Multinational companies will want to reduce costs and maximise resources within a single, integrated structure. Things to consider when determining the best structure include:
Political, economic and other factors affecting stability. If the operating environment is unstable, then the best solution may be to provide direct support.
Resources: human, financial and so on.
The purpose, size and complexity of the operation. Generally, the more sophisticated and complex the organisation, the more autonomy is required. But good communications between local operations and overseas headquarters are always important.
Communicating. When building an international business, all those with a stake in the company, especially shareholders, providers of finance and employees, should be informed of what is happening, what the advantages are and what it means for them. Without an explanation, people often fear the worst. Without a convincing explanation, they worry that the management has not thought things through and may be making a strategic error.
