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8/6/2019 Vignesh Summary
1/2
Assignment:
Chapter Designing organization for international environment.
Case Study: Top Dog Software.
Chapter summary:
Globalization has become buzz word. Definition: a process by which regional
economies, societies, and cultures have become integrated through a globe-
spanning network of communication and trade.
It is almost inevitable to look beyond domestic boundary. After gaining substantial
experience in domestic field, to maintain the sustained growth rate organization
move beyond boundaries and utilize available resources, cost of labor and new
market for their products.
In early stages, export is small division just like another division within the
company. As company grows, complexity increases and every company try to
address these problems in unique way and mold organization structure to suit their
needs.
Author has discussed about four models depending upon the responsiveness and
centralization/control. And, general trend shows that domestic culture defines the
organization structure. Like Japanese culture is visible in their organization structure
i.e. pure centralized approach, Similarly Europe adopts decentralized approach and
each subsidiary has right to take its own decision and implement strategy. USA
follows Formal approach.
Author mentioned additional model called Transnational Model .e.g. Philips suitable
which has operations across world and want to exchange best practices,innovations different geography and yet keep the cost low. Although it is very
complex design but every organization design their structure according to their
needs and overall vision.
Case-Study:
8/6/2019 Vignesh Summary
2/2
Top Dog is Start-up Company. They launched CRM software within US market and
they have been pretty successful until now with revenue of $4 million. However
another company from UK is releasing beta product which can hamper their market
share significantly. Senior managers are discussing the feasibility whether to move
outside US or concentrate strictly within US market.
Analysis:
Competition can come from domestic market or from international market. As of
now, it is emerged from UK. Their size is still small so it is easy to adapt change.
Operating in another country is difficult since legal, cultural and market condition
will be totally different than US market.
I propose:
Since it is not capital intensive industry, it is better to enter into these markets
alone.
Start separate division for international market specifically for Europe in UK or some
other country and for Asia where demand is more.
Hire local person who has already build reputation and experience in building the
company from scratch.
Top Dog software can define broad strategy and vision to international team.
However, give full autonomy to operate in their respective market.
Regards
Vignesh Alagappan