Question

Why was Eio eager to promote the subsidiary initiative of licensing Star Wars characters for LEGO toys?

Why was there so much resistance from the headquarters initially?

If you were a subsidiary manager at a multinational, what are the lessons you can draw from this case that can help you successfully convince the headquarters that your ideas deserve to be supported?

Answer 1

Subsidiary initiative is an effective tool in the hands of the management to reduce the cost of operations. Thus, Eio was also eager to promote the subsidiary initiative for licensing star wars character for LEGO toys.

The head quarter initially resisted the subsidiary initiative because it was not eager to use an external established brand in the LEGO toys. It seemed that it would be an advertisement of star wars character in LEGO toys without any benefit.

From the subsidiary initiative it is clear that if subsidiary initiative can be used effectively then not only the cost of operations reduces but at the same time benefits can accrue to both the sides involve in subsidiary initiative. It is important to understand that an established brand will not be benefited only from such subsidiary initiative but also the using entity would also benefit financially as well as marketing wise. The cost operations will reduce and at the same time marketing will be easier with a famous brand in place.