Paper Summary:

This paper examines the major determinants of the control strategies adopted by multinational enterprises (MNEs) and the extent to which their parent companies are prepared to allow their subsidiaries, decision-making autonomy. The paper then describes the organizational structures used to implement such strategies, the types of control mechanisms most likely to be used and explains why these might be deemed effective given the control strategies adopted. Finally the paper then compares the strategies of Marks & Spencer and Johnson & Johnson.

Table of Contents:
Objective
Introduction
Conceptual Frameworks
Technology Identified as Critical Element in Emerging New Organizational Forms
Marks & Spencer
Johnson & Johnson
Summary
Conclusion

From the Paper:

"Competitive advantage may be realized in many various methods and areas relating to a company's products and services, and generally is due to what specifically makes the company, its products or its services unique or different from that offered by other similar companies. In the case of Johnson & Johnson, the trust of consumers is an overwhelming competitive advantage particularly with a name as old as the Johnson & Johnson name. In the case of Marks & Spencer, this company has been customer-centric and remains focused toward the customer's preference in all divisions of its products. The competitive advantage of Marks & Spencer has been realized through its unique integration of manufacturing and retailing in addressing the needs of the customer. The only sure thing in the global business environment is change however, like Johnson & Johnson, the companies must learn to 'keep; what is valuable and recreate what will give their company the new competitive advantage in the globalized economy of today's marketplace."

Sample of Sources Used:

• Couto, Vinay; O'Toole, James; and Levenson, Alec (2002) Leading in (and out of) Adversity. Center for Effective Organizations. Online available at:
• Robert, Michael (2006) Product Innovation Strategy, Pure and simple: How Winning Companies Outpace their Competitors. Online available at: http://books.google.com/books?id=t0BfAyjHeo8C&pg=PA99&lpg=PA99&dq=johnson+%26+johnson+competitive+advantage&source=web&ots=dfpqTLBU0f&sig=QFJD5OWC7fIbGHCqmETH8h5O8rU#PPP1,M1
• Porter, M. "The competitive advantage of Nations. Harvard Business Review, March-April 1990: 73-91.
• Porter, M. "How Competitive Forces Shape Strategy", Harvard Business Review, March-April 1979.
• North, D. Institutions, Institutional Change and Economic Performance, Cambridge University Press, 1990.

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