An organization can organize international trade in various ways. International trade involves the process or the stages through which an organization has to follow in pursuing some of its activities abroad. Therefore, in order for international trade to be more effective, it is important for a business to adopt the four organizational structures. This helps companies in organizing international trade and hence pursues their interests. These include the following: global products, functional, area as well as customer. Therefore, this division structure of the organization helps in providing a distinction between the domestic activities to those that are carried abroad. Basically, it contributes in creating a succinct in the international division and some of its own leader in the international market.
Therefore, it is important to consider the area for which the business is most active while considering the area at which to locate the business. Thus, international location of business should be divided into units that represent the nation for which the business is performing well. For example china and Thailand can be said to provide favorable location because of their wide market (Sullivan, 2007). In this states, there will be an established general leader who will be responsible in the process of controlling market activities as well as ensuring that the process of operation is made more effective. In international trade, area is an important structure. This is because; it ensures that each nation unit is able to carry out its own activities. For example Unilever is an international company that specializes in offering their products in international markets.
It has to develop its own functionalities. There has to be departments individual developed to ensure that a given unit is in a position to handle its business in the most effective manner. There has to be functioning departments that should specialize in marketing as well as in finance. Divisional leaders must have a wide array of business activities and develop expertise in that particular field. This is because, international business specialized in a given state endeavors at concentrating specialty and expertise in that particular division and hence its operations have to be effective. Thus, a given business unit has the independent to make its own choices; this includes either to reduce the cost as well as improve its efficiency.
In the international business, problems have to develop concerning a particular firm. A general national leader has to get support both financially and managerial from the home country. In this case, sources may be limited as well as development of a valid financial and technical support. This will affect trade in one way or another. Basically, the international leader at a particular country is responsible for all operations that take place in that particular country. In all participating country he has to ensure that good terms and customer satisfaction are developed. Thus, the international area structure is vital as it helps in the organization of the overall international operations in all locations (Sullivan, 2007). Thus, in this way, large geographical regions are served with the goods. A good communication is also developed leading to reduced costs as the business is more effective due to division of the business into unit areas.
In international trade, the large the number of firms to which the business if organized the greater the likelihood of the business to expand. In this case, the structure at which the business is best suited should be unique and succinct. The national market should be developed to suit the needs in the market (Cohen, 2002). For example in Europe and Asia, a firm will have to serve a greater number of nations in comparison to other places. Thus, the organization is likely to be more effective. In deed, international trade is more effective in a region where there are more and mixed varieties of political, economic and cultural differences (Masaki, 2004). Thus, participating countries in the trade have to bear some differences in order for the business to be functional.
Global product structure
In any organization structure and especially in international trade, the product should work to separate the world wide mode of operations. It should fit in the company’s location and serve the needs of the people in the area. For example, in a business unit where it is specializing in computer manufacturing, it should be more innovative to serve the needs of the popular there. In case of a Microsoft company, it should develop new style of internet and come up with new technologies (Sullivan, 2007). This will help to boost the trade in a particular location. In accordance to the needs of the population, the organization structure should ensure that in order for the product to reach global market and o well it has to have new style and freshness in the way it is being offered. Each product in a given unit will go through then process of division into both the international market as well as serve the market domestically.
This makes operation of the business easy. For example the mode of operation will then be duplicated to both domestic and international market.., thus, the cost of operation is hence reduced. In the case of marketing, research as well as development of the operation processes, both international and domestic markets will fir in the business and provide some form of uniformity. Every unit served by the firm is hence able to benefit. Homogeneity is also developed in product provision.
In the functional structure, the organization has to divide the chain of command in the areas where it is operating. This is between the locations and global products locations. Various leaders in the given divisions have to report to two bosses. This includes the president of the division where products are located. The second boss is the geographical president in that particular location (Sullivan, 2007). This helps in the unification of both the geographical location as well as areas where the products managers are located. For example Pepsico is an international company that has well organized functionalities. Moreover, decisions can be made and reached more easily that in cases where they are apart. Communication and division of labor is also possible. Therefore, the organization can hence perform more effectively both at the domestic market as well as in the international market which is the major focus. Coordination and operations can be made more easily as the products in every geographical area are easily availed. Responsibility for every unit manager as well as accountability for all the operations can be clearer and shred easily.
Customer is the most vital structure in both domestic and international business. Therefore, in every business trade, the main focus should be to address the needs of the consumers. Due to the changing lifestyle, taste and preference, an organization involved in global market has to come up long term strategies that aim at carrying out an extensive research on the trends in the market. Moreover, international trade has become more competitive (Masaki, 2004). Thus, the global product, area as well as functionalities have to focus on serving the customer more effectively and on time in order to have the guarantee of maintained market dominion.
With the increasing global business, international business has taken to in addressing the consumers’ needs. Consumer may be driven by global economy that may affect him negatively. Information and communication have been converged with the increasing use of internet. Thus, cross border forms of transfer and other factors relating to the business are vital to consider while carrying international business.
Seven-Eleven Japan Co. Ltd is a company in Japan. This company specializes in international business. Global economy has necessitated has increased competition leading to major focusing on consumers satisfaction. With the use of technology, it has become easy to manage a large network of business across the globe (Masaki, 2004). Thus, internalization of business has been core while placing value to the process through which their products reaches consumers. Consumer’s relations have also been a subject of concern to much international business. Consumer’s forms the basis upon which goods are produced and hence provide the market that enables the goods produced to be consumed and hence more demand is created. Thus, from the process of sourcing to the logistics, products are managed with the target to reach consumers at the right time and in the right form.
Notably, internalization of the Seven-Eleven Japan Co. Ltd has created a broad base covering all retailers as who facilitate the process though which goods reaches consumers. From the international market research, it has become vital for business to format all its stages. This involves operation of the systems, development of the products, the procurement process as well as managing the chain of supply.