Insegnamento a.a. 2016-2017

Classes: 31 (I sem.)

Instructors:
Class 31: ANDREA DOSSI

The control process takes on added complexity in an international environment. The existence of multiple currencies in the financial aspects of business and the emergence of sophisticated international transfer pricing policies complicate financial control mechanisms. The geographic and the cultural distance that separates operations contributes to increase the complexity of controlling multinational operations. Furthermore, the balancing of local responsiveness, needed in order to meet country social, cultural and economic requirements, and global integration, needed in order to gain efficiency from both economies of scale and scope, requires to structure a flexible control systems. The course aims to analyze how the administrative mechanisms can support global management. More specifically, which mechanisms are better suited to proactively manage the different international strategies and organizational structures.

Course Objectives:

• Analyze a multinational financial reporting.
• Evaluate local and global performance in diversified multinational corporations.
• Design multinational planning and control systems according to the different international strategy, structure and subsidiary role.

The programme is subdivided in three parts:

First part: The role of administrative mechanisms in multinational corporate management.

• The role of administrative mechanisms in the management of diversified multinational corporations.
• Strategy and structure in an international environment: multinational strategies, global competitive advantages and worldwide organizational structures.
• Corporate role and coordination of multinational enterprise: global strategic coordination, multinational integration of operations, local responsiveness.

Second part: Multinational Accounting and Reporting Systems.

• Consolidation of accounts and Group financial reporting.
• Information flows, different national accounting standards and reporting uniformity.
• Multinational Financial Reporting: problems and practices.
• Exchange Risks and international transfer pricing policies: management, legal and fiscal aspects.
• Multinational Performance Evaluation: local operating units vs local managers.
• Performance Evaluation and Strategic Alignment in international companies.

Third part: Planning and Control Systems in Diversified Multinational Corporations.

• Multinational Corporate Planning and Budgeting: the different approaches.
• The role of multinational management accounting mechanisms.
• Controlling the subsidiary: the different coordination and control mechanisms.
• Multinational network and strategic roles of subsidiaries.
• Connecting subsidiary role to the set of control mechanisms: toward a contingency approach.
• Planning and control systems and internationalization process: a life-cycle perspective.

Element Subject Description Weight % Final written exam Single Student Written exam composed by two questions (one referring to a class case discussion). Time: 1 hour and 15 minutes 21 points Group Work Small Group Group Class presentation and executive summary of some scientific articles on course topics 9 points Class Participation Single Student Contribution to case discussion and to class atmosphere 2 points For non attending students: Element Subject Description Weight % Final written exam Single Student Written exam composed by two questions (one referring to a class case discussion, and one to optional textbook chosen). Time: 2 hours 100%