Near insolvency witnessed recently among multinational companies is course for alarm. This has been solely blamed on intrinsic issues within the companies. However, the rapidly changing technological, socio-economic and political landscapes have not been fair to these companies either. For the functionality of multinational countries, territorial policies have to favor the establishment and operations of these enterprises (Dennis , Dennis, Randall , & Lisbeth , 2008); investor, suppliers and creditors’ confidence has to be inspired as well. The retrogression seen in these companies however, is multi-faceted in nature hence remedial plans to be undertaken by management are deemed as impractical. This culminates in the besiegement of the directors and management by shareholders.
Xerox share price experienced a downturn from $64 to $4 killing investor confidence in the venture (Glenn, Peer , & Richard , 2001). Xerox was a victim of rapid changes and advancement in the global technological landscape coupled with management failure. Management malpractices however are deemed to have led to the total demise of Xerox.
Proper governance and leadership institutions within the company; Proper management practice inspires confidence in the investors and shareholders (Dennis , Dennis, Randall , & Lisbeth , 2008). It also ensures a motivated work force towards realization of company goals and objectives. Motivation of employees comes in the form of provision of a proper work environment, proper human resource management practice, forging the right partnerships and government policies. Interdepartmental cooperation and communication of ideas within the company coupled with interactive brain storming for solutions to problems, guarantees lasting solutions for institutional problems. The reorganization and or transfer of staff from or within departments have to be done in a pragmatic way to ensure no vacuum is left within the department or institution. Sudden changes in staff upset client confidence and employee morale (Glenn, Peer , & Richard , 2001). Adequate and timely communication should therefore be made to the clients to prevent client uncertainty and anxiety, which affects their buying patterns.
Adoption of and adaptation to modern printing technology solutions. Through continuous innovation and invention, the company should have strove to find workable solutions for its absolute printing machinery. It should have produced machinery that was in tandem with the technological era. Companies such as HP and Camon were producing wireless printing equipment to satisfy the growing need for wireless- wifi and Bluetooth- printing at the work place (Dennis , Dennis, Randall , & Lisbeth , 2008). Had Xerox adjusted to these parameters then its products would have been guaranteed of acceptability in the market, as it was a re-known brand. Companies should therefore strive to progress steadily to fit into the changing dynamics of commerce and technology.
Product dynamism. The global desire to embrace green solutions and reduce carbon emissions drove corporates to move to paperless office setups. Most corporates then moved away from practices that were seen as to destroy the environment. Organizations embraced cloud systems to store their data, as it was more efficient; job applications were done online, which limited the use of paper to very few office applications to reduce residual damage to ecosystems. Xerox should have recalled their absolute equipment or suggested proper disposal and or modifications to ensure energy efficiency. Xerox should have anticipated these changes and invested in sustainable digital printing/ back up storage solutions for it to retain market solvency.
Ensure all short term and long-term debts are settled on time. Payment of creditors on time ensures constant and consistent supply of inputs of production hence uninterrupted supply of products to the consumers. Xerox was faced with heavy debts due to accrued debt from suppliers (Glenn, Peer , & Richard , 2001). Suppliers on suspecting underperformance of the company retracted from supplying input products to the company. The company, faced with debt and operational deficiencies went into bankruptcy.
Dennis , B., Dennis, B. R., Randall , S. S., & Lisbeth , C. (2008). International Human Resource Management: Policies and practices for multinational enterprises. London: Routledge.
Glenn, M., Peer , H. K., & Richard , W. (2001). The Multinational Firm: Organizing Across Institutional and National Divides. New York: Oxford Press.