Control
Need for Reports Headquarters needs timely reports from all operating units of an international finn so that management can allocate resources properly, correct plans, and reward personnel. First, the decisions on the use of capital, personnel, and technology are almost continuous; consequently, reports must be frequent and must show recent situations so that these...
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CONTROL IN SPECIAL SITUATIONS Acquisitions As was noted in the Nestle case, a policy of expansion through acquisition may create some specific control problems. In the Nestle situation, some of the U.S. acquisitions resulted in overlapping geographic responsibilities as well as new lines of business with which corporate management had no experience. Another type...
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LOOKING TO THE FUTURE As overseas sales and profits as a percentage of sales and profits ~ become more important, there will likely be a decline in the au- tonomous power of subsidiary managers. Their power base will likely erode as greater centralized control of product, marketing, and financial planning is necessary to bring...
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SUMMARY ■ Control is more difficult internationally because of (1) the geographic and cultural distance separating countries, (2) the need for diversity among locales in methods of operating, (3) the larger amount of uncontrollables abroad, and (4) the higher uncertainty due to data problems and rapid change. ■ Whether decisions are made at the...
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PROBLEMS OF INTERNATIONAL DATA Reasons for Inaccuracies For the most part, incomplete or inaccurate published data result from the inability of many governments to collect the needed details. Poor countries may have such limited resources that other projects necessarily receive priority in the national budget. Why collect precise figures on the literacy rate, governments...
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