Would the subsidiaries still be competitive and adaptive in local markets if for

Question

Would the subsidiaries still be competitive and adaptive in local markets if forced to coordinate with other subsidiaries around the world? Why?
2) Would Business Managers be able to change the habits of subsidiary managers toward more global behaviors? Why? Would the subsidiaries still be competitive and adaptive in local markets if forced to coordinate with other subsidiaries around the world? Why?
2) Would Business Managers be able to change the habits of subsidiary managers toward more global behaviors? Why? saround the world. However, it woald be One of TopDog's partners is urging espensn cultural differences, legal and government angaagn not to mention the complexities of dealing lower-cost approach, that of licensing Top oernational other matters. Another option would be expansion. By giving foreign or joint ventures with small European to produce, market, and that could benefit from adding RCA TopDog could build brand identity to foreign distributors as a jnd Asins to their suite of products. The co to i aonses in setting up foreign production faciliti its RCA software, could awareness while keeping a tight rein would give Top Dog l sales and distribution might also c a e mean giving up some control to the network. This would be nd less costly operation and would give TopDog the a u of the expertise of the foreign partners. Th on expenses. Ari approach, but he wonders if licensing enough participation and control to successfully develop its international presence. As another Carpenter are no closer to a decision about global expansion than they were when the day winds down, Weiner and t eving up some cony neotiattTopphstribue control to the partner companics s and would CASE FOR ANALYSIS Rhodes Industries David Javier was reviewing the consulting firm's proposed simply because changes in organization structure for Rhodes Industries RI found itself in new lines of business such as consumer RI. As Javier read the report, he wondered whether the products (paper and envelo changes recommended by the consultants would do more (switchboards, light bulbs, and security systems), in addition harm than good for RI. Javier had been president of RI for to its previous lines of business. Most of these products had 18 months, and he was keenly aware of the organizational local brand names or were manufactured for major interna and coordination problems that needed to be corrected in tional companies such as General Electric or Corning Glass. onder for RI to improve profits and growth in its interna- During the 1990s, a new president of RI, Sean Rhodes, tional businesses. simply because they were available at a good price, and ) and electrical equipment the grandson of the founder, took over the business and ad- opted the strategy of focusing RI on three lines of business- Industrial Products, Consumer Products, and Electronics. He led the acquisition of more international businesses that fit these three categories and divested a few businesses divisions had manufactur- Company Background Rhodes Industries was started in the 1950s in Southern that didn't fit. Each of the three Ontario, Canada, by Robert Rhodes, an engineer who was ing plants as well as marketing and distribution systems in in entrepreneur at heart. He started the business by first North America, Asia, and Europe. The Industrial Products making pipe and then glass for industrial uses. As soon as division included pipe, glass, industrial sealants and coat- the initial business was established, however, he quickly ings, cleaning equipment, and truck parts. The Electronics branched into new areas such as industrial sealants, coat- division included specialty light balbs, switchboards, com ings, and cleaners, and even into manufacturing mufflers puter chips, and resistors and capacitors for original equip and parts for the trucking industry. Much of this expan ment ton ccurred by acquiring small firms manufacturers. Consumer Products included dishes in Canada and the and glassware, paper and envelopes, and pencils and pens aructure with rather diverse subsidiaries scattered tariorth America, all reporting directly to the On Structure ates during the 1960s. RI had a conglomerat arters. Each subsidiary was a complete local Os and 1980s, the president at the time, structure was needed for RI. The current brought a strong international focus to based major geographic to operate independently so long In 2004 David Javier replaced Sean Rhodes as president. He was very concerned about whether a new c profits to RI on three major geographic a During the 1970s and 1980s, the president at ts Cifford Michaels, brought a stron RI. His ous autonomous units within those office of the regional vice president. When several units existed in a single country, one of the subsidiary presi- Asia, and Europe-as illustrated in Exhibit 6.12. The vari- regions reported to the worldwide that they could be formed into a cohesive low nesses in inter. strategy was to acquire small companies init that would cost of manufacturing and dents was also responsible for coordinating the various manufacturing and by serving bust oal markets. Some of RI's businesses w t ofbring Ri synergies and profits through markets. Some of RI's businesses were acquired

Explanation / Answer

Would the subsidiaries still be competitive and adaptive in local markets if forced to coordinate with other subsidiaries around the world? Why?

Answer-

The subsidiaries of Rhodes Industries if forced to coordinate with their other subsidiaries then they can be competitive in following ways –

Good Communication – If there is good coordination among all the subsidiaries of Rhodes Industries, there will be better communication throughout the company which will help them to adapt market changes more easily and getting a good share of market.

Technological development – When there is good coordination among them, skills and knowledge will also be shared with each other that will help in effective use of technology and development of creative and innovative products that increases the competitiveness of company.

Decrease in cost and Increase in profits – As when all the subsidiaries will work in coordination with each other, they will work for the attainment of common goal that will help the Rhodes Industry to increase their profits and make their goodwill in market.

So Rhodes Industry by reducing their disagreements among their subsidiaries and being less concerned to success of other companies must increase the coordination throughout their own company and become competitive in the market.

Q- Would Business Managers be able to change the habits of subsidiary managers toward more global behaviours? Why?

Answer-

Business managers might not be easily able to change to habits of subsidiary managers of Rhodes Industry as the current level of communication among them is very less. Top level managers do not provide adequate instruction regarding the improvement and development plans.

But managers must try to make all the managers of subsidiaries aware that they can grow more with overall growth of their company rather than focusing on their own location.

Business managers must integrate efforts of all the subsidiaries in one line for the improvement of company’s processes and for the global recognition of the company.

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