Minding the pennies – at home and abroad: Cost and product development for subsidiaries

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Discussions around multinational enterprises (MNEs) and how they run their foreign subsidiaries often relate to either the direction of traffic when it comes to autonomy and power or culture. For the latter, the textbooks are stuffed with case studies and examples of how things went mainly wrong when an MNE ventured into a certain market when it came to managing the local culture, with debates around globalization, localization, or (the horribly named) glocalization strategies and which one is best in any given circumstance. This is of course relevant and important, but often the meat of the story lies in the former category and the ensuing power struggles between head office and foreign hub.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2018), "Minding the pennies – at home and abroad: Cost and product development for subsidiaries", Strategic Direction, Vol. 34 No. 1, pp. 34-36. https://doi.org/10.1108/SD-10-2017-0155