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Classifying International Businesses

1. In looking at companies that do business in multiple countries, describe one of the four classifications that emerge based upon the interaction of local responsiveness and global integration. If others have already chosen some, try to choose one that has not been discussed yet. What types of businesses are most suitable for your classification, and why?

2. In looking at the company where you work, or one where you worked recently, explain how you would you classify it in terms of its orientation toward doing business internationally, and why. If your company is not in an international market now, if it were to expand internationally what classification would make the most sense, and why?

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In taking a look at companies that do business in multiple countries, one of the four classifications that emerge based upon the company's interaction with the local population and or local responsiveness, and global integration, a regiocentric classification can be used to aptly describe the operating procedures of such a company. Many types of businesses are suitable for this classification, due to the fact that a great many companies that do business in multiple countries, allocate the use of regional operations management, and engage in a high level of intra-organizational communication within the given region. In addition, regiocentric organizations also tend to hire a great majority of their staff from within the region with which the facility operates.

Businesses that are most suitable for regiocentric classification are fast food restaurants, telecommunications companies, general restaurants, department stores, hardware stores, hotels, and a host of other business organizations. These organizations are most suitable for this classification due to the fact that these organizations do a great deal of their intra-organizational management at the regional level and below, so that the directives that are communicated from the regional management office can be efficiently communicated within this area of operations, without undue delay and or disruption in the communications process. Nearly every aspect of the functioning of the organization is handled at this level, so that ...

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