Strategy and Structure of Verizon in Norway
According to Raghunath & Rose (2016), an international strategy is used by organizations to expand their operations globally. It focuses on determining a product’s or service’s global appeal without significantly investing in staffing or infrastructure in the foreign market. The leading international strategies are multi-domestic, transnational, and global strategies. Verizon Communications Inc. should adopt the transnational international strategy when expanding its operations to Norway. According to Hill & Hult (2019), the transnational strategy includes operating a global business with a main or head office in one country and employing subsidiaries in the international markets.
The success of Verizon Communication. in Norway will be determined by the ability to fit in by respecting the country’s business practices and culture. Therefore, it needs to hire locals to create a solid customer base and build a good reputation. The acquisition market entry that Verizon Communications Inc. intends to use to expand to Norway will also align with the transnational strategy because the company will have better control of operations by applying the policies and procedures outlined by the head office. The transnational strategy will also make acquisition easier because the local employees from the acquired company will be maintained and supervised by a general manager from the home country who will be reporting directly to the dead office in the home country.
The transnational strategy will also be effective in penetrating the Norwegian telecommunications market because the local subsidiaries employed in the company will know how to interact with customers because they understand the Norwegian culture. Verizon Communications Inc. should also adopt the transnational strategy to reduce the cost of expanding operations to Norway. According to Raghunath & Rose (2016), operating through local offices can reduce operating costs because the company hires local employees paid lower wages compared to imported employees. The transnational strategy will also increase the company’s efficiency by easing the distribution of resources because resources will be controlled by the head office in the home country. The company will also be able to customize its products and services based on the needs and preferences of the local market in Norway, hence increasing success. A transnational strategy is also the best for Verizon Communications Inc. because it will make it easier for the company to withdraw its operations from Norway in case things do not work out.
Norway has maintained a culture where employees are given autonomy to implement their ideas as long as they positively contribute to the organization’s performance. Management is only concerned with employee performance and emphasizes improving productivity in an employee’s area of expertise. Employees are also actively involved in decision-making and are allowed to make recommendations on what should be done to increase overall organizational performance. The Nordic business culture also includes encouraging teamwork and reaching a common understanding. The emphasis on teamwork is founded on the Jante law. According to Cappelen & Dahlberg (2017), the Jante Law is a code of conduct that encourages doing things systematically and holds a team’s success as more important than individual success. Tasks in the Nordic business culture are also completed in small autonomous groups where individuals with different levels of expertise are viewed as equal contributors to a project. Businesses in Norway are also led using the Scandinavian Leadership Model, which emphasizes delegating tasks and giving every employee influence, responsibilities, and a voice. Emphasis is placed on pragmatism and developing efficient systems that allow people to perform their tasks effectively with minimum interference.
Verizon Communications Inc. should adopt a flat organizational structure. According to Rishipal (2014), the flat organizational structure enables employees to directly interact with an organization’s top managers, thus allowing employees to participate in decision-making. The structure also allows an organization to the changes in the environmental and operating conditions within the shortest time possible because they do not have to wait for information to be passed along a hierarchy through a chain of command. The flat organizational structure aligns with the Norwegian business culture because it encourages collaboration between employees, hence developing more trusting relationships that promote productivity and enhanced organizational performance. The flat organizational structure is also appropriate in Norway because it encourages decentralization by giving employees more autonomy to make decisions and implement their ideas. Therefore, local employees can implement ideas that can help Verizon Communication Inc. become successful in the country.
The structure also creates flexibility between jobs and units, thus enabling employees to use their expertise to improve organizational performance. This may help Verizon Communication Inc. explore various opportunities in the Norwegian telecommunications market, thus increasing its success. The flat organizational structure also broadly defines jobs, thus allowing employees to work on what they are best at (Rishipal, 2014). This will be an added advantage to Verizon Communication Inc. because it will work with locals who have not worked for the company before and may not know their expertise and capabilities besides what they include in their job applications. Few levels of management in the flat organizational structure will also enable Verizon Communications Inc. to run operations smoothly in Norway because the local employees will not feel intimidated by the managers, who will be foreigners imported from the company’s home country.
Cappelen, C., & Dahlberg, S. (2017). The Law of Jante and generalized trust. Acta Sociologica, 20(10).
Hill, C. W., & Hult, G. T. (2019). International business: Competing in the global marketplace. McGraw-Hill Education.
Raghunath, S., & Rose, E. L. (2016). International business strategy: Perspectives on implementation in emerging markets. Palgrave Macmillan.
Rishipal. (2014). Analytical Comparison of Flat and Vertical Organizational Structures. European Journal of Business and Management, 6(36).
We’ll write everything from scratch
Section Three: Strategy and Structure:
The final task before setting up shop is to determine the optimal international strategy and organizational structure that will best support this international venture. The CEO of your organization has asked you to write a report on your recommendations for the type of international strategy and organizational structure they should adopt.
For this portion of the term project, you will be focusing specifically on the concepts and discussions from Chapters 13 (Strategy) and 14 (Structure). Please also remember to research the actual organization you have been using as a reference for this project. Look at their current international presence (if they do not have an international presence, look at their domestic presence), their organizational culture, their current structure, and their supply and distribution channels.
You are to use at least three additional sources to complete this assignment. PLEASE remember to cite all your sources; proper citation of your sources is a requirement for this course. This assignment is to be a minimum of 2 – 4 pages typed, font 12, double-spaced.
Please support all recommendations with sound reasoning and research.
Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."