R&D Strategy in the Multinational Affiliate

One of the key objectives in determining a firm’s corporate strategy is to match its own internal competencies and resources to the complex and ambiguous external environment in which it finds itself. In an increasingly competitive and internationalized business world, success is grounded in uniqueness and commercial advantages that must be continually updated. For the multinational corporation (MNC), the processes of strategic analysis, option evaluation and implementation are further complicated by the fact that the company may operate across a diverse range of geographic environments and markets. This introduces additional demands on the organization in terms of establishing a suitable control structure. The way it configures its various subsidiary operations around the world and how it coordinates activities between them become important issues for the MNC.