INTERNATIONAL BUSINESS MANAGEMENT

THEME: INTERNATIONAL
BUSINESS FUNCTION
PRESENTED BY GROUP 5

ADITYA SAWHNEY (143004)

DIVAM ARORA (143005)
AKARSH KUMAR PANDEY (143006)
CHIRANJEEV RANA (143012)
CHITLIV KAUR (143013)
RADHIKA SONDHI (143035)
SANJIL (143046)
SHWETA VEENAY REVANKAR (143052)
UTTAMVIR SINGH VIRDI (143057)
UDITA CHATTERJEE (143111)
 ARTICLE
“HAVE YOU RESTRUCTURED FOR GLOBAL SUCCESS”
 ORGANIZATIONAL RESTRUCTURING

 Many companies believe that winning in emerging markets is a matter of localizing

customer-facing businesses but this is not the case anymore

 The growth of China and India as lead markets and as talent pools, coupled with

advances in technology, have enabled companies to optimize for success abroad by

geographically dispersing strategic functions

ORGANIZATIONAL STRUCTURES

● FRONT-END/BACK-END- country specific sub-units

● MATRIX- two reporting relationships , product or region &

functions

● TRANSNATIONAL- each countries operation specialized

in a part of value change

 FALLING INTO GAPS

 The rise of the Chinese and Indian markets

 Top management teams main composed of people from western economies

 Cannot fully understand the culture and the markets of developing countries
T-SHAPED COUNTRY
ORGANIZATION

 Front end processes need more autonomy

 Backend processes need to be collocated to foster global

development

 Differences with transnational structure: each country

will be responsible of a part of function not the whole

function
 CASE STUDY
CAN YOU FIX A TOXIC
CULTURE
WITHOUT FIRING PEOPLE?
 PROBLEM IDENTIFICATION

 Franklin Climate Systems based in Aurora, Illinois was the poorest performing unit of FB Holdings

 The culture of the organization had turned “Toxic”

 Employees were extremely low morale and widespread disengagement

 People weren’t communicating across departments

 People quitting or threatening to quit all the time.

 HIT THE RESET BUTTON

 Management is thinking about layoffs

 Reducing overhead can make the bottom line look better

 Increasing operational efficiency is key

 Management wants people to be positively motivated towards work

 RECOMMENDATIONS
LAYING OFF AT SOME POINT
OF TIME
o Company needs a fresh start
o Business success doesn’t lead to a positive
culture
o Company should have people who believe in
our company’s values, not ones entrenched
in the toxic culture
KEEPING PEOPLE ON-BOARD
o Setting a new vision for the company
o Managers should be transparent with
employees about the company’s financials
o Engaging employees in the new vision
o Identifying employees who are eager to help
change the status quo
 CASE STUDY:
ELIMINATE THE MIDDLEMAN
 PROBLEM IDENTIFICATION

o USTech is concerned with the long term viability of using TaiSource as their exclusive supplier
o USTech needs to construct a sustainable sourcing solution that solves their worries of only having
one supplier
o USTech needs to develop a new sourcing strategy while considering issues with using an Original
Design Manufacturer (ODM) and ensuring quality and design protection.
o The potential value associated with cutting cost and protecting USTech designs does not come close
to the risk of losing USTech’s only supplier
o In addition, USTech would incur logistical and other hidden costs and TaiSource could even become
a competitor by entering into the Chinese market
 SITUATION ANALYSIS
Scenario 1 : End partnership with TaiSource and search for new supplier
ADVANTAGES
 Potentially cut costs and increase margins
by going direct to another supplier
 USTech might secure protection of design
and operations
DISADVANTAGES
 TaiSource becomes a competitor
 TaiSource has a lot of USTech designs
 Takes a long time to establish trust and
communication with new suppliers
 Will lose TaiSource’s quality manufacturing
standards
 Logistics, administrative and other hidden
costs increase
 SITUATION ANALYSIS
Scenario 2 : Continue to source from TaiSource

ADVANTAGES DISADVANTAGES

 Will be able to take advantage of TaiSource’s  Continues using an exclusive supplier

world class research and design
 Opens the door for TaiSource to start their
 TaiSource is offering to integrate their supply
chain own brand off of USTech designs

 Cost savings  Further integration of R&D increases

TaiSource’s knowledge of USTech operations
 SITUATION ANALYSIS
Scenario 3 : Add another supplier on top of current sourcing with TaiSource

ADVANTAGES DISADVANTAGES

 Increases Flexibility/Reactiveness  Operating cost will increase if suppliers are not

integrated within USTech’s network
 Reduces Risk
 Keeps TaiSource as a viable threat/ but also an
 Decentralizes supply base asset

 Allows development of relationship with a

new supplier

 Eases the transition of phasing out TaiSource

Recommendation
➔ Based off of our analysis we recommend alternative three. This option gives USTech the advantage
of keeping TaiSource and the advantage of increasing the supply base.
➔ Continuing to use TaiSource ensures the high quality that USTech is used to and the low cost of
current production.
➔ By increasing the supply base the company can mitigate risk, increase flexibility, and begin
relationships with a new supplier.
➔ This will allow USTech to maintain market share and profitability when reacting to a supply
disruption.
➔ USTech needs to select a supplier with similar characteristics with TaiSource in order to allow them
to integrate in to the USTech network. Also, TaiSource has proven to be trustworthy, high quality and
in line with USTech interests. These things need to be focused on while considering a new supplier.
 CASE STUDY
WORLD CLASS BULL
 MAIN POINTS ABOUT THE CASE

 Chris "Fort" Knox befriended the CFO of Armadillo Gas and Power, a company whose account
was sought after at his company (SFS) with the intention of trying to land the account
 Chris mentioned that he was "not that familiar with Armadillo Gas, but maybe [they] don’t need
the high-level services SFS can offer. Maybe SFS is more expensive than what [Armadillo Gas
has] now"
 Through the initial encounter with the CFO's wife, to the CFO himself, and additional
"accidental" encounters, Chris was able to land the account
 Chris manipulative scheme in landing the contracts with Dale thus breaching the code of ethics
that is deceptive business practices
 Jeremy's action of sending a mail disrespecting the customer and encouraging deceptive
business practices breaching code of ethics
 UNETHICAL ACTIONS

● Not mentioning the extent to which he knew about Armadillo Gas and Power

● Failing to mention, in some way, that his intention was to interest Dale in getting into a contract with SFS

REASONABLE AND ETHICAL ACTIONS

● Disclosing the company that he worked for

● Telling Dale that then SFS sales people that were trying to get his business worked another territory

● Letting Dale know that the services offered by SFS would be superior to the services he was currently receiving
 CONCLUSION
● Chris' actions were towing the line between ethical and unethical behavior. However, Dale didn't ask to sign a

contract when he finally got in contact with Chris; he asked Chris to set up a time to Pitch the idea to him

formally. Dale's choice to go into a contract with SFS wasn't because Chris coerced him, Chris simply made the

services more appealing to them by putting a friendly face to the company

● With that being said, Chris' boss and VP of Sales, Jeremy, should be reprimanded in some way for emailing the

tactics by which Chris landed the account to everyone in the office. Jeremy should have known that although

Chris' actions landed the account, they could put SFS in a position to be sued by the Landry's and that his

behavior shouldn't be encouraged to land future sales

POSSIBLE CHANGES TO SFS CODE OF ETHICS

● Sales Force has to make it known who they work for and why they are contacting the person

● No intentional surveillance of prospective companies

THANK YOU