Managing Relationships with Foreign Subsidiaries

What roles should corporate headquarters and product divisions take in managing foreign subsidiaries?

What goals should be set for them, by whom, and how?

How should the budget and planning process be designed?

How should the reporting system be used?

Is the Swedish management style appropriate for managing foreign subsidiaries?

The experience in Swedish companies with extensive foreign involvment is analyzed. Alfa-Laval, Atlas Copco, Dynapac and the SAB NIFE division of Wilhelm Sonesson AB are studied in depth. A survey of practice in 52 firms is reported.

• Contents
• Foreword
• Authors Preface
• Introduction

1. The Swedish Model of Managing Foreign Subsidiaries
• The Evolution of Multinational Structure in the USA and Continental Europe
• Historical Strategies of Swedish MNCs
• The Context of Sweden and International Expansion
• The Swedish Model in Summary
• Strains on the Model
2. Introduction to the Empirical Study
• Purpose of the Study
• Methods Used
• Limitations of the Study
3. Company Cases
• Alfa-Laval
• Atlas Copco
• Dynapac
• SAB NIFE
4. Organization
• In-between Organization
• More Power to the Divisions
• Divisions: Global Responsibility Without Global Authority
• The Local Manager - Man in the Middle or King of the Country?
• The Regional Dimension - A Forgotten Aspect?
• How to Internationalize the Divisions?
• The Changing Role of Headquarters
• Systems Selling: A Dilemma and Large Losses
• Summary
5. Goals for Subsidiaries
• Headquarters' Goals for Foreign Subsidiaries
• Goals As the Subsidiaries See Them
• The Success of Temporary Campaigns
• The Budget Process - The Role of the Divisions
• Bases for Performance Evaluations
• Strategic Vacuum?
• Divisions' Global Profit Responsibility
• The Use of the Economic Control System
• Summary
6. Follow-up of Subsidiary Performance
• Financial reporting Systems
• Amount, Frequency and Contents
• Standardization, Differentiation
• The Receiver
• Subsidiary Attitudes Towards the Reporting Systems
• Feedback
• Evaluation
• Summary
7. The Cross-cultural Aspect of Headquarters - Subsidiary Relationship
• Cultural Differences
• Management Style
• Strong Headquarters
• The International Matrix
• Nationalities in the Companies Studied
8. Changes Suggested in the Present Management of the International Organization
• Changes Suggested by Swedes in Sweden
• Changes Suggested by Swedes in the Foreign Subsidiaries
• Changes Suggested by Non-Swedes in the Foreign Subsidiaries
• Changes Suggested by Swedish Managers in the Questionnaire Study
9. Concluding Remarks: The Swedish Model in Transition?

A pretty good overview of the problems you face with foreign subsidiaries. Of course, it is written from a uniquely Swedish standpoint, but I believe that it is generic enough to be applied to most western companies.

You could of course use the book to gain an understanding of Swedish management practices, as the book manages to describe these as well.