Control and Coordination of MNC: a Comparative Study of Two Direct Selling Companies

University essay from Mälardalens högskola/Akademin för hållbar samhälls- och teknikutveckling; Mälardalens högskola/Akademin för hållbar samhälls- och teknikutveckling

Abstract:

Purpose

To describe the concept of control & coordination mechanisms among HQs-subsidiary-distributor of MNC in direct selling business.

Method

Qualitative studies with two company case studies which are selected from direct selling business are implemented in this research. Data are collected from primary sources through semi-structure interview while secondary sources via company’s web sites, annual reports, news, and academic researches. Most collected data are related to control and coordination mechanisms within MNC and especially emphasize on distributor‘s aspects.  

Conclusion

To control and coordinate HQs-subsidiary-distributor’s relation in a direct selling business, companies need to implement not only the vertical control over their people but also the lateral way and as well as the price control mechanisms. All these three main mechanisms need to be blended together as the appropriate combination of them will help assist companies to achieve their goals successfully.

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