BMGT6015: Perspectives on International Management

This is an individual assignment based on an evaluation of work undertaken as you progress from one unit of the module to another across the semester. The assignment is based upon a “building block” process where each week addresses relevant content closely aligned to the requirements of the assessment brief.

Analysis and discussion of the main cross-cultural issues in managing the organisation internationally.

The purpose of this assignment is to allow you to use what you have learnt on the module to analyse and critically review contemporary international management issues in the light of relevant theoretical concepts. Students are expected not only to review the theoretical position, but also consider how that applies to practice in organisations.

The assignment should be structured around the following areas:

Create an imaginary organisation that has been operating in a domestic area within the UK for some time. This should be based on an organisation currently operating in a live/real sector. You can select a manufacturing or a service sector. Your organisation has decided to go international.

– Describe your organisation, its operations, structure and relative size (i.e. employment and financial turnover). Analyse and justify reasons for your decision to go international. The organisation should be based in the UK.

–

Decide on an appropriate country in which to operate, provide a rationale and critically evaluate this choice from a strategic perspective. Describe your organisation in the host-country, its operations, structure, and relative size over time.

2.

Prepare a report for the company that you have created above

–

Prepare and analyse the cultural profile and management practices of the local area in which you will be operating. You may (but don’t have to) discuss such issues as: What are the workers going to be like? What kind of reception do you anticipate from local governments, and so on? What are the main HR issues in your destination country? What might be communication problems there? What leadership style might be most effective in this environment? Justify the rationale for the approach that you have taken. Depending upon sector culture and sector practice the issues that you need to address may vary from one sector to another with different cultural attributes and characteristics.

How to Approach Question 1 of the Assignment

1. Question 1 of the Assignment is as follows:Create an imaginary organisation that has been operating in a domestic area within the UK for some time. This should be based on an organisation currently operating in a live/real sector. You can select a manufacturing or a service sector. Your organisation has decided to go international.

Describe your organisation, its operations, structure and relative size (i.e. employment and financial turnover). Analyse and justify reasons for your decision to go international. The organisation should be based in the UK.

Decide on an appropriate country in which to operate, provide a rationale and critically evaluate this choice from a strategic perspective. Describe your organisation in the host-country, its operations, structure, and relative size over time.

2. The 4 step approach to researching and addressing Question 1

Choose a sector – by “sector” we mean industry (e.g. the Motor industry, the Hospitality Industry, the Retail Industry etc). This can be either a manufacturing sector or a service sector (profit or non-profit).

Undertake some research into this sector to see where it operates both in the UK and Internationally. Use relevant library databases to inform your research. See the link to the Business School librarian in the Module Handbook to help your with this.

Based on your research sect a destination (“host country” – the country that is subject to your internationalisation strategy).

Finally, “create” an organisation/business within your sector. This can be based on a live organisation or an amalgamation of different live organisations within your chosen sector.

It is suggested that you access relevant sector databases in the library and online to undertake your research and that you capture the data within a PESTLE model or any other model that you find useful. This can be updated as your complete both Questions 1 and 2 of the Assignment. Use the data to support and underpin the analysis, comments and statements that you make in addressing Question 1. This should relate primarily to your chosen sector and its operations in the UK and globally.

3. A suggested Assignment Structure

An introduction to the chosen sector and the rationale (reason) for its choice. What attracted you to this sector?

Use the data that you have collected as a result of your research to illustrate the operation of your chosen sector within the UK e.g. who are the key players, what is the size of the sector.

Undertake a similar review of the global operation of your chosen sector with an indication of where they operate and the markets that they serve (by region and country).

Introduce your chosen organisation and the size of its operation.

Here is an example of a fictitious organisation, for illustrative purpose only, which addresses the last bullet point in the suggested structure.

Founded in 2018, Energym is a group of fitness centres based across the UK, each gymnasium is powered by kinetic energy from those that use our technologically advanced exercise machines. Following the announcement of a ‘sugar tax’ earlier on in April aimed at tackling obesity and diabetes in the UK (Sasse, 2022). Energym believes exercising is a more effective way to lose fat but realised commercial gyms did not appeal enough to the wider market. So, what was missing? Unlike most gyms, we wanted to create additional incentives for our customers beyond just fitness and thus our vision was born. Energym uses exercise machines that generate electricity through movement, this electricity is then wired to the fuse box which is used to power all things electrical on-site. All athletes at Energym are required to enter a unique pin code that is linked to their account before using any of the equipment, this helps to see how much electricity they have generated and for them to track their fitness progression. The incentive we offer for weight loss is simple, the more exercise you do, the more electricity you will generate (saving the company money on overhead costs), and the more you will save on your membership.

Energym Headquarters is based in Shoreditch, we currently have 7 fitness centres across the UK in London, Birmingham, Manchester Leeds, Bristol and Cardiff. At present, we have a total of 240 employees and our annual revenue in 2022 was £16.6m. The company has a functional structure with myself as CEO and with my team as heads of departments, this helps clarify individual responsibilities.

Following the completion of our 7th fitness centre in Cardiff last year, we want to expand our operations overseas and believe the United States is a suitable market because it accounts for 42.2% of the global gyms, health & fitness clubs market value (Marketline, 2022). The US government spend $20 billion per annum on direct fossil fuel subsidies (Gittins, 2022) through enough appeal hopefully our carbon-negative solution to exercise could receive additional government funding. We are exploring options to build a fitness centre in Chicago because according to CDC (no date) obesity is a major problem in its metropolitan area with 61.2% of adults being overweight. Choosing an English-speaking country means we can reuse our current marketing campaign and it will also ease overseas communication between the US and UK teams.

In Chicago, Energym will also use a functional structure, allowing domestic and foreign heads of departments to collaborate better. Illinois will have one Energym site located in the Woodfield Mall, Chicago’s largest shopping centre (Choose Chicago, no date). Energym’s international operations will mirror those in the UK, with monthly membership as the primary income source.

Besides sourcing investment, another challenge of internationalising will be integrating marketing and communication across UK and US cultures (CXC, 2022). Hofstede Insights (2023) acknowledges uncertainty avoidance and long-term orientation as the primary differences between both cultures. American businesses measure their performance on a short-term basis which drives individuals to strive for quick results within the workplace, they also tend to be more tolerant of ideas or opinions from anyone and allow the freedom of expression (Hofstede Insights, 2023). The US and UK display similar cultures that should ease internationalisation efforts.

HOW TO APPROACH QUESTION 2 OF THE ASSIGNMENT

GUIDANCE NOTES

Question 2 Brief

Prepare a report for the company that you have created abovePrepare and analyse the cultural profile and management practices of the local area in which you will be operating. You may (but don’t have to) discuss such issues as: What are the workers going to be like? What kind of reception do you anticipate from local governments, and so on? What are the main HR issues in your destination country? What might be communication problems there? What leadership style might be most effective in this environment? Justify the rationale for the approach that you have taken. Depending upon sector culture and sector practice the issues that you need to address may vary from one sector to another with different cultural attributes and characteristics.

I suggest that you follow the structure set out below when drafting your response to Question 2 of the Assignment.

Linking to the research that you have undertaken in completing Question 1 you should create a report that illustrates the cultural issues and challenges that your chosen company faces as it engages in the Foreign Direct Investment (FDI) strategy within your chosen host country. These challenges may already be apparent to you but may also require further research with specific reference to the topics that we have covered during the lectures each week.

The ensuing paragraphs in your profile should address each of the issues/challenges that you refer to in your opening statement. These might include:

You should then reflect on the key “threads” or “themes” that connect each of the issues that you have raised above. What focus or “perspective” does this provide in characterising the essential issues/challenges that your company faces as it engages in the development and implementation of its international strategy?

At the end of your response to Question 2 you should provide a summary of the key issues that you have addressed with some reference as to the way forward for your chosen organisation.

You should start your response to Question 2 with a brief paragraph that introduces the reader to your sector, your destination and your chosen company. You should also set out clearly, in the opening paragraph, the approach that you intend to follow in addressing each of the challenges that you face in implementing your FDI strategy.

Key cultural issues that you have recognised from your sector research and drawing on the literature on culture and source material provided on the module moodle site – plus further reading.

Leadership and Management issues that are likely to be encountered as a result of potential culture differences/clashes between “home country” culture and “host country” culture.

Communication issues – both verbal and written communication.

International Human Resource issues identified as a result of staffing and recruitment policy.

Negotiation issues between sector stakeholders, customers, local government and employees

The potential for strategic alliances, joint ventures, mergers and acquisitions within the host country sector.

The identification and management of political risk where issues of government control may vary in comparison with the host country practice. Where does your host country sit on the global corruption index?

The ethical dimension (bribery, corruption or host country practice?). Are there any issues re sector rhetoric and reality when home country ethics are transported to the host country?

Hard culture versus soft culture, e.g. where the legal framework in your chosen host country varies considerably with legal requirement and practice in the home country.

A clash between democracy and autocracy. This might arise where the notion of “freedom of speech” has a very different interpretation in your host country than that which is espoused in your home country.

Presenting coursework for assessment

? For ease of reading, text-based sections of the assignment should, at a minimum, be presented in 11pt Arial font with 1.5 point spacing.