful to the rest of the world (Shah, A., 2007). And at times even if people know of the dangers they are about to face, they still carry out no steps to save their future. For example, even if the United States knows of the natural disasters about to be faced, still no measures are taken to prevent or control the crises that may result from them (Mccollum, T., 2007).

Body

On trying to find out why some companies remained unconcerned,, it was learnt that most of the large companies quickly recover from the financial loss they face, so it is not a matter of concern for them. Similarly, most of the companies also stated that their profitability was not affected by the crises; so again, they were least concerned with taking up any measures for themselves (Mccollum, T., 2007).

The Natural resources company in the oil production & exploration field had huge number of projects to work on including 50% platform projects, 30% medium & 20% small scale projects, 80000 hours are required to cover all the projects. 41 employees are currently overseeing the project management department where, an average of 5 employees contributes in the major project & 8 for minor & medium each.

At present, many projects in particular the minors, have crossed their deadlines & budget. The reason; too much labour being utilized in the major projects, creating trouble for the employees as well as the company’s budget. To retain a balanced portfolio, project resources will have to be split equally across the three types of Projects i.e. 33.3% by reducing the platform projects from 5 to 3 and increasing Small Scale Projects from current 18 to about 22.

The main issues & strategies of the company can be observed by conducting an overall analysis, which can help in accomplishing a thriving portfolio. All these steps can be taken successfully, only if the support of management is present & the new users made aware of the implementation of the plan through regular meetings in order to obtain their contribution via feedback. Due to the oil prices on a high rate, the company is gaining in the financial perspective therefore; creating prospects for new projects & hence expands the portfolio.

Ensuring the quality of the product at a competitive price can be achieved through effective project management. Reducing the operating costs & delivering on time will help to increase profits by securing clients. This prospect is being incorporated by involving local firms in the company’s projects. Increasing the number of employees will let us take up more projects & saving time consequently gaining revenue. The proposed stratagem should fit the culture of the company and the community or they would face customers’ rejection.

Says Colin Snow, “Business Process Management provides methods to automate and/or improve activities and tasks for particular business.” In addition, information technology should become an integral part of Business Process Management, she adds. In fact, according to Laudon & Laudon, as an integral part of Business Process Management, information technology can create the firm values. It strengthens the firm strategically and in the long run, it may improve the firm return on investment even position the firm better in the market and more strategically.

Nevertheless, in order to place a firm strategically in the market, firms are required to consider the 4 Ps of marketing, which includes Product, Price, Promotion, and Place.

From the above management processes, information technology indeed helps the executives to assert control over the workflow. They can direct the flow of transactions such as in processing of the workflow, purchasing, and merchandise returned. They can also provide quick response to customers’ critical inquiries, improve a systematic measure for monitoring process, and still be able to think innovatively and improve their own performance and hence, that of the companies.

This integration, if paired with collaboration, may lead the company to achieve its goals. However, that requires an excellent performance. Harry Hertz, Director of Baldrige National Quality Program says, “Baldrige criteria for Performance Excellence are about winning,” with a framework that includes the core values and concept with seven categories. The seven categories include leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; workforce focus; process management; and results.

The influence of these corporations, which were dreaded to take the world under control by many leaders including Abraham Lincoln, is still rising (Shah, A., 2007). Despite the fact that people are not getting their equal rights and there is a lot of labor distinction, this trend has taken the world by storm. The corporations themselves are not bad as such, but what is causing negative effects is their expanding sizes, and the want of maximum profit as the end goal towards which they work for. The increase in size and wealth of corporations lead to more concentrations of wealth, and thus these people become economic and political powers resultantly.

In the pharmaceutical industry, the corporate are wishful of their profit attainment, and neglect the diseases of the tropics, because of no market being available to them. Pharmaceutical companies make judgements as to where they will get a substantial amount of return for the amount they will invest in any specific locality. Unfortunately, the pharmaceutical corporates put up public relations banners to show how much they are wishful of benefiting humanity by their medications, but they do not clearly state that they are basically in want of the largest profits from the sick also.

Nestle Case

One of the greatest problems concerning corporate and their public relations was the controversy held against the multinational company “Nestle”. This controversy was related to the production of infant formula, and made many countries around the globe boycott all Nestle goods.

The link between bottle feeding, infant formulas and infant diseases was brought up in the 1960s initially (Sethi, P., 1994). But in 1974, a pamphlet was taken out against some companies, that stated that health problems associated with babies in the third world countries are somehow connected to the formula feeds their mothers are giving them. These infant formulas were claimed to be manufactured by Nestle of Switzerland, and Cow and Gate of the UK.

Nestle is one of the most renowned corporations of the world. If there is a controversy against such a big company, everybody takes it real seriously, and people start probing into matters, and then judge for themselves whether to take some action against the issue or not. Thus, when the infant formula controversy began, a large number of consumers were ready to boycott any good manufactured by the company. Nestle had to face a great loss, and also mismanaged the whole affair, which later had to be taken under control by volunteer companies.

The claim against Nestle was that there were misleading salesgirls who were convincing breastfeeding mothers to purchase formulas made by the company, for their children, instead of breastfeeding them. Mothers were basically being misguided and were forced to buy these infant formulas, which led to illnesses in infants, rather than producing good health.

The case laid against Nestle was won, but the number of consumers the company had was reduced due to the allegations. The corporate lost its consumers and had to suffer for over a decade.

References

Mccollum, T. “Multinationals aren’t planning for crisis events”2007. Web.

Isabel Hilton, “ A Bitter Pill For The World’s Poor” 2000. Web.

Andy Rowell, 2005. . Web.

The Food Chain Centre, 2004. 20% Savings to be had in Sausage Supply Chain. Web.

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