International Business Practices Essay Example | Topics and Well Written Essays - 500 words - 4

International Business Practices - Essay Example The optimal structure for Physical Movement Company is an international division structure with centralized control. An international division structure separates the international division from the domestic operations. This structured is considered the most appropriate structure for rookie players in the international business since it completely separates the revenue streams obtain from oversee operations, inclusively it separates it between the divisions which in this case would be one per country for a total of three divisions. Centralized control is the best approach because the management of the company wants to learn from the integration into foreign markets and needs to be involved in the decision making as much as possible. The table below illustrates the advantages and disadvantages of centralized approaches: The international division structure will allow the company to carefully analyze the chosen markets and implement different marketing strategies in each of the markets. The company currently has different theories and marketing plans which they believe based on their research will work, but only time will tell the effectiveness of the plans. As the company matures they can systematically switch from a centralized to decentralize managerial style on a case by case basis per division. Decentralization of particular divisions could be allowed in locations in which the company’s plans were successfully implemented. If the company enjoys significant growth internationally and expands into other markets then the company may purse reorganizing its international organizational structure into an international area structure or global product structure. A full implementation of the international business structure will take some time. The first step is to locate the physical space in which the division will operate in each of the countries which