Additionally, studies should be carried out for concluding if the company's products or services are adequate to a certain foreign market. For instance, a company wishing to sell beef on the Indian market where the cow is considered to be a sacred animal or an organization which designs white packages for its products sold in Japan where this color represents mourning will surely lead to collapse. Let's take, for example, the McDonald's case which has developed a successful transnational strategy. The king of fast-food chains has tailored its menus according to the gastronomic habits of the foreign markets it has entered. Just imagine the disastrous outcome of a hamburger with pork sold in an Arab country. In conclusion, molding over the foreign culture's requests is a must and this process may be facilitated by recruiting personnel from the respective country itself.
Moreover, a successful multinational should share its assets among subsidiaries by taking into account the most beneficial location and should design a structure that combines both geographic and product divisional characteristics (http://www.referenceforbusiness.com/management/Tr-Z/Transnational-Organization.html).
9) the main obstacles to change derive from the mechanistic structure of the company. This consists of a rigid pattern with many management levels, clearly established jobs, division of labor and top-down commands. It is considered to be appropriate for stable environments but as these don't exist anymore, mechanistic structures have become a certain path to failure (http://telecollege.dcccd.edu/mgmt1374/book_contents/3organizing/org_process/org_process.htm).Thus, the organization isn't able to adapt to changes as its stiff structure doesn't allow that. Moreover, the management has noticed a gap between actual and desired performance and this may be generated by exaggerate bureaucracy, work specialization that makes employees feel bored with their daily tasks and, consequently, not motivated, the lack of autonomy etc.
Consequently, in order to adapt to changes and respond to the stakeholders' desire, the company should redesign its structure from an organic perspective and should restructure activities according to the market's needs. This way, the organization will become more flexible and will save a lot of time that has previously been lost in unnecessary operations like obeying rules and respecting the chain of command.
10) the organizational life cycle comprises five stages: birth, growth (with its fast growth and slow growth phases), decline followed by renewal or bankruptcy. The second stage is characterized by a boost in sales and the emergence of new products and services which increasingly gain market adherence.
According to Greiner, each stage includes an evolutionary phase and ends up in a crisis which represents the debut for the next phase. Thus, phase 1 implies growth through creativity and culminates in leadership crisis. Phase 2 is based on growth through direction and ends up in an autonomy crisis. Within the framework of phase 3, the growth occurs through delegation and is eventually accompanied by a control crisis. Phase 4 focuses on coordination and culminates in the red tape crisis while phase 5 implies collaboration and may result in a crisis such as "the psychological saturation of employees which grow emotionally and physically exhausted by the intensity of team work and the heavy pressure for innovative solutions" (Johanssen, 2007).
In conclusion, the company is undergoing the growth phase in its early stage because of the fast pace at which growth occurs. The crisis faced by the organization refers to the lack of autonomy which may be inferred due to the "strong top management team" responsible for the positive outcomes. This dilemma can be solved by delegating authority to the managers situated on the basic and medium levels of the organizational hierarchy.
11) Production costs are said to be due to decisions made from the very beginning of the conception phase (70-80%), decisions made during the manufacturing process (10-15%) and post-production decisions regarding marketing, distribution, administrative issues and so forth (10-15%) (Crow, 2000).Consequently, if a company doesn't meet projections, either it fails to correctly estimate production costs or it spends too much on secondary issues like distribution,...
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