Abstract
As European multinational corporations (MNCs) have rapidly increased their investment in the United States, many have encountered serious problems in managing their US affiliates. Some challenges are encountered at entry, including scale requirements, inexperience, intense competitive reactions, and problems inherent in managing acquisitions. Once the affiliate has been established, other problems are encountered: hiring and developing local managers, cross-cultural problems stemming from an American tendency for independence, and organizational difficulties given the size of the US affiliate. Although there are no simple answers to these problems, Philip Rosenzweig offers a number of suggestions to help European MNCs deal with these many challenges.
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