Developing a Successful Subsidiary Strategy

Chapter 10Parental Responsibilities

DOI: 10.4324/9781003425502-13

The focus throughout this book is on how subsidiary leaders should analyse their environment and plot a course to develop their strategy. While this assumes that the subsidiary is acting on its own initiative, it is also important to give some attention to what support and encouragement can be expected from the parent organisation. That is, what role (if any) should headquarters (HQ) play in fuelling and lubricating the internal network to empower subsidiaries to fulfil their potential as value contributors to the corporation?

Some early writings on multinational enterprise (MNE) strategy recommended that HQ should seek to add value to individual businesses by making vital ...