Introduction which firms must learn to compete


In this assignment, it will state what
challenges HR managers need to consider to successfully operate in other parts
of the world. In addition, this assignment will include internationalisation, MCN’s,
globalisation, recruitment and selection, culture and its effect on HRM, as
well as talent management. The increase of globalisation levels and the
expansion of multinational companies (MNCs) has created complex and dynamic
environment in which firms must learn to compete to achieve sustainable growth.
The issue of cultural differences is becoming more and more important and
managing an international workforce is part of this challenge. During the
course of this assignment, there will be arguments and discussions on the
cultural differences between two sets of countries, particularly China and USA,
and their impact on HR practices.

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It has been widely accepted that
cultural distances influence human thinking and behaviour therefore it can be
challenging for managers to move from one culture to another in terms of Human
Resource Management. Hofstede, 1993 came up with the research which suggested
that China and the USA differ greatly regarding their economic systems,
political systems, social values and laws. The significant differences between
these countries influence aspects of management practices.


The term “Internationalization” is
the designing of a product or business in such a way that it will meet the
needs of users in many countries or can be easily adapted to do so.
International businesses often must be localized to fit the needs of that
country’s users. For example, an internationalized business which runs in China
and USA must consider the Chinese culture and the American culture to
successfully operate and understand the needs of the countries.


MCN’s simply means a multinational
corporation. Multinational corporations have facilities as well as other assets
in at least one country other than its home country. Such companies usually
have a centralized head office where they coordinate global management. Almost
all major multinationals are either American, Japanese or Western European such
as Wal-Mart, Coca-Cola and Nike. Promoters of multinationals say they create
high-paying jobs and technologically advances goods in countries that otherwise
would not have access to such opportunities or goods. On the other hand,
critics say multinationals have undue political influence over governments
which creates job losses in their own home-countries.

There are assorted reasons as to why
businesses would like to expand internationally since market opportunities
exist abroad. These opportunities include demand for a business’s product in
foreign markets, trends changing to favour the products in foreign markets, or
the absence of competition abroad which would give the business the first mover
advantage. Another reason as to why a firm may want to globalize their business
is to achieve economies of scale. This is an advantage to businesses as
economies of scale allows a firm to economize the transport and distribution
network. In addition, this can allow firms to produce cheaper products in
certain counties due to factors such as component costs, flexibility, supplier
availability, wages and different legislations.

The product life cycle (PLC) model is
an important concept in marketing. There are four main stages within PLC which
are; introduction, growth, maturity and decline. Within PLC, the term
‘introduction’ is introducing a new product. The term ‘growth’ is when the
product is being bought, the price declines. The term ‘maturity’ is when the
product competes with alternatives and pricing drops. Finally, the term
‘decline’ is used when the product is coming to an end and therefore faces
fewer competitors. When reviewing international businesses in China or USA, it
is important to understand what stage the businesses goods have reached across
the portfolio of all products which can be accessed in terms of market share
and growth using the BCG Matrix model. Reviewing the products of portfolio with
international businesses, enables marketers to plan for new products, reinvent
existing products or discontinue products that may be within the ‘decline’
category. This will be beneficial for international businesses within China and
USA. See appendix 1.