Determinants of Control Strategies and Organisational Structures

Business & Finance, Management & Leadership, Management
Cover of the book Determinants of Control Strategies and Organisational Structures by Matthias Meier, GRIN Verlag
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Author: Matthias Meier ISBN: 9783638478229
Publisher: GRIN Verlag Publication: March 11, 2006
Imprint: GRIN Verlag Language: English
Author: Matthias Meier
ISBN: 9783638478229
Publisher: GRIN Verlag
Publication: March 11, 2006
Imprint: GRIN Verlag
Language: English

Seminar paper from the year 2006 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3 (A), Leeds Metropolitan University (Leeds Business School), course: International Business, 27 entries in the bibliography, language: English, abstract: From 1980 to 2002 Foreign Direct Investments (FDI) have grown by 12% per year (Unctad, 2004, p. 33). This indicates that Multinational Enterprises (MNEs) increasingly operate abroad through fully owned subsidiaries which have to be managed, controlled and coordinated by domestic headquarters. Therefore, it becomes more and more important for MNEs to choose an adequate control strategy combined with the most suitable organisational structure. Due to a changing global environment, some of our competitors seem to change their organisational strategies and structures in order to achieve a competitive advantage. This report presents an overview of the determinants of strategies and structures adopted by MNE's, the location of decision making and the types of mechanisms used to control foreign subsidiaries. The second chapter of this paper deals with the organisational environment and describes tools which can be used to assess the internal and external environment. The third chapter examines four control strategies. Organisational structures and control mechanisms are described in Chapter four. The fifth chapter examines the strategies and structures of our main competitors Procter & Gamble and Johnson & Johnson.

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Seminar paper from the year 2006 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3 (A), Leeds Metropolitan University (Leeds Business School), course: International Business, 27 entries in the bibliography, language: English, abstract: From 1980 to 2002 Foreign Direct Investments (FDI) have grown by 12% per year (Unctad, 2004, p. 33). This indicates that Multinational Enterprises (MNEs) increasingly operate abroad through fully owned subsidiaries which have to be managed, controlled and coordinated by domestic headquarters. Therefore, it becomes more and more important for MNEs to choose an adequate control strategy combined with the most suitable organisational structure. Due to a changing global environment, some of our competitors seem to change their organisational strategies and structures in order to achieve a competitive advantage. This report presents an overview of the determinants of strategies and structures adopted by MNE's, the location of decision making and the types of mechanisms used to control foreign subsidiaries. The second chapter of this paper deals with the organisational environment and describes tools which can be used to assess the internal and external environment. The third chapter examines four control strategies. Organisational structures and control mechanisms are described in Chapter four. The fifth chapter examines the strategies and structures of our main competitors Procter & Gamble and Johnson & Johnson.

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