dcs plus: Romanian SaaS Firm Goes International

On a cold Monday morning in January 2018, the founder and chief executive officer of dcs plus was sitting in a taxi on his way to catch a plane to Dubai, United Arab Emirates. In Dubai, he would be visiting the Middle East subsidiary of his company, a Romanian technology start-up focused on business-critical enterprise software for the travel industry. The one-year-old subsidiary, which was responsible for marketing, sales, and customer support in the Middle East region, had experienced performance problems and managerial issues since the start, leading to major changes in the local management team. The Romanian company was planning to open two new subsidiaries in São Paulo, Brazil and in Singapore, so it was important to avoid similar problems to those incurred in Dubai. The founder was reflecting on the dcs plus approach to internationalization for the overall organization, as well as how to manage a subsidiary.

This case is suitable for undergraduate- and graduate-level courses on international business or (global) strategic management, specifically in organization, subsidiary management, or strategy implementation modules. In international business courses, the case discussion can focus on when and how a company should internationalize, and debate the pros and cons of various entry modes. Alternatively, the software-as-a-service business model can be used to analyze the internationalization of a digital company that is inherently global in scope. In (global) strategic management courses, the class can concentrate on appropriate organizational structure to facilitate growth. The discussion can also cover subsidiary management and control, as well as knowledge transfer. After working through the case and assignment questions, students will be able to<ul><li>understand organizational challenges connected with international growth and the foundation of subsidiaries, specifically for recent start-ups;</li><li>develop and evaluate various options to respond to organizational challenges and develop concrete recommendations;</li><li>learn how to manage and promote knowledge transfer between the corporate head office and its international subsidiaries; and</li><li>compare available subsidiary control mechanisms and management styles.</li></ul>

• software as a service, internation