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International Business Management - Assignment Example

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The mutual agreement sets in to aid in mutual benefits and understanding that transform the organization’s business activities. With the escalating globalization trend, there is an urgent need for…
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"International Business Management"

Download file to see previous pages Through such collaborative practices, there is an increase in productivity levels.
Essentially, such alliances are detrimental to an organization for various reasons. First, they spur out organic growth. Such growth is not enough for an organization to achieve its stipulated mandate. It further speeds up the marketing process for the produced goods. In addition, many businesses are on the verge of embracing diversification of services and goods. No one business can fully be at the dispensation of having all-around skilled human resources. Hence, such alliances bring up elements of skills exchange. Moreover, there is an established trend of research and innovation, making the firm competitive globally.
It becomes easier for the business to venture in the market, as its operational base is stronger. Advancement in technology, ICT, and transport makes the entry point easier. Venturing out in the international market may be quite a complicated and expensive process, but there is cost reduction in case of two firms. It is easier to overcome many obstacles such as hostile policies and competition. Shared knowledge and risks add up to become as strength to the firms.
Decentralized Federation applies when companies that are trying to expand in foreign countries are faced with domestic competition. Therefore, they require coming up with multinational strategies with a decentralized federation. Therefore, the requirement to form local production facilities, and to ensure that this local unit becomes increasingly independent. The internal culture of this organization should be able to embrace personal relations rather than formal structures, and economic controls more than technical/operational details. These local units have more functioning independence and strategic freedoms from their headquarters, and they are managed as a collection of an offshore investment instead of a single worldwide business.
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