Impact of Organizational Structure on International Business Expansion

This report analyzes the role of organizational structure and functions in the international expansion of businesses, specifically focusing on McKinsey & Company. It examines how hierarchical structures and key management functions, including human resources, production, and finance, facilitate expansion. The report also explores the impact of digital technologies, such as cyberspace, digital marketing, data pooling, HR software, social media, and digital workspaces, on international expansion strategies. The conclusion summarizes the key findings regarding organizational structures and the influence of digital technologies in supporting successful international market entry and growth. This analysis provides valuable insights for businesses aiming to expand globally, highlighting the importance of both organizational design and technological integration. Desklib offers a platform for accessing similar reports and assignments, providing students with resources for their studies.

Organizational Structures
and International
Expansion

TABLE OF CONTENT
 INTRODUCTION
 MAIN BODY
o 1.Critically analysing how organizational structure and functions help in expansion process of the business:
o 2. Explaining impact of digital technologies on international expansion strategy:
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business environment is wide term that means internal and
external area where business deal in and sell their product and
service.
 Every business gets 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.
 This study is based on McKinsey & Company, this company is
one of the fastest growing business management and solution
consultancy brand that have expanded nearby countries and
planning to expand in other nation as well.

Critically analysing how organizational structure and
functions help in expansion process of the business:
 McKinsey & Company is one of the fastest growing consultancy
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 Europe’s business consultancy policy was
modified.

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 and owner that take major decision for the
company and have great influence as they craft certain policy and
strategies for the company.

• Management function
Human resource function
 McKinsey & Company 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.
 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.

Continue…
 Production and manufacturing function
Production and manufacturing is one of the most important element
of the business that allow company to manufacture product.
 Finance function
Finance is crucial for every business organization, it facilitates
expansions process of the organization and allow business to run in
smooth process.

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.

Impact of digital technologies
 Cyberspace: The term cyber is very common when it comes to
digital technologies, every business wants cyber space and
security that allow working effective and achieve organizational
goals.
 Digital marketing: Digital technologies are used when it comes
to marketing, this is one of the major impact on business and their
expansion strategy.

Continue…
 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.
 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.

Continue…
 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.
 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.

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.