Company New Balance
Background
The important leading industrial manufacturing company in US ,called New Balance has become a large growth of widespread in the global economy. The main task and motto of the company is to sell the brand athletic products to different countries across the world. So in this early stage of 1906 new balance arch support company has set up ans its headquarters is in Boston,USA .thus the new balance company is a privately owned company and the founder of new balance arch support company is by William .J.Riley which has been widespread internationally with 2800 workpartner around the world and also the products were used to sell more than 120 countries by 1970. so in this case by the establishment of New Balance, Americans add its own good impression and the pleasure of satisfaction had routed in their own country (http://www.newbalance.com)
New balance Products & design :
New balance manufacture and market are technically innovative, which appears for both men and women and children.Some of the products are running, training, walking, basketball, tennis and kids.In this manufacturing products there were different shoe were introduced in different numbers like 320,620,990,480 and 801.
Business culture in America :
As everyone knows that USA is the third largest country both in size and population so it is the nation which moving towards rapidly and high successfully with its unique cultural diversity.Business culture is America is having a very good and effective manner in all the ways. In each and every company the culture of business might differ from company to company but they always keep a very high level of standard in business outfits. Usually, the rules and regulations in the company have been well disciplined and well maintained too, the dress code have been maintained in a formal manner, punctuality plays a very vital role: for instance, if an person in a organisation if he is not able to attain the meeting in time then he has to inform to the senior manager through a call or else needs to send a message if this is not maintained then gradually it will affect to the environment of business culture in the company. In an organisation if a meeting is being arranged towards the people from outside organisation then in that particular time he/she needs to maintain a very discipline manner and also the eye contact should be maintained when he meets at first time
(http://www.discoverabroad.com/us/livingabroad)
(http://www.usabusinesscultural.htm)
In USA according to California state university ,the cultural, leadership and the perceived leadership is has been cross cultured in five dimensions:
- collectivism /individualism(CI)
- masculinity /feminity (massc)
- power distance (pd)
- uncertainity avoidance (UA)
- fatalism
In general they tend to follow the multi cultural behaviour in a organisational context. (http.//ccm.sagepub.com/cgi/content) By knowing the cultural awareness of USA here in this context the well known company called New Balance are planning to set up a wholly owned subsidiary in India . the manufacturing company called New Balance has experienced there fair amount of sales and production, marketing in and around nearly 120 countries throughout the world and they have success in all the ways to bring up a organisation throughout the globe so to set up an organisation in India according to mark buchman who teaches a class by doing the business in specific basin, the important five principles (5Ps) should be kept in mind that to successfully deal with different practice and cultural they are
- plan 2.presever 3.patience 4.personal relation 5.perfection
for this principle another well known person called Ben Franklin added a point called ‘prevention' thus in this essay an attempt will be made to try and identify some of the key factors which influence the growth and settings up of New Balance subsidiary in India, according to the prospective way of thinking in the form of human resource manager
Why India has been taken into consideration :
India is a very vast and big in population the important aspects of India is the management and human resource management system is well disciplined education system is good both in secondary and territory sector, the man power development in information technology is exceptionally too good. In the field of service sector, training and development has resulted in high level of standard so right at the moment India is already a important exporter of technical and scientific man power so this are some of the major things which can taken into consideration and which helps the country to open a an organisation and to move faster towards their goals and achievements. The important economic resource in India :
After a long period India ‘s economic reforms was intiated in 29 july ,1991 by then finance minister Mr manmohan singh. Some of the key reforms which were focussed on investment reforms,trade policies , financial sector , public enterprise and the facial stabilisation. Important policy reforms : in consideration towards the step which were aim at facial stabilisation and macro economic policy which in relation towards the industrial and trade policy even the government policies has been introduced in India and have made a positive impact on economic reforms. (the business guide to India edited by jitendra kohli page number 22-25) the currency records of India when we compare it to united states, most likely in the recent decades USA currency have been come down from 21% to 18% . when we take into consideration of Indian GDP it has been increased to 6% to 11% in 2005 but more or less India have experienced a increased growth of GDP in the year 2005/06 from 9% to 9.4% . so by the great experience of Indian economy now it has been compared it to 60% size of the US economy according to research plan within another 10 years India will takeover Japan in terms of purchasing power parity (PPP) (http://www.economicwatch.com/Indianeconomy)
Steps and methods should be taken into consideration to start up a business in India:
- Need to register the name of the company
- Need to make an requesting form from authorised bank for stamping
- Need to present the required documents
- Company seal should be there
- Permanent account number will be given by UTI investor service
- Need to obtain a income tax account number
- Need to registered in shops and establishment Act
- Need to register in VAT (value added tax)
- Need to register in professional tax
- Need to register with employee provident fund organisation
- Register with medical insurance
- Need to approve from the government official
(http://madaan.com/starting business.html)
Cultural similarities of India and USA
In the global era India and USA are the two largest countries were India is the poor country wheras USA is ne of the highy richest country both countries have democracy . both India and USA were ruled by British people. Both the countries are high in population in the religion ways Indian citizen are more in hindus whereas in Americans the Christian. Racial discrimination were there in both the countries
So when we take all this into consideration he business culture in India and the people over there and the way of behaviour attitude dressing code is also being similar to each of these countries and nowadays the education system of India is also being followed by foreign culture. In the organisation the management style of India and USA is almost the same because in India there are many high skilled people specially in the field of information technology which this would be one of the major keypoint where to bring or set up the organisation in an systematic manner. International human resource mangament and the human resource management is also similar to each of these cultures. In recent years the work culture of India is well disciplined, not only USA but also each and other countries across the world are also proud of the growth story of India and the way of hard work culture in the Indian people. [http://adaniel.tripod.com]
Competition in India
The Indian Footwear Components Manufactures Association [IFCOMA] is the only trade association of components manufactures in India. It is a non profit organisation managed by the executive committee. The main objective is to promote a healthy growth footwear industry. [http://www.indianshoebazaar.com]
The new balance athletic shoe is one of the important industry in USA, more or less the fitness of the shoes is so flexible, so the new balance shoe is used to running, cross training baketball, tennis, hiking and golf. The top competitors of New balance Athletic shoe are Adidas, Fila {USA}, NIKE.
Adidas is also a athletic shoe which is very best product selling in Asia. Fila {USA} is one of the most good and fashionable shoe in USA where the products of selling the products is also having a hugh amount of competition. Nike is the only shoe which is the worlds best one. Nike also sells casual shoes to women and men. Thus there are three shoe in India and even across the world which has got lots of competition in selling the products. So for that's the reason when USA are going to establish there new company called New balance than they shouls be well knowledge in all the ways to get the success out of it. [http://www.hoovers.com/new-balance]
Consumers in India
In Indian the natural cosmetics are low in price when we compare it to other different countries. In the future the value of price in products will come down so that being high in population the supply of demand will be increasing so that there might not be any discrimination between the individual to individual and each and everyone should be treated equally, high level of standard should be maintained. In India, the hygienic products are priced in such a way that and income groups can afford to but that product , it is done mainly to target the rural people in the village and in result they buy the products. According to analyst ,UK based firm Lush ,the scope of nature bath and beauty products retailers had a bit of difficulties in investing in the Indian market.
Now in the recent decades the Indian markets in june 2006 they are going to opena 50 stores in different cities in India by 2008, suggesting that the foreign companies see India as a good investment destination and a good market for their companies products (http://www.google.co.uk/search)
Comparison of cultures
In business the main important task should be taken into consideration while planning to establish a subsidiary system in another country so for these each and every country the people over there must have good relationship, better understanding of the cultural differences of the host country. So in this cultural some of the good aspects which helps towards the host country may have taken into consideration this part or section is to have the knowledge on culture of USA ,the parent country and the India the host country which is again based on ‘trompenaaros' cultural dimensions. There are three steps of cultural approaches namely recognition respect and reconcialiation .
Recognition
Recognition means we need to describe our own cultural perspective so that in each and everyone will be aware of their own culture when other people in the country knows about the cultural differences then gradually the action of recognition from individual to individual will increase.
Respect
We need to keep our own high level of standard in culture. The first and foremost thing is that we need to appreciate the differences of our own culture.
Reconciliation:
There are many differences in cultural but each and every cultural has its own positive impact and should have friendly relations with other people. (http://www.eurofinas.org/database)
The four dimensions on Trompenaaros cultural are:
Universalism Vs Particularism:
It means the system and the rules and regulation of the industry should be in high level of standard. Each and everyone should be equal and uniform in all the ways of cultural dimensions. So that in an organisation we can see a unique form of creation in the industry.
Individualism versus communitarianism:
It means that the individual of one person should be improved and as a result the standard of high quality to be shown in the industry. Here in this case we mostly find the co-operation and also the good relationship between the both is found.
Neutral versus affective:
In an organisation between the managers and the senior manager there should not be any sort of emotions is not taken in to consideration even if the situation is more in opportunities but we the individuals need to take up the challenge and to be cool by himself.
Achievement versus ascription:
In a industry achievement and ascriptions plays a major role and the background of the particular individual like where is he, what is his status etc. will be checked. Mainly the age, sex, education, family is taken in to consideration.[htt://www.eurofinas.org/database]
Management system:
If you want to set up a disciplined organisation in India then particularly company should be well maintained and should be orderly disciplined so in new balance company if there is any mistake in selling the product shown then it will not be taken in to consideration. So for that reason new balance is a company should be aware of all the human resource management that what are their policies should be there and should not, so when we take in to consideration new balance is a company which is across 120 countries throughout the world. When we start-up a business in India the performance of the management should be well estimated. Being a manufacturing industry the sales and production should be sold very well and people in the industry should have a good relationship with the other people, the main important thing is that the human resource manager in the company should plan and think before to start-up by doing a work. So that the industry will be highly systematised
(http://www.thinking managers.com/management)
Anti trade unionism:
It means both the management and union should have good customer relation and customer service. If they have good rapport in selling the products then gradually the selling of the production will be increased. Another main important thing to set-up a industry of new balance like management should have better relations with the members in the organisation and also the communication should be so free between the two parties. In organisation decision making the long-term agreements should be maintained. So in new balance if an individual is performing better and better then reward should e given to the particular individual. Each and every employee should be given equal treatment and no discrimination should be done. In every organisation in India, they will be having their own targets to achieve their goal. in the industry of new balance every employee should follow and believe in work ethics, professional ethics and the managerial ethics. Workers in the organisation need to take care of all the things and there shouldn't be any strikes and lockouts in the industry.(http://www.indian mba.com/faculty)by this a opening a manufacturing industry like new balance which is a production of athletic shoes and also it is useful to each and every individuals. So in that aspects Indian culture should have good knowledge and high level of standard in all the ways.
New balance and International HRM
The internalisation of HR:
The main important key terms of new balance to bring up a industry in India. they are as follows.
1.establishing a high level of international business.
2.to increase the large and small products of enterprise.
3.to be professional in the field of HRM throughout the globe.
1.Establishing a high level of international business:
When we set-up an industry called new balance there at first we should keep in mind that each and every employer should be in a high level of standard so when the employer has the good qualities then the establishment of the products in the industry will not be a problem in India. To run in the industry in a smooth and flexible manner then each and every employer should have a good customer relationship with other people.
2.To increase the large and small products of enterprise.
In manufacturing industry the products in new balance varies in size, colour, comfort, and etc.if we want to excel in our production then we need to set-up different branches in different places in India. So that the selling of the products and the name of the industry will also be high and standard.
3.To be professional in the field of HRM throughout the globe:
When the industry is set-up .the main important task of the industry is to have a professional standard of employer in the new balance industry, they should be highly skilled and knowledgeable in their own field. Should also have the feeling of professionalism in the industry.(reference:INHRM by Dennis r.Briscoe and randall.s.schuler)
Global staffing:
Global staffing has been well defined by involving one of the three types of international employees. They are the Parent Country National (PCN), the Host Country National (HCN) and the Third Country National (TCN). Briscoe and Randall s.schuler,(2004:210)so to identify in to key areas in International HRM. As recruitment in selection, training and development, multi cultural terms in the industry. So that the environment in the Newbalance company will be aware of the rulers and regulations and even the performance mangement should be taken into consideration. (By Dowling and Welch,2004) Scullion (1995: 352), on the other hand also defines IHRM as the HRM issues, the strategies of HRM, THE POLICY AND PRACTICES OF HRM is taken.
In India if the Newbalance industry plays a major role in the industry and if the performance of the individual expatriate employees represent a major role in the MNC's than he can be send to the major head quarters of the company. In this case if the performance of the individual is good than the rewards from the company should be given than the mangement system will try to build up of the company will also be easy in the present market system. (By Mendenhall & Oddon) pg.no:50
Reference: By Hugh Scullion and David G.Collings.
Cross - Cultural training :
Cross Cultural training is one of the important and highly effective skilled training in the international cultural of environment. At first cross cultural training is divided into two types namely:
Per departure training &
Post arrival training
Per departure training :
In New balance if a newly person has been joined to the company than the authority member should conduct before commencement of training. In pre departure we also allow family members, employee in the industry etc.
Post arrival training :
In the New balance industry when the person is arrived or might be after the commencement of the date than the period of training will be started in an organisation. [Ref : Emma Parkinson And Michael.J.Morley pg no 118 & 119]
Recommendations:
So keeping all the points, the business cultural of new balance which is going to be established in India will have a very good impact on the rate of production, selling in the market and also customer relationship should be good. In this industry the management style of working from India to USA is similar to each other so that the establishment of the company will have a good grand of success in the future.
Conclusion :
In this essay I have examined on the products of manufacturing company of New balance from USA and gave a positive steps to take an initiative and to establish the subsidiary in india. Even I have attempted on the principles of cultural and similarities between both the country, how the products have been design, who are the competitors of the New balance, the policies of IHRM, global staffing in IHRM and also I have attempted by giving the reasons on cross cultural training in industries.
Reference:
(http://www.newbalance.com)
(http://www.discoverabroad.com/us/livingabroad)
(http://www.usabusinesscultural.htm
http://www.google.co.uk/search)
http://www.indianshoebazaar.com]
http://www.hoovers.com/new-balance]
.[htt://www.eurofinas.org/database]
(http.//ccm.sagepub.com/cgi/content
(http://www.economicwatch.com/Indianeconomy)
(http://madaan.com/starting business.html)
(http://www.thinking managers.com/management)
[Ref : Emma Parkinson And Michael.J.Morley pg no 118 & 119]
Reference: By Hugh Scullion and David G.Collings.
(reference:INHRM by Dennis r.Briscoe and randall.s.schuler)
http://www.indian mba.com/faculty)
(http://www.eurofinas.org/database)
http://www.google.co.uk/search)
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