• Internal Code :
  • Subject Code : BUMGT 5920
  • University : Federation University
  • Subject Name : Accounting and Finance

Assessment task 2: Activity 1

Contents

INTRODUCTION 3

Initial efforts to enter into international market 3

Expanding the market in Europe and Asia 5

Future organizational structure 5

Conclusion 6

REFERENCES 7

INTRODUCTION

How a company reaches and works in foreign markets and the composition and layout of its entire activities could have a significant effect on the achievement of a global company. There is a broad range of entry approaches, strategies, and organizational structures to select from. Several variables, like the willingness for domestic control of all its foreign activities and the requirements imposed by the national and staff, who operate outside on the foreign unit, are decisive for determination from the most suitable approach and framework. 

Initial efforts to enter into the international market

In its initial efforts to enter into the international market, the company can choose the export strategy. There are many prevalent entry strategies as well as ownership structures in the global market place. These decisions also offer a way for companies that want to start with small investments and avoid threats that can occur due to global expansion. The paperwork and documents can be transferred to a management export business or the business can maintain activities by establishing its export unit. The company may also switch to significant investors as well as other experts, who provide a range of services including Loc, currency exchange, and associated economic support. The most popular methods of integration are "wholly-owned subsidiaries, mergers and acquisitions, partnerships and joint ventures, licensing contracts, franchising, "fundamental activities for importing and exporting. Each could be a very appropriate way for the implementation of a strategy, based on the circumstances. Small and new companies that want to go global export are the most convenient options available (Navarro-García, 2016). 

The primary reason for company reorganization is for a fresh approach to be implemented. A strategy identifies a plan to help a company use its main funds to fulfill its strategic goals. When the company is changing approach, the company structure must often be adapted to guarantee that the two components support one another.

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Expanding the market in Europe and Asia

The company finds a major market for its products in Europe and decides to expand into Asia. Therefore the company is looking to expand in different cultures and regions. It is a small manufacturing firm, therefore, it was advised to enter into the export of the products (Chestnut, 2017). The company should expand its market by the way of exporting in Asia and Europe to understand the region and the culture. This can avoid the risk of huge losses that might occur if any other approach to enter the international market is chosen. In comparison to huge firms operating in the international industry, smaller businesses face more organizational difficulties. They must operate functionally, but they must carry out these tasks differently, based on where the company operates. The vital task is to build distinguished overseas market organizational units while managing activities throughout the entire business (Markgraf, 2018). 

As frequent changing of its internal structure can increase the costs of the company and shifting its strategies will make it difficult for the employees to adjust to the changes (Mendy, 2018). Although it is advised to establish an organizational structure that refers to the entire institution, that is quite feasible. The individuals in the department can identify the best organizational structure every organization has a particular structure because they have adapted it explicitly for them.  The export of products into different demographics and countries will help the business to identify the requirements in research and development and implement those changes for the future growth and expansion of the business.

Future organizational structure

After three the company is selling 50 percent of its output overseas, the organizational structure can be changed into new mergers. The company can choose the strategy of the merger as it is a small manufacturing firm and is at growing. Taking a huge step can result in a huge loss to the company. Mergers with the local firms will help the business to analyze the markets and develop the strategies accordingly (Nelson, 2018).  Further, there will be structural changes in the organization concerning the changing requirements. 

There is a lot to attributes that a company needs to consider before structural changes. The company will first have to focus on pre-merger diligence Premerger Due Diligence Review all companies 'structures and compares the mandate and the organization's long-term goals (Howson, 2017). Analyze the hierarchical structures and reports to see the challenging and syncing of structures. Upon completing an initial assessment, appoint an interoperability team to discuss what functions and what does not and work for the corresponding systems with fundamental staff. Make provisional choices on which features the new enterprise finest supports ( Bonaime, Gulen, & Ion, 2018).

Modifying an organizational structure by fusion requires far more than establishing a fresh organizational map. While that graph reflects choices on how the staff of the new business interacts and decide, this is typically done in various stages. The first stage understands that staff on both companies recognizes the orientation and the meaning of the company. The second stage is to adopt new responsibilities and to develop new methods to get people working at all levels, as the Interoperability Team builds new connections and staff. Over the last stage, the fusion and the fresh body are completed. 

Conclusion 

Structural changes in an organization are not an easy task.  There exist a lot of strategic implications. Therefore, the company must carefully analyze and plan its growth strategy.

REFERENCES

Bonaime, A., Gulen, H., & Ion, M. (2018). Does policy uncertainty affect mergers and acquisitions?. Journal of Financial Economics, 129(3), 531-558.

Chestnut, D. (2017). [online] Bizfluent.com. Available at: https://bizfluent.com/facts-6942091-organizational-structure-manufacturing-company.html [Accessed 20 Sep. 2019].

Howson, P. (2017). Due diligence: The critical stage in mergers and acquisitions. Routledge.

Markgraf, B. (2018). The Organizational Structure of a Multinational Company. [online] Smallbusiness.chron.com. Available at: https://smallbusiness.chron.com/organizational-structure-multinational-company-61542.html [Accessed 20 Sep. 2019].

Mendy, J. (2018). Reflections on Employees’ Lived Experiences of Organisational Change.

Navarro-García, A. (2016). Drivers of export entrepreneurship. International business review, 25(1), 244-254.

Nelson, T. (2018). Mergers and Acquisitions from A to Z. Amacom.

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