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University of Strathclyde MSc in International Marketing 2002/03 Managing the Multinational Subsidiary March 24, 2002 Title? Hsin-Chun Wu Sing Kit Wang Daihong Wang Andrea Spaustat Shreeyukta Thapaliya Jens Stromnes Table of Contents Pharma S.A. 3 Volkswagen in North America 4 Reporting System 5 Culture Typology 6 Centralised vs. Decentralisation 8 Conclusions 10 Bibliography 12 Introduction[w1] Both Pharma and Volkswagen exhibit signs of tension and/or relationship mismanagement between their headquarters and its subsidiaries; namely Pharma UK and Volkswagen North America. This paper aims to compare and contrast these problems using the appropriate theories, examples and information given in the case studies. Further, the current state of the companies will be described and recommendations to improvements will be given. Pharma S.A. Pharma S.A. was founded in Zurich in the late 1800s and has 110 subsidiaries worldwide. The biggest division within Pharma S.A. is pharmaceuticals but the company is diversifying its operations with acquisitions of various speciality chemicals businesses. Pharmaceuticals currently account for 57% of revenues. The major pharmaceutical product lines are...

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