Organisational Structures and International Expansion - Desklib

This presentation discusses the different organizational structures and functional areas of Cafe Pod, a major cafe situated in London City, which is planning to expand operations in the international marketplace. It also analyzes the factors that have affected international expansion of Cafe Pod in recent years and the impact of digital technologies on their international expansion strategy. The presentation includes PEST analysis, SWOT analysis, and Porter's Five Forces model for Cafe Pod.

ORGANISATIONAL STRUCTURES AND INTERNATIONAL
EXPANSION

TABLE OF
CONTENTS
 Introduction
 About the origination
 Different functional areas
 Different organizational structures
 Influences/factors that have affected international expansion of your chosen organization
in recent years?
 Explain the impact of digital technologies have on their international expansion strategy?
 Conclusion
 References
 Appendix

THE CHOSEN ORGANISATION THAT HAS EXPANDED INTO INTERNATIONAL
MARKETS, EXPLAIN WHETHER THE ORGANISATIONAL STRUCTURES AND
FUNCTIONS ARE SUITABLE TO FACILITATE THE EXPANSION?
About the organisation and Its services
 In the development of a business organization, expansion techniques play a major role in order to
increase the profitability of a business (Cox, 2019). The organizational structure also play a crucial
role in development of a business entity in the international marketplace. Expansion of a business
should be considered by strategic and top level management in order to develop a major planning
framework for the business. This project includes application of various organizational structures
which are used by companies to expand in international marketplace. This project also includes focus
on digital technology and its dimensions for long term development of a business. In this project
example of Cafe pod is taken into consideration which is a major cafe situated in the London City.
The management of Cafe Pod is now planning to expand operations in the international
marketplace and selected location is New York, United States.
Business size and turnover
 CAFEPOD LIMITED has 9 employees at this location and generates $1.75 million in sales (USD)

EXPLAIN THE DIFFERENT FUNCTIONAL AREAS IN YOUR
CHOSEN ORGANIZATION?
 House keeping department- This department is majorly
responsible for maintaining cleanliness in the Café pod. This will
help Café pod to create a healthy and hygienic environment for
customers which will increase its sales (Gankema, Snu, and van
Dijken, 2019). The house keeping department of a business is also
dedicated to provide maintaining of physical resources which are
present in the business premises.
 Kitchen and food department- This is considered as one of the
crucial department in a business which works to provide food and
beverages to different customers. The kitchen and food department
of Café pod should deliver best food in the new marketplace for
increasing customer's interest.

EXPLAIN THE DIFFERENT ORGANIZATION STRUCTURE
AND WHAT IS THE STRUCTURE OF YOUR CHOSEN
ORGANIZATION?
In the functioning of a business in the international marketplace, there are various options available which
includes application of organisational structures. The organisational structures play a key role in identification of strategic
framework and development for business growth. The types of organisational structure which are suitable for Cafe pod in
international marketplace are mentioned below:
 Functional structure- The functional structure is a major type of structure, in which employees are assigned with
duties according to their role. In the functional structure there is a significant increase in specialisation of the
employees which increases their productivity (Irby, and O'sullivan, 2018). This type of structure includes team
development and creates a feeling of self determination in employees of Café pod.
 Flat structure- It is also known as horizontal structure which includes few level between top level management and
employee staff of organisation. The flat structure is also considered as good in terms of formulation of good decision
making in the Café pod.

INFLUENCES/FACTORS THAT HAVE AFFECTED INTERNATIONAL
EXPANSION OF YOUR CHOSEN ORGANISATION
IN RECENT YEARS?
There are various factors present in the global business environment impacts a business
in many different ways. It is crucial for Café pod to understand various factors that
impacts on its functioning in a precise manner. The various factors associated with
international expansion of Café pod are mentioned below:
 Government factors- Government based factors are important to be considered by
Café pod in order to conduct ethical and legal business (Liokaftos, 2019). The
political factors are related to rules and regulations formed by government of
America. It is essential for Cafe pod to analyze corporate laws and policies
developed by government in order to lead at the marketplace.
 Market drivers- There are various market drivers which play a key role in
international expansion of a business at the global marketplace

PEST
In order to expand operations in the global marketplace, it is compulsory to perform
PEST analysis. The PEST analysis of Cafe Pod in order to expand operations in international
marketplace are mentioned below:
 Social factors- It is very much crucial for a business to analyze main social factors
including culture and traditions of society (Murray, 2017). This helps a company to briefly
analyze social trends and buying behavior of different customers. With the analysis of
social factors a company can also develop favorable internal environment for the
employees to enhance their productivity.

Strengths of
Café pod
Weaknesses of
Café pod
Opportunities
Café pod
Threats of Café pod
• Housekeeping
department
• Financial
management
• Human resource
management
• In depth knowledge
of foreign
marketplace.
• Global expansion
• Developing
operations with
support of
information and
technology
• Competitors
• Government policies
that are strict
SWOT analysis of Café pod:

Porter's Five Forces model for Café pod:
Bargaining
power of buyers
Bargaining
power of
suppliers
Threat from
new entry
Threat from
competitors
Threat of
substitutes
The bargaining
power of buyers
for Café pod is
High
The bargaining
power of
suppliers in the
case of Café pod
is High
The threat from
new entry is low
in the American
marketplace
Café pod will
face Moderate
threat from
competitors in
American market
In the
marketplace of
United States
substitute threat
is High

EXPLAIN THE IMPACT OF DIGITAL TECHNOLOGIES HAVE ON THEIR INTERNATIONAL
EXPANSION STRATEGY?
 Digital technology is considered as a major element which is
involved in development of different operations of a company
in a precise manner. The application of information and
technology helps a new business to perform operations in
accurate and quick manner (Pergelova, Manolova, and
Yordanova, 2019). Digital technology based tools and
techniques like use customer relationship management
software in order to maintain effective relationship with
different customers. Digital technology includes application
of modern IT tools and techniques like management
information systems for development of coordination between
management.

CONCLUSION
From the above stated presentation it can be concluded that choosing an
appropriate organisational structure is a major responsibility of management of Café
pod. The above discussion also includes the vital role played by information and
technology in order to perform accurate and quick operations. This report also
concludes the role played by international business environment in order to influence
operations of Café pod. This discussion concludes necessary role played by
management of Café pod in order to establish global standards of working in the
business.

REFERENCES
 Cox, R.W., 2019. Social forces, states, and world orders: beyond international
relations theory (pp. 258-299). Routledge.
 D’Cruz, J.R., 2018. Strategic Management of Subsidiaries 1. In Managing the
multinational subsidiary (pp. 75-89). Routledge.
 Gankema, H.G., Snu, H.R. and van Dijken, K.A., 2019. The
internationalisation process of small and medium sized enterprises: An
evaluation of the stage theory. In Entrepreneurship and SME research: On its
way to the next millennium (pp. 185-197). Routledge.

Appendix