The impact of home office culture on subsidiary strategic planning

As part of a major study into the strategic planning practices of large Australian manufacturing companies, an examination was conducted into the strategic planning practices of subsidiaries operating in Australia. In particular comparisons were made of the strategic planning practices of subsidiaries with U.S. and U.K. home offices. These comparisons highlighted that differences existed between the U.S. and U.K. subsidiaries with respect to home office planning information requirements and the extent of home office influence on the long t e r m direction of the subsidiary. Previous overseas studies have also suggested that U.S. companies differ in their approach to the management of their overseas subsidiaries. Given that a difference was also apparent between U.S. and U.K. subsidiaries in Australia a number of visits were made to a small number of U.K. and U.S. home offices. The findings from the home office visits were supportive of the viewpoint that the differences observed in planning information requirements and the tighter control on the subsidiary's long term direction were a genuine reflection of cultural differences between U.S. and U.K. multinational companies.