Strategy And Structure Of International Business Essay

Strategy and Structure of International Business (Part 2), summary Firms expand on international level to increase their profitability. In order to maximize that profitability they must adapt their strategy to the structure and business environment. During this unity, I lean haw a firm can be organized and how it can choose the appropriate strategy according to its structure and environment. Also, I lean the different possibility of expansion which a firm can take and the advantages and risks of each possibility. In the paragraphs bellow, I present what I understand about organization of international business, the entry strategy in a foreign market and the exportation and countertrade. The Organization of International Business Organizational architecture is the structure of the organization, which include organizational structure, control systems and incentives and processes, organizational culture and people. An international business can be organized in three different dimension. A vertical differentiation, which emphasizes on where decision are made, a horizontal differentiation, which concerns the formal division of the organization and in the integrating mechanisms which focuses on the coordination of subunits. Based on the way a firm it organizes, a manager should identify which strategy is appropriate to its organizational structure. 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