Applied Chemicals: Strategy and Organisation for Asia

Published 26 Feb 2018
Reference 6382
Topic Strategy
Industry Chemicals
Region Asia
Summary

This condensed case describes the attempts of a successful Swiss MNC to expand in Asia. Despite 100 years of experience in the region, its exposure remains limited. Globally run divisions continue to favour traditional western markets. Attempts to strengthen the geographic dimension with the opening of a regional headquarters in Hong Kong fail. Will the MNC miss out on Asia's booming markets?

Teaching objectives

The case exemplifies the problem of MNCs that are globally managed and face major shifts in the geography of their business. It goes further than discussing global-local or headquarter-subsidiary dualities by adding a regional dimension, both strategically and organisationally. As such, it deals with the fundamental question of the organisational structure of a divisionalised, multinational firm.

Keywords
  • Multinational management
  • International strategy
  • International organisation
  • Regional headquarters
  • Subsidiaries
  • Asia
  • Q21718