Rhodes Industries: An Overview

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Rhodes Industries Would the subsidiaries still be competitive and adaptive in local markets if forced to coordinate with other subsidiaries around the world? Yes. Subsidiaries would be able to adapt and compete more effectively. The reason why is because, there is a focus on using economies of scale. This is when Rhodes Industries can increase production in locations where the labor and fixed costs are lower. They can then import these products to other locations for a larger retail mark up. The profits that the organization will entail as whole will offset any kind of temporary costs (such as: expenses associated with increasing production at the manufacturing facility). ("Economies of Scale," 2012) Moreover, a forced integration will create a situation where executives and managers from different subsidiaries must be able to work together. This is when universal standards of policies and procedures can be implemented. Over the course of time, this will prevent the firm from missing out on critical opportunities and it will make the organization more competitive on a global scale. ("Economies of Scale," 2012) For example, if Rhodes Industries forced the semiconductor manufacturing plant to work with distributors in the UK. The profit margins would be considerably higher and the quality will improve. This is because having the two divisions working together will allow UK executives to provide the Singapore manufacturers with real time information. This reduces

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