Global Business Strategy-Free-Samples for Students- Myassignment

Question: Discuss about the Global Business Strategy. Answer: Predominantly, geographical structures have operational and strategic merits .From the geographical organizational structure, close consumer communication and better satisfaction of local consumer needs (Business Organisational structure, n. d.).Also, there is the ability to operate different divisions in different physical locations thus meeting the local needs of the market and at the same time running a functional enterprise. In the Bayer scenario, there are various divisions of the company in different physical locations but they are functionally operated by the same Bayer Policy. However, this organizational structure leads to extra expenses going to duplicated resources, employment opportunities, functionality among other factors. Same can be said for Bayer Company had contemplated shutting down one of its divisions owing to cost cutting due to the duplicity of functionality and the additional cost of running it. Advantages and Disadvantages of a matrix structure Through this structure of the organization, integration of objectives, project, and functional as possible as was the case in Bayer BMA NA. The CEO-led team found another way instead of shutting down the company in a bid to minimize the costs. However, matrix organizational structure has potential adverse effects .Specifically, in this case, Babe, the C.E.O of the BMS NA had to reconstitute his team that came up with the proposal to save the division. Under Matric Organizational structure, there might be as structural collapse which is similar to what happened in the Bayer case.Gleeson,2018).In addition, there was an increment in the management cost.In this case, Babe needed a 70m(USD) injection to aid his plan to save the BMS NA division. Also, Babe and his team faced difficulties from the Bayer group top leadership who considered their proposal as deviating from the company norms which is a typical disadvantage of matrix organizational structure. Emerging Markets In the event that is a private equity investor, my targets would be companies with goods or services that are highly competitive.In addition, I would look out for companies with a huge capability of growing or expanding due to the fact that they are likely to get better returns following a substantial investment. Also, I would aspire to work with a company with highly qualified and stable team as part of its management. A stable and qualified management team is likely to produce better outcomes as compared to the reverse combination. In addition, I would target firms with advanced technology in their operations due to the likelihood of producing better products and offer services at considerably affordable prices as compared to a firm with traditional production methods In the event that is approached by a private equity company, as C.E.O, I would first explore options available to my company such as buy to sell option. In addition, I would consider whether a flexibility in ownership might have better outcomes (Barber Goold, 2007).Secondly, I would consider the possibility of a merger and acquisitions. Also, I would consider the private equity firm with a highly substantive equity. In addition, I would conduct a thorough research on the potential private equity company on its financial status, a record of performance with previous companies and its position in the market before I decide on a private equity investment. It is imperative as a C.E.O of a company to exercise due diligence in the vetting of potential investors to ensure you acting in the best interest of the company. References Barber, F, and Goold, M. (2007).The Strategic Secret of Private Equity. Harvard Business Review. Retrieved from https://hbr.org/2007/09/the-strategic-secret-of-private-equity Business Organizational structure. (N. d). No business Info.CO.Uk .Retrieved from https://www.nibusinessinfo.co.uk/content/organisational-structure-geographical-area Gleeson, P. (2018).Advantages Disadvantages of Matrix Organizational Structure in Business Organizations. Chron. Retrieved from https://smallbusiness.chron.com/advantages-disadvantages-matrix-organizational-structures-business-organizations-26350.html Private Equity Investment Criteria. (N. d).Street of walls. Retrieved from https://www.streetofwalls.com/finance-training-courses/private-equit