Moderating Role of Organizational Size †Free Samples to Students

Question: Discuss about the Moderating Role of Organizational Size. Answer: Introduction Managing organizational change involves recognizing new ways of working and new methods of doing things which includes new styles of leadership and management in an organization, (Appelbaum et al., 2012, p. 764). In this case, the organizational change in the business is expanding to international markets in order to help the business realize its objectives. Expanding to international markets involves a business selling its products globally. Know your company and the industry: Before determining whether the products and services are fit for the global marketplace, a manager should offer a clear picture of where the company operates and where it will be in future, (Sarayreh et al., 2013, p. 627). Also it good to consider supply constraints and other factors that might change the product. If in a business, a manager is planning a major redesign, or foresee having problems obtaining raw materials in future, its important to rethink the strategy, (Sarayreh et al., 2013, p. 627). Determine how the business model translates: There are several ways for companies to enter foreign markets including exporting, importing, joint ventures, licensing and offshore production, (Anca, 2013, p. 138). For businesses that produce, manufacture or resell goods, exporting is usually the easiest and least risky method. A manager should not overlook indirect exporting, where an intermediary familiar with business in the target country handles the actual transfer of goods, (Casillas Acedo, 2013, p. 16). Identify and investigate target markets: When it comes to target markets, the business has to look for the markets that do not have the goods that they offer, (Vaccaro et al., 2012, p. 30). All factors must be considered either negative or positive that impact on the organizations ability to penetrate a market, (Sarayreh et al., 2013, p. 628). A business might need to make adjustments such as changing manufacturing materials to meet environmental requirements in certain countries. Develop a business plan: The business plan created when the firm was opened and any subsequent plans previously made for operating and expanding domestically, would not translate directly to foreign markets, (Weaver et al., 2014, p. 290). Issues to be considered include Potential markets, sources, and customers, import, and export pricing strategies, initial financing streams and anticipated revenues, additional costs, legal, regulatory and licensure requirements, potential partnership and sales model, (Weaver et al., 2014, p. 291). Seek advice and assistance: To ensure success in the business, the business should seek advice and assistance from the already successful firms in the industry so as to know what efforts they should put into place to meet the long-run objectives of the business, (He Brown, 2013, P. 8). Management organizational strategy required for the business expanding into international markets Entrepreneurs have a lot to consider before expanding into international markets. To land smoothly, entrepreneurs need a sturdy launch pad with a strong internal management to handle an influx of new responsibilities, (Kuipers et al, 2014, p. 13). Good timing, international competition, and integration into a different culture are critical to this process, (Kuipers et al, 2014, p. 13). The business should start with a clear plan to highlight shorter and long-term growth goals. The strategy evaluation in a business should not be static but instead needs to be revisited as often as markets and teams change, (Kuipers et al, 2014, p. 19). Some basic steps to expanding to international markets include: Prepare an international business plan to evaluate the needs and set the goals of the firm: Since the local business plan would not be suitable for the firm in an international perspective, the management should prepare a new business plan. The plan should set out the main objectives and goals of the organization and ways of achieving them, (He Brown, 2013, p. 20). Conduct foreign market research and identify international markets: The management should carry out a thorough market research. This enables it to understand its international competitors, their products, competitive strategies, and cultures, (Weaver et al., 2014, p. 296). A market research also enables the business to stay relevant in the international market. Evaluate and select methods of distributing your products abroad: The firm should come up with a distribution plan, explaining how the specific products will be distributed to customers in the international market. This may include developing stores in the international market, sourcing an international distributor, franchising or outsourcing the distribution role to another firm, (Weaver et al., 2014, p. 296). Learn how to set prices, negotiate deals and navigate the legal morass of exporting: The organization should come up with proper pricing strategies. This may be informed of cost leadership or value pricing, (Anca, 2013, p. 140). It should also formulate better ways of negotiating for price and product deals. In addition, the firm should also have a clear understanding of the legal nature of the international business to stay relevant with the international business laws. Tap government and private sources of financing: The firm should source for funds in both private and government institutions to obtain the required capital for expansion, Anca, 2013, p. 140). Move the products into their international market, making sure they are packed and properly labeled: This is the last stage of the internalization process. The firm should properly label its products to ensure that they are attractive and able to sell in the specific target market, Anca, 2013, p. 140). Implementation of changes in the international market Change implementation refers to the process of putting into practice the proposed strategies. This can be done using the Kotlers eight elements of change implementation as follows: Create urgency: Urgency is the need for change, (Appelbaum et al., 2012, p. 772). The firm should set out the reasons which necessitate the type of change to be initiated. In this case. The expansion into the global market may be impacted by increased competition in the local market. Limited customers in the local market and a need to diversify operations. Form a powerful coalition: The management should bring together a group of influential employees to assist in implementing the particular change, (Sarayreh et al., 2013, p. 628). In the case of expansion into the international market, the managers must communicate to a group of employees who are the major decision-makers in the firm to help in implementing the strategies. It can do this by identifying a true leader, asking for an emotional commitment from the key people in the organization, and working on team building within the change coalition and inspecting the set team for weak areas. Create a vision for change: Change comes with a lot of ideas and solutions floating around which helps the business achieve its objectives of expanding to international markets. Through vision creation, people are able to see for themselves what the business is trying to achieve and the directives they are given to make more sense, (Appelbaum et al., 2012, p. 768). The business can create a vision by creating values for the change. Values refer to the primary beliefs in a particular firm, (Sarayreh et al., 2013, p. 627). The business must identify the specific values that relate to the change being installed. For instance, in international expansion, some values that the business may be interested in may include the need for diversity, need to develop an international brand reputation and need to become the best global supplier. Communicate the vision: The managers should communicate the need for change to all the employees. This is important especially as it may reduce any instances of resistance to change, (Anca, 2013, p. 140). Employees may have different interests. If some employees feel that their interests may be compromised by the proposed strategy, then they may not readily accept the proposal for change, Anca, 2013, p. 140). Communication may, therefore, act as a convincing tool to enable the employees to accept the change. Remove obstacles: Obstacles are the barriers to change, (Appelbaum et al, 2012, p. 765). The managers may experience opposition from employees and other stakeholders who may not support the strategies to be implemented, Anca, 2013, p. 140). Therefore, they should put in place a structure for change and continually check for barriers to it. Barriers may also be financial. For instance, the company may not have enough funds for expanding into the global market. Therefore the managers should institute a proper financial planning in the organization to ensure such barriers are solved. Create short-term wins: This involves creating short-term targets and not just one long-term goal, (Casillas Acedo, 2013, p. 18). The organization should formulate short-term targets which are easily achievable to ensure the chances of strategic failure are minimized. Build on the change: The business should launch a new product using a new system to realize their objectives of expanding to international markets. Each success provides an opportunity to build on what went right and identify what to can improve, (Sarayreh et al., 2013, p. 628). The management should also anchor the change in the corporate culture. Corporate culture determines what gets done. Conclusion In conclusion, change is inevitable. Therefore, in expanding into the international market, a firm must clearly evaluate the needs for expansion and come up with appropriate expansion strategies. The firm should also formulate appropriate approaches that would ensure that the proposed expansion is successfully implemented. References Anca, V., 2013. Project ManagementA Tool for Implementing Change in Organizations.Studies in Business and Economics,8(2), Pp.137-144. Appelbaum, S.H., Habashy, S., Malo, J.L. Shafiq, H., 2012. Back to the Future: Revisiting Kotter's 1996 Change Model.Journal of Management Development,31(8), Pp.764-782. Casillas, J.C. Acedo, F.J., 2013. Speed in the Internationalization Process of the Firm.International Journal of Management Reviews,15(1), Pp.15-29. He, H. Brown, A.D., 2013. Organizational Identity and Organizational Identification: A Review of the Literature and Suggestions for Future Research.Group Organization Management,38(1), Pp.3-35. Kuipers, B.S. et al., 2014. The Management of Change in Public Organizations: A Literature Review.Public Administration,92(1), Pp.1-20. Sarayreh, B.H., Khudair, H. Barakat, E.A., 2013. Comparative Study: The Kurt Lewin of Change Management.International Journal of Computer and Information Technology,2(4), Pp.626-629. Vaccaro, I.G., Jansen, J.J., Van Den Bosch, F.A. Volberda, H.W., 2012. Management Innovation and Leadership: The Moderating Role of Organizational Size.Journal of Management Studies,49(1), Pp.28-51. Weaver, T., Moen, O., Landstad, K. Standeren, M.I., 2014. Investigating the International Expansion of High Growth Power Providers in Emerging Markets: Motives, Management, and Entry Modes.Journal of International Business and Entrepreneurship Development,7(4), pp.289-308.