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North South University: Mba/Emba Program SPRING-2021 Sub: International Business (EMB 670)

Formulation of competitive strategies and organizational design should proceed simultaneously for core business activities. Competitive strategies define markets and ways of competing, while organizational design ensures worldwide business activities are integrated efficiently. There are five elements of competitive strategies for international business - home replication, multidomestic, global, transnational, and regional. Organizational design proceeds along four dimensions: product expertise, geographic expertise, clientele expertise, and functional expertise. Key organizational structures include product division, geographic division, functional, and international division. Both competitive strategies and organizational design are important for determining goals and assigning responsibilities to achieve them.

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Aminul Islam 2016209690
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15 views3 pages

North South University: Mba/Emba Program SPRING-2021 Sub: International Business (EMB 670)

Formulation of competitive strategies and organizational design should proceed simultaneously for core business activities. Competitive strategies define markets and ways of competing, while organizational design ensures worldwide business activities are integrated efficiently. There are five elements of competitive strategies for international business - home replication, multidomestic, global, transnational, and regional. Organizational design proceeds along four dimensions: product expertise, geographic expertise, clientele expertise, and functional expertise. Key organizational structures include product division, geographic division, functional, and international division. Both competitive strategies and organizational design are important for determining goals and assigning responsibilities to achieve them.

Uploaded by

Aminul Islam 2016209690
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NORTH SOUTH UNIVERSITY

MBA/EMBA PROGRAM
SPRING- 2021
Sub: International Business (EMB 670)

Assignment: 02
Name: Aminul Islam
ID No.: 2016209690

1. Between two core business activities – Formulation of Competitive Strategies and


Organization Designing, which one precedes which or they may proceed simultaneously?
Briefly answer.

Ans: Formulation of Competitive Strategies and Organization Designing both are needs to
proceed simultaneously for Core Business activities.
There is a triangular relations among Organizational Design, Competitive Strategy and
International Environment.

Competitive Strategies defines the markets in which it operates and the principal ways it
competes. An important part of this process is what business it is in. This choice is crucial
because it sets the direction the organization’s strategy will eventually take.
Competitive Strategies advantage distinguishes a company from its competitors. It contributes to
higher prices, more customers, and brand loyalty. Establishing such an advantage is one of the
most important goals of any company. In today's world, it is essential to business success.
Organizational design is a process that deals with how an international business should be
organized in order to ensure that its worldwide business activities are able to be integrated in an
efficient and effective manner.
Organizational structure and design helps improve communication, increase productivity, and
inspire innovation. It creates an environment where people can work effectively. The larger
an organization grows, the more need there is for formal structure, defined work assignments,
and clear lines of authority.
2. Precisely identify the elements of key business decisions in the preparatory
stages and core business processes of  Competitive Strategy Formulation and Designing
of Major Global Forms of Organization (Identification of the nature of decision making
without detailed elaboration will be preferred)

The purpose of Formulation of Competitive Strategies is to discuss how international strategies


can be a source of global strategic competitiveness.
There are five key elements competitive strategies for international Business. like Home
Replication Strategy, Multidomestic Strategy, Global Strategy, Transnational Strategy, Regional
Strategy (semi-multi-domestic Regional & semi-global Regional).
International businesses have the ability to exploit five sources of competitive advantage
unavailable to domestic firms.
The home replication strategy is applied when there is little or no need for flexibility or
standardization. This strategy aims to open up additional international markets without major
adaptations for products primarily developed for domestic consumers.
Multidomestic Strategy that enables individual subsidiaries of a multinational firm to compete
independently in different domestic markets. The multinational headquarters coordinates
financial controls and some marketing policy, and may centralize some R&D and component
production.
As international activities have expanded at a company, it may have entered a number of
different markets, each of which needs a strategy adapted to each market. This is called a global
strategy. like Gucchi sells essentially the same products in every country.
An international business structure where a company's global business activities are coordinated
via cooperation and interdependence between its head office, operational divisions and
internationally located subsidiaries or retail outlets.

When a company is expanding operations into a new country, it needs to carefully consider
which strategies it should employ. One such approach is a regional strategy, which starts when
the company gains a foothold in one country, and then it leverages its strengths across borders to
expand into the region as a whole.

Organizational design proceeds along four dimensions: Product or technical expertise


concerning the main product or business of the IC.
Geographic or regional expertise regarding geographic regions where the IC operates its
business or subsidiaries are located, Clientele or market expertise concerning clientele or market
segmentation and Functional expertise concerning functional areas like finance, HR, marketing,
corporate administration
Product Division Structure: These are popular among international companies with diverse
products. Similar products are grouped under one product head e.g. Perfumes and Cosmetics,
each focusing on a single product segment for its global market. This Structure Suited for a
global strategy there may be duplicate functions and activities among divisions. There is no
formal means by which one product division can learn from another international expertise.

Geographic (Area) Division Structure: These are used when foreign operations are large and
not dominated by a single country or region. It is useful when managers can gain economies of
scale on a regional rather than on global basis. There is drawback is the potential of duplication
of work among areas as the company locates similar value activities in several places rather than
consolidating them in the most efficient place.

Functional Structure: Specialized jobs are grouped according to traditional business functions.
This Structure Ideal for Company. Having a narrow product line, sharing similar technology. It
Helps maximize economies of scale and highly efficient.

International division structure: Grouping each international business activity into its own
division. It creates a critical mass of international expertise & Creates quick response to
environmental changes enabling them to deal with different markets. By this Structure Prevents
duplication of activities & Often struggles to get resources from domestic divisions. This
structure is suited for multidomestic strategies that demand little integration and standardization
between domestic and foreign operations.

Formulation of Competitive Strategies is important to determining and establishing the goals,


mission and objectives of an organization, and identifying the appropriate and best courses or
plans of action among all available alternative strategies to achieve.
And Organizational Designs also assign responsibility, organize workflow and make
sure important tasks are completed on time.
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