Rhodes Industry Case Question

Rhodes Industry Case Question

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

If the subsidiaries were to be all coordinated, I believe they would still be competitive in their markets however they might not be able to adapt as easy as if they were independent. The reasons they would still be competitive is that they would already be established in their current market so will have a percentage of market share and a customer base. If all subsidiaries were coordinated it would also result in better communication throughout the whole company. This would result in the subsidiaries being able to share any developments in technology, innovations, product ideas and any other business information. It would also allow for economies of scales to be gained easier which would reduce costs which may allow for more investment which will strengthen their market position. It also means all the firms will have the same overall goals which will benefit the organization as a whole rather than individual firms making decisions to only benefit their own firm. However it may decrease their ability to adapt to any external changes, the reason being that as the organization would be adopting a more centralized approach it would take longer for decisions to be made and communicated throughout all the firms within the business, whereas before each firm was being managed individually so they could react to any changes in the environment. They were also only focusing on their own firm and their own products so they could adapt the product to the changes in the market without having to worry about the affect it would have on the other firms.

2. Would Business Managers be able to change the habits of subsidiary managers toward more global behaviors?

As the company moves towards adopting