Global Expansion of a Domestic Company
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Published: Wed, 13 Sep 2017
The domestic company’s name is Prestige, INC, which is owned by James Sammons. James Sammons is also the Chief Executive Officer (CEO). Over the past few years the company has grown very much due to its good services. Domestically it has done so well in providing its services; entertainment services for all categories of people, in advertisement of product many businesses opt to use this company because it’s the best, in broadcasting news it’s the best company since it covers both domestic and global news and also it is the best company known in providing jobs to many people in the country. Other than the broadcasting services the company has involved itself in other minor services, example providing banking services domestically and trying to involve many youths in games activities hence sponsoring various clubs in the country and also having its own football club. For these and many other reasons different foreign investors have created desire to conduct business with this company . The CEO has decided to expand his services not only domestically but also globally and mostly to England and China where he guesses culture and business activities done in those countries will be in line with what he is doing in the domestic country. To make these possible the executive committee decided they had to choose two expatriate to be working in those countries and another executive committee to accompany them with board of directors to assist them. The company had to write a report on those employees who will be willing to work in those two countries, the executive committee and the board of directors and these are the results.
The work of expatriate being that of staying outside their home country and doing the assignment for its home organization concerning business they face different challenges (Caligiuri and Colakoglu, 2007). The organization also faces cost problems in maintaining these people but they must make sure they provide the best to these individuals to make them perform their work well. Some of the challenges the expatriate may face includes; change of environment and trying to adapt to it, cultural differences, socializing and making new friends in foreign countries, in addition personal financial crisis in these foreign countries is a major problem to them, health problems to these people and of course trying to learn, understand and communicate with the language of this foreign country becomes a problem to them (Bonache and Noethen, 2014). To these effect then the executive committee must be aware of these challenges and therefore provide the best for their employees to remain them to their job. Some of the ways the company may involve themselves in trying to improve the lives of these expats may include; first the organization must train them adequately and make them aware of those challenges, they should also assign the right responsibilities to these individuals not to make their life more-harder by giving them a lot of unnecessary pressures, financially the organization should be ready to spend appropriately and provide every requirement of their employee (Bonache and Noethen, 2014). The company also should motivate their employee any time they realize they achieve something of great importance by giving them good rewards.
Being aware of the challenges that the expats face, the company should be very keen in selection of the right employees. The executive should first consider the right characteristics of the employees. These characteristics are as follows; first the employee should open-minded, this means that the person should be able to consider the ideas of other people and trying to implement them with an aim of improving the business (Wang, 2008). Secondly he should have cultural sensitivity in that, being in a new country where there are diverse cultures different from that of home country he should be ready to accept these cultures and adapt to them as first as possible. In addition, the employee should be flexible in that he can comfortably adapt to new systems of life and become part of it (Bonache and Noethen, 2014). Being adventurous is another characteristic the company should consider to the employee; someone who is ready to take risks of all kind and being strong in difficult situations where he can find quick solutions to them. Finally, the employee should be curious; having those strong desires to learn and understand the new cultures, surroundings and job which will lead to success of the business.
For the guidelines, the company to provide for the expatriates will include; compensation and benefits the employees will have; for the salaries the company and the employee should have a well-defined agreement and the company must not go in contrary to it (Wang, 2008). The company should be responsible to all the expenses the expatriates will incur for flight to the foreign country and also should compensate all the expenses the employee will incur travelling to different places in the country in name of the business (Caligiuri and Colakoglu, 2007). The employee is expected to follow simple guidelines; he is not expected to be married person and if married he should not take with him more than one child, no pet is allowed during the flight time, he is not allowed to carry with him any other electronic except his mobile phone others will be bought by the company once he arrives to the country. So as to learn the culture of people fast and used to it he is not allowed carrying with him any clothing either for the children or the spouse if married the company will take care of everything once they arrive to the country. The employee has no right to choose where to be sleeping the company itself should decide and be responsible of everything for accommodations (Bonache and Noethen, 2014). The expatriates are recommended to carry with them the catalogues of the company as they move to overseas. Also they are required to carry the price list of their products and go compare with those in overseas.
For the executive committee and board of directors who will be selected to go to overseas they should be committed to expansion of the business. To ensure their ability to expansion, the CEO must adopt the best strategy to do this (McEvoy and Buller, 2013). He should not choose this executive committee from outside his company he should consider the most active members in the past years from the company and promote the persons as to be members of the committee. By doing this, the CEO is aware of their competence in work and hence even in overseas they will perform to their best (Wang, 2008). Possibly if the CEO select people from outside him will not be aware of their performance where they may go to overseas and produce nothing in return.
Similarly, for the CEO to get the best from the executive committee, board of directors and the expat he should provide incentives to them. These incentives include; compensation incentives where if the business is performing well and making profits it should involve them in profit sharing, signing of bonuses and raises (Bonache and Noethen, 2014). Also there are recognition incentives where the CEO praises his employees, thanking them when they do something worth. In addition, there is the reward incentive where the CEO may provide gifts to the employees, giving monetary rewards and also issuing certificates to the employees once they accomplish a certain period in the overseas. Consequently, the employees will fell the warmth of their CEO and this will motivate them to do even better than they could have done before.
Being a media company, sending of expatriates to overseas leaps a lot of benefit to the company. First the company is able to realize the available opportunities and the present market situation in those countries. The company will be able to know the type of advertisement his company will be airing and hence getting a chance for his company to fit in that particular country (McEvoy and Buller, 2013). They may also check on the population distribution and this will help the company to know the type of entrainment services to provide to the country and comfortably fit to the country’s current situation. Knowledge about the culture of the particular country will help the company to know the kind of episodes it will be concentrating in and make the audience comfortable. Therefore, sending the expatriates to the overseas will help the expansion of the company greatly.
Sending expatriates sometimes becomes challenging for the company. This is because they company incurs a lot of cost in maintaining them in overseas and also sometimes the expected results frustrate the company (McEvoy and Buller, 2013). Some of them when they go the foreign countries they are unable to cope with the hard life there and opt to come back their country. This counts to a lot of losses to the company has already it had spent a lot to the employee. Failing to know the actual intention of some employees when they are send to those countries also becomes a challenge to the company (Caligiuri and Colakoglu, 2007). Some of the employees may want to use the name of the company to benefit themselves and this creates a poor image for the company while the employee creates his name better. Also they may give false results to the company and the company engages itself to the business and there after becomes stress to them since they didn’t know the real truth.
In England, many people like entertainment and the population distributions in the country is also good; in terms of gender this helps the company to have balanced population which is very cheap to offer services to(Caligiuri and Colakoglu, 2007). Also England is developed country, so many people concentrate most in business so for advertisement services the company will able to offer the service effectively. In addition, the country is very competitive in terms of businesses therefore this will give my company a challenge which will have a great impact back in the domestic country as well as in this foreign country. Prestige, INC also deals with other services like banking and in England it’s the only potential country where you can prosper well in banking services. This because many people live in urban areas hence conducting the business will be cheaper because it is centralized in one area (McEvoy and Buller, 2013). There are so many talented young people in England so starting a football club will gain many participants which will increase on the popularity of the company hence more customers. Therefore, choosing England had a lot of reasons; it’s well distributed population, competition in business, centralization of people in urban areas and high number of talented young people. All the above reasons will make the company to grow with higher rate (McEvoy and Buller, 2013). England doesn’t have so many cultures like my domestic country therefore it’s not hard to choose what to offer to the customers. They commonly speak English which in also spoken in my country. This is added advantage as there will be no problems in communication among people.
China is a very highly populated country and although a large percentage of the population is Buddhist, there are dozens of other religions and cultures represented in the country. The varying types of cultures offers many opportunities for my business. This is because one is able to diverse into different cultures and hence provides the best for them. In China, there are so many actors who do it to preserve their cultures. This also becomes an advantage to the company (Caligiuri and Colakoglu, 2007). The country is so good in terms of technology. This will help the media service company since there would be cheap labor in terms of maintenance of the equipment required for media services. The mostly used language in China is Chinese. With this one has employ people from the locality so as to reach every person in China.
In conclusion, choosing these countries had big challenge because first you had to do a thorough study. To do this employing expatriates become expensive mostly in China because many employees could not adapt to the cultures and languages. Also getting business in these countries one had to get the permission from the government where they have complicated procedures. Also fitting in these new countries and becoming a threat to the already existing businesses also was a big challenge.
Bonache, J., & Noethen, D. (2014). The Impact of Individual Performance on Organizational Success and its Implications for the Management of Expatriates. International Journal of Human Resource Management.
Caligiuri, P. M., & Colakoglu, S. (2007). A Strategic Contingency Approach to Expatriate Assignment Management. Human Resource Management Journal.
McEvoy, G. M., & Buller, P. F. (2013). Research for Practice: The Management of Expatriates. Thunderbird International Business Review
Wang, I. (2008). The Relations Between Expatriate Management and the Mentality and Adjustment of Expatriates. Social Behavior & Personality: An International Journal.
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