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Organizations stresses Essay

International development is of utmost importance and organizations stresses a lot on international development. When organizations pursue an international strategy then they go for international development. However, there are different factors that are related to international development and these factors are: Domestic, International, Multinational, and Global. These factors are basically known as the stages of international development and these stages are discussed below:

Domestic: When an organization is working in its local market which might also be known as its native country then the organization is said to work domestically as its catering to its local market. An organization whose customer’s base resides in its native country is known as domestic market. International Organization: An international organization is the one that possess international membership, scope and presence in other countries.

The customer bases of these organizations are quite diverse and they have international customers. Usually international corporations have operations in their local countries but their customer base is diverse. International organization like other organizations can be of non government and personal nature. Multinational Organization: Since the environment and methodologies of working are changing and that is the reason why different forms of organizations are coming in and they are changing the horizon

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of business environments.

The literal meaning of multinationals is more than one country and a multinational organizations is the organization that has production facilities or other fixed assets in at least one foreign country and then they make the major decisions with respect to the global context then this organization is termed as multinational organization (Jenson, 2008). Although their headquarters are located in their parent country but due to expansion they are spread in different countries.

Global: An organization that is quite diverse by its operations and they don’t belong to a particular country because their operations and productions facilities are spread in different countries. A global organization is a mammoth organization whose customer base is quite diverse and huge. 2. Evaluate the global organizational challenge (Complexity and differentiation, need for Integration, transfer of knowledge and innovation).

A global organization is quite diverse in nature and their customer base is quite huge. They are big enterprises and they have to incorporate different managerial issues. Since the working environment is changing that is the reason why they have to organize their corporations in such a way that they are ready to accept the challenges of the modern world. Different factors are associated global organizations and these factors are stated below:

Complexity and Differentiation: The environments of these organizations are usually quite complicated and that is the reason why they have to differentiate their products with their competitors and in this way they can achieve a sustainable competitive advantage. Differentiation is very necessary and global organization must differentiate their products in order to be successful in both the short and the long run.

Need for integration: Amalgamation is quite necessary for organizations because in this way they can easily share their resources are they can easily target their desired customers. Through mergers, joint ventures and acquisitions they can integrate with other organizations and they can enhance their customer base. Transfer of Knowledge and innovation: Transfer of knowledge is quite important for organizations and they have to develop an innovative attitude because in this way they can transform and present their ideas in a proactive manner.

The transfer of knowledge takes place through workshops and trainings sessions and culturally diverse employees share their business practices. Besides transfer of knowledge innovative practices are also important for an organization especially for a global organization because since it is a global organization that is the reason why it must adopt new practices and innovations must take place in the organization. Newer management principles and policies must be adopted by the organization.

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