Molex Case

Molex incorporated, a 74 year old manufacturer of electronic components established in 1938 is ranked second in the world with its headquarters based in Chicago, Illinois (Molex, 2012). In 1967 Molex broadened its horizons and opened its first overseas plant in Japan, then in 1971 opening its second plant in Ireland. For this case study we will describe the legal, cultural, and ethical changes that confronted this global business. We will try to determine the various roles that the host governments played in this particular business operation. And finally summarize the strategic operational challenges facing the global managers illustrated in this case study (UOP, 2012).

Molex founded their company in traditional form; they establish their business with years and profits under their belt before deciding to expand. Even though the company's new expansion took place in the late 1960s, today they are now up and running in 21 countries. Through this company's progress in 40 years they now generate 61% of their $1.84 billion in revenues outside the United States. Molex's inexpensive benefit is based on a tactic that emphasizes a mixture of low cost, excellent customer service, and the mass production of uniform products that are retailed globally (Hill, 2009).

Although the information contained in the case study does not go into great detail concerning the legal hurdles that his company had to endure when opening its doors abroad, we can expect as common knowledge that Molex met them head on. Just like here in the United States there are laws and regulations that have to be met when opening a business. Molex and its executives took the advantage in opening their doors in countries that wanted American business on their home front. Just as Molex was looking to the future so was Japan, Ireland and the other 19 countries; therefore we can assume that these governments assisted Molex in its operational readiness.

The case study does go into great detail concerning the cultural aspect of their migration into new countries. As Molex expanded overseas, the Human Resource Management (HRM) role made sure that every new plant complied with the same basic objectives. Every new facility would ensure an employee manual or handbook with the policies and procedures in place, orientation programs for new employees, payroll management, documented work descriptions, documented promotional and complaint procedures, standardized performance appraisals that were and are recorded, and so on (Hill, 2009). Molex hired experienced Human Resource Managers from companies within the respective country where it operates to increase their advantage in the vicinity of them doing business. Ethically local experts were brought on in these countries because of their understanding of laws, the language, and expertise to recruit people from the host country. This affords Molex the capability to tailor staffing guidelines of employees