International Business Communication of Corporations - Research Paper Example

International Business Communication Name Institution Course Professor Date Table of Contents Introduction…………………………………………………………………………………….03 International Organisational Structures.……………………………………………………..03 Strengths, Weaknesses and Suitability of Different Organisational Structures....................05 Influence of organisational behaviour on an International organisation's structure, culture and performance.........................................................................................................................06 International Business Communications...................................................................................08 Features of an International Communication Strategy...........................................................08 Business Writing Conventions....................................................................................................10 Methods of internal and external international business communications…........................10 The use of spreadsheets and databases for international business purposes.........................11 Principles of Global E-commerce and E-business....................................................................12 Difference between global e-commerce and e-business………………………........................13 Advantages, disadvantages and use of international social networking and internet media for international business purposes…………………………...................................................14 Digital tools for International Marketing Purposes.................................................................16 Conclusion....................................................................................................................................17 Works Cited....………………………………………………………………………………......18 Introduction International corporations are faced with the complex business environment than companies that operates solely within their national borders. They need more options for organisational structure and strategy. Nevertheless, the link between business environment, organisational structure and strategy are fundamental to any firm (Morrison 2008, p. 252). Most of the management research has been mainly focusing on which element is the most important. Some have concluded that strategy is the most important as it determine the structure. Notwithstanding this, numerous challenges are faced regarding the management of people and activities as international corporations are expanded in different environments. The environmental changes that are witnessed call for organisations to be adaptive in their operations. There have been numerous organisational structures that have emerged as companies expand their activities on an international front. This report discusses international organisational structures, international business communications, and global e-commerce and e-business. International Organisational Structures The Multinational Enterprises (MNE) is the major driver of international expansion (Morrison 252). Operations of these MNEs may be conducted through various organisational structures. Indeed, it may be a subsidiary that is wholly owned and closely controlled by the parent company in the home country. It may also be autonomous units that operate independently. Furthermore, outsourcing or franchising models may be adopted in expanding operations of a company to international level involves low levels of ownership in a foreign country. The organisational structures and strategy that an international company choose vary and depend on many factors. These include the historical background of the company, differing environment of the home country and different strategic objectives (Morrison 252). The organisational structures that a firm used play a big role towards its success and achievement of the set goals and objectives. In fact, most international businesses fail because of inadequate organisational structures that create communication and control problems (Neelankavil 19). Organisational structures that are effective and efficient help international companies in the achievement of the necessary control and co-ordination of their globally dispersed operations. The global design that a company adopts must be able to integrate functional, product and area knowledge that are needed in order to compete effectively. Additionally, they assist in improving communications between the company headquarters and its subsidiaries (Neelanvil 19). In the development of an international organisation, no single approach exists. The philosophy of the corporation, its culture, industry, past experiences and the number of personnel it has dictates the kind and number of organisational structures that will be needed. An international corporation such as International Business Machines (IBM) can choose from a wide variety of organisational structures that best suits their operations. They include matrix structure, international divisional structure, functional structure, and geographic area organisation. IBM has several divisions that are located in several countries all over the world. The corporation needs to choose organisational structure(s) that will assist in running the business in a successful manner. In international divisional structure, the branch that is located overseas is an adjunct to the parent company (Aswathappa 358). The parent company handles all the international activities that are organised either by function, product or geographic area. The international division head has the authority over all the overseas subsidiaries and coordinates all the activities. In case of IBM, the vice-president usually carries out this function. In this kind of organisational structure, the international division allows a corporation to concentrate resources and create specialised programmes and activities that target international operations (Aswathappa 358). These are done while at the same time keeping these activities segregated from the ongoing domestic activities of the company. The international divisional structure is suitable to IBM because the activities of the corporation require a quick response to the changes in the business environment. Moreover, since the activities of an overseas subsidiary are under one head, it is easier to communicate and control the activities. Although the divisional structure is popular among many MNCs, functional structure is also used. Strengths, Weaknesses and Suitability of Different Organisational Structures The functional structure is formed on the basis of the major functions of a company. In this case, each functional department is responsible for its activities all over the world (Aswathappa 358). For example, the research and development of IBM are responsible for the worldwide R&D activities. This type of structure is used by organisations that are having narrow or similar product lines. The control of various functions in a firm is relatively easy and isolation of a problem in a functional area can be easily done by a manager. Geographic area structure has also become a popular international organisational structure for international companies. The company’s activities are organised through division of the world into various geographic areas. The responsibility of the business activities in each area is under a regional manager. The main advantage of this structure is that a geographic division can respond to the market conditions in a certain area more effectively than all the other structures (Aswathappa 358). The company that produce products not easily transferable across different regions of the world is likely to use geographic area structure. Otherwise, the product structure is most suitable. Product organisational structure is common among MNC. The responsibility of specific products all over the world is assigned by product design to separate operating divisions in a company. The global product divisions are operated by product division managers with considerable autonomy as profit centres. The product structure is suitable for a company that has diverse product lines or product lines are sold in several markets like IBM. IBM has several product lines such as software and hardware which may be arranged by using product organisational structure. This structure is beneficial as it allows major product line such as software to focus on the specific needs of the respective customers. Matrix organisational structure was needed in order to mitigate the disadvantages of the functional structure and capitalise on its advantages (Taylor 185). The other organisational structures such as functional and geographic have deficiencies in coordinating and implementing some activities of an international corporation. Matrix structure blends the elements of functional, geographic and product structures while clear lines of authority are maintained (Neelankavil 25). In this type of structure, a subsidiary reports to more than one group. Although the matrix is a complex organisational structure that at times slows down the decision-making process, it is easier for a company to balance resources when using this structure even when several active projects exist. Influence of organisational behaviour on an International organisation's structure, culture and performance The behaviour of the organisation has influence over the structure, culture and performance of an international organisation. Indeed, a key feature of an organisation that is successful pertains to its culture and performance (Mullins 740). The organisational manager should understand the nature and the importance of organisational culture and commitment of employees. The conditions of the workplace can affect the performance of employees. These conditions include organisational culture and structure. Vance and Paik (296) defined organisational culture as composition ‘of the set of values, beliefs, priorities and assumptions of an organisation that guide individual and organisational behaviour’. The development of organisational culture happens naturally through organisational members collective experiences. The organisational leadership can shape and change organisational culture through various comprehensive and systematic interventions. In fact, transformational leadership style changes the behaviour and thinking of organisational members which consequently influence its culture. Large MNCs such as IBM and Coca-Cola have multiple organisational sub-cultures in their various operations all over the world. Moreover, different sub-cultures can also exist within the same national boundaries (Vance and Paik 296). The global performance management activities of an MNC are heavily influenced by the MNC management. The top management of an international organisation consist of individuals of different backgrounds and experiences in most cases. The collective backgrounds and experiences of these individuals influence various performance management practices that are utilised in the organisation. The different backgrounds of managers and other employees are merged together in the development of organisational culture. Indeed, organisational culture determines the manner in which members of an organisation perceive and interpret their surrounding environment (Janicijevic 37). It can be manifested in different types of organisational culture as classified by Handy. Under his classification, there are power, role, task and person cultures (Mullins 740). Power culture entails few rules and procedures and decisions are largely taken on the basis of the balance of influence. Role culture works by logic and rationality (Mullins 740). The description of the job or the role in most cases is more important than the individual. In this case, the major source of power is the position. On the other hand, person culture focuses on the individual and any organisational structure are there to serve the individuals. Task culture is job-oriented and it attempts to bring together the ‘right’ people and resources (Mullins 740). It then utilises the unifying power of the created group. The organisation that has matrix organisational structure exhibits this kind of culture. International Business Communications International business demands for international business communication where business communicators all over the world are interacting with each other in a diverse and expanding global business communication environment. The innovations and telecommunication technologies that have been developed are facilitating international business communication. Moreover, the volume of international trade and globalised business operations has expanded significantly. The growth of business communication has led it to become a global multi-language system where business persons that have different levels of communication competence level interact with each other in both international and inter-cultural context. The communication practices of various corporations are not the same. International, global and translational corporations that have different structures and management adopt different communication networks when communicating with employees all over the world (Du-Babcock 70). However, the communication strategies that are used are basically the same. In other words, the steps in the development of a communication strategy for international businesses are not so different. Features of an International Communication Strategy The Civicus toolkit provides useful tools for the development of a communications strategy. Essentially, it is composed of features of an international communications strategy that must be included in a communications network in order to have an effective communication. The communication strategy that an organisation develops should be guided by the overall organisational strategic plan. In the development of a strategic internal communications plan, development of a long-term focus and identification of clear values for the organisation are the basic principles that should be followed (Civic 05). Moreover, specific goals for the communications strategy should be clearly defined and comprehensive, pervasive methods should be used. Consistency in the messages should also be adhered to. These principles are then used in the development of a communication plan by way of a step-by-step process. The first step in this process is to evaluate the entire organisation. Organisational mission and goals should be specific and are defined in a clear manner (Civicus 06). The organisational structure is then assessed and the people and positions making up the organisation. Organisational culture is identified in relation to the current state of communication. The communication tools used is used in assessing the communication needs. The next step is the development of a strategy as organisational characteristics are now familiar and are well known. In this step, the goal is determined; objectives and audience are defined, and tools and tactics are identified (Civicus 08). Furthermore, an implementation is developed after which finalisation of a communication strategy is done. The communication strategy is now complete and it can be implemented. After implementation, a communication plan should be monitored, evaluated and regularly updated. Business Writing Conventions Monitoring involves making sure that the communication tactics are implemented as planned and adjustments that are necessary are made. It is also important to regularly evaluate the benefits of the tactics as to whether it is helping the organisation achieves its objectives and the overall goal. The evaluation process reveals the problems with the communications strategy. The issues identified are then updated in order to address them. This can be achieved through modification of the approaches being used or new objectives are developed altogether. The communication strategy developed will be useful in business writing. Business writing uses certain conventions that are not common to literary writing. These conventions are based on the function that each document serves (Kuiper 01-02). It requires thoughtful analysis of its purpose and the needs of the audience. In addition, the message should be clear and free of grammatical and punctuation errors. Methods of internal and external international business communications In any business, whether domestic or internal, there are two types of communication, internal and external. Internal communication is a type of communication that occurs within an organisation while external communication is the one that involves the organisation and the public. In a nutshell, external communication can be thought as more important and beneficial to the organisation than internal communication. However, development of positive relationships between co-workers, superiors and subordinates is very important because they are a pedestal to the organisational success. Memos, reports, emails and policies are the methods that are used for communicating internally (Krizan, Merrier, Logan and Williams 148). Email is a faster way of communicating both internally and externally. The e-mail programmes vary in both the number and mail management tools that are included. Memos are routinely generated to remind or communicate to organisational members about different items such as a change in policies or update on certain events or meetings. Reports are generated on a regular basis and it includes annual financial statements that show the financial health of an organisation. Every organisation has different policies showing how operations are to be conducted and guides the behaviour of all the organisational members. The external communication that is carried out by international business organisations in a very effective manner can be carried out through advertisements, press releases, organisational website content and phone calls from customers. An international organisation such as IBM release press statements when it wants to communicate about a given issue to its stakeholders all over the world. It can be information on shares it wants to sell or a new product that has been launched. The details about different products and services offered by an organisation can also be found on the company’s website and it is normally updated in tandem with the current situation. Placing of advertisements on the mainstream media is the norm in an internal company as a method of external business communication. The adverts can cover a range of topics that includes its new products, policies, expansion of operations and change of management. In any modern internal business, there are phone numbers that customers can used to inquire about different issues. Customers can call to complaint about certain products or services and rarely do they call to compliment the company about its products and services. Furthermore, customers can call to inquire about availability and prices of various products and services. The use of spreadsheets and databases for international business purposes The current corporate environment is characterised by the large amount of information that organisations must scan for purposes sorting the ones that are important. Indeed, information is used for wide variety of purposes within an organisation. Planning and forecasting are the major functions of information. Planning is an important function to any organisation and it seeks to achieve its objectives and goals within the stipulated time. For example, the information that is contained in the annual financial statements is used to plan the future direction of the company and areas that needs to be improved. Information is also used for organising and controlling different organisational functions. In the recent times, spreadsheets and databases are increasingly becoming important to international businesses. Spreadsheets are used in the collection, organisation and processing of data and information. On the other hand, databases are used in storing, manipulating and searching records in various areas. Examples include customer databases and employee records. Network databases are important to the modern international business organisation especially large corporations such as IBM. Network databases are used to share information across national boundaries. Furthermore, businesses use databases to store information about customers, employees, inventory and products (Fulton-Calkins & Stulz 335). In most of the companies, spreadsheets are used for purposes of supporting information management pertaining to critical business processes. Spreadsheets are important as it enables an organisation in creation and storage of financial transactions and forecasts (Shelly & Vermaat 553). Moreover, it helps businesses accomplish their objectives and goals. Principles of Global E-commerce and E-business The advancement in technology and innovations has enabled development of electronic commerce (e-commerce) and electronic business (e-business). E-commerce and e-business are sometimes used synonymously. However, there are differences between them. E-business is broader than e-commerce (Ferran and Salim 03). Indeed, international corporations are carrying out a significant part of their businesses through electronic means. E-commerce is the exchange, procurement and distribution of products and services between entities over the internet (Ferran and Salim 03). Turban (07) defined e-commerce as a business model in which business transactions are carried out via the electronic networks. In most cases, it is through the internet. E-commerce includes the process of electronically buying and selling goods, services and information. E-commerce is more than just buying and selling. In fact, it encompasses electronic communication, collaboration, and discovery of information (Turban 07). E-commerce has significantly grown in the recent years and it is having a significant impact on the global business. This is partly due to the phenomenal growth of social networks such as Facebook, Twitter and Google+. Indeed, nearly all the international organisations have a presence in all these social networks. They used them in communicating with its customers and marketing and selling of their products and services. E-business is another phenomenon that is popular among internal business organisations. Difference between global e-commerce and e-business The development of digital networks and the social economy has greatly facilitated e-commerce and business. As earlier stated, e-business entails many things than e-commerce. E-business entails the use of electronic networks for purposes of coordinating decision-making and implementation of organisational production, marketing and management functions (VanHoose 07). Many organisations have established their own internal communication networks that are called intranets to enable its business units implement paperless transmission of information within the organisation. E-business refers to the automation of business practices. E-business does not imply e-business but e-commerce does imply e-business (Ferran and Salim 03). This certainly shows that there are differences between e-commerce and e-business. E-business is the use of electronic networks within an organisation while e-commerce is the exchange of goods and services between different parties in a market transaction (VanHoose 08). In this case, e-commerce involves processes entailing customers, suppliers and external functions including marketing, purchase of raw materials and sales. On the other hand, e-business covers organisational internal processes that include the development of a product, risk management, inventory management, finance and production. Additionally, the strategy of e-business is more complex and focused on the company’s internal processes than e-commerce. In general, e-commerce focuses on commercial activities while e-business focus is on wider business activities that link organisation with its suppliers, customers and Electronic Data Interchange (EDI). Advantages, disadvantages and use of international social networking and internet media for international business purposes The popularity of social networking in business has increased immensely over the last few years. A significant number of business functions are undertaken through mediated communication. In the global business environment, the significance of social networking in improving business activities is well documented. Social networking sites such as Facebook and Twitter are innovative and effective way of connecting organisational stakeholders (Kasemsap 185). Facebook provides a platform for marketing organisational products and services. In fact, it is a marketing tool for advertisement, new product diffusion and management of customer relationship. Social networks help in redefining identity of the organisation by branding it to its customers as well as potential customers who may be interested in organisational products and services. Social networking platforms provide an organisation with an opportunity to increase the business contacts and improve its business reputation. Additionally, it allows organisations to improve the kind of communication being undertaken through the dissemination of information to different stakeholders. Social networking has various benefits to an international business organisation. Social networks have the ability to facilitate networked conversations, sharing of information and solving problems (Kasemsap 189). In the workplace, social networking tools are capable of revitalising organisations through harnessing of collective intelligence. Organisations are using social media to interact with its stakeholders that share organisational interests and passions about different issues. These issues can attract a considerable amount of diverse opinions but through social networks interactions, organisations and their stakeholders are able to reach amicable decisions that are mutually beneficial. The use of social networks in the international business organisation makes it easier for customers to contribute their ideas, concerns and preferences in the process of designing new products, services and policies in the organisation (Kasemsap, 189). The customers’ contribution, therefore, improves the quality of products and services. Moreover, customers’ tastes and preferences are fully satisfied as the organisation produces goods and services that meet their needs and wants. Nevertheless, social networking has some disadvantages. The use of social networks for business purposes is prone to fraudulent activities by hackers especially in case the information being transmitted through these networks are sensitive. There is also a possibility of identity theft. Hackers may infiltrate the information on the company’s social networks and carry online scams that may damage the reputation of the organisation. It also leads to potential negative comments about the company from employees and customers who may be dissatisfied with the products and services previously offered by company to them. This harms the company’s reputation. International organisations are increasingly using social networking sites to increase their business productivity. However, it is not always productive and at times loses its productivity. Today, most international companies have intranets that are used for management of internal information and knowledge management. Indeed, the majority of these companies have transferred their executive and management information systems over the intranet (Daft 299). In this case, they are accessible to every organisational member that needs them. Intranets are capable of improving internal communication and unlocking of hidden information (Daft 299). Employees are able to easily and quickly find information that they need and share their ideas because of the intranets. Organisations such as Ford Motor Company and Nike are using the most advanced intranets which are linked to proprietary systems that govern business functions of the companies. Intranets have also enabled use of video and multi-media tools in the organisation. They are used in training new and the current employees about various processes and new ways of improving organisational productivity. Moreover, they are used by teams in fulfilling their assigned roles and sharing ideas and information with each other. Overall, intranets are widely used in the dissemination of information and management of activities within an organisation. Digital tools for International Marketing Purposes Marketing is very important to any international business organisation. In fact, the success of the majority of international business companies is dependent on their ability to market their products and services to the potential customers (Neelankavil and Rai 268). The products and services produced in a company are to be sold to consumers in the identified market. The marketing function plays a role in the selection of the target market and packaging and labelling of the company’s products among other functions. In general, marketing generates revenues for the company and is the source of its profits (Neelankavil and Rai 268). It is therefore not surprising that digital tools are increasingly used to market organisational goods and services. There are numerous digital tools that can be used for international marketing purposes. It includes Facebook, Twitter Ads and LinkedIN Ads. Facebook and Twitter can be used for building contacts database for marketing purposes. E-commerce and e-business platforms are also popular tools for international marketers. Conclusion Globalisation and rapid technological innovations are significantly changing management of many international organisations. It has led to increase in the volume of international business and growth of international business organisations. In any business, whether domestic or international, there are two types of communication, internal and external. Internal communication is a type of communication that occurs within an organisation while external communication is the one that involves the organisation and the public. The development of digital networks and the social economy has greatly facilitated e-commerce and business. In the global business environment, the significance of social networking in improving business activities is well documented. Social networking sites such as Facebook and Twitter are innovative and effective way of connecting organisational stakeholders (Kasemsap 185). Marketing is very important to any international business organisation. The marketing function plays a role in the selection of the target market and packaging and labelling of the company’s products among other functions. References Aswathappa, K. International Business. 4th ed. New Delhi: Tata McGraw Hill Education, 2010. Print. Civicus. International Communication Toolkit, Civicus, 2015. Web. 15 June 2015. Daft, Richard L. Organization Theory and Design. 9th ed. Mason, OH: Thompson-South Western, 2006. Print. Du-Babcock, Bertha. “Business Communication: A Revisiting of Theory, Research and Teaching.” The Routledge Handbook of Language and Professional Communication. Eds. Vijay Bhatia and Stephen Bremner New York: Routledge, 2014. 68-84. Print. Ferran, Carlos, and Salim, Ricardo. “Electronic Business in Developing Countries: The Digitalization of Bad Practices?” Electronic Business in Developing: Opportunities and Challenges. Ed. Sherif Kamel. Hershey, PA: Idea Group Publishing, 2005. 01-33. Print. Fulton-Calkins, Patsy, and Karin M. Stulz. Procedures & Theory for Administrative Professionals. 6th ed. Mason, OH: South-Western Cengage Learning, 2009. Print. Janićijević, Nebojša. "The mutual impact of organizational culture and structure." Economic annals 58.198 (2013): 35-60. Krizan, A C, Patricia Merrier, Joyce P. Logan, and Karen S. Williams. Business Communication. 8th ed. Australia: South-Western Cengage Learning, 2010. Print. Kuiper, Shirley. Contemporary Business Report Writing. 4th ed. Australia: South-Western Cengage Learning, 2009. Print. Morrison, Janet. International Business: Challenges in a Changing World. Basingstoke: Palgrave Macmillan, 2009. Print. Mullins, Laurie J. Management & Organisational Behaviour. 9th ed. Harlow: Financial Times Prentice Hall, 2010. Print. Neelankavil, James P, and Anoop Rai. Basics of International Business. Armonk, N.Y: M.E. Sharpe, 2009. Print. Neelankavil, James P. International Business Research. Armonk, N.Y: M.E. Sharpe, 2007. Print. Shelly, Gary B, and Misty Vermaat. Discovering Computers 2010: Living in a Digital World. Boston, MA: Course Technology/Cengage Learning, 2010. Print. Taylor, James. A Survival Guide for Project Managers. 2nd ed. New York: American Management Association, 2006. Print. Turban, Efraim. Electronic Commerce: A Managerial and Social Networks Perpective. 8th ed. Cham [u.a.: Springer, 2015. Print. Vance, Charles, and Yongsun Paik. Managing a Global Workforce: Challenges and Opportunities in International Human Resource Management. Armonk, N.Y: M.E. Sharpe, 2006.Print. VanHoose, David D. E-commerce Economics. 2nd ed. Abingdon, Oxon: Routledge, 2011. Print. Read More