Organizational Structures and International Expansion

This report discusses how organizational structure and functions help in the expansion process of a business and the impact of digital technologies on international expansion strategy. It analyzes the case of New Look, a fashion retail brand that has expanded into nearby countries and is planning to expand further. The report also covers the hierarchical organizational structure and key functions of New Look, such as management, human resources, production and manufacturing, and finance. Additionally, it explains the impact of digital technologies, including cyberspace, digital marketing, data pooling, HR software, social media connection, and digital work, on international expansion strategy.

Organizational Structures and International
Expansion
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Critically analysing how organizational structure and functions help in expansion process of
the business:.................................................................................................................................3
2. Explaining impact of digital technologies on international expansion strategy:.....................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Business environment is wide term that means internal and external area where business
deal in and sell their product and service. Every business get impacted due to internal factors
occur from internal environment including employee, business function, workplace and other
whereas external environmental factors have significant impact on business process (Fjeldstad
and Snow, 2018). This study is based on New Look, this company is one of the fastest growing
fashion retail brand that have expanded nearby countries and planning to expand in other nation
as well. This report will discuss how New look have expanded into nearby countries and how
their organizational structure and function will act in expansion. At last this report has discussed
impact of technologies on expansion strategy.
MAIN BODY
1. Critically analysing how organizational structure and functions help in expansion process of
the business:
New look is one of the fastest growing clothing company that has expanded into
international market and planning to continue their expansion to cover every global market. This
company always stay active when catching opportunity to expand, when Malaysia retail policy
was modified, New look took an advantage to expand their business with new trade and retail
policy that welcome global companies (Ahmady, Mehrpour and Nikooravesh, 2016). New look
have already expanded to most of developed countries, however, still they need to focus on
expansion strategy that allow them to become stable in the process. This success of New look
was only possible because company have effective organizational structure and their function
work effectively to make expansion possible. There are certain organizational structure that
support expansion of New look, these are:
Hierarchical organizational structure: This is one of the best organizational structure that
allow company to remain stable, this structure is less complex because power and authority is
divided according to personality or position. This is slightly complex because, every executor or
person have their own power and interest. This hierarchy starts with board of directors, leader
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and owner that take major decision for the company and have great influence as they craft certain
policy and strategies for the company. In New look, this hierarchy starts with managing director
that provide direction to company, below management take interest to control company and last
employee become part that manage whole organization with their work and task. This is simple
structure which make expansion possible, New look have hierarchical organizational structure.
Functions of New look:
Management function: New look have one of the best management function that allow them to
manage their business and its activity. This area is important as whole management relay on one
particular department, this department craft policy, procedure, strategy and planning to bring
stability in the process. When business plan to expand in international market then hierarchical
organization structure will be more beneficial mainly in management area.
Human resource function: One of the most important function of every business organization
that have significant role in the business that ensure employee stay connected with the company,
HR function is very important for business and consider as crucial (Ali and et.al., 2018). Every
business know HR is one of the most important function of organization and key layer in
hierarchical organizational structure. When business plan to expand their business in different
nation then human resource play vital role and hire talent that allow them to manage workplace
productivity.
Production and manufacturing function: Production and manufacturing is one of the most
important element of the business that allow company to manufacture product. When business
plan to expand in international market, they focus on production and manufacturing function. In
hierarchical organizational structure production and manufacturing is important layer that
influence growth of business and impact expansion. Production department have great role in the
process of expanding business in international market.
Finance function: Finance is crucial for every business organization, it facilitates expansions
process of the organization and allow business to run in smooth process. Finance is key element
in the expansion because company might need more than sufficient funds to survive in the
international market (Auchter and et.al., 2018). Finance act as source of survival that allow
company to survive in the international market, in hierarchical organizational structure, finance
function act same in every layer. Hierarchical organizational structure start with top to bottom
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and every function have their own role and impact but finance act common for every layer in the
business.
2. Explaining impact of digital technologies on international expansion strategy:
Every business organization know the importance of digital advancement in the process,
when business want to explore international market, they focus on digital technologies that make
it easy and support expansion (Holotiuk, Pisani and Moormann, 2017). For example; if business
is planning to enter new market then digital technologies such as system software, online reach,
website, digital marketing and digital store that allow them to capture market without any extra
efforts. There are certain impact of digital technologies on business international expansion
strategy, these are:
Cyberspace: The term cyber is very common when it comes to digital technologies, every
business want cyber space and security that allow working effective and achieve organizational
goals. When business plan to expand in international market they need fuel of digital
advancement, cyberspace allow business to stay safe in new market and cyber attack that can
cause huge losses to the business. Every business want to explore international market,
expansion is only possible when business remain secure with effective security.
Digital marketing: Digital technologies are used when it comes to marketing, this is one of the
major impact on business and their expansion strategy. Many multinational companies depend
on digital marketing when expanding into international market because they know with the help
of digital advancement they can reach as many audiences as possible and gain competitive
advantage in the process (Weking and et.al., 2020). There are certain digital software and AI
powered technologies that support marketing and allow company to quickly adjust themselves
with market condition and demand.
Data pooling: Data pooling is another important impact of digital technologies on business and
mainly in expansion process, data pooling means business try to collect relevant data that allow
them to understand their customer and their behaviour in buying of product and service. For
example; recent search activity allow business to understand what exactly customer want from
company. Data pooling is collection of information about customer and providing them
advertisement accordingly. Data pooling is used by any successful multinational organization
that have knowledge to win in any market condition.
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HR software: HR and their process is important for the business, human resource management
is one of the most important pillar of every business organization that provide effective support
to the business and their expansion strategy. Many successful multinational company use HR
software that allow them to make HR process easier and smooth. For example; HR software
allow employee to clear any doubt they have in the employment process. HR software clear any
query that is raise by the employee in the organization.
Social media connection: Digital technologies allow business to connect themselves with social
world and customer of new market, many multinational companies use social media to survive in
the international market. For example; Apple use social media to influence customer and their
mindset, they know customer will purchase their product to create a brand image and share it
with social connection that allow them to influence customer and make their product survive in
international market (Winnubst, 2018). Social media is one of the most powerful digital
technology used by the business to win international market.
Digital work: Digital technology allow business to create digital workspace that make work of
employee easier and allow them to explore new skills. Every business organization know the
importance of digital workspace, new and reliable system allow employee to work effectively
and explore different work. Digital space is provided to employee, digital system is provided to
employee and digital management is provided to manager to lead organization towards success
and allow them to become competitive in the market. Many successful multinational company
provide digital system that complete half of task provided to employee, advance system allow
employee to become effective in their work and help them to contribute in expansion strategy of
the business firm.
CONCLUSION
This report has discussed organizational structure and international expansion process.
Later this report has discussed organization that has expanded in the international market and
understand which organizational structure is adopted by the organization when they perform
expansions and discussed key function that allow business to successfully perform expansion in
the international market. At last this report has discussed impact of digital technologies that have
on organization when it comes to international expansion strategy including digital technologies
and system software that support expansion process.
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REFERENCES
Books and journals
Ahmady, G.A., Mehrpour, M. and Nikooravesh, A., 2016. Organizational structure. Procedia-
Social and Behavioral Sciences, 230, pp.455-462.
Ali and et.al., 2018. The effect of organizational structure on absorptive capacity In single and
dual learning modes. Journal of Innovation & Knowledge, 3(3), pp.108-114.
Auchter and et.al., 2018. A description of the ABCD organizational structure and
communication framework. Developmental cognitive neuroscience, 32, pp.8-15.
Fjeldstad, Ø.D. and Snow, C.C., 2018. Business models and organization design. Long range
planning, 51(1), pp.32-39.
Holotiuk, F., Pisani, F. and Moormann, J., 2017. The impact of blockchain technology on
business models in the payments industry.
Weking and et.al., 2020. The impact of blockchain technology on business models–a taxonomy
and archetypal patterns. Electronic Markets, 30(2), pp.285-305.
Winnubst, J., 2018. Organizational structure, social support, and burnout. In Professional
burnout: Recent developments in theory and research (pp. 151-162). CRC Press.
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