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Solution
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)………………
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