Report Module Topic 7-12 International Business Management Essay

Report Module Topic 7-12 International Business Management - Essay Example International Business Organizational Design 13 4.1 & 4.2 Different types of Organizational Design & Benefits 13 5. International Strategic Control Issues 14 5.1 Control Process of International Business 14 5.2 Control Problems in an International Business 15 Conclusion 16 References 17 Executive Summary The study deals with the implementation of international strategic management process that is undertaken by the firms who are planning to expand its business by entering into foreign market. The report also indicates the problems that are faced by the firms in undertaking the process and the ways to rectify it. It also elaborates the type of entry modes through which the firms penetrate into the foreign markets. The firms are also responsible for undertaking social activities so as to continue their operation ethically. The firms often face problems because of the exporters in such a case they must take few initiatives to improve the situation. The initiatives are elaborated in the r eport. The report will also highlight the risk associated with operational process and planning while the management of a company tries to adopt varied internationalization mode and approaches. The author of the report will focus on the importance of the organizational design and its impact on the organizational outcome. ... Introduction International strategy making is more crucial and complex than the strategies that are made by the domestic companies. The manager of the firm who is entering a new foreign market has to deal with a number of governmental policies of the host country and take care of the conflicting demand between the domestic and the host country factors 1. International Business strategies and CSR 1.1 Steps in International strategic management International strategic management can be defined as the ongoing and comprehensive management planning process that aims at devising and executing strategies, which enables firms to compete internationally (Arnold, 2003). The steps are as follows: Foreign Market Analysis The foreign markets are researched carefully to get the picture of the overall condition of the market. Before entering the foreign market, the cost and benefits of the venture are assessed carefully by the firms. The risk associated with the business is also evaluated in order to safeguard their operation from beforehand. The investment banking corporations analyze the new foreign market before entering. Choose a mode of entry In the next step, the firm decides the mode through which it will enter the foreign market. The entry of the firms can be elaborated by the Dunning’s Eclectic Theory. The theory provides the firms with two modes of entry: FDI related mode and the non-FDI related mode. The theory gives the following advantages: 1) Ownership advantages identify the intangible and tangible resources that are owned by the firm. These resources grant them competitive advantage over their competitors in the industry. 2) Location advantage identifies the non-economic and economic factors that can influence the interest of locating production