La Bella Analysis

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4.1 Level of Internalization WORLDWIDESTRATEGICORIENTATION | STRATEGY | STRUCTURE | INFORMATIONSYSTEM | HUMAN RESOURCES | ODINTERVENTIONS | International(Original La Bella) | Existing productsGoals of increased foreign revenues | Centralized internal division | Loose | Volunteer | Cross-cultural trainingStrategic planning | Global | Standardized productsGoals of efficiency through volume | Centralized, balanced and coordinated activitiesGlobal product division | Formal | Ethnocentric selection | Career planningRole clarificationEmployee involvementSenior management team buildingConflict management | Multinational(New La Bella) | Tailored productsGoals of local responsiveness through specialization | Decentralized operations;…show more content…
This strategic orientation can be clearly characterized by a number of factors. * Increase total sales from profit made in countries outside of the home country * Extends current and existing product line into other countries * Organization structure remains more or less the same These characteristics were prevalent in La Bella’s original business strategy. Chandeliers were manufactured in Italy and then sold outside of the domestic market. However, due to the numerous economic crises, they were forced to change their strategic orientation. La Bella did not use the global model (standardized products); instead, they moved to a multinational orientation (tailored products). A multinational strategic orientation is implemented when there is a low need for global integration, but a high need for local responsiveness. This orientation can be distinguished by a number of attributes: * A product line that is altered to suit local markets * To target markets that vary between countries * Autonomous * Decision-making is decentralized * Regiocentric or polycentric staffing (employing host-country nationals) It can be observed that these very characteristics contributed to La Bella’s failure. Polycentric and regiocentric staffing approaches are often advantageous, as locals understand the local market best; they know local preferences better and can make decisions can perform accordingly
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