Organization and organization problems of multinational enterprises

With the effect of varying economical and technological conditions, business enterprises aimed to continue their activities in the international arena by carrying these activities from national boundaries to abroad. In this way, they became wide scale enterprises, which are influential in world economy, taking advantage of the economic condition of relatively less developed countries and their cheap production factors. The aim of this study is to put forward the definition of ?multinational enterprise?, the process of multinationalization, types of multinational organizations and their organizational problems. The term of multinational enterprise, organizational structures of multinationals which operate on a prevalent base in the world and organizational problems constitute the scope of the study. Under the scope of term, ?multinational enterprise?, definitions of multinationals, their types, historical processes and common characteristics are delineated. In the empirical part, a case study was held through examining a multinational enterprise, coded as ABC, which operates in pharmaceutical industry in the international arena. In the case study, general information about the company, its history, the mission of field of activity, were elaborated and its organizational problems were examined by research-analysis method. In this study, with the examination of ABC as a sample unit, it was found that enterprises, in the way of multinationalization, form a big enterprise through establishing small production facilities in other countries and gradually growing in each of them. Another prominent result was that, multinational enterprises separate their subsidiaries first on the base of region and in each region; they also pursue separation on the base of region and product. One final result of the study was that the problems which organizations face due to technological deficiencies previously were reduced with the thriving technology.