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The Changing Face of

Multinational in Southeast Asia


ARTICLE BY: TIM G. ANDREWS, NARTNALIN
CHOMPUSRI AND BRYAN J. BALDWIN OBE
Agenda

Introduction
ISO
Benefits
Critiques
Conclusions
Introduction

Information Tracking
International Organization Standardization (ISO)
certification in Southeast Asia (SEA)
Why they want it (Benefits)
Critiques
What is it like in actual practices?
Culture (Influences)
Current situation
Information sharing

SEA continues web based technology


 Enhanced coordination
 Communication
 Control what it offers

Headquarter (HQ) claimed to suffer from a lack of


detailed knowledge of their subsidiary units
Total Quality Management → ISO 9000 standards
ISO

Transparency
Made up of national standards institutes from all
countries
ISO 9000 becomes a fact of life in the majority of
industrial segments
An umbrella mark and guide for all MNC seeking to
develop their global business processes
ISO …

Quality Management
 Conform to customer requirements
Control of processes
Safety of facilities, treatment of raw materials,
quality inspection procedures, customer services
measures, job descriptions
Initial to final customer satisfaction
ISO in SEA

Companies without are hurrying to meet the


requirements
 Pressures
Why? (Benefits)

Corporate Group
 Quality
BMW in Thailand (quality level matching Munich’s)
Regularly checks
Benchmarking
Core competencies
Cost reductions & Cycle time
Customer are more secured
Company Image / Brand image
Reduction in operating cost
 Efficiency
Eliminate non-value-added work
Ability to adapt quickly and be flexible
Streamlining work processes
Why? (Benefits) …..

Corporate control
 Every member follow the same procedures
 Heading the same strategic direction
Local Employee Benefits
 Accusation regarding NIKE, REEBOK and DISNEY
 Public relations campaign
Critiques

Can ISO guarantee Quality per se?


 Lots of $ spent but just a piece of paper on the wall
Complex issues
 Documents ever read?
 Lack of understanding
Intrusive and over costly
Flaw in the monitoring process
In actual practices

Local employee are not consulted / trained


Information from TOP to BOTTOM is flouted
Lack of support from the corporate heads of ASEAN
brunch units
Anger and resentments
Different handling methods
Culture

Asia
 Rapport
Western
 Systematic and procedure
& more
Conclusions

ISO good objective to control, improve work process


Local context and reality
Blend with indigenous culture
Hand in hand with internationalization business
templetes
The End
Q&A