ABSTRACT
This chapter examines the strategic planning and management practices of Canadian subsidiaries of US multinational enterprises (MNEs). It presents a framework for evaluating their potential response to various World Product Mandate policies of the Canadian government. The adoption of strategic management practices by MNEs has been well documented. The majority of the studies of strategic planning in MNEs have examined issues from the parent’s viewpoint. Canadian subsidiaries vary considerably in terms of the maturity and sophistication of their planning systems. Canadian operations have been divided into business units along similar lines to those of the parent’s organisation, although with some significant differences. When a multinational starts a new line of business in Canada, the simplest way to get going is to import products from a plant in its home country. If the new product gains market acceptance, competition often develops as sales expand.
