Coordination versus globalization: the multinational's dilemma

Article Abstract:

Five forms of business strategy for foreign-owned subsidiaries as developed by Rod White and Thomas Poynter are discussed using case studies of the subsidiary operations of two prominent multinational companies. These subsidiary strategies are classified into the miniature replica, marketing satellite, rationalized manufacturer, product specialist and strategic independent and defined on the basis of a subsidiary's product scope, market scope and value-added scope. Scottish paper manufacturer Caledonian Paper as the foreign subsidiary of Finland-based Kymmene Corp serves as the first case study while US computer manufacturing giant Compaq Computer Corp's subsidiary operations in Scotland serves as the second case study. Both subsidiaries' strategies are of the miniature replica classification and are extensively discussed along with parent-subsidiary relationships in both cases.

Electronic computers, Typesetting, Foreign operations, International business enterprises, Multinational corporations, International trade, Computer Composition Corp., Kymmene Corp., Caledonian Paper

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Managing subsidiary companies: a survey of managing directors

Article Abstract:

A survey of 118 subsidiary managing directors examined the pros and cons of running a subsidiary business. Managers found the benefits of having a parent company to be: increased ease in financing capital expenditure, and expertise in specialized services such as law, personnel, and finance. Many managers were dissatisfied over pensions and length of termination notice. Over 60% of respondents were dissatisfied with changes in the accounting procedures brought on by the company's sale. Managers felt that there are not adequate means for them to create personal profits out of the subsidiary's success, and that decisions on capital expenditure take too long. Respondents also showed dissatisfaction with the way parent companies handle pensions.

Surveys

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Paper and board: an industry in the throes of global restructuring

Article Abstract:

The paper and paperboard industry in Europe will undergo drastic changes by the end of the 1990s. Both European and US corporations in Europe have recently acquired European paper companies. One of the main reasons for the increasing amount of acquisitions is the increasing capital-intensiveness of the industry. Nordic firms have been particularly aggressive in acquiring paper companies. The European paper industry will continue to become more concentrated as a result of market pressures and the creation of a single European market.

Paperboard mills, Europe, Mergers, acquisitions and divestments, Paper industry, Paper products industry, Industrial concentration

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