Grading Scheme for Case IV: Molex (Page 639)

1. What multinational strategy is Molex pursuing – localization, international, global

standardization, or transnational? (4 points)

Global standardization in products. Molex mass produces standardized products that are
sold globally. No local customization to cater to local taste is involved.

2. How would you characterize the approach to staffing used at Molex? (4 points) Is
this appropriate given its strategy? (3 points)

Geocentric. Yes, since the product is standardized, there is no strong need to have access
to local knowledge (although it is always beneficial). Geocentric hiring allows Molex to
hire the best people in the world. The downside is that it is very expensive to do so. But
Molex believes that the benefit far outweigh the cost.

3. Molex is very successful in its use of expatriate managers. Why do you think this
is the case? (4 points) What can be learned from Molex’s approach? (3 points)
part A
(1) Selection -- selection of foreign citizens with US MBA; they are trained in the US
and then sent to home country. Selection of US citizens who are culturally and
liguistically aware. Selection at the local level of foreign nationals with English
competency
(2) Training: Cultural training, as referred to above. In house managmenet
development programs. education in finance, operations, strategy.
(3) Equalization of pay. tailoring of policies to conditions prevailing in a country.
HR support, good repatriation process. Keeping in touch with the home country
headquarters to avoid getting disconnected
(4) International movement of personnel: and Molex makes sure why they are being
sent to a foreign country, in terms of their own career development and Molex's
corporate goals.
Part B
(1) Molex's tailoring its staffing policy to the multinational strategy it is pursuing, and
(2) Molex's willingness to incur high HR costs for higher quality management

4. How does the human resource function at Molex contribute to the attainment of
its multinational strategy? (7 points)

Its multinational strategy is global standardization.

(1) standardized HRM policies enable Molex to maintain the same high quality
product and employees worldwide.
(2) in order to make their standardized product desirable in each market, Molex needs
the input from locals who know each local market to make the product universally
attractive.
(3) one of Molex' competitive advantage is its excellent customer service. Again,
having employees who are well trained in dealing with the issues that come up in
 each local market enables them to provide their customers with quality
customized service.
(4) Since there is no specific need to customize the product to one individual market,
Molex can hire the best people from around the world.