LOOKING TO THE FUTURE
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 about needed synergy among firms' operating units worldwide. This centralizing tendency, within the framework of strong, capable local management, assumes (1) that trade barriers continue to decline; (2) that it becomes economically feasible, to an ever greater degree, to organize the exchange of products, components, and factors of production on a country-by-country basis; and (3) that companies will increasingly need to respond to global competitors and more-homogeneous consumer wants.
Although control within MNEs will continue to be problematic, a growing challenge will be the control of relationships with other companies as MNEs develop more alliances for which most traditional control mechanisms are not applicable.
On the one hand, centralized control may become easier because of the faster access to information from abroad. On the other hand, this may be somewhat negated by companies' limited abilities to process increased information, particularly with increases in their geographic spread of activities, their product diversity, and their competitive rivalries.
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 about needed synergy among firms' operating units worldwide. This centralizing tendency, within the framework of strong, capable local management, assumes (1) that trade barriers continue to decline; (2) that it becomes economically feasible, to an ever greater degree, to organize the exchange of products, components, and factors of production on a country-by-country basis; and (3) that companies will increasingly need to respond to global competitors and more-homogeneous consumer wants.
Although control within MNEs will continue to be problematic, a growing challenge will be the control of relationships with other companies as MNEs develop more alliances for which most traditional control mechanisms are not applicable.
On the one hand, centralized control may become easier because of the faster access to information from abroad. On the other hand, this may be somewhat negated by companies' limited abilities to process increased information, particularly with increases in their geographic spread of activities, their product diversity, and their competitive rivalries.
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