Description
Every organization needs a strategy to assist with making the best use of resources and core competencies in order to gain a competitive advantage. Globally competitive organizations seek efficiency, flexibility and continuous learning as key strategic objectives. There must also be a way to determine hierarchy within an organization in order to ensure efficient management of job functions, smooth flow of information, and effective coordination of work at both individual and team levels. The hierarchy represents the organizations structure, showing the links between people, functions and processes. The organizations strategy will often determine its organizational structure, especially as it relates to the manner in which responsibility is shared, which happens to be a fundamental issue with organizational structures in international business. The main issue is how to share decision-making responsibility between the organizations headquarters and its foreign subsidiaries and affiliates, which will help to determine if the organizational structure should be centralized or decentralized. When planning a global expansion, it is very important to consider factors associated with the organizational structure that could potentially complicate workplace issues such as teamwork, employment, compensation, and union management relationships (Cavusgil, Knight, & Riesenberger, 2020).
For this assignment, you will be required to propose the type of organizational strategy and structure that will best align with the business goals of your selected company and geographic location. Address the following for this assignment:
- Describe some of the most important factors to consider when establishing an international organizational structure.
- Briefly propose a strategy for the organization, including a foreign market entry strategy.
- Based on your proposed organizational strategy as well as the country selection for your Global Expansion Plan, describe the type of organizational structure (centralized or decentralized) that would be the best fit and provide a rationale for your choice.
- Briefly describe what the hierarchy will look like in the organization and include an organizational chart that is reflective of the same. See Exhibits 11.6, 11.7, 11.8, 11.9, 11.10 and 11.11 for organizational chart examples.
