MNE Subsidiary Strategy and Innovation Exam Solution Manual Already Passed

MNE Subsidiary Strategy and Innovation Exam Solution Manual Already Passed Multinational Enterprise - Answers a firm with production and/or distribution facilities in two or more countries Subsidary Unit - Answers any operating unit which exists outside of the home country of the MNE (affiliate) in literature Subsidiary development - Answers Involves both the attraction and sustaining of foreign direct investment- usually involving very high levels of subsidary iniative MNE Subsidiary Management Research Evolution - Answers The four central subsidiary management research streams: -The Strategy-Structure Stream -The Headquarters-Subsidiary relationship stream - The subsidiary Roles Stream - The Subsidary Development STream Strategy Structure Stream - Answers The idea behind this notion was that structure was something that would change to fit strategy and strategy itself was seem to be developed only in headquarters, negelecting the subsidary role in strategy creation Parent Persepctive Key concern: Integration and responisiveness Role of subsidiary typically 'implementer' The Headquarters- Subsidiary Relationship Stream - Answers Scholars started to accept the possibility of subsidiaries having considerable autonomoy and influence over the corporation and the apparent necessity of subsidiary-management involvement in the decision-making process Parent Perspective Centralization-decentralization of decision-making Differentiation of HQ-subsidiary relationships- MNE as an 'Interorganizational Network' Differentiation of subsidiary roles- Subsidiary seen as potential 'contributor' The Subsidiary Roles STream - Answers Focused on the subsidiary as a unit of analysis and treat headquarters as an external factor, allowing authors to analyze in detail the various strategic roles of subsidiaries Peripheral open economy- stream of other studies generated Subsidiary has ability to create strategy through bargaining for autonomy and influence Forms basis for what we know about subsidiaries The Subsidiary Development Stream - Answers Subsidiary's main objective was to give priority to its own strategic business decisions instead of simply focus on improving efficiency for HQs Most recent and dynamic- investigates chcanges in subsidiary role Role of subsidiary iniative- both positive- specializations within the MNE end up in correct location NEgative- against the MNE agenda, and fueled by resources in local economy 'Subversive' behavior by subsidary managers Parent Company influences - Answers Head Office Assignment Decision made by head office managers regarding the allocation of roles/activities to the subsidiary Internal Influences - Answers Subsidary Choice Decisions by subsidiary managers regarding the roles/activities undertaken by the subsidiary Host company influences - Answers Local ENvironment Determiniation influence of environmental factors on decisions taken by head office and/or subsidiary managers regarding the roles/activities undertaken by subsidiary Subsidiary's Role - Answers measured in terms of the specific business, or elements of the business, which the subsidiary undetakes and for which it has responsibility Subsidiary Strategy - Answers What is strategy? - the determiniation of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals" Competitive strategy is about being different. It means deliberately choosing a different set of activities to delvier a unique mix of value a pattern in a stream of decisions the long-term direction of an organization Subsidiaries: dumb subcontractors or iniative takers? - Answers Dictionary definition of subsidiary would indicate that the entity should be subordinate and work under orders from the HQs Historic literature-hierarchial and centre-dominated perspectives of MNEs