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MNC

Different organizations aim at attaining a global competitive advantage through implementing different unique strategies. Multinational corporations find it difficult operating under a collection of nationally independent subsidiaries forcing them to link their strategic activities across different locations globally. The global strategy requires an institution centralizes its operations to a specific location that gives other subsidiaries mandate to produce. The concept of global subsidiary mandate, therefore, involves firms developing strategies aimed at winning the global competition through giving mandate to specific subsidiaries located at different locations of in the world. For example, an organization operating branches in different countries across the world would decide to give mandate to one subsidiary in each continent to manage operations of all other branches.

Multinational Corporations (MNC) makes use of the global subsidiary mandate concept in achieving the three main international marketing goals. Firstly, managing operations in a central headquarter provides MNC with an opportunity to manage their global operations efficiently, hence achieving the goal of global scale efficiency. MNCs are capable of making a complete follow-up of events across the world in a central location avoiding instances of inefficiencies created by lack of accountability occurring through utilizing different management points. Secondly, the concept promotes multinational flexibility because ideas are generated from a central area and distributed to different subsidiaries across the globe. Availability of different subsidiaries across the globe gives MNC chances of investing in different areas promoting flexibility. Finally, the global subsidiary concept helps in achieving the worldwide learning goal among MNCs. Integration with different firms through global competition provides an opportunity for MNC to learn new ideas and strategies that they utilize in winning the global competition. In addition, global competition introduces innovations enabling the organization to prepare for future changes.