Successful Operating System In An International Environment : Strategic Management Assignment

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Topic For Strategic Management Assignment: How To Operate Successfully In An International Environment?

Introduction

The topic of Strategic Management Assignment defines that Successful Operating System In An International Environment. The developing of a business is the crucial factor to the world. In these days organizations are facing various kind of trouble. The most remarkable factor is the risk factor in business organizations. The economic growth rising of an organisational behaviour helps to highlight its market value. Hence, every organization wants to develop its operating system in Strategic Management Assignment. So it is point out that an organization can be successful with the help of its best operating system (Cool &  Schendel, 2010, p. 210). The term of operating system is widely used in international environment. An international organization always tries to understand the perception of global customers. As a result, the organization modifies its international managing system to keep satisfied customers. Success or failure of an organization depends on its international operating system of Strategic Management Assignment. Basically every organization is concerned with how they will sustain in the future. Business strategy of an organization is the set of decisions and plans that will set long term direction of action to deserve the success (Collis, 2010, p. 52). The positive approaches of the success of an organisatio are built up with its future target also. Without a goal an organization cannot develop itself. The concept of globalization influences the international organization and domestic organization also. In these days it is pointed out that the globalization tendency of domestic company is largely arises. As a result, cultural and social transformation is appearing beside the financial report transformation.

Strategic Management Assignment

Strategic Problems

An organization deserves its success with the help of its Strategic Management Assignment in strategic planning. But whenever the strategic planning does not work, then it faces the strategic problem. However in this study an international Australian company is needed to discuss the strategic management problem. So the description is presenting on Rio Tinto, the Australian international company.

Background of the Company: Rio Tinto

Rio Tinto is Australian metal and minerals based company. It is working with near about 40 countries and 66000 people are working with it. Rio Tinto is a successful international company, so they can spray out their business in various countries. Their financial growth is much attractive. According to financial report 2012 and 2013, Rio Tinto earned much better than before. The result shows that the net earnings of Rio Tinto in 2012 were US$ 3028 million and after 2013 it shows US$ 3665 million. So there is 10 % increasing of net earnings in a year. As a result Rio Tinto can spray out their business. But due to various kind of trouble they cannot take the risk.

Discussion of Strategic Problems:

International organization runs successfully with its perfect strategic concept. But whenever the financial growth of a company rapidly decreases, it means the company is suffering with strategic problems. The strategic problem includes the financial, legal, technical and social factor also (Biggadike, 2010, p. 627). Whenever among of them creates trouble to an organization, the organization will face the strategic problems defines in Strategic Management Assignment.

Need of International Market:

The need of international market is the fundamental part to an international company. The attraction of financial growth helps to spray throughout the world (Cool & Schendel, 2010, p. 219). Although their strategic head quarter is in origin country but it operates separately in individual country. Just not only the financial growth, but also the raw material is crucial factor to an international organisation behaviour. Beside this, the international company can harmonize technical requirements of product and services making industry which can be shown in Strategic Management Assignment and more proficient and breaking down barriers to international business. When product and Strategic Management Assignment services are rising in international standards, the consumer can have the confidence that they are safe, dependable and the product has a good quality. Rio Tinto is Australia based company, so they must wants to highlight them with a better financial growth. Metal are not available to every country.

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The cost of raw material is the main factor to them. So, the company wants to concentrate those countries, where the metals are available with cheap rate. The successful organization knows that there are scopes to develop the company in a different country. Beside this, the organization can earn some good ideas from the individual country, as there will be lot of talented employee. Basically an international organization must recruit the local people. Some of them became attractive with creative ideas. Sometime international organization wants to develop its business in a wide range to emphasize their brand image. Rio Tinto also tries to do so. But, the company is confused with some of confusion. The language is the key factor.  Americans are used far better English than the Africans. So, Rio Tinto faces this kind of trouble. As a result, the company is unable to spray out its business in more country.  Sometime the organizations are trying to escape from home market competitions. Still now Rio Tinto successfully runs with its quality and productivity. Salary structure of employee between Africa and Australia is far different. But the metal quality of Australia is much better. As a result a strategic challenge comes to Rio Tinto.

Access of the Non-Market Environment:

Non-market strategy is one of the important parts to the discussion of strategic problem. Basically non market strategy is a mapping from the exogenous characteristics of a strategic situation to the set of possible market option. Another point comes out that the non market strategy is based on the connection between office holders and their constituents. The interactions between organization, suppliers and customers are included by non market environment. Basically the social, political, legal considerations are affected to an organization (Harvey et al. 2010, p. 89). So there are probabilities to overcome the situation. The smart managers engage with this social and political environment to make sure the goal of his organizations success. Although some of companies are prepared to provide the hard work. The company commits long term goal to make an effective non market strategy. In this tough situation the manager asks for both, the integration and the separation. The manager should influence the executives to understand the difference between the market of the company and non market. The manager will complete that with three basic steps, firstly making the capability against non market, secondly building up a relation between the executives and finally managing the relationship (Brusoni & Prencipe, 2009, p. 215). Basically non market environment is much harmful to the progress of an organization. So the higher authority always tries to keep a distance from it.

But Rio Tinto is still now struggling with this factor. Union between the executives is rising day by day. So the manager of the company is now in a wide trouble. Socialism and democracy helps the people to understand their current situation. Basically African and Asian countries are much interested for those social systems. So Rio Tinto is facing a wide trouble. The non market strategy is differently influenced to the Rio Tinto. Basically the company tries to fight with the non market strategy but the company is also stuck with the financial growth. Financial growth of Rio Tinto is far better in Africa. But the non market strategy is creating troublesome as per Strategic Management Assignment says. The company can organize a parallel employee figure in Africa where the Australian and African will work corporately.

Implication of Government Policy:

The government rule and regulation creates trouble to the international based company. Licensing is the main part to get the permission for an international company. But increasing of competitions, demanding of consumers, technical environment and mostly threat from domestic company are appear as wide trouble to entry an international organization. In the other side, ISO standards are international and adopted by many government. Governments are helping to ensure that requirements of imports and exports are the same in all over the world by integrating ISO standards. Rio Tinto is working with four regional structures, such as America, Australia, Africa-Europe and Eurasia. So different region and different country has an importance on their rules and regulations. The rule of government depends on the base of the country that the kind of social system, political approaches are belongs with them. Basically, international company has to obey the government policy of different country in different areas. As a result, international company cannot start their business in some restricted country. The culture, law, language, people are the key factor to develop an international company (Carter & Hodgson, 2009, p. 473).

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However, government creates the rules and structure for the organizations which they are following. But the government changes its rules time to time. As a result, the international organizations are affected with these changes. Such as, the rising of corporation tax effects to increase the trouble. High price of goods can help to pass this taxation rising but it will also affect the bottom on line. So, government policy is the crucial factor to Rio Tinto. Some of government asks the environment application from the international organization. It also effects to Rio Tinto. The company works with metal, so there will be a probability to create the pollution. This concept became the strategic problem to Rio Tinto.

Establishment into a Foreign Company:

Establishment into a foreign company is tough to find out, as there are lots of procedures that have to follow. However a company wants to make its economic growth through its globalization. But due to the permission of the government, qualified employee power, taxation and local market helps to crate the trouble of a company (Boulton et al. 2009, p. 33). Even many international organizations can not open their branches in individual country due to the regulation of government, desire of local market and also so many factors. Basically international organizations are follows some of basic ethics to establishment the company in foreign company. Firstly, an organization chooses politically developed or developing country which has a free market system to enter. Secondly, the raw material availability of that country, as raw material is the most important part to grow up the productivity. Thirdly, international business carries wide risks. Finally, the globalization creates a difficult trouble to ask the investment due to the stock exchange factor (Biggadike, 2010, p. 632). Rio Tinto mostly deals with metal. So the company needs some strenuous labor. In this case they can move to the African country. But the company is facing trouble to achieve the permission from some of African country. Most important thing is that a large number of African countries are facing the political trouble.  Another part is noted here, the raw materials of Africa are not impressive enough. As a result Rio Tinto faces to open their maximum number of organization in African country.

Minimization of Damage post Divorce of Joint Venture (JV) partner:

International organization always tries to run with some JV partner, as huge amount of investment are needed to develop its business. But sometime erosion in stock exchange, damaging property helps to divorce between the JV partners. It is reported that the JV organizations are facing trouble for demanding the percentage of share. International organizations are work with a huge market risk. Some of external forces like the legal system, state of economy and organizational forces like partner differences and contract terms contribute to failures. A large proportion of JV partner can be attributed to in sufficient management and best Strategic Management Assignment Help.  But the trouble arises extensively when the JV partner are influenced their employee and customer also. However the role of JV partners is wide to an international organization, as the JV partners help to understand the legal, social and marketing strategy of that country (Brusoni & Prencipe, 2009, p. 214). But after a good establishment maximum international organizations express to break the relationship with JV partner. As a result some time the organization asks the non market environment with this way. After a little over look to Rio Tinto, still now the company is asking to invest with them. There would be two reasons for this factor. Firstly, company wants more investment to achieve the better economic growth. Secondly, the current financial growth of the company is not good enough. So the company is asking for investment to recover the tough situation. Another important part is point out that the company is suffering with some communication gap, cultural gap and caste problem also. The Australians and Americans are lead in a fast and developed culture, where the Asians and Africans are in just developing culture. So it creates a different view between the joint venture. As a result the relation between JV partners can come to an end.

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Dealing in Ethical Dilemmas:

Ethical dilemmas are the crucial problem to keep the relationship between the JV. Basically the JV partners are following some of rule and regulation between them. But sometime the JV partners break the rule between them. As a result the ethical dilemmas appear. Ethical dilemmas just not only depend on the rule between the JV partners, but also it asks the culture, language, behavior and castes’ between the JV partners (Rhyne, 2009, p. 337). Rio Tinto still now facing some difficult ethical dilemmas. The company grow up in Australia, but it spray out to the all over the world. Hence the company is fighting with the black and white ethical dilemmas, as Australians are coming from white skin society where Africans are black. So this kind of trouble Rio Tinto is faced widely. Another ethical problem is the cultural gap between the African and Australian. Australians belong in an open and developed culture, where Africans are developing their culture. There are path to go to Africans.  More interested part is that Africans and Asians are following the socialism (Reinhardt & Stavins, 2010, p. 179). They wish to live in a conjugate society. But the Australian and Americans are like to stay freely. Hence the communication gap creates the ethical problem to them. The ethical dilemmas are help to separate the JV partner also. The distance arises with a slow motion but affected with breaking the collaboration.

Recommendations:

Rio Tinto is an international organization. So the company has lots of responsibilities and requirements also. The origin place of the company is in Australian metal based company. Since it is highlighted that the Australian environment conditions is not enough secure. As a metal based company Rio Tinto is attached to make the pollution. But according to pollution range of Australian government, Rio Tinto got some benefit. But the pollution range is not same for every country. As a result Rio Tinto faces the trouble to spray out all over the world. So the company can make a new strategy where the company will use more advanced technology to stop the range of pollution.

Another point is, Rio Tinto selects their higher authority with a voting system. So it should be troublesome in next time, as some of higher authority can influenced his employed to provide the vote for him. As a result might be there are chances to select an incompetent higher authority. As a result the authority will be unable to find out the success of the company in crucial time. So Rio Tinto can arrange a minimum examination system beside the voting system. Then both systems will help to find out the perfect higher authority.

Rio Tinto also has some JV partner in all over the world. Might be some of the partners are not happy with Rio Tinto. So the company can arrange some of the step to satisfy the JV partners. JV partner typically represent a long-term collaborative strategy, so they need to express an active day-to-day management assignment help. Sometime JV partners are asked to invest their financial background. This strategy is not good enough, as skill is necessary to develop an organization. However Rio Tinto can shift the importance of work agenda in response of local and regional demands. The changing requirements of different phases between the JV partners are necessary, such as foundation, implementation and consolidation.

Rio Tinto is a metal based international company, so the company can ask to provide the metal from some different domestic company rest of Australia. In these cases domestic company will gain to deserve the maximum profit with the help of foreign currency. In the other hand Rio Tinto also would be profitable to purchase the raw material in a lower price.

In these days advertisement is the crucial part to any organization. So Rio Tinto is to need more advertisement for their company. As a result the number of consumer can increase with this way.

Rio Tinto also can arrange some social appeal to the rest of the word. Such as, maximum African countries are suffering with poverty and unemployment. So the company can arrange some social work for those people. After a time, when the news will come to the world, maximum poor country can ask to open the industry.

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Conclusion:

Ideal organization Strategic Management Assignment helps to gain an international organization.  But sometime non technical and troublesome strategy helps to fall down the organization also. However the strategy would be perfect and the result should be followed from its earlier stage. A successful organization always tries to keep its success. The basic function of purpose of management is to improve the effectiveness of any work for achieving the intended purpose of work. As a matter of fact good management, by definition includes all that leads to greater success whatever work is undertaken by the organization. In this way good management and greater success is inseparable. Basically exchange of capital, product and services across borders are related with international business. There are lots of possibilities to utilization of resources, importing products and increasing the variety of choice to consumers. Hence, the right operating strategy and Strategic Management Assignment clear concept of the international market helps to gain the success in an international environment. But while the JV partners come, the problems arise swiftly. It is impossible to avoid the JV partners, as the JV partners are provide the financial, technical, social and marketing help also. So it is important to remain the better relationship with JV partners. However an international organization can be popular with its social appeal, customer satisfaction and the employee satisfaction also.