|Prior to beginning work on this discussion, review Chapter 17: Leadership, Organization, and Corporate Social Responsibility in your text.Part 1:The goal in organizing for global marketing is to find a structure that enables the company to respond to significant differences in international market environments and to extend valuable corporate knowledge.Discuss at least three alternatives for global organization structure.|
For each one, explain the structure and some of its advantages and disadvantages for global operations.
Evaluate the importance of creating the balance between autonomy and integration in various global organization structures.
Part 2:Consumers throughout the world expect that companies conduct business in an ethical and socially responsible way. Socially conscious companies should include human rights, labor, and the environmental issues in their agenda.Identify at least three ways global companies can demonstrate their commitment to CSR.
Provide an example where a specific company, other than Starbucks, demonstrated commitment to CSR.
Your initial discussion post should be 250 words. Cite your textbook and any other sources used to support your ideas. You may refer to University of Arizona Global Campus Writing Center’s APA Style resource.
Alternatives for Global Organization Structure: Structure, Advantages, and Disadvantages
1. Ethnocentrism: Firms with an ethnocentric strategy view the world from a home-country perspective (Rudd & Lawson, 2007, p. 10). Foreign operations are taken as secondary to home-country activities and managed to support and strengthen the objectives from the home country. In this structure, a firm exports business processes from the home country to foreign operations.
Advantages: It enables effective control by the firm’s head branch over the branches operating in different countries. It avoids the need for a well-developed local labor market. It enhances communication between the host and the parent company.
Disadvantages: There is a very high rate of failure. Cultural clashes may occur among executives from the two countries. It is challenging to train and guide employees from a distant region from the parent country.
2. Polycentrism: This marketing approach considers each culture as a unique entity. Firms using this approach develop strategies that fit the unique characteristics of individual countries (Shaw & Onkvisit, 2008). In this case, a company makes decisions on a country-by-country basis. The needs of the host-country subsidiary get prioritized over those of the home-country headquarters.
Advantages: Success marketing under this approach allows the development of promotional strategies unique for each country.
Disadvantages: The independence of each subsidiary can hinder a unified leadership. There is potential fragmentation of production and supply.
3. Regiocentricism: This approach views the world from a regional perspective. Countries within a specific geographic location share some cultural values and norms (Kangas, 2012). Thus, negotiation with one nation would be under the influence of the needs of firms in other countries within the same region.
Advantages: There is a culture fit. It is less costly to hire the natives of the host country. The managers work better with the shared beliefs and culture in the region.
Disadvantages: Communication barriers could occur due to language differences. There may be some confusion between global and regional objectives.
The Importance of Creating the Balance Between Autonomy and Integration in Various Global Organization Structures
A firm can rotate between high autonomy and high integration depending on the needs at a particular time. Although it is necessary to ensure all units are on the same page, some degree of autonomy should exist to foster innovation and creativity among staff. Integration is not permanent and is common in temporary projects for a shared goal. Autonomy relieves pressure and allows subsidiaries and managers to tackle unique problems with unique solutions.
A global company can demonstrate commitment to CSR through diversity, equity and inclusion, charitable global giving, and environmental initiatives. A global company may create policies that allow the recruitment of employees from various backgrounds (race, religion) and ensure their rights are protected. It can give to the poor or victims of war. It can also engage in activities that protect the environment, such as supporting environment protection agencies with funds and reducing carbon footprint. Nike’s Made to Play campaign reached more than 16 million kids globally in 2018 (Nike, 2018). The impact of this campaign was significant. 3,800 Nike retail employees in 30 countries spent more than 50,000 hours leading sports programs for local youth. The company also teamed up with five schools in Berlin in 2018 to bridge the world between local and migrant children, offering thousands of refugee children an opportunity to sport.
Kangas, L. (2012). Expatriation and cross cultural training.
Nike. (2018). What does a year in getting kids active look like? Nike News. https://news.nike.com/news/nike-made-to-play
Rudd, J. E., & Lawson, D. R. (2007). Communicating in global business negotiations: A geocentric approach. SAGE Publications.
Shaw, J., & Onkvisit, S. (2008). International marketing: Strategy and theory. Routledge.
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