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International business globalization
International business globalization
Culture change with globalization
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The XYZ, Inc. company is planning to move overseas to open up for the expansion of their business. The choice to expand may bring the company success or misfortune. The decision for organizational change as well as how using organizational life-cycle model for short-term and small-scale change for opening stores in Shanghai, China and for long-term would benefit the most through the use of Kotter’s eight-step model. This particular model of change will assist the organization be successful when opening the additional stores in Brazil, Russia, India, and China. By ensuring the results that these changes will have on each employee, manager, and executives within the organization will not only be accommodating and constructive, but ultimately beneficial and profitable.
Organizational life-cycle uses five phases of growth for any organization for change. These five phases are creativity, clear direction, delegation, coordination, and collaboration. Since opening store oversea can be first time experience and this model is being characterized as “crisis” it would best fit for companies starting new anywhere. Before expecting to expand more stores in different country, as executive, I would really work hard to bring all the success to this store so the other stores would be easily known internationally and have better business in future. In order to get to the international people to get to know the company better, it is best to start with creativity. The first step would be to pay more attention to customer feedbacks “styles of leaders and people are individualistic, creative, and entrepreneurial” (Weiss, 2.2). The market response is really important because it will give us idea as company to see what is needed for the consumers in...
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...ge should be reminded to new or old staff. If new leaders are needed or to be replaced for the change, the action will take to ensure that their legacy is not forgotten.
Using the Organizational life-cycle model for international store in Shanghai, China will help business develop while it falls in different stages of crisis. Like the textbook of organizational behavior mentions that Apple’s Steve Jobs had used this model of change to get his company grow and be well known in market faster and successful. Using Kotter’s model the company can promote small wins and it will give staff chance to take break and enjoy their effort and not having to put too much pressure. I believe that if you want to enjoy something for long-term, experience the quick appreciations and it is exactly what Kotter’s model of change does, so it is better model for change for long-term.
John Kotter, an expert on organizational change, conducted thirty years of research, coming to the conclusion that because companies do not completely investigate the whole picture when it comes to change, seventy percent of businesses crash by not finishing the change through to the end. For the reason that many businesses fail because of this reason, he created an eight-step process to help businesses succeed and move forward with their change (The 8 Step Process). This paper’s objective is to explain Kotter’s change process and link it to Target Canada’s decision to open in Canada, discussing what decisions fared well and the decisions that produced failure.
Bianchi, C. & Ostale, E. (2006). Lessons learned from unsuccessful internationalization attempts: Examples of multinational retailers in Chile. Retrieved January 11, 2011, from http://www.carlospitta.com/Courses/Gestion%20Financiera%20Internacional/Cases/Failed%20retail%20attempts%20in%20Chile.pdf
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
In his book, Leading Change, Dr. John P. Kotter communicates why organizations fail or succeed based on ten years of conducting research on more than 100 companies to see what contributed to their successful transformations and what hindered those transformations. “In October 2001 Business Week magazine reported a survey they conducted of 504 enterprises that rated Professor Kotter the number one “leading guru” in America.” The two significant aspects I took from this book were the reasons why change initiatives fail and an eight-stage process to lead the organization through a successful transformation.
When opening a business in an international realm, one must examine many factors including cultural differences and geographical locations. When opening a business in a foreign nation, one must examine the need for the product being offered, the acceptance of the product into the culture, and the most effective means of advertising. Disney opened its doors in Japan with much success; much of the success can be attributed to the Japanese culture being very fond of Disney characters. Disney decided to take the same methodology to Paris to open its new park in 1992, EuroDisney (Cateora & Graham, 2007).
In today’s ever changing world people must adapt to change. If an organization wants to be successful or remain successful they must embrace change. This book helps us identify why people succeed and or fail at large scale change. A lot of companies have a problem with integrating change, The Heart of Change, outlines ways a company can integrate change. The text book Ivanceich’s Organizational Behavior and Kotter and Cohen’s The Heart of Change outlines how change can be a good thing within an organization. The Heart of Change introduces its readers to eight steps the authors feel are important in introducing a large scale organizational change. Today’s organizations have to deal with leadership change, change in the economy,
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
Nowadays, organizational change has a serious implication for the survival of an organization (Furst & Cable, 2008). Change is critical, necessary, and has becomes a key factor to win the game.
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
From my understanding of what I have learned in my Introduction to Business class, to be successful at your business requires an entrepreneur to take risks in order to be successful. Once you have established strategies to counteract the risks there are more steps that should be taken in order to keep up and improve the business processes. In International Business, I have taken another approach with risks and that approach is to go global. Taking a chance to reach new markets and cross international lines to improve your business processes and productions as a whole. But how can you be sure that going global is the answer? Lets start by asking questions. You may wonder if you can still manage your businesses’ day-to-day operations if your headquarters are in the U.S. so far away and how will maintain control of costs and quality and still make and save the company money in the end. Practices that a business may use to help with the generation of more profit and saving are offshoring and outsourcing.
When organizational change proves necessary, all people at all levels of the organization should address change as a “how,” “what,” and “why” problem in order for the change to be sustained over time.
Global talent management plays a central role in improving employee engagement, commitment and retention rate at all levels through developing a strong international mindset (Sparrow, 2006). A separate operating units strategy is recommended, it would allow Cafe Expresso clearly focus on local needs and culture, thus, maximizing employee performance
Force of change is a positive factor that an organization must put in place in order to drive and develop the entire organization’s environment. In this process of change more of resistance factors will try to hinder the change. The organization in this case experiences a repulsive force which absolutely adheres to reserve the existing ways of handling of issues. In the process the firm faces the competitive challenges from other organization and in meanwhile diseconomies of scale. Organizational change process is the progression of a given institution, far from its present state and towards some desired prospects to propagate its performance effectiveness. The organization’s work strategy persistently changes for better. Afterwards, the members’ organization must acclimatize to organization’s forces of change in a bid to conserve its relevancy and effectiveness. Lewin’s force field theory of change serves as a convenient model in understanding the change process. The role of the organization leader is both intense and diverse. For the organization to propel in its management processes, the organization leader must adhere to his increasing responsibilities of change. The leader must be the primary catalyst to speed up the mechanism used to assure the members of positivity effect of change and the expected period of its existence.
One of the first scholars to describe the process of organizational change was Lewin (1974). He described change as a three-stage process that consists of unfreezing, moving and freezing stage. During the unfreezing stage the organizations become motivated to change by some event or objective. The moving stage is like implementation when the organization actually makes the necessary change. Furthermore the freezing stage is reached when the change becomes permanent. Organizational change has also...