Determinants of Control Strategies and Organisational Structures of Multinational Enterprises

“The fundamental purpose of any business firm is to make a profit” (Hill, 2002, p. 379). Especially for multinational companies it is difficult to operate due to the distance, dynamic and diversity. To reach this aim and to compete effectively in an international environment a multinational enterprise has to pursue an appropriate strategy.

In the following, factors that determine the strategy a company pursues will be regarded. In addition, different strategies will be explained as well as different structures for implementing those strategies. Moreover, two companies will be compared regarding their strategies and structures.