Share
Explore BrainMass

Global Business - Entry and Exit Strategy

1. What is a type of organizational structure useful in entering a foreign country? What are some of the advantages of this structure compared to other types of structures? How will this structure facilitate the success of your organization's entry into a foreign country?

2. Describe one exit strategy that an organization can use when things go wrong in a foreign country? What are some of the issues which might prompt the implementation of an exit strategy? Summarize the impact of an exit strategy on the strategic planning for a global organization?

3. What factors which can contribute to a Global Business Failure of an organization? Explain the ramifications of a Global business failure to an organization. How can a global organization better prepare itself to protect itself against a global business failure?

Solution Preview

1. What is a type of organizational structure useful in entering a foreign country? What are some of the advantages of this structure compared to other types of structures? How will this structure facilitate the success of your organization's entry into a foreign country?

In my opinion, businesses should enter foreign countries with a lean organizational structure. The primary advantage of this structure is that it allows increased flexibility to organizations as well as less financial burden on the organizations to operate in foreign countries, especially in the initial period of their operations. It is important that businesses should enter foreign markets with caution and thus, should not invest in complex organizational structures straight away. With lean organizational structure, the organizations will be able to keep their cost structures low and will be able to operate in a more efficient and flexible manner. It will facilitate quicker decision making and better coordination among the subsidiaries and the corporate headquarters. This structure is certainly better than traditional structures in the sense that it does not involve multiple and complex layers of management and is extremely cost efficient and ...

Solution Summary

The solution analyses the appropriate organisational structure for entering the foreign market, detailing factors to watch that can lead to global failure, as well as an exit strategy. 778 words total.

$2.19