Questions
The electronics firm should favor concentrated manufacturing. This manufacturing strategy will enable the firm to effectively cover its entire market segment. It is imperative to note that the cost of concentrated manufacturing is lower than that of centralized manufacturing. This is based on the fact that the industry requires a highly skilled labor force and that the cost of constructing a new manufacturing plant costs 500 million pounds. The kind of location for the manufacturing plant should be based on several factors. The first one is qualitative factors. These include skilled workforce, stability of government regulations and the availability of an efficient infrastructure. Quantitative factors to be considered include cost of labor, land and transport. The plant should be constructed at an optimal location after an intensive analysis of globalization forces and time based competition. The location will ensure that the supply chain is effective by linking the manufacturing and distribution process to product delivery to the customer (Lenskold, 2003).
Question Two
An efficient material management can help an international business to compete more effectively in the global market. Material management is a business activity that streamlines the planning and control of material sourcing, buying, transportation and storage. This is important to international businesses that have interests in the global market. An efficient material management should encompass an integrated management strategy. This strategy focuses on inventory control and the total analysis of the resources within the material supply chain. A supply chain logistical analysis can be useful in identification and improvement of the material management process. An effective material management function helps the international business to develop sustainable strategies that enhance its competitiveness in the global market. The benefits include reduction of supply chain costs, enhanced business resource planning and timely delivery of material.
Question Three
My advice to the CEO on exporting textile products is that the firm should assess the international textile industry. First, the involvement of all company employees and business partners is very important. This will start with the formation of a team that will comprehensively evaluate the key issues involved while going global. The second factor to consider is the formation of a business plan that outlines the objectives of international trade and how to measure the results. A market research should be carried out to assess the international textile markets. The market research should identify textile industry trends, government regulations like tax regime, threats and opportunities in each textile market. The research should also determine the strategies that will be effective and give the firm a competitive advantage. The firm should have a clear plan on how the international business shall be funded and determine an effective communication channel. Though a careful use of internal business factors the products are packaged ready for export. Customer identification in the international textile market is very essential as well as the acquisition of vital business documents.
Question Four
My CEO might be wrong by assuming that the advertising message effectively used in the United States can suffice in Brazil. The Brazilian market for disposable diapers is a totally different entity and should be considered as such. Customers in Brazil are quite different from the United States customer in terms of culture, values and attitudes. The advertisement message for the Brazilian market should be designed to meet the social and cultural aspects of the Brazilian people. A market research on the Brazilian diaper market can reveal the most effective marketing and promotion activities. On the other hand, pricing decisions can not be left to local managers. The firm should come up with a pricing strategy specifically for the Brazilian market. Again a market research should be carried out to define the most effective pricing strategy. The pricing strategy should encompass an initial market entry pricing strategy for the company. The pricing strategy should be revised in line with the market situation, competition and product life cycle.
Question Five
The source of the problem for the computer designer and manufacturer can be attributed to poor product development and marketing strategies. Product development strategies play a significant role in determining the relationship the company will have with the customers. To fix this problem, I would first review the product research and development strategy used by the manufacturer. The product development strategy should be guided by emerging needs and wants within the industry, the competitive environment, threats and opportunities in the industry. I would do a comprehensive SWOT analysis to evaluate the internal and external factors in each market. This is a careful analysis of strengths and weakness of the company and which includes the internal factors which the company has control over (Paul and Jerry 2007). An external environment would focus on forces that the company has no control of like technology and economic environment. I would also carry out a systematic market research to define the target customer, industry trends and the competitive environment. The development of new products should be based on the value they add to the customer and the cost implications in manufacturing the new products. Secondly, I would evaluate the marketing strategies for each region. The advertisement activities should target specific market segments. In addition, I would evaluate the efficiency of the companies supply chain. There appears to be a problem with the supply chain which contributes to a delay in products reaching the market. An efficient supply chain management would ensure that products reach the market in a timely and a less costly manner.
Question Six
The major causes for the limitation of effectiveness in expatriates can be traced to cross cultural differences. Employees have a human component that is very vital in determining their performance. The human component consists of the social-cultural background of the employee. It is not easy for employee to adjust to the new work environment and it takes valuable time for them to come to terms with the change in environment. The consequence of this is that it affects employee performance. A company might reduce the occurrence of the problem by adopting a sound selection, recruitment and training method. The exercise of posting employee should consider the cross-cultural similarities and employee motivation. The training method should be comprehensive to cover all aspects of the employee including personal characteristics. Employee management systems should put more emphasis on the social and personal aspects of the employee.
Question Seven
The complexities of human resource management for an international firm include the challenge of developing an effective universal employee management system. The variation in business environments requires that international firms come up with specific employee management systems. The variation is due to differences in social and cultural orientation which causes a shift in motivation and work ethics. Communication and language barrier is another challenge that affects human resource management in an international firm. This necessitates firms to recruit multilingual staff. The mobility of labor across countries is another key issue facing international firms. Documentation and work permit requirements for employee in foreign countries is very critical. Government regulations on employment differ from country to country and the firm should take this into consideration. However, with globalization and the formation of trade blocks and bilateral agreements between governments, mobility of labor has been enhanced.
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