Foreign Unit Strategic Decision Making Process

Abstract

A foreign subsidiary unit of a multinational corporation (MNC) goes through evolutionary stages as it grows in its host country environment. For each stage of its evolutionary process, there are specific challenges and expectations of which its top management must be fully aware in order to succeed in its decision making and action. The foreign subsidiary unit’s top management must analyze its performance expectations and performance criteria, as set by the MNC’s corporate headquarters, home and host countries’ stakeholders, in order to be effective in managing the foreign subsidiary unit.