Managing Resources & Operations
1. If Bit Technology Inc. is a high-tech manufacturing firm, it is crucial to ensure that all the requirements for the business are met in their international facilities. First of all, the availability of qualified personnel should be ensured, since high-tech manufacturing requires special skills and education. Moreover, labour cost should be lower than in the home country or at least it should not offset the benefits of relocation. Bit Technology Inc. should also consider the availability of raw materials and the opportunity to establish stable supply of them. The possibility to set up effective distribution channels should also be evaluated in the process of business internationalization. The company should also consider the legislation of the country and evaluate its impact on the business.
2. Organizational identity represents an integrated view on the company’s reputation, core principles, brand and reputation. It sets a framework for the strategic decisions, which would be effective for the success of the particular organization. Thus, the most effective structure of the company is determined through the evaluation of the main objectives of the business and its core values. For Bit Technology Inc. the aspiration to establish international presence dictates the need for international offices and manufacturing facilities. It also implies that the company will have to adopt its structure and values to the multicultural environment in their offices and to structure their organization accordingly.
3. When relocating the company should consider the legal requirements. In order to comply with the local labour laws, Bit Technology Inc. should get familiar with the legislation concerning the employees in the country. The legislation related to taxation and company structure should be also carefully examined. Moreover, the legislation related to the procurement of manufacturing inputs as well as to the distribution of the outputs, including import/export regimes, should be thoroughly studied. Failure to investigate the peculiarities of the national laws abroad may be detrimental for the business of Bit Technology Inc.
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