This is for a discussion board.. Reply to both posts (two). Use at least one reference. It must be a

This is for a discussion board.. Reply to both posts (two). Use at least one reference. It must be at least two paragraphs each for each of the two replies.POST:1. During a firm’s initial expansion into international business, they will often utilize the international division organization structure. An example of this is Starbucks international division. This usually involves engaging in a home replication strategy (Peng, 2014). This type of structure is appealing in the firms international infancy stages however it can lead to two problems. The first problem is that the foreign division heads may not be given sufficient voice when compared to their domestic counterparts. Second, the international division acts as a silo, separated from the rest of the firm and whose activities are not coordinated with the company as a whole. This structure is typically phased out after initial establishment of the international division.The geographic area organizational structure organizes the company based on different geographic locations. A geographic location can be a country or region and is headed by a country/regional manager. An example of this is the structure used by Avon, whose organization is divided into countries and regions. This structure is utilized for a localization strategy. Each region is largely standalone and the region manager’s voice typically carry much more weight than would an international division manager. The weakness of this structure lies in its strength. Being responsive to the local market can be an asset but it can also lead to a division of the firm into fiefdoms (Peng 2014).Peng, M. (2014). Global Business Third Edition. Mason, OH: Cengage Learning.Reply to POST You bring up some great points. International divisions can struggle a bit. In most instances international divisions are starting from scratch or build from some minor international sales. Because they are competing with other divisions for a finite set of resources, it can be difficult for them to get the attention and resource allocations that are need to grow the business. Senior management needs to be aware of the needs of the international division and to make commitments to make it grow. AND….POST:2. International division organization structure is typically used when firms initially expand abroad, often engaging in a home replication strategy. (Peng, 2014 p.401) Domino’s Pizza has announced promotions for top leaders and changes in internal organization. The company named Richard E. Allison as President, Domino’s International, succeeding Michael T. Lawton who has been chosen for Chief Financial Officer. Since 2011 Allison has worked in the international division where his leadership was instrumental in adding more than 1,800 stores, the company said. Domino’s Pizza (DPZ (Links to an external site.)) business is broken down into three segments: supply chain, company-owned restaurants, and franchised restaurants. Domino’s franchised segment consists of franchised restaurants in the US as well as in international markets. In fiscal 2014, revenue from the US franchise locations accounted for 12% of total sales, and international franchise revenue accounted for 7%. (Market Realist 2015)Geographic area organization structure organizes the MNE according to different geographic areas (countries and regions). (Peng, 2014 p.401) Top Domino’s markets include India and the UK which top the numbers list in terms of Domino’s restaurants, with 830 and 811 locations, respectively, in 2014. Surprisingly, China isn’t even in the company’s top five. Domino’s doesn’t have any company-operated stores in international markets. Instead, it prefers to expand in these markets using a master franchise model. Master franchise agreements give a single entity the right to develop and grow Domino’s in a particular region. The master franchise agreement also gives the master franchisee operating rights to a supply chain in a given region. Needless to say, the potential master franchisee must demonstrate certain requirements such as knowledge of local laws, understanding of local consumers, and an appreciation of real estate restrictions in the region. Among other things, potential master franchisees also need to have access to capital. Occupancy and related costs such as rent, utilities, and communications made up 9% of related sales. When restaurant sales volume goes up, these costs remain relatively unchanged, and so the business sees a higher restaurant margin. This is called “sales leverage.†Over a five-year period, Domino’s added 218 domestic franchises and 2,140 internationally. The vertical supply chain segment, which reports consolidated revenue from domestic and international markets, grew 31% over the same period. (Market Realist 2015)ResourcesDomino’s. (2014). Pizza Marketplace. Domino’s names new leaders, organizational structure. Retrieved February 03, 2016, from MITSloan Web site:http://www.pizzamarketplace.com/news/dominos-names-new-leaders-organizational-structure/Market Realist. (2015). Domino’s Pizza: Serving 1.5 million Pies a Day. Retrieved February 03, 2016, from Market Realist Web Site: http://marketrealist.com/2015/03/dominos-pizza-enjoys-dual-benefits-vertical-integration/Peng, M. W. (2014). Global business. (3rd ed.). Mason, OH: South Western Cengage Learning.