Operation Of Country Divisions Of A Multinational Corporation

836 Words Apr 12th, 2016 4 Pages
It’s hard to determine how much the headquarters influences the operation of country divisions of a multinational corporation. It is argued that companies meet greater efficiency and economies of scale when there is an effective coordination of marketing policies within all the divisions of a multinational corporation. Coordination of country division by the headquarters is more productive for multinational corporations dealing with consumer goods than when the divisions are left to make sole decisions.
By its absence, marketing is conspicuous from the roles which can be implemented at the corporate headquarters level. A multinational undertakes market program standardization when it offers identical product line at a similar price using a similar distribution system supported by similar promotional programs in different countries. Most multinationals view localized marketing strategies to be often feasible. The company 's headquarter influences and direct marketing policies and programs that the country division executes. The autonomy of country divisions in making decisions based on the profit responsibilities. However, managers may decide to come up with a product under a new brand name, when it can bring forth a positive result in another market[1]. For instance, the introduction of an instant potato line by a Nester country manager in France under a new brand name known as Mousline rather than under Maggi brand was successful. The line was successful because the Maggi…

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