Global corporations

Peter Drucker notes that “the distinction between parent and daughter [companies] is increasingly blurring. In the transnational company, design is done anyplace within the system. Major pharmaceutical companies now have research laboratories in five or six countries, in the United States, Great Britain, Japan, Switzerland. They do their research wherever there are research scientists. They produce wherever the economics of manufacturing dictate . . . . A major pharmaceutical manufacturer makes and sells prescription drugs in 164 countries, but all fermentation work is done in one plant, in Ireland. The treasurer in the transnational company centrally manages money for all the members of the group rather than have the U.K. company manage money in Longon, the West German company manage money out of Frankfort . . . and so on . . . . Top management is transnational, and so are the company’s business plans, business strategies, and business decisions.”