HI6005 - Globalization and Organizational Structure: Blog Assignment

This assignment features a comprehensive analysis of two blogs, focusing on globalization and organizational structure within the context of HI6005 Management and Organisations in a Global Environment. The first blog discusses regional trading alliances such as the EU, NAFTA, ASEAN, and WTO, along with the stages of globalization and examples like Coca-Cola's global strategy. The second blog explores organizational structure and design, emphasizing work specialization, departmentalization, chain of command, span of control, centralization, and formalization, using Amazon as an example. Both blogs highlight the importance of understanding globalization and organizational structure for success in multinational environments.

Running Ahead: Blogs 1
Blogs
Student Name
University Name

Blogs 2
Contents
Blog 1.....................................................................................................................................................1
Executive Summary...........................................................................................................................1
Regional trading alliances..................................................................................................................1
Stages of globalization.......................................................................................................................2
Example of globalization....................................................................................................................2
Conclusion.........................................................................................................................................2
References.........................................................................................................................................3
Blog 2.....................................................................................................................................................3
Executive Summary...........................................................................................................................3
Organization Structure & design........................................................................................................4
Example of Organization structure....................................................................................................5
Conclusion.........................................................................................................................................5
References.........................................................................................................................................5
Blog 1
Executive Summary
Today, organizations operate in multinational countries and hence, it is very important for
them to understand the impact, advantages and cautions associated with globalization. An
organization will be successful only when they are capable enough to run business in
different foreign environments. Organization entering a foreign nation should be careful
about the legal and political environment, economic environment and also the cultural
environment.
Regional trading alliances
None of the organizations can survive alone and they are well aware of this fact and hence,
they continuously look for countries which can support them in their business. Few of the
regional trading alliances which have been formed by multiple countries are as follows: -

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 European Union (EU) – 25 European countries came together and have formed a
trade entity for unity economy. This allows the union to grow more individually and
at the same time, they can stand together for unity and support.
 North American Free Trade Agreement (NAFTA) – The Canadian, Mexican and the
US government has signed an agreement to eliminate all the trade barriers among
these countries (The balance 2018).
 Association of South East Asian Nation (ASEAN) – 10 nations from South East
Asian nation has come together to eliminate the existing trade barriers in these
countries.
 World Trade Organization (WTO) – WTO was formed in the year 1991 with the
motto to oversee and produce guidelines for countries to improve their rules on trade
so that the relationships among the nations can be improved and at the same time,
they can also do business with each other by following the pre-defined standard
guidelines (Peterson Institute for International Economics 2016).
Stages of globalization
Every organization goes through different stages before they enter the foreign market
completely. The stages of globalization are as follows: -
 Passive response – Over here, the organization would enter the global market by way
of import to or export from.
 Initial overt entry – The foreign organization would hire foreign representatives or
contract with foreign manufacturers to get the produce.

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 Established international operations – Finally, the organization would enter the
foreign country through joint venture, licensing, franchising, strategic alliances or
foreign subsidiary (Harvard Business Review 2018).
Example of globalization
Coca-cola is the best example of globalization. This is famous throughout the world, but this
product is manufactured in different corners of the world to reach out to everybody. They
believe in offering the same product across the globe. The marketing strategies and the
product packaging vary from nation to nation, but the content remains the same.
Coca-cola has been in the market since 1890’s and at that point of time, it was introduced in
America as a refreshing drink, but that is not the case anymore. They have their
manufacturing and bottling plants in different countries to meet the demand worldwide
(Globalization 101 2016).
Conclusion
An organization needs to plan activities in advance and move ahead towards globalization so
that they can survive in the competitive world. At the same time, with a positive approach,
whole world is a complete market and hence, organizations can push their customer base and
profit margin to which was unthinkable, decades ago.
References
Globalization 101, 2016, What is globalization, Viewed on 17th April, 2018,
http://www.globalization101.org/what-is-globalization/
Harvard Business Review, 2018, 40 Years of Data Suggests 3 Myths About Globalization,
Viewed on 17th April, 2018, https://hbr.org/2018/03/40-years-of-data-suggests-3-myths-
about-globalization

Blogs 2
Peterson Institute for International Economics, 2016, Globalization: The Concept, Causes,
and Consequences, Viewed on 17th April, 2018, https://piie.com/commentary/speeches-
papers/globalization-concept-causes-and-consequences
The balance, 2018, Globalization and Its Impact On Economic Growth, Viewed on 17th April,
2018, https://www.thebalance.com/globalization-and-its-impact-on-economic-growth-
1978843
Blog 2
Executive Summary
It is very important for an organization to have an organizational structure in place rather than
that of all the employees reporting to the CEO or the director of the organization. There is a
radical change in the concept of organizational structure with importance being given to six
attributes. Work specialization, Departmentalization, chain of command, formalization,
centralization and span of work are the various attributes that contributes to organization
structure today.
Organization Structure & design
The six attributes of organization structure and design should be well understood by the
management and at the same time, they should be implemented. The six attributes and its
important are as follows: -
 Work specialization – Each employee in the organization should be a specialist in one
or multiple areas, rather than that of one employee taking care of different activities at
different point of time.
 Departmentalization – Departments should be formed in the organization based on
employee location, products of the organization or the function (HR, marketing and

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others). Sorting the employees can be easy and information can be collected easily
(Bizfluent 2017).
 Chain of command – It should be defined clearly so that the employees can have a
clear picture on their reporting authority. The employees will follow the instructions
given by their reporting authority so that they can move in a particular direction,
rather than being directionless (Emaytrix 2018).
 Span of control – Each manager should be held responsible for small groups. This
will ensure that the manager is aware of skills and responsibilities of each individual.
This will also allow the manager to implement a standard operating procedure for all
the processes so that the dependency on individuals can be reduced.
 Centralization – One person should be responsible for all the final decision making
process. This will ensure that clear decisions are made. The employees will also be
aware on whom to approach in case of any concern.
 Formalization – Each employee should have a job description so he should be aware
of the roles and responsibilities that he needs to handle. This will ensure that retrieval
of data is an easy task even in the absence of the employee (Cliffsnotes 2018).
Example of Organization structure
Amazon as a global organization and they have a multi-layer organizational structure with
one decision making authority at the top. Amazon decides their function and responsibility on
the basis of countries, with each country having a country head. The country head in turn
reports to the CEO of the organization. Each country head would have finance head, HR
head, marketing head and design head reporting to them. These heads are responsible for
transactional activities on daily basis.

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Amazon also has a pre-defined set of guidelines that allows the employees to work
accordingly. This standard procedure is implemented throughout the world and hence, all the
employees from Amazon understand the same code. This ensures that employees can easily
understand the work that has been completed by some other subordinate (Harvard Business
Review 2011).
Conclusion
Organizational structure is a mandate. Organizations with 15-20 employees can operate
without an organizational structure, but it is merely impossible for a large organization which
has its presence in multiple locations.
References
Harvard Business Review, 2011, The Importance of Organizational Design and Structure,
Viewed on 17th April, 2018, https://hbr.org/2011/02/the-importance-of-organization
Cliffsnotes, 2018, Five Approaches to Organizational Design, Viewed on 17th April, 2018,
https://www.cliffsnotes.com/study-guides/principles-of-management/organizational-design-
and-structure/five-approaches-to-organizational-design
Emaytrix, 2018, Types of Organizational Designs, Viewed on 17th April, 2018,
http://www.emaytrix.com/mgmt307/section3.php
Bizfluent, 2017, Difference Between Organizational Structure and Design, Viewed on 17th
April, 2018, https://bizfluent.com/about-6702475-difference-between-organizational-
structure-design.html

Blogs 2