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Impact Of Globalization On Business Market

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Discuss about the Impact of Globalization on the Business market.





An organizational structure helps in defining the activities of an organization like co-ordination and supervision so that it can help the organization in achieving the aims. Organizations should be flexible and innovative in order to serve the purpose of achieving sustainable competitive advantage (Ashkenas et al. 2015).  Organizational structure acts like a perspective with the help of which the individuals see their organization. Globalization refers to the interaction of states and countries with the growth of flow of money and ideas in the international arena. It is indicative of an economic process of interaction which has cultural aspects. The primary purpose of this report is to discuss the changes that globalization will have on the organizational structure of Reddy Restaurant. 


Organizational Structure of Reddy Restaurant

Advancement made in the arena of communications technology has led to the globalization of food industry. In order to survive in global environment an organization should provide sufficient information that will be necessary for co-ordination along with control. Managers should decide regarding whether they should emphasize on that of global standardization or that of national responsiveness (Dekoulou et al. 2017). The manufacturing and marketing strategy should be standardized throughout the world. The top managers of Reddy Restaurant should design a structure that can adapt to the changing environment. The three common structural type of global organization is that of functional, divisional and global matrix structure. On the basis of the functional structure, employees of the restaurant should be grouped into different department like marketing, finance and operation. The functional structure can help the organization and it is the most common organizational model in the domestic arena (O'Neill, Beauvais & Scholl, 2016).  The product division of Reddy Restaurant can take the responsibility of the global operations in relation to their specific product area. It can help in managing business around the world. The manager of each division will be responsible for organizing and controlling the functions in relation to production and distribution of the products. Global product structure can prove to be of great merit for standardization of the product along with that of sales. It also carries some drawbacks like the product divisions may not work well together and it can lead to a lot of competition (Van der Voet, 2014).

Global geographical structure helps in grouping people together on the basis of specific geographic location. The geographical division of Reddy Restaurant should report to CEO and he fully controls the functional activities within each geographical area. Mature product lines along with stable technologies will help in the growth of the organization. This structure proves to be of great help for organizations who make use of multi-domestic strategy (Benzer et al. 2017). The services of Reddy Restaurant should be suited to the local needs along with culture. The global matrix structure helps in grouping people by making use of product division along with geographical division. The pressure of decision making should balance the interest of product standardization along with geographical location (Kalay & Lynn, 2016).

Globalization has made it a lot easier for the restaurant to find important ingredients. Globalization helps in increasing the potential vendors of many restaurants. Restaurants were previously dependent on local firm but with the advent of globalization the ingredients and vegetables can come from anywhere. Reddy Restaurant will greatly benefit from globalization as it will increase the avenues in relation to the suppliers, vendors and ingredients. Globalization can help in the marketing of the exclusive meals and items of the Reddy restaurant and makes it easier to market the items worldwide. 


Transnational Model of Reddy Restaurant

Organizations make use of transnational model that helps them in attaining benefits in the field of global along with multi-domestic strategies. Reddy Restaurant should be able to adapt to all kinds of environmental situations that can help them in achieving flexibility. It can be attained by capitalizing on the knowledge flows. The knowledge flows can take up the form of decisions along with value-added information. Decision making along with knowledge generation should be distributed in between the units of transnational organization (Lee,  Kozlenkova & Palmatier, 2015).  The transnational firms enter in strategic alliances with the business partners and customers that can help them in saving time and capital.

Advances in the arena of transporation have led to the growing globalization of the food industry. Reddy Restaurant can send their resources to enter the overseas market that can help them in maintaining control of the product quality along with the presentation. The partnerships and mergers would greatly benefit the Reddy Restaurant and help in building a presence in the international arena. The suppliers in one country can partner with the distributors of another country and thus the distributors can reap the benefit from the movement of pipeline of products from that of the supplier to that of the customer.

 The two tactics should be made use of for the purpose of implementation of transnational model:

  • Mass customization-synergy with the help of global research along with development
  • Global logistics 

Mass customization synergy

Mass customization has completely changed the relationship between manufacturers, retailers and that of the consumers. Globalization has helped the Reddy restaurant to go beyond their homogeneous markets and give rise to “common uniqueness” that can lead to customer satisfaction. Mass customization strategy is of crucial importance in the era of globalization as it will help in satisfying the distinctive taste buds of people across the globe. The customers have unique delivery needs and Reddy Restaurant should lay increasing importance on this aspect so that it can grow to become popular in the global market (Joseph, Klingebiel & Wilson, 2016).

Global logistics

Globalisation poses a challenge for the logistic providers of Reddy Restaurant. Growth of global economy suggests that the customers want access to the goods along with services from across the world. Seamless service is provided by the supply chain management of Reddy Restaurant that ensures in customer satisfaction (Dunning, 2014).  Technology has increasingly helped in removing the obstacles in relation to globalization. The identification of the events that can lead to potential losses should be identified at the outset and experts and experience in IOR/ EOR compliance regulation can help in protecting the company from that of expensive delay (Pieterse, 2015).  The position of logistics is growing and it is driven by the organizational structure in relation to globalization and the development of new technologies. Support automation along with digitization will help in bringing changes to the organizational structure that can help in ensuring the success of the organization.

Organizational Structural Changes in Reddy Restaurant due to Globalization

Globalization will cause Reddy Restaurant to face aggressive competition from important players in the industry. The services provided by Reddy Restaurant should be of supreme quality so that it can satisfy the needs of the consumer. The price along with technological innovation of Reddy Restaurant should be customized for all kinds of customer (Ashkenas et al. 2015). The new location will also have local companies that will try to survive invasion from that of foreign business. Cheap labour and raw materials in the new location can help Reddy Restaurant in earning a lot of benefits.

Information System is indicative of integrated set of component that can help in the process of communication of information. Information System is indicative of wider system of data and activity that can help in storing and dissemination of information. The management information system can be made use of by the managers. The mid-level managers are provided with reports that can help in summarizing data that can aid in the process of decision making (Cummings & Worley, 2014).  Reports like that of Key Indicator Report help the management to keep track of all layers of organizational structure of Reddy Restaurant. Quantitative model can help in predicting the long term value of the customers. Executive Information System can be made use of by the high level of management of Reddy Restaurant. This kind of system is based on software that can help in transforming large amount of data into that of pertinent information.

A Decision Support System can bring benefits to the managers of Reddy Restaurant at all the levels of organizational structure. This software can be made use of by Reddy Restaurant in the arena of testing the alternatives which is based on the assumptions that will be provided by the software (Rothaermel, 2015).  It can help the managers in choosing the alternative that can give result to the best outcome. A transaction processing system can be used at the operational level of Reddy Restaurant that can help in making the transactions with the help of online processing.

The IT systems can be of great value for organization and a successful organization should apply the information technology for the successful running of an organization. Information Technology in the modern age can provide extensive help in the arena of designing the organization and provide improvements to the internal along with external co-ordination. 



The organizational structure helps an organization to attain the objectives of co-ordination along with supervision. The employees of Reddy Restaurant should be divided into different departments that will help in the process of fluid functioning of the organization. The global structure of the product can help in standardization but it may also result in product divisions that can pave the path for a lot of competition. The ingredients and vegetables of Reddy Restaurant can be brought from anywhere as a result of globalization that can greatly help in improving the quality of service of the restaurant. The services of Reddy Restaurant should be suited for the local needs of each place that will help the organization to grow. Reddy Restaurant should focus on the three areas of leadership, management and financial resources that would strengthen the organizational structure. A Decision Support System can help the managers to benefit to a great extent that can help in testing different alternatives. This software can help the managers in reflecting and predicting on the outcome. Globalisation proves to be a challenge for the logistics providers of Reddy Restaurant and experts with due experience in IOR/ EOR compliance can be advantageous for the success of the firm.



Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization: Breaking the chains of organizational structure. John Wiley & Sons.

Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization: Breaking the chains of organizational structure. John Wiley & Sons.

Benzer, J. K., Charns, M. P., Hamdan, S., & Afable, M. (2017). The role of organizational structure in readiness for change: A conceptual integration. Health Services Management Research, 30(1), 34-46.

Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage learning.

Dekoulou, P., Dekoulou, P., Trivellas, P., & Trivellas, P. (2017). Organizational structure, innovation performance and customer relationship value in the Greek advertising and media industry. Journal of Business & Industrial Marketing, 32(3), 385-397.

Dunning, J. H. (2014). The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.

Joseph, J., Klingebiel, R., & Wilson, A. J. (2016). Organizational structure and performance feedback: Centralization, aspirations, and termination decisions. Organization Science, 27(5), 1065-1083.


Lee, J. Y., Kozlenkova, I. V., & Palmatier, R. W. (2015). Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), 73-99.

O'Neill, J. W., Beauvais, L. L., & Scholl, R. W. (2016). The use of organizational culture and structure to guide strategic behavior: An information processing perspective. Journal of Behavioral and Applied Management, 2(2).

Pieterse, J. N. (2015). Globalization and culture: Global mélange. Rowman & Littlefield.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

Van der Voet, J. (2014). The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure. European Management Journal, 32(3), 373-382.


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