Abstract
This paper presents the findings of a study of the marketing strategies and headquarters‐subsidiary relationship of 186 German and 113 French subsidiaries operating in the UK. German companies were found to pursue market‐focused strategies with an emphasis on product quality. Meanwhile, their French counterparts adopted a more short‐term orientation with a stronger emphasis on cost‐related strategies. Both sets of companies displayed a high degree of ethnocentricity towards the UK market with regard to strategic and product‐related issues. However, high levels of autonomy were observed in French and German subsidiaries in other areas of marketing decision making. Some differences by industry sector were observed, with service organisations more likely to adapt their product/service offering to meet the needs of UK customers. Chemical and related companies were observed to have the highest level of autonomy with regard to marketing decision making.
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