BUMGT 5920 - Global Business Environment: Management Challenges Report

This report examines the management challenges and opportunities within a global business environment, focusing on the organizational structures that support international expansion. It explores the functional, matrix, and divisional structures, particularly relevant for small businesses like TOPTUL. The report emphasizes the importance of adapting organizational structures, including centralization and decentralization, to cultural and financial aspects when expanding internationally. It also addresses how established companies can re-evaluate their strategies after decades of international operations. The report integrates insights from academic references and applies relevant frameworks to analyze management solutions and challenges, using an Australian company as an example. The report aims to provide a comprehensive analysis of global business management, highlighting key considerations for managers operating in an international context.

Running head: MANAGEMENT IN GLOBAL BUSINESS ENVIRONMENT
MANAGEMENT IN GLOBAL BUSINESS ENVIRONMENT
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The TOPTUL Company, a small hand tools company of Australia, is taking certain initiatives to
go global. Therefore, the organization is trying to include an organizational structure that would
help the organization to successfully expand itself across other nations. Therefore, the Manager
of the company Saketh had set the deadline for this report, and the two employees, Teja and
Prabhakar, had been approached to make the changes and prepare the report. The following three
questions had come across in the process.
What type of organization structure would be of most value to this firm in its initial efforts
to go international?
The organizational structures are very important for any industry or any company to grow
and work and produce efficiently and to maintain a structure within the organization. However,
for a small organization, the organization usually any three of the basic organizational structures,
the functional structure of the organizations, the matrix structure and the divisional structure of
the organizations. More importantly, for any small organizations, there is no one particular size
of the organization, or the structure of the same. Therefore, the choice of the organizational
structure for a small business house, depend up on the kind of profit they are making and the
kind of solutions they are providing right now, this particular organization, the functional
structure of the organization can be observed and maintained (Jones. 2013). However, as per a
recent report, most of the organizations try to incorporate the functional approach.
The functional structure is a hierarchy- based structure, so therefore, there is power
relationship involved into this structure. All the employees are offered with a job role, that is will
justify this hierarchy and thus there will be no role- ambiguity. The employee positions are
defining the relationship between the two employees, therefore, there is a power structure among

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the employees. However, this power structure helps the organizations to sustain, as there is a
complete understanding of the roles and responsibilities.
Organizational structure to be included overseas expansion of the customer base and
profitability.
When an organization plans on to make the organization global or international, the more
difficult work environment and more difficult financial and organizational crises are realized.
However, for an organization, to get global it is very important for the organizations to include
the aspects and sequence the whole organizational structure. When Allan Day Spring, had taken
the in initiative to spread across the nation, the organization had taken the decision to spread
internationally, the organization had included a structural change in the organization. Therefore,
the changes included were, the organization included the cultural and the financial aspects of the
company and the behavioral aspects of the people of the country. However, in order to gain a
competitive edge in the market, the organization can include the concepts of Centralization and
Decentralization. Centralization refers to the managers and the directors who will be including
changes in certain sections of the organization, however, the decentralization process refers to
the division and distribution of roles and responsibilities, among the various levels of
management (O'Reilly & Tushman. 2013). Therefore, all the policies made by the institution,
will consider the opinions and the viewpoints of each of the mangers of the various chains of the
organization, and therefore it can be observed, that the power of the parent organization is much
loosened up. There is no power structure rather to be followed.
Therefore, the rules and regulations, are to be made considering the organizational culture
and the cultural attributes related to that particular industry. Also, the time zone, the work ethic,

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the team consciousness and the approaches of the employees, all these aspects are included in the
formation of the organizational structure, in case of international endeavors of the organizations.
After fifty years of working in the same country, what changes can be made to re- ensure
profit?
The market researchers have pointed out, that in a certain scenario, when a company is
viewing a loss in the market, or a reduced profit, for doing business in a foreign land for fifty
years, then it must be understood that the problem with the company is in two folds, both
internal; and external. When a company is observing a loss or a reduced profit, then it must be
understood that there have been certain changes, in the market place (Shafritz, Ott, & Jang.
2013). There are changes in the demand structure or in the requirements, to which these
company has failed to address, and to fulfill. This leads to the understanding of the internal
aspects that can be proved to be contributing in the loss of the company. If a company is being
incapable of dealing with external demands or requirements, them it is easy to understand that
the organization has a distorted internal structure. Therefore, one of the most important aspect is
to take care of the internal employee structure and the organizational policies and regulations.
The analysts are of the opinion, that the responsibilities and the job roles must be effectively
segmented as per the expertise of the individual (Noe et al. 2017). More segmentation determine
a vivid understanding of the problem, and correct approaches to solve the problem, and
following is one if the best structure of organizational changes.

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Bibliography:
O'Reilly III, C. A., & Tushman, M. L. (2013). Organizational ambidexterity: Past, present, and
future. Academy of management Perspectives, 27(4), 324-338.
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage
Learning.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Jones, G. R. (2013). Organizational theory, design, and change. Upper Saddle River, NJ:
Pearson,.