chapter  5
Subsidiary mandates and initiative
Pages 22

This chapter describes the nature of the mandates and the strategic context of the entrepreneurial mandate pursued by Fire Safety's China subsidiary in relation to the SMART initiative, the Shinwha acquisition, and the SP new setup, considering multiple levels within the organisation. It explores the variable impact of organisational elements on the pursuit of entrepreneurial mandates. The subsidiary mandates assigned to each of the case studies reflect 'parent driven investments' originating outside Fire Safety at higher levels of the Siemens organisation, rather than being subsidiary-driven charter extensions or reinforcement. A lack of empowerment and local autonomy, perhaps based on a lack of trust, was also seen to be an impediment to subsidiary initiatives. The global Siemens sales organisation is based on country-specific sales offices owning, typically, the exclusive sales rights for all products and services within their territory.