PM Company (International Business Practices) Essay

PM Company (International Business Practices) - Essay Example The balance between two types is an effective method for PM Company, because it is closely related to delegation of authority and is concerned with what should be transferred down, what policies are needed to guide actions and the need to train and select people and control their actions. Decentralization is closely related to delegation, but it includes all areas of management and requires a great deal more than handing authority to subordinates. In contrast to centralization, decentralization will help to avoid duplication of efforts, and overcome lack of sufficient flexibility to permit immediate reactions to local problems. New strategy will require additional spending and staff, a new department of international trade and opening new offices abroad. Organizational activities should be organized into separate product businesses, each having its own market and responsible for its own profit or loss. In general, this strategy will help PM Company to penetrate new markets faster and attract wider target audience delivering a wide range of the company's products. Using this organizational structure, PM Company can extend its international expansion plans, and cover more foreign countries, for instance, European and Asian market.