Enterprise System

Dig into your enterprise system!


The enterprise cross-cultural efficiency sets a new requirement on management system, an essential objective for business results: the product is to break through a foreign market.

Various interfaces in the enterprise system are typically connected to the partnerial and cross-cultural relation, depending on the operating pattern and the partnership structure:

  • direct exportation,
  • subcontracting, or
  • international enterprise.

In different models, these interfaces are located at the border of different sub-systems: pilot, management and production systems, management information system (MIS), market and environment components.

The execution of a business operation or other activity in a foreign country demands a project definition which abides by the partnerial and cultural reality. Project management system must include an effective plan of action, for both head office and field unit, targeted at pursuing cross-cultural efficiency, beyond productivity and profitability objectives.

Enterprise System

Three different types of enterprise structure can be pictured: direct exportation to foreign market, foreign subcontracting or representation partnership, new international co-enterprise.

In relation with business operations and cross-cultural efficiency, each model bears distinctive advantages and drawbacks.

1. Direct exportation to foreign market

CANADIAN ENTERPRISE
FOREIGN MARKET
Pilot System
Mngt system/MIS
Inputs Activities/Operations Outputs
MARKET
ENVIRONMENT

Since the products, goods or services, emerge directly on foreign market, the cultural most sensitive interface is located at the border of the production system. Also both the pilot system and the management system/MIS are vulnerable, in direct line with foreign market and environment.

2. Subcontracting partnership

ENTERPRISE IN CANADA
PARTNER ABROAD
Pilot system
Pilot system
Mngt system/MIS
Mngt system/MIS
Inputs Activities/Operations Outputs
Inputs Activities/Operations Outputs
MARKET
ENVIRONNENT

This form of partnership includes business/sales representation and franchise. The cultural sensitive interfaces are located between pilot and management/MIS systems here in Canada, and similar components in partner's system abroad. Canadian enterprise's outputs become foreign partner's inputs before ending up on the market. This is a clear advantage since the partner is well qualified to act as a buffer facing local market and environment.

3. International Enterprise

INTER...
NATIONAL
ENTERPRISE
Pilot
system
Management
system/MIS
Inputs Activities
Operations Outputs
MARKET
ENVIRONMENT

This form of partnership can take place on a temporary or permanent basis. The new international enterprise appears as a joint venture for project duration or a new legal business entity resulting from the merger or alliance of original partners. The cultural sensitive interfaces are located right within the new enterprise system, in specific components: pilot, management/MIS and production systems. Each internal bipolar component (culture and environment poles, here and abroad) faces the challenge of cross-cultural pressure.

The advantage of the international co-enterprise arises from its structure and its operations, which are specifically designed and executed with foreign market and environment concerns.

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