Question

International Business Intelligence “The world has become a global village” is a statement that is resonating more and truer, notably in the economic and business world. As such, business, of all sizes, are becoming more reliant on cross-border ventures as means of maintaining their growth. Stepping outside ones’ own home base and expanding in the global market, is indeed a task full of potential rewards for growth. Nevertheless, it is a task that also requires substantial focus and attention from the management teams in order to avoid obstacles, manage risks and formulate and execute the right internationalisation strategy. As John Kenneth Galbraith pointed out, “Organising a company to do business internationally remains one of the most complex managerial responsibilities: choices must be made, challenges must be met and mind-sets must be transformed.” At BDO, we have developed a recognised expertise in supporting our clients on as their aim to grow their business cross borders. Our IBI service line team works accompanies the management in covering al aspect of this approach, covering the main stages of: a. International Growth Planning As growth plans are formulated, considering entry into a cross border market forms a key section of such approaches. Our team will support the management in formulating such strategies and would cover various stages of this expansion, including among others:
 Identifying the expansion markets targeted by reviewing the target client segment size, consumer behaviour and other factors

 Analysing markets entry risks (administrative, legal, commercial, financial, competitive and others) and formulating targeted mitigation strategies to address the relevant risks identified

 Assessment of the timing of entry into the target market accounting for various market and regulatory considerations


MODULE BUSINESS MANAGEMENT 1B
TOTAL MARKS 100 MARKS

2  
b. Organisational Structuring and Preparation for Cross Border Expansion Once the internationalisation strategy is planned and formulated, a number of structural considerations need to be addressed in order to ensure the right organisational platform is in place to support the execution. International operations would usually require their own structures and organisational issues to adhere to local regulations. The smooth integration and interfacing of these structures with the parent company set up would be a key aspect in the overall company extension and culture. Our team will support the management in addressing such organisational considerations, including among others:

 Operational set up among the parent company and the overseas operation

 Financial implications and impact of the overseas operations on the parent company financial positioning and financial support requirements

 Human resources selection and structure set up to allow for the parent company culture and identity to be maintained and built up further.

c. Execution Support in internationalisation strategies Upon formulating internationalisation strategies (or in response to specific execution support requests), our team of experts acts jointly with the company management to approach the execution of such plans. The support services include among others:
 Approaching service providers in the target market to help with incorporation and related corporate actions

 Strategically advising the management on their negotiations with local venture partners, suppliers and business related stakeholders

 Ongoing market insights and introductions to commercial growth opportunities as per the identified strategy

PROJECT TASK:

In light of the extract, your organisation is contemplating going in to international business within the next two years as well as strengthen the local market competitive advantage. To attain this strategic goals, your organisation require strong leadership, resources, teamwork and motivated employees. As one of the senior managers you are requested by the Executive team of your organisation to develop a report on the preparedness of your organisation to achieve these goals.   
The report should cover the application of relevant theoretical frameworks and must address the following key areas:

4. Human Resources: An assessment of the organisations human resources in terms of skills, motivation and retention. (15 Marks)

Answer 1

Human Resources: An assessment of the organisations human resources in terms of skills, motivation and retention

An organisation is going to enter in to international business is a challenge to senior managers to adopt change in to the organisation. It comes under change management. A manager must formulate a change strategy for alerting human resources of organisation to combat with change (entering in to global market). For that he has to make a rough draft to prepare a final report.

Factors to be considered :

• Assessment of market trends, movements, current market position, future demand, customers, market segmentation, business environmental factors etc.
• Global competition, competitor analysis, competitive advantages, core competences
• Financial requirements such as capital accumulation, formation, working capital requirements, investment analysis,
• Human resources accounting considers each and every factor of human resources planning as human resources are also one of the assets of an organisation. Calculation of cost and benefit on human resource is also an important element in case of human resource planning for international business

In terms of Skills :

• Focus on staff : Identifying the key roles of business, performance evaluation, removing local or national or domestic barriers with respect work and work style, job description , preparing staff to think globally, developing global perspective to improve their efficiencies as per the global environment. This is all required for existing staff. If need sometimes new recruitment will take place. For that manager has to estimate the exact need of recruitment , requirement of right talent for right task.
• Training is compulsory for staff to burgeon their talent and skills , prepare them to work under diversified cultural system,
• Building integrated human resources system for line mangers, formulating global HR policies,
• There should be consistency between job descriptions and skill set of a candidate
• Every job work or role are not the same, and not required similar talent. It is crucial to assess the required skill or talent and its requirement for the company. Based on that policy should be developed. Technical work/role/job are dynamic in nature , sales and marketing attracts young professionals. Thus complete evaluation of each and every role is needed.
• Personal, psychic factors of manager are also important to take up new challenges. Managers at strategic, functional, operational level should be involved in all kinds of assessments, evaluations. Recruitment of such team is based on multiple skill set or talent.
• Formation of data base for required staff and the exact needs of company or an organisation. Conducting SWOT analysis

In terms of motivation :

• Monetary motivation consists incentives, hikes, bonus etc., non monetary motivation consists recognition of talent, awards, rewards, better working conditions, conducive working climate etc.
• Communication with an employee, job roles, designations, promotions, support from management , employee involvement and engagement in every aspect of managerial issues, decentralised organisation
• Making job more interesting, building global networks, giving an opportunity to an employee to exhibit his talent at globe, cross border skill set making an employee more confident and proud. An employee can enjoy status.
• Making an employee and his family more energetic through training to work in global environment as family is also a strong element in the process employee engagement and motivation
• Assessing training development needs and developing clear schedule for training
• Career development of an employee is also one of the motivational factors
• Creating the best learning environment for employees who have much thirst of knowledge and want to enjoy work and improve their expertise.

In terms of retention :

• Retention is very important other wise it increases recruitment and other work costs to the organisation.
• Retention is possible through motivation , job satisfaction of an employee, work culture, organisation culture, policies, strategies etc
• Talent obsolescence of existing employees may effect the retention some times if they are resistant to change.
• Employee retention strategy is to be formed stating the division of employees as per their skill set and talent , performance, knowledge, communication, personality traits and also along with organisational needs as per the emerging markets.