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 globespanning 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:

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