The assignment is the assessment for whole module through which the understanding of the student can get access to. This module is focusing on the key concepts which discussed during the class sessions. In the assignment student has to play the role of HR Director of Whole Food Market Company planning to expand their business in four countries, including India, Brazil, China, and Nigeria.
The assignment will be focusing on Human Resource factors and dealings with local staff. As the host country employees are going to play a pivotal role in the success of the business abroad. The board of Whole Food Market Company has asked the HR Director to prepare a report that informs the Managing Director as well as the Board Members about the HR related issues that needs to consider.
The chosen company is a chain of super store which deals in household products. The name of the store is Whole Foods Market. Whole Foods Market is after the strategic approach of differentiating features as it is providing superior product at the best quality with value added service. The strategy of Whole Foods has been the Expansion of the business and establishment of the products of Whole Foods in the international market as a brand not just with natural and organic foods but also with being the best food retailer in every community in which Whole Foods stores located. For this CEO and co-founder of the company, John Mackey made a strategy of marketing high-quality natural and organic foods to more and more customers in more and more communities. This would over time gradually transform the diets of people in a way that would help them live longer, healthier, pleasurable lives.
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The nature of the business is a strong service focus as it playing the role of the agent between the customer and company. The Directors of the company decided to enter in four new markets to expand the business. The name of the countries which company decided to enter is India, Brazil, China, and Nigeria. The director human resource has to find the human resource issues which the company is going to face by entering into new culture. Each country is different from each other in term of culture and business policies related to human resource, so the director has made the report on individual basis. Human resource is one of the most strategic tools for the success of any business.
According to Kwintessential (2013) India in the Asian continent. India is cultural rich and diverse country with several languages and religions. India is one of the largest countries in term of population. There are several religious and cultural groups within the country. The most population in India is Hindu with minority of Muslim and Sikh people. According to Ezine@rticles (2012) the economy of Indian depends on agriculture mainly as India had a close economy and they open it few years back to gain foreign investments. In India people greet each other by palm together below the chin and using of the word Namaste shows the understanding of the Indian culture. In business organizations people also greet each other with hand shake. Indian people are good at building up relations and give favorable deals to one they trust. As, Whole Food Market is a multinational corporation so the brand equity will help in gaining the trust from Indian people.
According to Kwintessential, (2013) Indians prefer time punctually and understands importance of time value. As, India is consist of diverse culture and community systems, hierarchy plays a vital role in their cultural systems. The societies of India operates within a well define framework of business, job description and social order. According to Ezine@rticles (2012) usually during business operations people wear formal cloths, effective in communication and get motivated with low wages. Indian people are emotional, so the marketing strategies and human resource policies should consist of faith, feeling as it impacts the business decisions.
â€¢ People of India are highly skilled with effective communication skill the most important tool in service industry and for the company to use its ability (Cardoso & Monfardini, 2008).
â€¢ India is technologically rich so the company will not have to influence the people with high-tech as the company already working with high-tech tools (Kotzé & Roodt, 2005).
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â€¢ Indian people have intellectual personalities so they can easily be train according to mission and vision of Whole Food Market (Ezine@rticles, 2012).
â€¢ Low wages which can impact the cost of the human resource and company can earn a good profit margin (Cardoso & Monfardini, 2008).
â€¢ Indian people are reliable, innovative, and socially responsible as in service industry staff should effective and helps the company to get an edge over competitors.
â€¢ Indian people are emotional so they can easily be attracted by good marketing tactics and capture market (Kotzé & Roodt, 2005).
â€¢ Indian people are emotional .
â€¢ Increasing and growing technology can risk in manage ability (Ezine@rticles, 2012).
â€¢ Literacy rate of India is low which can make hurdle in hiring well qualified employees.
â€¢ People are reactive not proactive in India (Kotzé & Roodt, 2005).
â€¢ Per capita income is low which can cause high employee turnover.
â€¢ Hiring process will be too costly as the company will receive huge amount application of single vacant place (Cardoso & Monfardini, 2008).
â€¢ Selection of expert employee for the HR will be difficult as there will be a huge choice (Kotzé & Roodt, 2005).
â€¢ Close culture people and are not ready to learn new cultures.
â€¢ High income inequality
â€¢ Availability of fresh talents in India can help the management to hire effective and efficient staff (Kotzé & Roodt, 2005).
â€¢ Employee turnover is low in India as it is an under develop country so the company can save cost of hiring staff and training of staff (Kotzé & Roodt, 2005).
â€¢ Company can have loyal employees by compensating the current employees and pleasing them in shape of wages (Cardoso & Monfardini, 2008).
â€¢ Workforce growth due to increase in the demand of company products and services (Cardoso & Monfardini, 2008).
â€¢ Government programs to promote the qualifications of young and energetic people (Ezine@rticles, 2012)
â€¢ State labor laws can change any time.
â€¢ Labor laws are strict and labor unions can create a hurdle for the business operations (Kotzé & Roodt, 2005).
â€¢ Increasing cost of Human Resource because of inflation (Cardoso & Monfardini, 2008).
â€¢ Career expectation of new generation are high
â€¢ Deficit of well qualified people (Cardoso & Monfardini, 2008).
â€¢ Upper level management is not involved in the process of HRM (Kotzé & Roodt, 2005).
â€¢ Competitor can easily hire the well train staff of the company.
â€¢ Cultural difference between the operating systems and Human Resource policies (Kotzé & Roodt, 2005).
â€¢ Security issues of the employees
â€¢ Competition is intense in the market which will make difficult for the sales staff to meet the target (Cardoso & Monfardini, 2008).
â€¢ Living cost of the people are high
â€¢ Employees can switch any time for better opportunities (Ezine@rticles, 2012)
â€¢ Indian people are born with good talent, but due to lack of counseling they are not goal oriented. The company can help the employees to have carrier oriented goal and can train them according to need of the company which will be beneficial for company operations.
â€¢ The company needs to keep updating the Human Resource skills to compete with the world and meet their global standards by organizing frequent training to generate leadership skills in each employee.
Brazil is one of the most cultural rich countries in the world. Brazilian culture is influence by the diverse community systems and population. The language of Brazil is Portuguese. After independence of Brazil, Huge number of people around the world settled here with unique cultures. The economy of Brazil based on agriculture. Brazil opens its economy for foreign markets and institutions to make investments and play role in the GDP (Kwintessential, 2013). Brazil is economically very strong as it has the 5th largest economy in the world. The purchasing power of the people is high with a high per capita income (Ezine@rticles, 2012). Brazilian culture is famous for its openness, cheerfulness, and hospitality. Catholicism is the main religion in Brazil. According to Kwintessential (2013) diversity of culture is base on class systems in term of values, attitude, and social status. Brazilian people are racist people in term of color, class, and religion. Brazilian people are very good at making relations and motivators for new employers to start-up a business. Punctually is not common in business environment and understanding capabilities of Brazilian people are low than any other country in the world (Ezine@rticles, 2012).
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Brazilian follows centralized business culture in which the top management takes the decision (Kwintessential, 2013). The business attire is usually casual as they believe that it is the effective way to communicate with people. According to Ezine@rticles, (2012) Brazilian people can easily trust on others and they need to keep reminding about the issues and situations which will occur as they will not understand the situation themselves. A strong diversified culture with strong economy reflects the better opportunities for new investors but there will be an intense competition in the market which can bring the harmful situation for the new entrepreneur. The understanding of Brazilian culture is very important before starting up a business (Kwintessential, 2013).
â€¢ Brazil has open economy with high per capita expenditure and income (Ezine@rticles, 2012).
â€¢ Helpful people
â€¢ Good at relationship building among same class and status (Kwintessential, 2013).
â€¢ The company has quality trainers who can easily shape the nature and ability of the employee (Agagu & Esu, 2008).
â€¢ Brazil has open culture and they are ready for learning.
â€¢ Living cost in Brazil is very low (Kwintessential, 2013).
â€¢ The attire is casual in business environment which will create difficulties for the company to keep up global standards (Kwintessential, 2013).
â€¢ Trainers will be requiring time to train the employees in Brazil
â€¢ Training cost will be high as requires more time and people are not as skilled (Agagu & Esu, 2008).
â€¢ Human resource cost of the company will be high as the per capita income is high
â€¢ Shortage of Qualified labor (Kwintessential, 2013).
â€¢ Lack of leadership skills
â€¢ Company trainers can shape the mind of Brazilian people (Cardoso & Monfardini, 2008)
â€¢ Company can bring a revolution in the Brazilian business environment (Agagu & Esu, 2008)
â€¢ People are ready to get train and open for new experiments (Kwintessential, 2013).
â€¢ Brazilian people are open culture people and can adopt any cultural change.
â€¢ Leadership skills can developed in Brazilian people (Agagu & Esu, 2008)
â€¢ Strict government laws
â€¢ High in equality in term of income, social class, and race.
â€¢ They do not follow punctuality (Kwintessential, 2013).
â€¢ Hard to train Brazilian people as they have fewer capabilities of learning (Cardoso & Monfardini, 2008).
â€¢ Crime rate in Brazil is high
â€¢ People are racist in term of color, religion, and social status (Agagu & Esu, 2008).
â€¢ Poor environment
â€¢ Career expectation of new generation is high (Ezine@rticles, 2012)
â€¢ Re-skilling of people is tough.
â€¢ Company can easily shape the mind of people in Brazil, and by hiring the local people they can easily understand the norms and values for good management.
â€¢ Company can allow the employees to take part in decision-making, and policies to motivate the employees and build a feel of confidence in them to lead their own goals and company goals.
China is the world's largest country in term of population. Population of china is 1.3 billion. China in Asian continent. The language spoken in China is Chinese and people in china are close culture as they only prefer their own believes, values and traditions. Chinese people are hard-working and career oriented. China is the largest manufacturer of goods and services and the largest exporter and importer. The economy of china is the world`s strongest economy. Chinese people are highly skilled and their abilities match with the company criteria for hiring process (Kwintessential, 2013). Chinese people are known for their positive and friendly behavior. They greet each other by bending their back and heading their head towards ground. China has its own business culture which is different from any other business culture of the world (Ezine@rticles, 2012).
According to Ezine@rticles (2012) Chinese people are helpful and good at building relations, but their relations are based on recommendation and referrals. The relationship build with Chinese last very long and can easily changed into social relation which shows the friendly nature of Chinese people. According to Kwintessential (2013) Chinese people pleased each other by exchange of gifts and appreciations and to start business relations it is a tradition to talk on dinner or lunch table. Chinese are self believers and dominant nation. The Whole Food Market can easily work in china as people are brand conscious and social. Chinese people are formal in communication and punctual in time. The wage rates are high and with high skilled workers. The business societies of China works within the well define framework, attitude, and policies (Ezine@rticles, 2012). The business attire is formal in china for both men and women. They only follow the define policies and it`s easy to train them and apply company policies on them (Kwintessential, 2013).
â€¢ Highly skill people will help the company to have strong Human Resource in china (Agagu & Esu, 2008).
â€¢ Well train and hard-working people of china (Kotzé & Roodt, 2005).
â€¢ Self dominant and self believers
â€¢ Punctual in time (Kwintessential, 2013).
â€¢ Social people as the company belong to service industry and requires talkative and people with good communication (Cardoso & Monfardini, 2008).
â€¢ Expectations of the Chinese new generation are high as the new generation is more talented, energetic and with leadership skills (Cardoso & Monfardini, 2008).
â€¢ The cost of hiring and finding suitable candidate will be high.
â€¢ The wages of employees will be high (Cardoso & Monfardini, 2008)
â€¢ Limited hiring of people other than Chinese.
â€¢ Work only within the define framework no matter how critical situation (Agagu & Esu, 2008).
â€¢ Everything should previously defined and no situational changes (Kotzé & Roodt, 2005).
â€¢ No leader skills or first movers (Kwintessential, 2013).
â€¢ Requires more resources and cost to train people.
â€¢ New generation have high career expectations (Kwintessential, 2013).
â€¢ Trainers of the company can develop leadership skills in people.
â€¢ Huge talented and effective workers (Kwintessential, 2013).
â€¢ Graduates have good and competitive skills to work in multinational environment (Kotzé & Roodt, 2005).
â€¢ People can train easily in way to understand the international market, innovations, and business styles (Agagu & Esu, 2008).
â€¢ Competitor can hire the train and skill employees of the company by offering them more benefits (Kwintessential, 2013).
â€¢ China has strict employment laws
â€¢ Lack of international skills as china has its own business culture and environment (Kotzé & Roodt, 2005).
â€¢ Retaining talented workers is tough in china (Agagu & Esu, 2008).
â€¢ Demands high salary.
â€¢ Adverse shift in trade policies by the government
â€¢ Chinese people are hard-working and motivated to work. The company needs to hire locals of china as they have their own business strategies and locals can understand the shift in policies better than the overseas.
â€¢ Chinese people are shy to lead, they need well-organized and formularies training to shape their behavior as it is the most important tool in decision-making and strategy implementation.
Nigeria is an African state which is in western Africa. Population of Nigeria is mostly Muslims with minority of Christian and indigenous beliefs. The Nigeria is the world unique country which has 521 languages spoken by different communities and societies in Nigeria. It has the largest population in South Africa and has the strongest economy in Africa. Nigerians are culture dominant people and are close culture. People are effective in communication and social (Kwintessential, 2013). According to Ezine@rticles (2012) Communication styles vary from region to region in Nigeria as the country consists of several types of communities and societies with different believes and values. People greet with handshake in Nigeria and as the most is Muslims, so opposite sex do not shake hand as it is not allowed in their religion. According to Kwintessential (2013) People in Nigeria are friendly and prefer to develop social relations before building a business relation. The business attire is formal but they are more flexible in time punctuality. In Nigeria people prefer individual's needs are higher than the scheduled once.
According to Kwintessential (2013) the business hierarchy followed in Nigeria is centralize and most of the decisions made in business operations are authorized by upper level management. Nigerian people hardly trust on people till they know them. The Nigerian economy depends on the multinational corporations because they have a few local industries. The rivals in Nigeria will give tough time to whole food market to work.
â€¢ The company deals in organic and natural products, Nigerian people have knowledge of that as the country depends on agriculture.
â€¢ Skill and hard-working people (Kotzé & Roodt, 2005).
â€¢ Adequate resources to train and increase ability of people.
â€¢ The whole food market will have a strong brand image so people will get attracted to join the organization (Ezine@rticles, 2012).
â€¢ The company already knows about the Human Resource factors which cause the increase in cost (Agagu & Esu, 2008).
â€¢ Good record in strategy implementation (Kotzé & Roodt, 2005)
â€¢ No clear strategic direction of the company as the culture is diverse and complex (Ezine@rticles, 2012).
â€¢ Lack of human skills and abilities.
â€¢ High cost structures (Agagu & Esu, 2008).
â€¢ Employee morale is very low in Nigeria (Agagu & Esu, 2008).
â€¢ Strong economy in Africa so the per capita income is high
â€¢ Advanced in technology, the people have known how about the technology (Agagu & Esu, 2008).
â€¢ Centralized process so the company can manage the operations and Human Resource policies from parent company (Kotzé & Roodt, 2005).
â€¢ Fresh graduates are available with more energy and transform skills (Ezine@rticles, 2012).
â€¢ Adverse shift in the labor laws (Ezine@rticles, 2012).
â€¢ Competitors can train their employees in the same way.
â€¢ Employees can switch for better opportunities (Agagu & Esu, 2008).
â€¢ Adverse shift in trade policies by the government (Ezine@rticles, 2012).
â€¢ Difficult to find the matching talent as the company want (Kotzé & Roodt, 2005).
â€¢ The company needs to set polices priory for the employees with accordance to their international policies to meet the standard operation and quality. The manager role is to motivate the employees by praising them and offering them benefits.
â€¢ Company needs to hire more experience people to understand the new entered market well and experience people will manage the company efficiently and effectively.