Organizational Structures and International Expansion - Desklib

This article discusses the suitability of organizational structures and functions for international expansion and the impact of digital technologies on expansion strategy. It also covers the various functions of Marks and Spencer, including marketing, human resource management, customer services, finance, and research and development. The article concludes by highlighting the importance of digital technology in the growth and success of businesses. Course code and college/university not mentioned.

Organizational
Structures and
International
Expansion

Table of Contents
INTRODUCTION.....................................................................................................................2
TASK.........................................................................................................................................2
1- The chosen organisation that has expanded into international markets, explain whether the
organizational structures and functions are suitable to facilitate the expansion........................2
2 -The impact of digital technologies have on their international expansion strategy :............4
CONCLUSION..........................................................................................................................6
REFERENCES..........................................................................................................................6
TASK
1- The chosen organisation that has expanded into international markets, explain whether the
organizational structures and functions are suitable to facilitate the expansion
Organisational structure is a method that helps in defining a hierarchy of the organisation. It
focuses on every job, its operations and who is accountable to whom in the company. It is
formed to set up on how an organisation operates and helps the company in attaining its
objectives and goals to function for long term growth (Tang, 2019).
In case of Marks and Spencer, management follows flat organisational structure. In this type of
organisational structure, it consists of very few layers of the management in the company. In it

leaders or managers have a larger duration of the authority with its juniors or associates. Usually,
there is a very small chain of command. This organisational structure is generally used by the
large businesses or by those who are adapting a latest approach in the management.
Organisational Functions:
It refers to the functional areas of the business to various activities which are done in the
firm. These practices are divided into various divisions or functions and serve a crucial
role in the functioning of the business. Various functions of Marks and Spencer, is
mentioned below :
 Marketing – This organisation’s function is concerned with detecting consumer demands
and needs, as well as modifying products and services to make them available to people
who requires it. Its primary practice is to advertise or promote services or products of the
company and deliberately create a demand for the people in the marketplace. This
function can involves focusing on specific consumer base in accordance to increase their
profits and revenues. In case of Marks and Spencer, company's large and active global
reach with the help of internet. As it can be cost efficient for the company to promote its
products or services globally. It also assists in awaring people about their brand in a large
quantity in the whole world in order to increase their brand value which can lead to
enhancement in the sale of goods and services of the company.
 Human resource management – This functions deals with human aspects in the
organisation. It is the set of various activities such as, hiring, employee motivation,
performance management, recruiting etc. It focuses on to enhance productivity of
employees and it also makes sure that firm is safe from any type of hindrances which can
be caused by conflicts within the staff. In context to Marks and Spencer, management
recruits various employees in the new market place and they send some expatriates into
the new market segment where company is planning to expand. In order to train and
develop new recruited workforce which can be very beneficial for the firm's long term
growth and success.
 Customer services – The main functions of the organisation is to focus on all types of
issues and queries of the consumers in respect of services and products of the firm are
accomplish (Suppatvech, Godsell, and Day, 2019). It gives a satisfactory experience to
its consumers that assists in retaining those consumers and motivate success and growth

in the business. In relation to Marks and Spencer, management should set up such
services in accordance of addressing every issue or queries of their consumer base around
the world. Company can accomplish this by establishing a department with employees
possessing proper communicational skill with knowing several languages. This can assist
the firm in providing top class customer services to its consumers.
 Finance – This division includes maintaining funds for the organisation with an
efficacious planning. It contains several practices like managing financial books of the
firm, account payable and receivable etc. It focuses on both long term and short term
financial requirements of the organisation and its main work are to raise capital for the
business. In terms or Marks and Spencer, this department can provide sufficient capital in
order to smooth expansion of the business in the different parts of the world. Without
funds, company cannot scale itself in any part of the world so it is essential for them to
get proper funding which can help them in expansion.
 Research and development – This department is essential for the organisation as it gives
various creative ideas for innovation and research that supports firm in getting an edge
over its competitors in the market. It also assists in producing new and modified products
or services in order to enhance the organisational efficiency and effectiveness. Its main
function is to develop new and efficient methods or techniques to introduce new good or
modify existing one. In case of Marks and Spencer, this department helps the firm in
researching about the various new market place where company can establish themselves
by studying about what product or services are required in that particular untapped
market area. This can help firm in minimising their risk of expansion globally.
 Sales – The main motive of this department is to enhance profits and revenues for the
organisation in order to make it operational. These functions can depend in accordance of
structure and approach according to the size of the company. Its main function is to
follow up different leads given by the marketing department of the company and convert
them into profits for the organisation. In context to Marks and Spencer, sales department
of the company targets to sell maximum of its products in order to overcome the cost of
expansion and to give company profits as soon as they can. The sales unit of the company
helps in planning such strategy which is suitable for the specific market. The sales
department can make use of its employees to make firstly the research on customer needs

and demands so that sales team can become efficient in convincing people to make
purchase of it. Hence, likewise sales team can become competent in the expansion of
business as it think of such strategies of sales from broad perspective of all international
market (Smalley, E., 2019).
2 -The impact of digital technologies has on their international expansion strategy:
Digital technologies have been the essential element in the process of functioning of the
business. It can assist in improving the performance and productivity of the employees
which can help in enhancing overall revenues of the company and it also assist in
modifying the organisational structure or gives a chance to enhance the revenue. The
digitalisation factor creates an opportunity for scaling of an organisation globally. It can
lead to enhancement in success and growth rate of the company as well as that particular
company's economy. It evolutes various new products or offering to their consumers. It
assists in building a proper bond between the countries in which organisation wants to
expand. It refers to the latest trend of automation of the operations, data exchange,
production etc. of the company at the various levels from local to global. Today's
technology, such as server systems, the internet, databases, networks, and physical cyber
systems, have permitted the consistent operation of large volumes of data or information,
as well as assisting the organisation in extending their business globally.. The effects of
the digital technology on expansion of the organisation deliberately are described below
 Support organisation to be competitive - Technology plays an essential role when
making expansion strategy of the business as the company can get easiness of working by
deploying sufficient technology. For instance, M&S can make use of technology in
connecting with all its employees from one place and altogether by making use of video
conferencing. Moreover big data also serves the purpose as it helps in keeping the
important data of customers as well as employees at one place and of both home and
foreign country (Nedović-Budić, 2020).
 Enhance brand goodwill - One of the most efficient and effective impact of technology
on the organization is that it can help in getting the reach of audience for the brand
globally through several websites, blogs, social media, SEO etc (Anderson, Chung, and
Macleroy, 2018). While scaling up the business globally, the digitalization made it very
convenient to communicate with the consumers all around the world through applications

like Skype, Face Time and many more. In the case of Marks and Spencer, the company
uses the digital platform to target certain consumers and provide value, which helps to
increase the firm's brand awareness in the market segment..
 It enhances productivity - The use of digital technology in the workplace can improve
performance and productivity in a variety of ways. For example, it saves time because
most work can be done by machines and equipment. (Faulkner, and Runde, 2019).
Additionally, in relation Marks and Spencer, the technology assists the company in
minimizing risk error and cost. It supports in assessing the data through various platforms
or any system which is converted into digital platform. It also helps in minimising the use
of paper, which can be helpful in social values of the company.
 Decrease the operational cost in overseas marketplace- Operational cost involves all
the expenses which incur while operating in new country which includes manufacturing,
trading and managing the pupil of the organization. Technology plays an important role
in reducing the operational cost of the business in new international market and while
making the strategy, the company can determine the impact of technology as it helps in
decreasing the operational cost by way of ensuring that the organization can manage all
its resources from place so that the cost of managing it can be reduced. Moreover, it also
helps in making the manufacturing at one place so that cost of establishing manufacturing
unit can be reduced as company can use imports and exports to trade its offering in varied
international market. The structures as well as organisational functions of the business
are very much suitable for the expansion as these both contribute equally towards
expansion. The company can make use of this effectively so that inerter national
expansion can be success. The company can train its employees as per the requirement of
both markets so that sales can be enhanced as well as profitability can be increased
CONCLUSION
From the above report it is concluded that digital technology serves an important role in
growth and success of the businesses. It gives a big opportunity for the organizations in order
to expand the company in all over the world. Additionally, it states that digital technology
have provided large platform to various businesses and organizations to grow they are
business. In order to increase their brand awareness and revenue. Moreover, the company is
now planning to expand their businesses in countries worldwide even in various developing

countries. It can help them in enhancing large customer base and for long term growth and
success of the company. There are several impacts of digital technology on the international
expansion of the firm which can be both benefial and risky for them. It can affect by
improving productivity and brand image, minimising cost, and can also impact in giving
competitive edge.
REFERENCES
Books and Journals
Fenwick, J., 2021. Structure and Culture. In Organisational Behaviour in the Public Sector:
A Critical Introduction. Emerald Publishing Limited.
Nedović-Budić, Z., 2020. GIS Technology and Organisational Context: Interaction and
Adaptation. In Geographic Information Research (pp. 165-184). CRC Press.
Dib, J., 2018. International expansion of a lebanese constuction company (Master's thesis,
Universitat Politècnica de Catalunya).
Tang, R.W., 2019. FDI expansion speed of state-owned enterprises and the moderating role
of market capitalism: Evidence from China. International Business Review, 28(6), p.101596.
Suppatvech, C., Godsell, J. and Day, S., 2019. The roles of internet of things technology in
enabling servitized business models: A systematic literature review. Industrial Marketing
Management, 82, pp.70-86.
Smalley, E., 2019. The business of brain-computer interfaces. Nat. Biotechnol., 37(9), p.978.
Anderson, J., Chung, Y.C. and Macleroy, V., 2018. Creative and critical approaches to
language learning and digital technology: Findings from a multilingual digital storytelling
project. Language and Education, 32(3), pp.195-211.
Faulkner, P. and Runde, J., 2019. Theorizing the Digital Object. MIS Quarterly, 43(4).