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International Company Expanding to Germany

Company is expanding to Germany, and they manufacture parts for automobiles.

Your director at StrongGrow, Inc. has asked you to submit a detailed memo to his operating committee addressing the major challenges that may present themselves as the company targets its expansion into Germany first and then into Japan. Your detailed memo for the operating committee should include the following:

Give examples of how you would manage a workforce that may be from more than one location.
Include a discussion on the travel related issues.
Address concerns regarding family commitments.
Discuss the political, legal, ethical, and cultural systems and language barriers.
Review ethical situations like expense reporting.
Detail the differences between U.S., German, and Japanese operational and business practices.

Solution Preview

The response addresses the queries posted in 1679 words with references.

//Here, the discussion regarding the 'Management of Workforce' that may be from more than one location, is elaborated, along with a number of aspects like decision on policy related with staffing and policy related with host country. In addition, the advantages and disadvantages of every policy has been evaluated.//

STRONG GROWS INC.

Memorandum

Date: Sep 7, 2007

To: Operating Committee

From: Manager

Subject: The major challenges the company would face when expanding in Germany and Japan.

Organization has to work with the diverse workforce when expanding the business and moving to a different location. Personnel management consisting of employees from different locations is highly complex. The reason behind this is different labour mix in different countries. The employees have varying beliefs, customs and cultures. Workforce varies in their objectives and face communication problem due to working in a different environment. Thus, all these problems affect the efficiency of the firm.

In managing the workforce, the company has to decide whether:

? To follow a uniform staffing policy or

? To adopt a policy considering specific needs of the host country's environment.

First of all before deciding on how to manage workforce, strategy and policy of the company should focus on what is the reason behind expansion of the company. Reasons are: expert management skills in Japanese people, cost advantage and immense market potential. Strong Grow Inc. can take the advantage of Japan's manufactured electronic products. One good example to manage workforce is to have an ethnocentric policy where senior managers are from the home country in the Japan and Germany countries operations. They should provide them with compensation that is above the basic salary to motivate them to work outside their home country. Other functional working force is local people who have expertise in hi-tech and electronic products; they can provide a direction, skills and efficiency to the firm.

Employing local people has lower cost, high productivity and other benefits. Personnel manager has to be hired from the local country to work in coordination with the manager from the home country. The problem faced in this type of management is communication problem with senior managers due to language and cultural diversity. They find it difficult to deal with the local country suppliers and other top government officials.

Another strategy to manage workforce is that top management should be recruited from the local country as this reduces the problem of communication and helps in dealing with the customers and officials. They are known to the culture, laws, policies and the business environment. The company considering ...

Solution Summary

The response addresses the queries posted in 1679 words with references.

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