Issues of Global Organizations and the Internal Political Struggle Between Organizational Headquarters and Local Subsidiaries

Case Study 7.1

Vardly E. St.Preux

University of the Potomac

MPM 640

Date

Professor Kendra Smith

Abstract 

This paper will analyze a hypothetical case study of issues of global organizations and the internal political struggle between organizational headquarters and local subsidiaries.  This paper will exam how the tension is frequently reflected in an international project^[a]. Finally, this paper will delve into how negotiation can resolve the conflict of who “owns” the customer.

Case Study 7.1

The mini case exposes the ongoing political struggle between local subsidiary and headquarters regarding the responsibility and authority of customer relation management. The local subsidiary's main competence is having a personal first-hand knowledge of the cultural context of the customer is in direct opposition to headquarters' preference to have direct contact with the customer based on speed and ease of direct communication.^[b]

What would you suggest to solve this intra-organizational conflict? Base your answer on the structural topics discussed in Chapter 6 and communication as discussed in Chapter 9

The correct answer is that the responsibility and authority of customer relation management of the ‘customer’ belong to both the local subsidiary and headquarter^[c]. All parties should comprehend that all projects are to grow shareholder's profits. There is to be a greater need to coordinate functions that can leverage the both the knowledge of the needs of the customer and resources that can be delivered with ^[d]speed from headquarter. Both local and headquarters need to negotiate a dual leadership to secure information flows while presenting one project hero to the client. Global organizations should create responsibility charts for the local subsidiary presenting daily to daily communications with the customer, while headquarters plans for the overall time, cost and quality. There is no way to get around it, the two parties must negotiate terms that will provide for them to come together to provide completion towards project goals.^[e][f]