Strategy Structure In International Business

Discuss About The Strategy Structure In International Business.

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Strategy is the scope and direction of an organization for achieving long-term advantages through configuration of its resources and capabilities in the challenging environment of the industry. It is about determining choices to develop sustainable competitive advantages in the market. Organisations are required to determine these choices in order to sustain in the marketing and making profits. A business strategy provides workable direction for competing in the market. This paper describes the critical reviews of journal articles related to the business strategies adopted by different organizations and their effects. It contains the different view of the different author about their research and their applicability in the development of business strategy.

Article 1

Organizational Culture and Strategy. How Does It Work? An Empirical Research

Date of Publication/Volume and Issue.                 

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2013, Vol. 22(1),

Author

Vele Cristian-Liviu

Purpose

This article provides an empirical and theoretical view on the importance of having a    vibrant organizational culture, formulated to introduce new and innovative strategic creativities. According to this paper, a changeable or dynamic organizational culture, attentive on enabling strategic edges to influence its members to take initiatives in creating and introducing strategies with a view to achieving sustainable economic advantages.

Theory

For this purpose, a systematic study was carried on various Romanian companies working in construction industries. The purpose of the study is to find out the interrelations between a favorable strategy and culture. To examine organizational culture as an intangible factor or element, Author has used Tony Morden Analyses, which shows five main variables that affect the organizational culture. The author analyzed all those five elements namely vision, value judgment, behavioral standards, value system and norms regarding priorities, wishes and needs.

Methodology

The research introduced in this article is a small part of the wider concept which is known as organizational culture and management strategies. This paper is based on the construction industry of Romania and describes the relationship between organizational strategy and its culture. The results are based on the data derived from eight Romania’s construction companies. Author has used two questionnaires, one emphasis on the organizational culture and second describes the strategic functions performed by the organization. The first questionnaire of organizational culture is focused on recognizing the cultural discriminations existing in the internal environment of the company. It also describes the degree of supporting the strategic oriented vision by the organizational culture.

Data Analysis

To know the strategic functions, the author has soughed out to estimate the strategic efforts made by the organizations in their process finding out competitive advantages. According to the author, he has used questionnaire tool for the study because the high amount of information and facts can be driven by this method, and information obtained from questionnaires is standardized and can be used to get accurate statistical data.

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Conclusion

In the present scenario, it is required for companies to introduce new ways to adopt competitive environment so as to grab opportunities to ensure the growth and development. This paper concludes that however, it is difficult to adopt new strategy because whenever things are changed within the organization, it becomes the cause of employee’s opposition. This study shows that management of the organization is required to ensure the success of organizational culture so that organizational goals can be achieved automatically.

Use

This article is useful in understanding the problem which occurs due to the cultural differences and recognizing the methods and approaches for eliminating those issues permanently. Using theories and finding of this article, one can develop a healthy cultural environment in the organization.

Article 2

New Perspectives on Strategic Management Process

Date of Publication/Volume and Issue

2013

Author

Pop Zenovia Cristiana, Borza Anca

Purpose

In this paper, the author has discussed and explained the evolution of strategic management with its advantages and disadvantages from a theoretical outlook. Author has described the whole concept in three sections in order to facilitate the managers a framework to achieve effectiveness and examine organization’s position.

Theory

As stated above, the article contains theoretical framework in three stages so that it can be easy for Romanian and foreign managers, to understand the concept and applying the same effect. The first section explains the need and importance of strategic management and its process. In second stage author has presented various evolution stages in Romanian enterprise and economy and also linked it with foreign economies. This framework is suitable for all kind of enterprise and easy to understand by the managers. By this framework, both Romanian managers as well as foreign managers are able to understand and evaluate the position of their enterprise and can take corrective actions.

Methodology

In this paper, quantitative method of research has been used by the author. It is so because while studying the industries of a particular country, it is essential to have statistical data in form of reports which can only be collected by using a quantitative method

Data Analysis

In this article, the author has also used secondary data sources to facilitate his opinion. These included journal articles, books, critical reviews and conference papers. Author has collected theoretical data from journal articles of Strategic management to explain the concept accordingly. Author has discussed all the concept in keeping view Romanian Economy but he also prepared this matter in a manner that can be used globally.

Conclusion

This article concludes that strategic management practices differ from company to company and one should formulate strategies for the business keeping in view the requirements and demands of the industry. However, some business strategies are same but are followed in a different manner like corporate culture and behavior or an organization. Organisations differ so the strategies are and strategies should be framed is such a way that there would be an ease for the employees in adopting the changes.

Use

The conclusion of this paper can be used to understanding new and competitive perspectives of strategic management and their impact on the business. The study is helpful in analyzing loopholes in old marketing practices so that these can be replaced by the new approaches.

Article 3

International human resource management strategies of Chinese multinationals operating abroad

Date of Publication/Volume and Issue

2013, Vol. 19(4).

Author

Di Fana, Mike Mingqiong Zhangb, and Cherrie Jiuhua Zhuc

Purpose

This article describes the Strategic International Human Resource Management (SIHRM) of Chinese Multinational Companies functioning overseas. In this study, the author tries to find out two conceptual issues related to SIHRM, characteristics of SIHRM of Chinese multinational companies and how its orientation helps in international investment and operations management of the company. The article also tells about the International human resource management strategies of Chinese MNC’s such as starting learning organization, trust on host-nation subjects, promoting best practices by merging host and home country effects and thus facilitating their international functions and operations.

Theory

In this research, the author has used significant theories to forecast and explain links between SIHRM and corporate strategies of Chinese MNC’s. A number of journals and scholar have studied various integrative SIHRM models named as ‘two logic’ model, ‘two dimensions’ approach that contains a market, product, and technological, social, legal and cultural dimensions. The author also provided theoretical framework developed by various famous authors, which enables to understand numerous industrial settings, external and internal effecting factors and country environments. These approaches and models are helpful in indicating relations between International strategies and IHRM. But, on the other hand, these have been censured by limitations, which describes an integrative aspect of SIHRM instead of introducing an IHRM Strategy

Methodology

Quantitative Method of research analyses has been finding out most suitable by the author for this study. This study is hypothesis and experimental and the research questions emphasis on what, why and how factors that disturb SIHRM of China’s MNCs. Multiple designs of case study have been selected as it is appropriate to the complicated process of internationalization.

Data Analysis

Three well known and powerful organizations of Chinese economy were chosen and to ensure rationality and validity of data, it was collected from two sources. Primary data was collected from Australian subsidiaries and headquarters, located in China. A secondary wave of data collection includes recheck the regularity of IHRM practices and ensure triangulation of qualitative data over a period of four years.

Conclusion

This article concludes that Chinese MNCs deliver perfect opportunities to know about the forms of their behavior that is there is the difference in the behavior of developed countries. Author has used the significant theoretical framework and research methods to know about the implications of international business.

Use

The results of this study can be used to understand the strategies and their implications which are required in MNCs for ensuring the growth and development of the organizations. A framework can be adopted from the results of interviews conducted as the Chinese economy is well developed and fast emerging economy.

Article 4

Strategy and Structure in International Multi-business Groups.

Date of Publication/Volume and Issue

2015, Vol. 45(4)

Author

Pierre Romelaer and Hanane Beddi

Purpose

This article tells about the strategies and organizational structure or International companies which are dealing with more than one type of businesses. It includes the problem faced by the international organizations which occur due to their multi-located offices and diversified workforce. The article also contains various models and frameworks to identify differences between two or more organizations

Theory

In this article, the author has described existing business strategies followed by the international multi-business groups and he also examined the ways which can be adopted for efficiently managing their businesses. This study focuses on developing some sense of the several models of MNCs and multi-business groups. This article explains the Integration responsiveness perspective in a broader sense in the context of managing the international business and its activities

Methodology

In order to support this article, the author has used theoretical models named as global integration or local responsiveness positioning model which aims at strategy orientation of multi-business groups. Author has also evaluated models from different authors as Porter, White and Poynter, Bartlett, and Ghoshal, to distinguish between the global and domestic firm and their workings.

Data Analysis

Author has used the qualitative method of research for this article as he evaluated the theories given by different authors and drawn his solution accordingly. Secondary data has been used for the preparation of this article. Author has used online journals and books for interpreting fundamental facts, primitive choices and thought views given by different authors for examining the effective management structure in multinational companies. The article contains that I/R tool is the best tool for integrated data analyses because it allows comparison nearly among thirty types of organizations and also enables to analyze similarities and differences among the same.

Conclusion

The conclusion can be drawn from this article that Multinational Companies faces a lot of problem regarding their management, culture, technologies. The also reflects that I/R tool is not perfect for integrated data analyses because of reasons mentioned. So before using I/R tools for analyses, one should examine all aspects of the business strategy and environment.

Use

Findings of this article can be used to understand the functionalities of MNCs and then it can be helpful in understanding the corrective management actions and strategies for such type of organizations.

Article 5

Culture-driven governance: Why influencing behavior is an essential governance strategy.

Date of Publication/Volume and Issue

June 2017.

Author

Karen Gately, Ryan Gately

Purpose

In this article, the author has explained a cultural and behavioral framework which is essential in improving organizational performance. The author described various approaches that should be followed by a different level of management to ensure the growth of the organization as well as its employees.

Theory

This article contains the theoretical framework of organizational culture and its effective management in terms of satisfying the needs of its employees and managers. Author of this article, is the co-founder of a firm, described various reason because of which people break the organizational rule and fail to meet their targets

Methodology

In this paper, the author has used the qualitative methodology of research because organizational behavior and culture is something, which can be measured in terms of quality. For this purpose, the author has collected information from the past records of the organization and the conditions prevailing in the industry.

Data Analysis

For this research, the author has used secondary sources of data which is, their experience regarding the cultural framework of the organization. Author has also used some online sources to understand the methods of creating a desirable culture in the firm. Most importantly author has seen the cultural perspective in sense of behavioral awareness among the employees.

Conclusion

A conclusion can be drawn from this article that ethical leadership should be continued with corporate governance in common. CEO of the company must be the first person to follow ethical and cultural behavior so that other employees may follow the same. It also concludes that amount of ethics offices is the connecting link among ethical values of governance, Chief Executive Officers and employees of the firm. According to this article, organizational values can never be imposed on the employees. Instead, these are required to be managed by a governance and its culture.

Use

The findings of this paper can be used to find out the prevailing culture and behavioral practices in the organization so as to take corrective actions for improving the same.

 

Conclusion:

After studying all the articles it can be concluded that business strategy in changeable from business to business. It contains various models and studies to support in the analyzing of a business structure so that corrective steps should be taken on time. It is the vast concept that is not easy to understand but at the same time, it is not impossible also. It can be understood by the detailed study of the different organization and their business model development techniques.

References:

Cristiana, P.Z. and Anca, B., 2013. New perspectives on strategic management process. The Annals of the University of Oradea, p.1573.

Cristian-Liviu, V., 2013. Organizational culture and strategy: How does it work? An empirical research. Annals of the University of Oradea, Economic Science Series, 22(1), pp.1690-1696.

Fan, D., Zhang, M.M. and Zhu, C.J., 2013. International human resource management strategies of Chinese multinationals operating abroad. Asia Pacific Business Review, 19(4), pp.526-541.

Gately, K. and Gately, R., 2017. Governance in practice: Culture driven governance: Why influencing behaviour is an essential governance strategy. Governance Directions, 69(5), p.271.

Romelaer, P. and Beddi, H., 2015. Strategy and Structure in International Multi-business Groups: Looking beyond Global Integration—Local Responsiveness. International Studies of Management & Organization, 45(4), pp.359-378.