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Key Topics
Requirement
Assignment based on International Management
Solution
Introduction
This paper discusses the Tap Your Subsidiaries for Global Reach and presents the various contributions, strengths, and weaknesses of the case. The article begins by discussing two strategies namely The United Nations Model and headquarters Hierarchy Syndrome
Contributions
The case helps in contributing towards providing failed strategies of the subsidiary management along with the roles and responsibilities of subsidiaries. The paper helped in imparting information on how the headquarters must be shaped effectively and how the relationship should be directed. The case epitomized the poor subsidiary management by giving the example of EMI, which was invented and brought for marketing the CAT scan could not be successful in capitalizing. EMI failed due to these reasons:
1.) It lacked the ability to adapt towards the market preferences away from its headquarters country
2.) It lacked the resources for scrutinizing the data and for creating responses in the world market
3.) It lacked the empowerment and motivation in the overseas managers of the subsidiaries.
The case helped in highlighting how the companies fail because of the United Nations Model approach towards the headquarters Syndrome (local implementers of the decisions of headquarters), sub-management (symmetrical treatment for all the subsidiaries).
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This case helped in highlighting how the European business unit of Proctor & Gamble which was comprised of the Headquarters present in Brussels and other subsidiaries in various Euro nations which transitioned from their failed UN Model approach towards a very fruitful structure. Euro brand team was created by P&G which was headed by the general manager who would be asked to represent the leadership of a certain product. This leads to a successful approach due to the commitment and knowledge and helped in building interdependent relationships among the subsidiaries. The case contributed in explaining the differing roles of subsidiaries and headquarters.
Strengths
This case provided a local presence for the maintenance of the global position and helped in building the right strategy and further helps in recognizing the demand shift along with the development and implementation of the strategy. Furthermore, the four roles of subsidiaries which were the strategic leader, contributor, implementer and finally the black hole. This helped in being competitive along with recognizing the varying demands and thinking about strategies. Furthermore, it helped in targeting the unimportant markets as well. They also focused on the non-important or not exceptionally competent strategic markets. They were able to provide a local presence for maintaining the global position and had difficulty in competing towards the in their country and further to utilize in a highly competitive market delivering the industry shifts regarding which the headquarters needs to know. The strategy further helped in honing on the capabilities, knowledge, expertise as well as the commitment of the managers closest to the respective market which was provided to them. This helped in keeping all the managers focused and highly alert to fulfill the needs of the industry which led to making their managers highly efficient and expert in their particular work area. This further helped in allowing flexibility due to which inter-subsidiary management differentiation could be done which gave less control over by the headquarters. The corporate headquarters would be able to disseminate responsibility of the lead along with the contributing roles towards the resources and the subsidiaries and would be beneficial in decision-making ability and provided corporate access.
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The case is just a summary and presents as a cookie-cutter solution for how the relationship among the overseas subsidiaries could be structured. For example, Apple Inc. has its headquarters in California, USA. The manufacturing for the company is done mainly in Asia whereas there are subsidiaries present in the major markets of the world which can oversee the retail distribution as well as the outlets. According to my assumption, these are nothing much that could be transpired around the world of Apple Inc. with the approval of the headquarters. The case helps in determining the factors that can empower people for performing, innovating and developing and even the people who are made subsidiary must be empowered. But the case is a particular one and not all the business models can have a one-size-fits-all solution and have a symmetrical treatment fault in the structure. The allocations of the roles might be misunderstood many times, leading to various complications.
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