Management in a Global Business Environment
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Added on 2020-05-28
Management in a Global Business Environment
Added on 2020-05-28
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Running head: MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENTManagement in a global business environmentName of the StudentName of the UniversityAuthor’s Note
1MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENTTable of Contents Activity: 1...................................................................................................................................2Reference....................................................................................................................................5Activity: 2...................................................................................................................................6Activity 3....................................................................................................................................9Reference..................................................................................................................................12Activity 4:.................................................................................................................................13Reference..................................................................................................................................16
2MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENTActivity: 1Organisation structure is a system adopted by different organisations for operating inthe target market. It communicates the work role and responsibilities. Basic structure ofanorganisation can be either centralised or decentralised. Various types of structures areformulated holding one of the basic forms of structure.The manufacturing company seeking entry in the international market can adoptInternational Division Structure in its initial stage of internationalisation. It will help themin keeping the domestic market uninterrupted in the process of internationalisation. Thecompany using international division structure creates a separate department for theiroperations overseas. This particular organisational structure helps gaining advantage for thelarge corporations in their early stage of international venture (Hood &Birkinshaw,2016).However, this will also provide advantage to the small company like the hand toolmanufacturing company under consideration.There may be a number of departments underthis structure depending on their function. For example, the international division may besub-divided into operations, finance and marketing departments. The human resourcedepartment however, responsible for coordinating and implementing various action related tostaffing and other related actions. This organisational structure further helps in ensuring theattention of the top management towards developing a holistic and unified approach in theinternational operation (Verbeke,2013). This provides a greater autonomy in decision-making. This helps the organisation in its early stage of internationalisation. This is foravoiding risk in the international market by keeping relatively low ration of foreign anddomestic sales and offering limited product lines to the international market. The growth ofinternational operations will seek modification in the organisational structure in the laterperiod for gaining advantage in the wider international operations.
3MANAGEMENT IN A GLOBAL BUSINESS ENVIRONMENTThe expansion of the international market from Europe to Asia will definitely requiremodification in the organisational structure to better address the operations. The company canadopt the global geographic structure for their expansion of international market, as thisparticular structure is efficient with the less diversified product lines allowing themanagement to share its resources from one country to another as per requirement (Deresky,2017). Coordination of human resource in this type is established for achieving company’soverall strategic goals between the subsidiaries operating in different countries. However,centralised control limits the departments from taking necessary decisions required to bringspecific innovation required in accordance to the specific country. Hence, using this structurefor the organisation will limit its potential.Global product structure on the other and isbeneficial when the organisation has a wider product line to offer to its customers. Moreover,this reduces the cooperation among the various product lines (Deresky,2017). Short productlines of the organisation reduces the applicability of the strategy.Hence, it leaves with theoption of Global functional division structure, which is best suited for expanding theirinternational market. The divisions under this structure is divided into two basic parts.Domestic division looks after the venture within the domestic market, whereas, theinternational counterparts of the divisions are responsible for looking after the activitiesaround the world (Cosh, Fu & Hughes,2012). The level of coordination established in thisstructure is greater in their respective activities. It reflects potential success in providinggreater centralised control and greater international orientation of all functional managers.However, it limitation of this structure lies within the operation in cross-functionalcoordination. However, expanding the international market only to Europe and Asia can bewell served using this organisational structure. The organisational structure mentioned above is likely to fail along with the evolutionof the global market. It is possible for the company to run into a situation of limiting the sale
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