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Solution
Table of Contents
2.0 Organisations operations and trading overseas. 2
2.1 No Regular Export Activities. 2
2.2 Exporting through independent representatives. 3
2.3 Establishing foreign sales subsidiary. 3
2.4 Foreign production/manufacturing. 3
3.0 Ways of Organisations Expanding their Activities Internationally. 3
3.1 Legal and Regulatory Compliance. 4
3.2 Language, Culture and Politics. 4
2.1 Major Ways People Practice Vary Globally. 6
2.2 Workplace Cultures Varying Globally. 8
3.1 Effective Management of Talent in International Organisations. 9
4.1 Challenges facing people practice managers in international organisations. 12
Task 1- Factsheet
1.0 Introduction
Managing people in an international context is characterised by immense uncertainties. These uncertainties have specifically been made more complex due to COVID-19 pandemic. This factsheet targeted to the managers intend to educate the managers on the complexities of managing people in an international context. The different types of organisational forms and policies and practices in place for assisting managers in managing in an international context is pursued. The title of this factsheet is “A review of the major alternative international organisational forms and their consequences for the management of people”.
2.0 Organisations operations and trading overseas
According to CIPD (2023) organisations are today in a position of operating and trading overseas due to existing Global business mobility. This is informed by the employers increased valuing of their employees from overseas owing to their knowledge and skills for contributing to their organisations. Further, ADIGÜZEL (2020) argued that selling a product/service in a different country could lead to an organisation venturing significant markets, increased sales and profits, achieve brand recognition and reduce risks of operating in a single market. The outcome of this is extending an organisation product lifecycle. For instance, in an organisation such as Almarai in Saudi Arabia, they have expanded their operations and trading overseas. This is evidenced in nBusiness (2023) as inclusive of buying PepsiCo’s 48% share in daily sector significantly expanding their operations to upto $68 million.
For the sake of evaluating the organisations operations and trading overseas, Astbury and Lux (2017) identified the need to adopt Uppsala Model. The theory is informed by assumption that organisations initiate their trading practices in domestic market to a point their significant existence is set prior initiating international activities. The different ways include;
2.1 No Regular Export Activities
As evidenced in CIPD (2020) the organisations operations are initiated by entering a foreign market without exporting on a regular basis. They initiate their operations by acquiring marketing knowledge and gaining experiences. The drawback of this is that the lack of knowledge affect the organisations success in venturing this sector since the process is pursued by agents and exporting merchants.
2.2 Exporting through independent representatives
Organisations can trade overseas by exporting systematically by engagement of agents (Bowen, 2020). The indirect export offer an organisation with an opportunity for gaining experience and relevant market knowledge on their clients in their market. These independent contractors are offered with commission based on the scope in which they represent the service or product lines in a particular region. For example, Almarai organisation engages different representatives in Gulf region servicing an upward of 40,0000 retail outlets with a turnover of more than £2 billion. The outcome of this is what Jafari-Sadeghi et al. (2021) identify as increased knowledge of the international markets with increased leverage on competitive advantage and dominating their markets.
2.3 Establishing foreign sales subsidiary
A foreign sales subsidiary is identified in Shirodkar and Shete (2021) as a form of business set-up in another nation which is in part or holistically owned by the parent company or noted as a holding company. In CIPD, CIPD (2022) identify the process as embrace of outsourcing where the organisations venture overseas market by strategically operating in the sector. This approach is nevertheless cost intensive for Almarai as it entail engaging different organisations which could be operating in different culture, vision and mission. The differences affect the scope of compatibility with their operations.
2.4 Foreign production/manufacturing
This is identified as a strategy pursued in establishing a production facility of an organisation in the market it already exports to. According to Vahlne (2020) this entail the organisation possessing a feel of possessing sufficient knowledge and interested with leveraging on local competitive advantage. The outcome of this is an organisation increasing their resources and price availability. For instance, considering Almarai, their increase in market knowledge offer them an increased opportunity for acc3ess to resources for less costs. Nevertheless, similar to Hobela (2020) the demerits entail increase in scrutinization and regulations, legal and financial complexities, increased costs, less accessing to funds, lacking direct control and reputational risks.
3.0 Ways of Organisations Expanding their Activities Internationally
People practice professionals are core for shaping corporate strategy and culture of global organisations, navigation of legal and regulatory complexities and resourcing successfully from diverse talent pool. As evidenced in CIPD (2020a) the key drivers of this entail continued popularity of the offshoring, expanding supply chain, increase in demand for low-level skilled migrant workforce. For success in expanding their activities internationally, the best practice would include;
3.1 Legal and Regulatory Compliance
In all international markets, they are defined with their legislations/laws and regulations defining foreign organisations operating in their market. For an expansion of their activities internationally, Chu (2021) note that organisations must maintain their compliance by in-depth pursuing research of entire local legislations. For example, for Almarai, to remain competitive in their international ventures, they people professionals pursue research in areas of corporate taxation, local employment regulations, data protection, importation/exportation licences, structure of ownership and industrial standards. Failure of compliance or embracing these legislation would elicit negative implication on the organisation international expansion.
3.2 Language, Culture and Politics
Similar to the localised legislations and regulations, all international activities are differing in regard to their language, culture and socio-political landscape. According to Abrahamsen et al. (2019),……
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