When the Otis Elevator Company introduced the change described in Example 1.1, there was a lot of
Question:
When the Otis Elevator Company introduced the change described in Example 1.1, there was a lot of resistance from the various heads of the European subsidiaries. Why?
What arguments do you think the people hostile to globalization used?
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EXAMPLE 1.1 Otis Elevators Otis Elevator Company started in 1853 in New York and was soon selling elevators in Canada and Europe as well. In the 1960s it had many plants, service operations and sales offices all over Europe, where the company grew organically as well as by acquisition. Each subsidiary fought for a share of local markets. Competitors were either local national companies or subsidiaries of rival multinational companies. The Otis subsidiaries managed all the activities of the value chain (marketing, design, production, installation and service). For instance, the French subsidiary designed elevators for the French market, manufactured them in French factories, sold them with French sales forces and maintained them with a French after-sales organization-the
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Global Strategic Management
ISBN: 9781350932968
5th Edition
Authors: Philippe Lasserre, Felipe Monteiro
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