Global operations management

1) Bit Technologies has to consider a variety of operating factors as well resources that need to be in place for the international expansion to be successful. The country they choose for expansion must have the infrastructure in place to support the business. The location has to have electricity, water, adequate roads, and communication infrastructure. Internet and cellular phone availability are mandatory. Infrastructure is extremely important in supporting the economic growth of a region (Worldbank). The company also must have sufficient capital to cover all the start up costs associated with the international expansion project.
2) The organization identity must be aligned with the business structure the company chooses to implement. The expansion project can be set up using different managerial structures including centralized, decentralized, and matrix structures. Assuming that the company wants to start small with an emphasis on a specific project my recommendation is for the firm to use a matrix organization structure. “ Matrix organizations are often set up to make organizations more flexible, to break down the old functions or geographic “ silos” and encourage more cooperation across the business” (Global-integration, 2012).
3) There are plenty of legal factors that must be considered when expanding to a foreign country. The firm has to evaluate the environmental laws of the country. Secondly the company must study and carefully analyze the labor laws. A good strategy is to hire a human resource manager from the native country. The tax code of the country must be followed to maintain good relations with the government. A fourth legal consideration is local laws relating to the relationship between a manufacturer and local agents or distributors (Kentuckianabusinessforum, 2012).
References
Global-integration. com (2012). Matrix Structure and Organization. Retrieved February 17, 2012 from http://www. global-integration. com/what_we_do/matrix_organisation_structures. html
Kentuckianabusinessforum. com (2012). Legal Considerations in Operating in Foreign Markets. Retrieved February 17, 2012 from http://kentuckianabusinessforum. com/article-topics/legal-considerations-in-operating-in-foreign-markets/
Worldbank. org. The Infrastructure Challenge. Retrieved February 17, 2012 from http://siteresources. worldbank. org/IDA/Resources/IDA15Infra-SectionI. pdf