Strategic International Business Management Report: SARHS Analysis

This report analyzes the international business strategy of SAR Health Services (SARHS), a multinational enterprise supplying diagnostic equipment. The report examines key factors for the management team to consider, including reducing operating costs, recycling and waste reduction, and transport initiatives. It also identifies and discusses various people management issues faced during the deployment of the sustainability plan, such as poor communication, constant change management, and poor employee morale. Recommendations are provided for the progress of the project, and factors needed for building change capability are identified. The report highlights the importance of organizational sustainability and the need to adapt to a changing global business environment. The analysis covers the case study, providing insights into the challenges and opportunities SARHS faces in implementing its sustainability plan and achieving its business goals. The report emphasizes the need for effective communication, employee engagement, and proactive change management to ensure the successful implementation of the strategy.

Running head: INTERNATIONAL BUSINESS STRATEGY
International Business Strategy
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Brief Idea of the Case Study............................................................................................2
2.2 Identification of the Factors that the Management Team wishes to consider before
going ahead with the Plan......................................................................................................3
2.3 Identification and Discussion of Different People Management Issues faced by the
Management Team during Deployment of the Plan with Proper Explanation of the Reasons
in SARHS...............................................................................................................................6
2.4 Development and proper Justification of Recommendations regarding Progress of the
Project....................................................................................................................................8
2.4 Identification of the factors needed to be considered by the Organization for building
the Change Capability..........................................................................................................10
3. Conclusion............................................................................................................................11
References................................................................................................................................12

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1. Introduction
International business strategy can be referred to different plans which guide
commercial transactions taking place within separate entities within certain countries
(Buckley and Ghauri 2015). This type of international business strategy refers to various
actions and plans of private companies and not the government for the significant objective of
increasing profit. Several organizations of any size are responsible for dealing with a
minimum of one international partner within the supply chain with proper effectiveness
(Johnson 2016).
The main objective of this type of strategy is to create economies of scale via a more
standard product for offering their services worldwide (Soltanizadeh et al. 2016). As a result,
the costs are reduced to a high level, so that it becomes quite more straightforward for the
business to adopt new products by bringing innovation. The following report will be outlining
a brief discussion on the case study of SAR Health Services or SARHS with relevant details,
related to people management issues and other vital factors that are needed to be considered
by them for implementing a new plan of sustainability.
2. Discussion
2.1 Brief Idea of the Case Study
SAR Health Services or SARHS are the significant parts of a famous multinational
enterprise that has its headquarters in Switzerland. They mainly supply different sophisticated
diagnostic equipment to the hospitals within Europe and have recently entered new marks
within Asia. The respective relationship with the customers of SAHRS is entirely based on
high-quality products and high trust with 24*7 servicing. The organization has employed
with 3000 staff, which comprise of office staff like distribution, marketing and sales,

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production, drivers, managers and technicians. Primary emphasis is to be put on
environmental education via induction as well as staff training.
They have also focused on sustainability for their customers and employees. The
organization has gone through 2 major reorganizations within the last three years, and the
most recent have included shifting from the functional to a matrix structure. For the huge
pressure on equipment costs, the senior management team has decided to find ways for the
reduction of the operating costs. They have decided to close the production Site A and then
consolidate operations at Site B within six months. The main aim of the management is to
reduce the organizational carbon foot by 2022 and by introducing different green initiatives
like recycling and waste reduction and transport initiatives.
2.2 Identification of the Factors that the Management Team wishes to consider before
going ahead with the Plan
Organizational sustainability refers to have leadership, globalized insights, different
changing strategies and talent that are required for rising to the unique challenges that are
being faced by the companies (Solow 2019). Such problems mainly include maximization of
the global talent pool that involves four distinct generations across several cultures.
Moreover, the development of leaders is also possible, who can leverage diversity and
implement customized diversity strategies with proper communication with the team
members (Galpin, Whitttington and Bell 2015). Since business methods vary appreciably in
various countries, an appropriate understanding of different linguistic and cultural barriers,
legal and political systems and even complexities related to international trade is required for
gaining commercial success.
This type of sustainability is required for ensuring that long term prosperity is being
obtained and business opportunities are maximized to a high level (Clayton and Radcliffe

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2018). Furthermore, it helps in analysing that the negative impacts are reduced to a high
standard, and the organization gains a steady growth in terms of their bottom line,
development as well as employee assessment. The economies in places and communities are
being taken into consideration for ensuring the location of their operation (Liu et al. 2015).
Business sustainability is required to get a stable yet secured environment, so that maximum
effectiveness is being gained under every circumstance.
The organization of SAR Health Services has decided to implement a proper plan for
its sustainability management to promote greater economic participation in the business
(Abson et al. 2017). It is needed to check if the organizational sustainability is higher than
normal, and they would be able to deal with the complexities and issues related to
sustainability management. SAR Health Services will be implementing certain programs for
sustainability in their businesses, so that it becomes quite easier for them to remain in the
business market and also maintain their position as a sustainable company (Geissdoerfer et al.
2017).
Four basic global business strategies mainly include standardization, transnational,
multi-domestic and export. Due to incrementing globalization in the last few years, the small
organizations have also been capable of crossing the national borders and doing their
businesses abroad (Ioannou and Serafeim 2017). The monthly departmental meetings with
the head office would be involving a green slot, in which the activities and updates about
environmental sustainability are being discussed. The ideas for green initiatives are also
considered and are ensured with maximum efficiency. There are some of the most significant
and important factors that are to be taken into consideration by the management team in this
specific organization, and these factors are provided in the following paragraphs (Voß and
Kemp 2015):

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i) Reducing Operating Costs: The first and the foremost significant factor that is to be
considered by the management team of SAR Health Services before the implementation of
their plan of decreasing the organizational carbon footprint by the year of 2022 is to reduce
the overall expenses to a high level (Neubauer and Lank 2016). The operating costs are
responsible for reducing the overall productivity of the organization and even and hence
reducing the profit subsequently. As a result, while the reduction of the operating costs,
would increment the short term profits ad also decrease the earnings of the long term benefit.
The total operating costs for the organization would involve the costs of their goods sold,
overhead expenses and operating expense (Ioannou and Serafeim 2017). One of the most
significant aspects is that they would be able to maintain their green slot with higher
efficiency and effectiveness. Hence, reduction of operating costs is quite vital for the SAR
Health Services to ensure that they are getting their chance for sustainability.
ii) Recycling and Waste Reduction: The second important and significant factor that
is to be considered by the management team of SAR Health Services before the
implementation of their plan of decreasing the organizational carbon footprint by the year of
2022 is to ensure recycling as well as a waste reduction (Hahn et al. 2015). Since they are
focusing on sustainability, it would be important for them to reduce wastes and complete
recycling. The encouragement to recycle after putting lids on the waste bins for making the
process of recycling much easier and also providing certain recycling bins to the customers.
With the inclusion of recycling, subsequent emissions of several greenhouse gases or water
pollutants are prevented, and energy is saved to a high level. Proper utilization of any type of
uncovered material even generates less solid waste and the pollution causes are identified
successful (Robertson 2017). The senior management of SARHS would be able to understand
the importance of sustainability to a high level.

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iii) Transport Initiatives: The next significant and noteworthy factor that is to be
considered by the management team of SAR Health Services before the implementation of
their plan of decreasing the organizational carbon footprint by the year of 2022 is to transport
the initiatives (Laszlo and Zhexembayeva 2017). The organizational drivers are to be
provided with significant training in fuel-efficient driving, by giving them a bonus of 100
Euros two times a day for all of those who are found to be fuel-efficient. As a result, with
such motivation, the transport drivers would be able to provide maximum productivity to the
organization, and hence they would be profited (Bosselmann 2016).
2.3 Identification and Discussion of Different People Management Issues faced by the
Management Team during Deployment of the Plan with Proper Explanation of the
Reasons in SARHS
People management issues are prevalent and significant for any organization to check
if every employee is providing a maximum advantage to the business (Lozano 2015). The
most difficult part of the managerial work is to properly manage his or her people so that
organizational productivity is increased. The employees are needed to be led, motivated,
trained, inspired, as well as encouraged. Moreover, hiring, firing, evaluating and training
aspects are also considered on top priority (Thiele 2016). For this particular case study of
SARHS, the respective management team had to face some of the most significant and
important people management issues, and these issues are provided in the following
paragraphs:
i) Poor Communication: The first and the foremost people management issue that
was being faced by the organizational management of SARHS during their implementation of
a sustainability plan is poor communication amongst several sections (Giannakis and
Papadopoulos 2016). Since the organization has decided to bring sustainability within their
business, it is extremely important and significant to include proper communication with

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them, so that these employees are able to gain knowledge about the processes and activities to
be included in the business and how to gain maximum success and effectiveness without
much complexity. As a result, organizational stress would be reduced, and there would be a
strong impact on the organizational growth and development, and the respective management
would be able to implement their plan of sustainability majorly (Galpin, Whitttington and
Bell 2015). Moreover, the organizational goals and objectives would be defined and clear to
the employees and staff.
ii) Constant Change Management: The second important and significant people
management issue that was being faced by the organizational management of SARHS during
their implementation of a sustainability plan is constant change management (Cho et al.
2015). All employees would not be able to deal with the changes positively, and they might
face major issues in people management. As previously there was no involvement of
sustainability in their services and products, it might be a new change in their business, and
the overall productivity of the organization and different employees would be affected to a
high level (Ioannou and Serafeim 2017). Moreover, this particular people management issue
would be responsible for ensuring that the employees are not adopting the new changes.
iii) Poor Morale: Another distinct and noteworthy people management issue that was
being faced by the organizational management of SARHS during their implementation of a
sustainability plan is poor morale of the employees (Voß and Kemp 2015). These employees
are responsible for not getting high motivation towards work and hence reducing the chance
for maximum productivity and support for the new plan of sustainability. Different
performance evaluations should be done periodically for contributing to the goals and also
ensuring that these employees are happy with the approach (Geissdoerfer et al. 2017).

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Since any single individual cannot maintain sustainability, it is evident that every
employee should follow the steps and approach for reducing their carbon footprint by the
year 2022. One of the major and the most significant reasons of such low morale is that the
organization has changed its structure two times in the last three years and hence the
employees are unable to deal with the changes promptly (Clayton and Radcliffe 2018). As a
result, they have faced issues during the reinforcement of the message.
iv) The issue to Create a Positive Environment: This is yet another important and
significant people management issue that was being faced by the organizational management
of SARHS during their implementation of sustainability plan (Johnson 2016). The senior
management was unable to create a positive environment towards their new plan for
sustainability. Such a positive environment is required to be created for fostering the traits
that the employees, wanted to display (Buckley and Ghauri 2015). The major needs, as well
as values of the team, are required to be fulfilled on top priority so that they gain personal
recognition eventually and are even able to understand the requirement of such approach
towards reduction of carbon usage and costs by the year of 2022.
2.4 Development and proper Justification of Recommendations regarding Progress of
the Project
The organization of SAR Health Services have decided to implement their
international business strategy of sustainability. They have decided to reduce the carbon
footprint by the year 2022 in their business (Geissdoerfer et al. 2017). The organizational
management would have to implement some of the most significant steps and methods for
reducing their carbon footprint and would also have to ensure that every employee is
following them. These recommendations are provided in the following paragraphs:

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i) Less Consumption of Meat: The first and the foremost recommendation for this
particular organization of SAR Health Services to proceed with their project of reducing
carbon footprint would be convincing the employees to consume less amount of meat
(Laszlo, C. and Zhexembayeva 2017). The greenhouse gas emissions from the agribusinesses
are referred to as bigger issues than fossil fuels. As a result, excess consumption of meat
creates a misbalance in the environmental approach. Animal agriculture is incrementing the
issue for water scarcity.
ii) Unplugging of Devices when not in use: The second important and significant
recommendation for this particular organization of SAR Health Services to proceed with their
project of reducing carbon footprint would be unplugging the devices when they are not in
use (Thiele 2016). As a result, almost 1 million dollars in energy would be saved every year
for the organization, and they would be able to implement their plan successfully. As soon as
a cord is being plugged into a socket, it is eventually drawing the energy, and even if the
device is not charging, the user is contributing to the carbon footprint. It could be stopped as
well as avoided eventually, and the organization would gain high sustainability.
iii) Driving Less: The next vital and noteworthy recommendation for this particular
organization of SAR Health Services to proceed with their project of reducing carbon
footprint would be driving less. Although the organization has decided to take up company
initiatives, they should convince their employees to drive less and include more sustainable
approach towards green infrastructure (Galpin, Whitttington and Bell 2015). They should
start using shared cars for the employees, and then transit continues for growth and
development. It is being observed that public transportation would save up to 37 million tons
of carbon emissions each year.

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iv) Consumption of Organic Food: Another important recommendation for this
particular organization of SAR Health Services to proceed with their project of reducing
carbon footprint is the consumption of organic food (Cho et al. 2015). Organic food does not
comprise any type of excess carbon footprint, and the employees and management of the
company would be able to deal with such issues easily.
2.4 Identification of the factors needed to be considered by the Organization for
building the Change Capability
Successful expansion into the new foreign markets eventually demands that these
organizations are eventually adopting different international business strategies, which best
fit their capabilities and requirements (Liu et al. 2015). The international business includes
dealing with specific foreign stakeholders, governments, consumers and employees and
hence the business managers are considering several factors while conducting business in the
globalized markets like pricing strategies, supply chain management and competition
(Galpin, Whitttington and Bell 2015). Different factors that are needed to be considered by
the company of SARHS for building their change capability are provided in the following
paragraphs:
i) Securing Effective and Adequate Sponsorship: The first and the foremost factor,
which is required to be considered by SARHS to build their respective change capabilities
successfully is securing an effective and adequate sponsorship (Hahn et al. 2015). As they are
stepping into the sustainability plan, it is needed to build the organizational agility to gain the
right level of the sponsor. Hence, credibility and commitment towards work would be
included in the business. Various change management capabilities would be included, and a
robust approach towards financial and strategic success of the company would be gained. As
a result, the carbon footprint will be reduced majorly.

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ii) Treating Change Management Capability to build the Project: The second vital
and significant factor, which is required to be considered by SARHS to build their respective
change capabilities successfully is treating the capability of change management to build the
project (Abson et al. 2017). The proper structural approach is to be applied for ensuring that
better effectiveness and efficiency is gained under every circumstance.
iii) Defining the Future State of the Company after reducing Carbon Foot Print:
The next vital and significant factor would be defining the future state of the company after
reduction of carbon footprint (Liu et al. 2015). The employees need to understand that the
approach would be providing major advantages to the business, and it would become a
sustainable business without much issue.
iv) Using a Multi-Faceted Approach throughout the Capability Build: It is also
required to use a multi-faceted approach throughout the capability build (Johnson 2016).
With this approach, the employees would be trained properly, and different change
management activities would be implemented, and hence the organization would be
benefitted.
3. Conclusion
Therefore, from the above discussion, a conclusion can be drawn that an international
business strategy such as the implementation of a sustainability plan is considered as one of
the most significant and important requirements in any particular business as it is responsible
for bringing out maximum profit to the organization. Globalization is continuing to influence
the subsequent world economies as enhanced communications, incremented capital mobility
and reduced tariffs for allowing the organizations to get connected to the global financial
markets and also expand their businesses internationally.

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For the core purpose of successfully expanding the consumer base as well as
increment profitability via internationalization, these organizations require to spend their
particular time or resources for understanding different opportunities of the global market and
then select different strategies of international business. The above-provided report has
clearly outlined a detailed analysis of the case study of SAR Health Services related to
management factors and people management issues. Suitable recommendations are also
provided for the organization, so that carbon footprint is reduced.

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