The Company: The Process of Internationalization and Management Control Systems

The Company: The Process of Internationalization and Management Control Systems

DOI: 10.4018/978-1-7998-2007-9.ch007

Abstract

This chapter presents a Portuguese company of the information technologies industry that did an internationalization process and has implemented a management control system with a very interesting complexity level and that, in reality, crosses the theory present in the different bibliographical references on the subject, with the experience and business practice of its management. Such management practices were so helpful that, in a short period, the company could internationalize its activity and turnover went from 10 million euros to 60 million euros, becoming a reference of its industry in Portugal. It should be noted that the case study was developed through the triangulation of different information sources, such as interviews and meetings, direct observations of management control practices, as well as consultation of documents and internal reports. The authors characterize the company and its evolution, national and international, as well as the management control system implemented with reference to the instruments developed in the previous chapters.
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Company Characterization

History and Decisive Moments

Technological” began in 1990, by with two small and medium-sized Portuguese companies, by a set of promoters and management frameworks, which were integrated into the structure Shareholder.1

However, in 1999, with the growth of the business and the greater involvement of the work team, it was verified the realization of a “management by Out” (MBO) having the managers acquired the actions belonging to the two companies, becoming the main Shareholders, alongside individual initial investors.

The company was born as a software house, having as initial project the development of an integrated management system (currently called ERP), destined to the segment of the Portuguese medium-sized companies. Today, because of this initial investment, it already presents in its curriculum the implementation of thousands of ERP in different organizations.

Since 1992, “Technological” developed a set of technological partnerships and strategic distribution agreements, aiming at acquiring specialized knowledge in information technologies, to cease being a mono company Product. This diversification effort was accompanied by a change in the organizational structure, developed from the establishment of SBU-strategic business units.

From 1996 onwards, it opts for a greater focus on its services’ provision, aiming, on the one hand, to mitigate the degree of exposure and dependence in relation to its technological partners and, on the other hand, to improve its benefit per worker.

Because of the recorded evolution, “Technological” has been positioned, since 1998, in the first quartile of the information technology market in Portugal (using indicators of business volume or productivity).

It is, therefore, a successful company that has continuously been gaining market share, consolidating its competitive position in the Portuguese business context of the information and communication technologies (ICT) industry, as one of the most sustainable dynamic players.

After previous local contacts and respective markets’ analysis, “Technological” constituted, in 2001, a company in Angola, following the entry into Mozambique in 2004 and in Brazil, in 2011.

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