Currently international management at PM Company consists of one person. What specific management principles and practices should PM Company begin to put in place that will assist the company as their international expansion plans move forward and their international business begins to grow?
There are four stages of Corporate Development and the organization structure is designed accordingly:
According to Richard L. Daft's
Birth or Infancy stage
In the infancy stage the entrepreneur starts the venture. There may be very less number of employees leading to the flat hierarchy. There is high level of cohesion and dominant role of the founder.
Youth or Growth Stage
Next stage is of growth or youth stage can be related diversification where one can go for expansion within the industry or related industries. Here the organization structure can be functional structure. There are large varieties of culture changes. There is emergence of middle management. Tensions and conflicts may arise in organizations.
Mid Life Stage
Under this the organization can be divided into various responsibility centers. There is an evolutionary and revolutionary change. There may be inertia in the organization.
Maturity and Decline Stage
The organization becomes very large and bureaucratic and may be time for restructuring. Major decisions may have to be taken and readjustment is necessary. The culture may act as a defense against hostile environment.
Case of PM
Our Organization is in Growth stage as it is a $25mn company. Right now it has functional structure where the International business is handled by the VP International sales. As it goes for the expansion strategy and will have more responsibility and may be treated as a profit center. Here the strategy may be of International expansion through franchisee or licensing the product. It may be treated as profit ...