When the home office interferes with a subsidiary in another country, profitability suffers, but morale is unaffected and the investment eventually produces high returns.

Question

Quizplus · Accepted Answer

For example, one study found that when decisions were made mainly at the home office and close coordination between the subsidiary and home office was required, return on investment was negatively affected. Simply put, the home office ends up interfering with the subsidiary, and profitability suffers.

When the Home Office Interferes with a Subsidiary in Another