Organisational Structures and International Expansion - Cafe Pod Case Study

This report discusses the suitable organisational structures and functions for international expansion of Cafe Pod. It also covers the impact of digital technologies on international expansion strategy and the factors that impact a business in international marketplace. The report includes a case study of Cafe Pod's expansion in New York.

Organisational structures
and international expansion

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Development of Cafe Pod in order to expand in the international marketplace...................4
Justification of organisational structures and functions that are suitable for to facilitate the
expansion................................................................................................................................4
Factors which impact a business in international marketplace..............................................6
The impact of digital technologies have on their international expansion strategy...............7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In the development of a business organisation, expansion techniques play a major role in
order to increase the profitability of a business. The organisational 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 organisational
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.

MAIN BODY
Development of Cafe Pod in order to expand in the international marketplace
The Cafe Pod is currently performing operations in the domestic marketplace by serving
best coffee to its target customers. Cafe Pod is currently trying to look for further expansion in
global marketplace in order to increase profitability and sales ratio. In order to expand in
international marketplace, there is a strong need for the cafe to analyse external and internal
environment. The major companies in the international and national marketplace focus on
bringing professionalism in order to grow in global marketplace. Also there is a need of
analysing external environment based factors for assessment of new marketplace. Cafe Pod
should also briefly conduct risk free strategy in order to expand operations in the international
marketplace. In order to increase the effectiveness and efficiency of a company, it is essential to
focus on key goals and objectives. The Cafe Pod is also involved in development of key
practices which are associated with business development. The expansion opportunities available
in international marketplace also includes systematic development of company's key policies and
areas. The Cafe Pod should also analyse briefly, key goals and objectives that are based on
global business environment.
Justification of organisational structures and functions that are suitable for to facilitate the
expansion
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. This type of structure includes team development and creates a feeling of
self determination in employees.

 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 company. In
this type of structure, there is an increased amount of responsibility of each and every
employees. The flat structure also includes more communication and coordination
between different employees of the company. In this type of organisational structure,
innovative ideas are also promoted in the business. Cafe pod should install this structure
in its various functions and operations for development of a business.
 Divisional structure- The divisional organisational structure is a major type of approach
and method in order to control development of resources. Divisional structure also
includes division of a business on the basis of presence of various business environments.
In the divisional structure main departments which are participants in a company are
marketing, finance, human resource and strategic management. This type of
organisational structure includes application of quickness and ethical approaches for
management of company's tasks. The decision making and its development is observed
in an advanced manner with support of development of effective business structure.
Divisional structure also separated market and industry on the basis of types of customers
in the business. This helps in increasing customer satisfaction and also increase strength
and market value of a company.
 Product based structure- In this approach, a business divides its business structure on
the basis of product line. This type of business structure is helpful in increasing sales and
turnover ratio of the business organisation. All major companies which are present in the
international and national marketplace should focus on development of product based
structure for development of quality products in order to increase satisfaction of
customers. The Cafe pod should consider this approach for development of products and
its aspects for maintenance of optimum quality of products and services.
 Geographical divisional structure- This type of organisational structure is based on
dividing a division of a business into different regions, territories and districts. The
companies should also divide its operations according to geographical location for
increasing sales based operations. Cafe pod should also determine geographic locations in
New York for development of company in a set period of time.

Factors which impact a business in international marketplace
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:
 Political factors- The political factors are related to rules and regulations formed by
government of America. It is essential for Cafe pod to analyse corporate laws and
policies developed by government in order to lead at the marketplace.
 Economic factors- There are various economic factors like inflation, deflation and
economic rates which should be considered by a global company. Also the company
should focus on monetary policy developed by American government to control money
circulation in the economy as this will largely impact on business functioning.
 Social factors- It is very much crucial for a business to analyse main social factors
including culture and traditions of society. This helps a company to briefly analyse social
trends and buying behaviour of different customers. With the analysis of social factors a
company can also develop favourable internal environment for the employees to enhance
their productivity.
 Technological factors- These factors majorly include use of advanced computer systems
and software for development of business. Cafe pod should also use application of
customer relationship management software to mainly focus on increasing satisfaction of
customers.

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. 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. The Cafe pod will gain the following
benefits by the usage of information and technology:
 Expansion and growth- The Cafe pod will achieve desired growth and expansion in
international marketplace with support of digital technology. In order expand operations
in the global marketplace, a company should include development based practices for
business growth. In order to gain growth in a set period of time, a company can easily
achieve expansion in major functions and tasks which is beneficial in overall
development of the company.
 Advanced software- Information and technology includes development of advanced
software and tools which are helpful in increasing company strength. The application of
software like MIS, CRM and DSS will help and support a company to formulate major
and key decisions of the organisation. Decision support system is also considered as a
major IT tool which is helpful in development of a business entity.
 Quickness in operations- Development and application of information and technology
also helps a company to perform quick and accurate operations. The quickness in
different operations helps a company to achieve all set targets and goals which are
formulated at the starting of a financial year. The goals and objectives of a company are
essential to be achieved with support of organisational strategy which should be
implemented by IT department of a company.
 Database management- It is very much essential for a business entity to focus on
development of database for the customers and manage it with extensive care. Storage of
customer data is possible with the support of digital technology in a business. The
database management tools should be used by a business are supported by big data

technology. The big data technology helps a business to analyse and synchronize data
according to needs of different customers. In order to manage data of different customers,
it is major responsibility of a business to use big data management software. The
database management of customers should be handled by a business while preventing
privacy of different customers. A software should be developed and used by a business
entity in order to analyse key growth perspective in international marketplace. All
companies in the international and national marketplace including Cafe Pod should
perform database management while protecting privacy of various customers. In order to
increase effectiveness and efficiency of a business, it is important to apply customer
database management software for managing effective relationship with customers.

CONCLUSION
From the above stated report it can be concluded that choosing an appropriate
organisational structure is a major responsibility of management. 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 a business entity. This discussion concludes necessary role
played by management in order to establish global standards of working in the business.

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