The Impact of Globalisation on Lindt Chocolate's Corporate Structure

This research project examines the influence of globalisation on the corporate structure and operational challenges faced by multinational companies, using Lindt Chocolate as a case study. The introduction provides an overview of globalisation, corporate structure, and the rationale for the research, outlining the research aims, objectives, and questions. The literature review delves into the impact of globalisation on Lindt Chocolate's growth, the changes in its corporate structure, and the operational and management issues that arise. The report also explores the benefits of effective operations and management at the global level, addressing challenges such as currency fluctuations, communication difficulties, and foreign regulations. The study aims to provide insights into how companies like Lindt Chocolate can navigate the complexities of operating in a globalized market and recommends strategies for overcoming challenges and optimizing performance.

Research Project

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TITLE:
“The impact of globalisation on the corporate structures of large multinational
companies and the major operations and management challenges they face.” A study of
LINDT CHOCOLATE.
INTRODUCTION
Overview of research
Globalisation means performing business operations in more than one country and there
are less trade barriers in selling and purchasing product and services from foreign country. There
are different trade policies such as octroi duty, foreign exchange rate, import export duty, etc.
which has to be followed for smooth running of business at international level (Shenkar, Luo,
and Chi, 2014). Corporate structure refers to various segments of enterprise which are working
for attaining same targets of organisation. It is not possible for large scale organisation to operate
at international level without synchronising their activities. There are many department such as
marketing, sales, production, packaging, research and development, etc. through which business
operations are performed in better and effective manner. Corporate structure includes board of
directors, management team, etc. At international level, there is requirement of proper team
through which consumers can get better quality products and services. While operating at
international level is different from operating at global level, so it is essential to analyse change
in working style and then frame policies accordingly. This research is based on LINDT
CHOCOLATE which is Swiss chocolatier and confectionery association founded in 1845. this
association is well known for chocolate truffles, bars and other sweets (Epstein 2018).
Background of research
There is difference in corporate structure of when they are operating at international level
because of difference in demand of consumer preferences and demand. It is crucial to understand
this by managers of LINDT CHOCOLATE, so they can plan organisational operations in
relevant manner. When there is difference in working style, so it is essential to plan operations
accordingly and communicate to workers. This makes outcome from business operations with
achieving targets. Mangers of LINDT CHOCOLATE have to set aims and objectives small and
measurable. Employees have to communicated in appropriate manner through which they are
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able to understand their job roles and responsibilities (Crane and et. al., 2019). Managers of
LINDT CHOCOLATE face different challenges such as selection of individuals, sources of
finance, legislation policies., tax, etc. This is important and crucial for making long term
sustainability in industry and able to provide satisfactory services to consumers in new market.
Rationale of research
Rational of this investigation is that it provides complete information about change in
corporate structure of multinational company while operating at international level. Researcher is
able to get complete information about different tools and techniques (Lechner and Boli, 2014).
Reader is able to understand about challenges faced by organisation while operating at
international level. Individual is able to understand what are the key factors which has to be
considered while operating at international level and they will keep in mind to get positive
impact for their business. Researcher have interest in working style of MNC so this investigation
will completed with considering proper tools and techniques (Stromquist and Monkman, 2014).
Research Aim
“To analyse the impact of globalisation on the corporate structures of large
multinational companies and the major operations and management challenges they face.” A
study of LINDT CHOCOLATE.
Research Objectives
 To understand the impact on growth of LINDT CHOCOLATE with globalisation of
business.
 To determine the changes that takes place in corporate structure at the LINDT
CHOCOLATE while dealing at international level.
 To ascertain the operations and management issues which arise while operating at
globalise level of LINDT CHOCOLATE.
 To identify the benefits that are opt by LINDT CHOCOLATE through proper execution
of operations and management at global level.
 Recommend some ways to managers of LINDT CHOCOLATE through which operations
and management challenges at international level can be resolved.
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Research Questions
 Does there any impact on growth of LINDT CHOCOLATE with globalisation of
business?
 What are the changes that takes place in corporate structure of LINDT CHOCOLATE
while dealing at international level?
 What are the operations and management issues which arise while operating at globalise
level?
 What are the benefits that LINDT CHOCOLATE with proper execution of operations
and management at global level ?
 What are the ways through which operations and management challenges at international
level can be resolved?
Gantt Chart
Gantt chart is the pictorial description about different activities with their respective time.
This is the project management tools through which individuals are able to perform activities
within specified time. This is the representation of horizontal and vertical lines in which time is
lines represent time for completing investigation (Ocloo, Akaba and Worwui-Brown, 2014).
This investigation will be completed within approximately 11 time.
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LITERATURE REVIEW
Impact on growth of LINDT CHOCOLATE with globalisation of business
Globalisation of business refers to exchange of goods and services among people living
in different parts of country. With globalisation of organisation, leads to change in working style
because company is exploring at international level (Lapalme and et. al., 2016). At national
level, there are limited consumers as compared to international level, so there is impact on
LINDT CHOCOLATE sales and profits as well. There are many other organisations working at
international level such as CADBURY, Mars, etc. So it is important for managers of LINDT
CHOCOLATE to understand market trends and then frame policies for operating business. There
is positive impact on development of organisation with internationalisation of business because
as the base of consumers increases then sales and profits also improves. Managers of LINDT
CHOCOLATE make to make policies as per changing environment if they want to achieve long
term sustainability in industry (Cheney and et. al., 2014).
According to Carol Woods, 2019 at international level, there are many organisations
operating in chocolate and confectionery sector, so managers has to understand their working
style and marketing policies. With globalisation of business, sales and profits of LINDT
CHOCOLATE gets improve. There is awareness among consumers about new brand in industry,
they have ready to avail products from it. At international level, there is requirement of proper
marketing with which consumers get to know about offers, discounts provided by LINDT
CHOCOLATE for increasing sales. There is requirement of different promotional techniques
with which consumers can get knowledge about new brand in market. Managers of LINDT
CHOCOLATE get knowledge about different technology through which they easily perform
their functions and this makes direct contact with consumers (Hirst, Thompson and Bromley,
2015).
Changes that takes place in corporate structure of LINDT CHOCOLATE while dealing at
international level
According to Paulina M. 2019 Corporate structure of an organisation refers to different
divisions which perform actions in direction of achieving targets. There are many departments
which are working in enterprise such as marketing, research and development, sales, purchase,
etc. for achieving organisational aims and objectives. But while working at international level,
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there is difference in corporate structure of LINDT CHOCOLATE in context of divisional
structure. In this type of structure, business activities are performed by specific departments, so
there is proper division of work. In this type of corporate structure, there are different department
performing their specified work, so business operations are performed one after other. There is
sequence in conducting operations so aims and objectives are achieved (Bartley and Child,
2014).
At national level, there is unclear roles and responsibilities to workers, so sometimes,
there is negative impact on working style of workers. While at international level, there is proper
roles d responsibilities. This assist LINDT CHOCOLATE by getting roles as per skills and
experience of workers. At international level, there are many changes taking place, hence there is
requirement proper communication techniques through which individuals can communicate with
each other. If there is change in consumer demand, then research and development department
communicate with purchase and production department and accordingly production is done.
Hence at international level, business operations of LINDT CHOCOLATE are inter- related with
each other (Cummings and Worley, 2014). At international level, there is decision making power
to departmental head through which they can perform actions frequently and provide satisfactory
services to consumers. If there is any ill- effect of decision, then particular employee is
accountable and answerable to management of LINDT CHOCOLATE.
To ascertain the operations and management issues which arise while operating at globalise level
of LINDT CHOCOLATE
LINDT CHOCOLATE has operations in different parts of country. So they have to take
care of their brand image. Top level managers motivate workers to perform actions appropriately
through which they can maintain good brand image in industry. Hence it is crucial for them to
maintain an appropriate proportion within several type of operations performed by LINDT
CHOCOLATE. This is because with change in working environment at international level,
managers have to communicate and interact with workers and in case of any issue it has to be
resolved (Watts, 2018). This support them in ensuring the proper management of activities
performed by the employees along with the accomplishment of objective behind it. But there are
number of issues an organisation mainly faces while operating at international level which make
it difficult for the management to align all the operations effectively at the beginning which
sometimes also affect its performance in market place. It is crucial and relevant for
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understanding external market and performing business operations in better and relevant manner.
According to Katie Reynolds 2019 There are some issues as well while operating at international
level such as lack of finance, selecting best employees, motivation of workers, difference in
demand of consumers, lack of knowledge about market trend, etc. Some issues faced by LINDT
CHOCOLATE are as under-
Change in currency rate- There is difference in currency of different countries and there
common rates. For managers of LINDT CHOCOLATE it is tough to fix cost price and selling
price because of change currency rate. With difference in currency, mangers are not able to fix
price of product over time ad there are possibilities of under or over pricing of chocolates for
consumers. There is issue in accounting policies of different countries. This issue is mainly
occurs when the marketing department performs its operations without the proper collaboration
and interaction with the finance department. Managers of LINDT CHOCOLATE do not have
knowledge about accounting, so they are not able to show books of accounts properly and in
relevant manner (Aharoni, 2014).
Communication difficulties and difference in culture- In order to maintain good brand
image in international market, there is requirement of complete information about specific place.
So it is important for managers of LINDT CHOCOLATE to know about language of specific
place, so they can maintain familiar relations with consumers. But sometimes, managers face
communication issues which directly affect the management of the employees and also
sometimes leads to in-appropriate understanding of operations to be performed. It directly affect
the operations of the company and in turn influence its image at marketplace. Due to difference
in culture managers are not able to understand it and this affects sales of LINDT CHOCOLATE
and negatively affects brand image (Stromquist and Monkman, 2014).
Foreign laws and regulations- There are different laws and regulations of particular
country which has to be followed by LINDT CHOCOLATE if they want to expand business at
international level (Tidd and Bessant, 2018). It is important and significant to understand these
laws and consider them in case of alterations. In case laws don't get understood by the
management effectively then it directly influence the quality of performance and functioning of
other operational department also get influenced. Mangers face issue in understanding them and
implement it while conducting operations.
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Benefits for LINDT CHOCOLATE through proper execution of operations and management at
the global level
Effective operational management is always necessary for firm to pursue business to
achieves its goals or targets in an effective manner. For LINDT CHOCOLATE, which is the
global firm is looking for survival of their business at the global platform. With operations at the
global platform, several other benefits has been foreseen for operation and management at global
level. For LINDT, benefits such as:
Improved Business Agility: It is always act as necessity to led modifications to the
business firm to enables best practices in order to stay abreast with the changing conditions in the
market. An cost-efficient BPM allows firm owner to led pauses in business processes, implement
changes and re-execute it (Benefits from Implementing Business Process Management, 2019).
With support of this, process would have such unique capability to survive on any track and
enables changes or redefine the tasks of its process users.
Reduced Costs & Higher Revenues: Developing perfect business operation management
strategy in the organization can spare down an actual costs which is associated to business
process execution. More developed processes and productivity helps workforce to led possible
alteration. Hence, employing the right BPM in the organization can significantly deliver positive
results.
Higher Efficiency: Deployment of business process management led to build efficiency
of business processes enormously. Such likeliness is here to bring for integration of the business
processes from initiation to finish. Process owners are dramatically alerted every single time
duration, which has handed out responsibilities to its individual members. This leads to more
proficient monitoring of delays or reallocating tasks among the members.
From above discussion, it is being interpreted that, LINDT chocolate is looking for better
strategy for its operation for achievement of the business objectives. Lastly, with operational
strategy for management, expectation is bit high and given benefits are much necessary and also
proactive.
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