Hard Work

“Knowledge Management (KM) and R&D.” Please respond to the following:

You are the global subsidiary branch manager of a U.S.-based MNE, Leather Extraordinaire, which manufactures leather goods. The Latin American division exports the largest volume of goods due to the high quality of leather and cheap labor, of which the majority is produced in Argentina. The Argentine subsidiary is proposing to Headquarters to be given the mandate to produce all of the leather clothing goods exported to Canada and the U.S. and be termed the “Center of Distinction” for leather clothing.  What factors will you consider to determine if the Argentine subsidiary is acting on good-faith efforts in the best interest of the MNE, or if it is promoting its own self-interest, such as power, prestige and jobs. How will you respond to the Argentine subsidiary?

I would first respond to the Argentine subsidiary by saying thank you and we appreciate all you do for the company. Unfortunately, at this time it would not be in the company’s best interest to place all of its eggs in one basket. Meaning if we gave you sole permission to produce all the leather clothing goods exported to North America, which would give your country too much control and power for that whole side of the globe. I believe I have to question the Argentine subsidiary’s managerial motives based on the fact they are not satisfied with being the majority distributor, but they want to be the only distributor. Moves like this mean they have ulterior motives, because if we are all one company and on the same team then it shouldn’t matter who does the distributing as long as it gets done efficiently, effectively and profitably.

In the Chapter 12 closing case, explain how this KM system supports Siemens’ strategy.

 This KM supports Siemens’ strategy in a few different ways, they enabled everyone company wide to communicate easier via ShareNet.[pic][pic][pic][pic][pic][pic][pic][pic][pic]