The International Expansion Into Shanghai

Decent Essays
The Greek philosopher Heraclitus is commonly attributed with the idea that nothing is constant but change (Stanford Encyclopedia of Philosophy, 2011). This is particularly true in business. If an organization is not changing and evolving with the market then they are stagnating and falling behind. In this exercise XYZ, Inc. is pursuing an international expansion into Shanghai, China followed by an expansion into four other international markets a year later. I believe XYZ, Inc. should use the Systems Contingency Model to launch the international expansion in Shanghai because this change model is complex enough to incorporate all the environmental requirements and a good tool to highlight how the different internal dimensions of the…show more content…
The second and most complex phase is the transformation phase. During transformation, organizational leadership must follow through on the vision. This is where the hard work takes place by creating, manufacturing, and finalizing the product before distribution (Weiss, 2012). Leadership will need to adhere to the organization’s vision and strategy while ensuring that employees have the resources required to complete their assignments and respond to changing requirements in the new environment. This includes secure supply lines and an anticipation of the foreign commercial marketplace.
If leadership at XYZ, Inc. has done their job properly it will be reflected in the output phase. Success will be shown at the organizational level by percentage of market share, product quality and competitiveness. At the group level success will result in synergy, performance and effectiveness. Finally, at the individual level success will find employee satisfaction, performance, and development and growth (Weiss, 2012). That is to say that when everything is running as it should, when all dimensions are in sync, the System contingency model shows success in short-term change.
The long-term, large-scale change into the B.R.I.C. countries is more of a transformational change in that it “includes a shift in radically different markets that require a different strategy and skills” (Weiss, 2012). Leadership must
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