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International Expanion:Issues

1250-1500 Words
Details: Consider the following scenario:
PPQ Parts has determined that for the company to expand globally over the next several years, its managers must be properly trained in multiculturalism and diversity management. PPQ Parts executives must be aware of any political and economic concerns that may arise during the expansion.
Using the library, and other Web resources to write a report (1,250รข?"1,500 word total) for the senior management team that addresses the following:

1. What are some of the issues the host foreign country could face as a result of the expansion?
2. Explain what cultural barriers and diversity issues are commonly encountered by international/multinational (MNC) and global organizations.
3. Why has diversity become such an important topic in the international arena?
4. What can occur when issues related to multiculturalism and diversity are ignored in an international company?
5. Describe at least 2 political and 2 economic issues that may arise during global expansion and proposed methods of addressing them.
6. Explain the importance of and the implications of each of these items in PPQ Parts's expansion plans to Germany and Japan.
Please cite any references for citation, thank you

Solution Preview

Dear Student,
Hello and thank you for using Brainmass. As I understand it, you are to make an assumption according to the given scenario. This solution does that. If you have your own ideas, incorporate them in your final paper. For further research, you can use the listed references. Good luck!

Sincerely,
OTA 105878/Xenia Jones
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Issues in Globalization

The Scenario -

"The company of PPQ Parts has determined that for the company to expand globally over the next several years, its managers must be properly trained in multiculturalism and diversity management. PPQ Parts executives must be aware of any political and economic concerns that may arise during the expansion. The discussion below looks into areas of concern for senior management."

Issues of Concern

The host country of PPQ Parts will be host to an organization used to a different way of doing things being that the company came from a different social, cultural, political and economic system. Legally, the company is used to a different legal system. This means that for the company to cope with the demands and challenges of the new environment, it has to adapt and cope with its host country's legal system. Thus, it must hire local legal specialists to represent its interests. While the company might be only operating not for retail but for manufacture to supply its home country, it still must fill its ranks with local employees. This means that while the organizational culture, the code of ethics, goals and rules and regulations of the company as it is followed in its home country applies, it must be modified to accommodate the cultural, social, political, legal and economic realities of the host country. It can therefore send expatriate senior officers to set up its operations in the host country, hire staff and look after the legal and social issues that it must respond to. Senior officers trained in handling multiculturalism and diversity as well as effective management can do this. It is quite possible for transition of effective management from home country to host country happen despite the geocultural challenges.

A lot of multinational companies have already done this (i.e. Starbucks, Coke, PepsiCo, Unilever, Microsoft, Google, Toyota, etc.). For the host country however, just as the company can bring jobs and new opportunities, it must also deal with the issue of accommodating the demands of the company - to be attractive to the investing company it must ensure that there are benefits to opening a branch in the ...

Solution Summary

The solution is a 1,529-word narrative that provides a sample discussion of issues a company will face in a host country as it works towards expanding internationally. Diversity is included as part of the reason as well as solution to the issues listed that are from have economic, political and cultural reasons/effects. References are listed for further research. A word version of the solution is attached for easy printing and digital use.

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