1. Organizational Culture
The organizational culture affects the employee commitments both directly and indirectly through the top management team orientations. An organizational culture which is characterized by high adaptability has significant and direct effect on the employee commitment. The organizational culture which was implemented by Comutec technologies describes the psychology, attitudes and experiences that govern the organization in a number of ways. They also involve the specific collection of values that are shared by people and groups in the organization which control the way they interact with each other and the external stakeholder community. The company chose Australia as their starting point since the environmental and political affiliation of the country was highly favorable. In order to fully determine the organizational structure of the company a thorough analysis had to be conducted and some historical data gathered. The Australian government encourages foreign investments and several sets of incentives given to those people who are willing to venture into the market. The Australian currency is also stable and almost similar to the US dollar in terms of value. This is also one of the principles that governed the entry of comutec technologies in the Australian Market. The goals that the company was aiming at achieving were in line with those of other MNCs in Australia. The standards in Australia are similar to those ones in the US. This made it very easy for the company to venture into the Australian market as there were similar commitments and principles in the country. All the employees of comutec technologies are expected to portray an investment motivated behavior that will attract more customers into using the services offered by the company. Each employee of the company is also expected to portray a good behavior towards each other. The company achieves such measures through conducting employee training and issuing strict disciplinary measures to any employee who leaks the company information to third parties or to the employees who portray a socially undesirable behavior both to their fellow colleagues at work or to the customers. In order for the company to properly operate and co-exist with members of the society, the top management has implemented the use of corporate social responsibility to ensure a peaceful coexistence. The company has built several social support facilities like schools, healthcare service facilities and a sports club which can be used by the employees, their families and the surrounding community. This has helped in improving the company’s image which helps in increasing the company’s awareness hence more productivity. The implementation of the above stated organizational culture would ease the entry of the MNC into the Australian market as it would be easily accepted by different stakeholders, the community and the Australian government.
2. Environmental scanning analysis
Environmental scanning and analysis is a very important aspect for any company that is wishing to undertake a planning process. It is also one of the initial steps that a company should take before venturing into a given market. There are several techniques that can be used to conduct a scan. There are several benefits which are gained when a company undertakes an environmental scanning and analysis before venturing into any prospective market. The senior management at Comutec Technologies carried out a thorough environmental scanning and analysis so as to ascertain some facts about the Australian market as far as the Information technology and communication service delivery were concerned. The following is the environmental scanning analysis that was formulated by the implementation team.
i. Competitor analysis
This is meant at establishing the current and the potential competitors in the Information Technology sector. There were several competitors who are present in the Australian market. The management at Comutec had to carry out more analysis so as to establish their strengths and weaknesses before fully venturing into the market. A thorough analysis of the competitors can help the company to establish a strong base without being threatened by any form of competition
The company has to carry out research based on the legislation that governs the Information Technology in Australia. An analysis of the legislation governing foreign companies also had to be conducted so as to ensure that the company did not breach any of the laid rules thus ensuring a smooth operation in the Australian market.
iii. Environmental/ Terrain analysis
The company also has to carryout Environmental/Terrain analysis of the country’s geographical nature. This is meant to help the technical team to establish the location of the masts and towers for microwave connections.
iv. Consumer analysis
A consumer analysis is also supposed to be conducted so as to determine the relevance of the company in the Australian market. A company cannot successfully operate in a country where its services are not needed. A consumer analysis could determine and help predict the future performance of the company.
3. Determine the entry strategy, ownership structure, and organizational structure for your fictional MNC that would ease entry into the given market. Justify your selections.
i. Entry strategy
The entry strategy that is to be used by the company involves direct exportation of both their products and labor force into the company. The company needs to establish first and once it is properly established, the management can consider involving more Australian citizens into offering services in the company.
ii. Ownership structure
The company is planning to engage the public and offer part of the company’s ownership to the citizens of Australia. This will help in making the citizens more contented with the service delivery as they will have a say on the types of services that they feel need to be offered by the company. Having the company’s shares offered to the public will also help in raising revenue that can help in improving service delivery in the company.
iii. Organizational structure
The organizational structure being used by the company is hierarchical whereby decisions are made from the top management and then filtrates downwards. This helps in the process of decision making as decisions are reached faster without the need for endless consultations commonly witnessed in company’s with divided powers.
4. Create a political risk assessment for the given country.
Australia is CRT-1 (Country Risk Tier) which has very low levels of political, economic and financial system risk. CRT-1 implies that the country has a predictable and transparent legal environment and a sophisticated financial system regulation and a mature insurance industry framework. There has been an uninterrupted economic expansion in Australia for the last 18 years. Australia’s political risk is very low and most of Australia’s population and economic activity is concentrated along the country’s eastern coast. There are very low levels of corruption and their legal system is very strong and stable.
5. Design an implementation strategy for expansion based on the above analyses and justify your recommendation.
The company has to undergo the following steps in order to ensure a smooth and effective entry into the market.
i. Carrying out a business evaluation. Helps in determining if the business can sustain such an expansion.
ii. Carrying out an environmental scanning and analysis of the country. This will help in determining the potentiality of the market and ascertain whether such a business initiative is viable or not
iii. Ensure that the proper legal requirements are meant. This involves obtain the necessary documents for operating such a company in the country.
iv. Begin the process of infrastructure setup
v. Carry out a test operation
vi. The company will be able to start executing its services once all the above have been met.