Group identity: between parent company and foreign subsidiaries

In 2011, France was the leading European country with 5.3 million employees in its subsidiaries worldwide, ahead of Germany and the United Kingdom. In addition, and still in 2011, French-controlled multinational companies had more than half of their global activity and employment abroad. Outward sales", i.e. subsidiaries abroad, even represented 1,400 billion euros in 2011, equivalent to 69% of French GDP. However, it should be taken into consideration that this relocation requires the application of certain precise rules to be effective. Indeed, each country has its own specificities, i.e. - tax policy, social environment, purchasing power of the population, traditions - which the multinational must take into account to achieve its objectives. Management and internal communication problems can also hinder the expansion of foreign-based subsidiaries. One of the most important questions is how to strengthen the cooperation/identity of a group between its parent company and its foreign subsidiaries. This issue is the subject of this book.