The present optimal organizational structure of the MH Company is not designed to complement the company’s plans for expanding their business internationally. With the present organizational structure, the Vice President of International Sales is ill equipped to meet the challenges of the global business environment primarily because macro environment elements significantly influence the market strategy for global business entities. Marketing comprises micro and macro economic factors. The micro economic factors like price, products etc. are directly under the control of the organizations and can be manipulated to suit the market conditions. The macro environment factors, on the other hand are elements that are external but have major impact on the industry performance: economic; demographic trend; changing socio-cultural paradigm; developing new environmental compulsions; advancing technology; and political environment of the region (Kotler et al, 2007).
Sjostrand and Tyrstrup, in one of their article, have argued that managerial leadership needs to be approached as a relational, ongoing social construction process rather than as a single clear cut phenomenon (2001). Indeed, for any organization to expand and succeed, it is crucial that its people are recognized as vital part of its strategy and organizational goals and objectives be interpreted in the context of the changing paradigms of the times.
Beardwell and Claydon have also asserted that the theoretical concept of human resource management needs to be looked from a wider perspective of providing the invaluable human capital that can meet the challenges of the rapid globalization and advancing technology. (Beardwell, Claydon, 2007). With the global competition becoming increasingly stiff, the jobs specifications are becoming less rigid and changing the overall perspective of job criteria and employment. The HR strategy needs to develop its unique organizational culture with well defined vision