Research Topics: Anchor Statement Examples

Internationalization of Human Resource Management

RATIONALE OF THE STUDY             The internationalization of human resource management has increased the scope of traditional HRM. Today, HR practitioners not only manage people from their home country, but one that involve managing many diverse nationalities, with which the culture of staff and employees are already well-known or predicted. Companies start business within their country of origin and staff are hired from within that country. However, with the arrival of globalization and the shift from industrial to information technology, a new problem for HR practitioners emerged as employees become more diversified and hard to manage. Companies expand to other countries, or moreover participate in joint ventures or mergers and acquisitions. This move has many implications including the limited choice of hiring employees from the country which the company expanded. Basically, this gives HR practitioners a new challenge as they are faced with a diverse cross-cultural workforce that they are not yet familiar with. For instance, a UK or an American company expanded or having joint ventures in China would have to integrate their own HR practice in that country. However, the Chinese and Western managers have different beliefs and practices in terms of managing employees. Thus, a cross-cultural conflict might arise, which could affect the productivity and culture of the company as a whole, most especially in the branch they invested in China. Western expatriates might not be able to adapt with the Chinese way of working or any Asian way of working for that matter if they don’t have proper training or knowledge about them. This gives the HR team a huge responsibility in making sure that cross-cultural relationship within the company is going well. An HRM expatriate might have problems having the best local staff when they do not have enough knowledge about the foreign culture. Furthermore, productivity might also be affected if their way of human management is not compatible with the working nature of the local staff. OBJECTIVES OF THE STUDY           The study will address the following three key objectives:              1.      To determine the different cross-cultural training strategies of multinational companies in the UK that employs expatriates from other countries. 2.      To determine the advantages and disadvantages of their cross-cultural training programmes and determine which approaches are highly recommendable. 3.      To build theories of effective cross-cultural training programmes for international human resource managers. CONTRIBUTION OF EXISTING LITERATURES Human Resource Management Human resource management (HRM) is known and accepted in the broadest sense of the term, as a form of management that includes “all management decisions and actions that affect the nature of the relationship between the organization and the employees – its human resources” (Beer et al., 1984, p. 1). It is defined as the process of coordinating an organization’s human resources, or employees, to meet organizational goals. As can be observed based on the definition, the tasks of those belonging in HRM can be complex as it involves all issues that encompasses employee and firm relationship. Believing that the most important asset of a business is the people in order to achieve sustained business success is the core philosophy of human resource management (HRM). Realizing this leads to a strategic management of people within the organization. Its philosophy is based on the simple belief that human resources are the most important asset in achieving and sustaining business success. This realization became the driving force behind the creation of human resource management resulting in organizations taking a strategic approach to the management of their people. Human resource professionals basically deal with such areas as employee recruitment and selection, performance evaluation, compensation and benefits, professional development, safety and health, forecasting, and labor relations, as well as management of diversity, job analysis and job design (Lipiec, 2001). The Internationalization of HRM In the current age of global economy, worldwide interdependence of resources, markets and business competition thrives (Schermerhorn, 2001). The onset of globalisation has prompted businesses and its leaders to think and act globally to be able to gain competitive advantage. There are two opposing views: some view globalisation as an opportunity for limitless growth and prosperity for both developed and developing countries; while others see it as a threat to further the extent of inequality because of increased competition and the dominance of market forces seen in multinational companies (MNCs) (Johnson & Turner, 2003). The implications of these changes in international business are far-reaching because of the emphasis on interdependence which prompts a discussion of the different collaborative arrangements between MNCs. As national boundaries have increasingly been blurred, it has become imperative that MNCs take advantage of forming collaborative arrangements or cooperative strategies which are believed to be a productive method to promote growth. This trend has affected even companies directly competing with each other as Hitt, Ireland & Hoskisson (2003) has given the example of FedEx and the US Postal Service (USPS) forming an a seven-year alliance which benefits both companies. One of the areas of business organization that is affected by the internationalization of business is the area of human resource management. Because business has become internationalized, the process and factors that make up the HRM concept have also become global. Thus, out of HRM, a new field has been formed – that is International Human Resource Management or IHRM. The field of IHRM refers to the: “…understanding, researching, applying and revising all human resource activities in their internal and external contexts as they impact the process of managing human resources in enterprises throughout the global environment to enhance the experience of multiple stakeholders, including investors, customers, employees, partners, suppliers, environment and society (Briscoe and Schuler, 2004, p,20).             Briscoe and Schuler (2004) explained that there are many forms of IHRM. These are: the operation of parent-country firms overseas; and the operation of foreign firms in the home country. The first one involves the situation of working as a parent-country HR professional in the main or regional headquarters of the traditional multinational enterprise (MNE). This may involve working as an expatriate HR manager in a foreign subsidiary of an MNE (Briscoe and Schuler, 2004). Typical headquarters IHRM responsibilities include selecting and preparing employees for and transferring them between the various country locations of the firm, determining and administering compensation and benefit packages for these international assignees, and establishing HRM policies and practices for the firm’s foreign operations (Briscoe and Schuler, 2004). On the other hand, the second situation involves the HR manager working at home in the foreign subsidiary of a foreign MNE (Briscoe and Schuler, 2004). The possibilities include: working for a home-country firm that has been purchased by a foreign firm and thus is now a foreign-owned firm; and working with a foreign headquarters (and, often, expatriate managers sent from the foreign – now parent – company) and typically will involve having to integrate into the local operations – the HR manager’s home country – a philosophy and organizational culture and practices that are different and/or unfamiliar (Briscoe and Schuler, 2004). The Need for Cross-Cultural Management             The situations that IHR managers might face involve dealing with different people with different culture. Managing culture is one of the tasks that an international human resource manager has to deal with. Culture is defined as a set of beliefs and values widely shared in a specific society at a particular point in time (McGuire et al, 2002). Furthermore, culture encompasses a set of fundamental values that distinguishes one group from another (Hofstede and Bond, 1988) and these values can act as a strong determinant of managerial ideology that consequently affects both HR practice and performance (Laurent, 1983).             Culture is basically a combination of shared beliefs, social norms, organizational roles and values, emphasizing a cross-cultural socio-economic perspective in industrial and management research (Wang, 1993). One example is that the Eastern style of management is different from that of the West. The Chinese approach is usually based from historical leaders and philosophical figures such as Confucius, Sun Tzu, Mencius and Han Fei (Satow and Wang, 1994), which involves and depends on the connections, on circumstances, on the level of affinity (who you know and what family you come from). Here, there is no consistent legal framework and, even within the regulations that do exist, the exception is the rule rather than the rare occurrence. On the other hand, the management in America is objective and driven by data and rational models. Deployment of statistics and financial modelling is the key in decision-making and strategic planning. These differences alone can create problems. Chinese employees may not function well with the Western management style and vice-versa. Thus, foreign expatriates should obviously be trained, as making themselves familiar with the new culture can help them create the appropriate management style that will make employees in the country perform at their best. Cultural Dimensions One of the ways to assess culture is to take heed of its value dimensions. As explained by Hofstede (1980), there are four cultural value dimensions: Ø      Large versus small power distance. Large power distance is the extent to which the members of a society accept that power in institutions and organisations is distributed unequally; while small power distance is the extent to which members of a society or organization accept that power is distributed fairly (Adler, 1997). Ø      Strong versus weak uncertainty avoidance. Strong uncertainty avoidance means the degree to which the members of a society feel uncomfortable with uncertainty and ambiguity, which leads them to support beliefs promising certainty and to maintain institutions protecting conformity; while weak uncertainty avoidance is the degree to which members tend to be relatively tolerant of uncertainty and ambiguity and require considerable autonomy and lower structure (Rodriguez, 1995). Ø      Individualism versus collectivism. Individualism is the preference for a loosely knit social framework in society; collectivism stands for a preference for a tightly knit social framework. Ø      Masculinity versus femininity. Masculinity is the preference for achievement, heroism, assertiveness and material success; while femininity refers to a preference for relationships, modesty, caring for the weak and the quality of life. Related Studies Sadri and Lees (2001) stated that there are key elements to determine a positive culture. They are: the development of a corporate vision; the development of corporate values; valuing and maintaining communications with employees; adaptability; and perpetuation of the culture through tangible symbols, slogans, stories, or ceremonies that highlight corporate values. However, these positive characteristics can be easier said than achieved as the workplace involves different nationalities that do not share the same pattern of beliefs. An incompatible management approach brought and implemented by foreign expatriates can result in the development of a negative corporate culture. Expatriates who have poor performance in their cross-country assignments cost multinational enterprises (MNE’s) billions of dollars, damage firm reputation, disrupt relationships with local nationals (Harvey, 1996; Welch and Welch, 1994), and often precise a cost on expatriates’ psychological state (Solomon, 1996). Expatriates are proposed to gain intercultural communication skills and, consequently, intercultural effectiveness through a cultural learning process.             Fischer and Hartel (2003) conducted a study that tries to determine comparatively how Thai and Western managers conceptualize intercultural effectiveness and to identify the extent to which perceptions of socio-biographical characteristics are important to Thai managers’ perceptions of the effectiveness of a Western manager and vice versa. The qualitative study found that both considered religion, age and gender, nationality as important; while they have different views on the importance of stereotypes, linguistic abilities, intercultural abilities and identifying task and contextual performance.             Hutchings (2002) investigated the need for careful selection and in-post support of expatriates in China and argues that expatriates should be those who possess realistic pre-departure expectations and cultural awareness and knowledge, and  whom are provided with in-post support, including work-related skill development, mentoring and consultative groups. Through semi-structure interviews of Australian organizations in China, the research found that that expatriate selection is very much ad hoc in nature and that expatriate preparation and cross-cultural adaptability skills need to be improved in a number of important aspects. Hutchings (2002) suggested that “there is a clear need for expatriates to be fully briefed prior to being sent on overseas postings and that careful selection should be balanced with goal-setting, performance expectations, and awareness of socio-cultural limitations of operating from a business and social perspective in the host environment” (p.46). METHODOLOGY             The research design to be used is the descriptive approach. This type of research presents facts concerning the nature and status of a situation, as it exists at the time of the study (Creswell, 1994). This also believes that the relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing. (Best, 1970) Furthermore, such approach tries to describe present conditions, events or systems based on the impressions or reactions of the respondents of the research (Creswell, 1994). Quantitative approach will be used in collecting data. Quantitative method is compatible with the study because it allows the research problem to be conducted in a very specific and set terms (Frankfort-Nachmias and Nachmias, 1992). Besides, a quantitative research plainly and distinctively specifies both the independent and the dependent variables under investigation (Matveev, 2002). It also follows resolutely the original set of research goals, arriving at more objective conclusions, testing hypothesis, determining the issues of causality and eliminates or minimises subjectivity of judgment (Kealey and Protheroe, 1996). Further, this method allows for longitudinal measures of subsequent performance of research subjects (Matveev, 2002). Finally, it provides achieving high levels of reliability of gathered data due to i.e. controlled observations, laboratory experiments, mass surveys, or other form of research manipulations (Balsley, 1970). Data Collection             The data for the study will be collected through survey. Survey is the chosen method to collect data because its function is to generalize results from a sample to a larger population. (Commonwealth of Learning, 2000) The primary purpose and advantage of surveys is generalization of the results (Commonwealth of Learning, 2000). Usually, surveys are interested in gathering data from many than in obtaining intensive, detailed information from a few individuals; therefore, it is seldom for a survey to consist of one or very few individuals (Commonwealth of Learning, 2000). Consequently, in designing a survey research study, one has to take into consideration the sample and the sampling procedure: the sample size should be adequate to allow generalization of the results, and the sampling procedure should also be such that small sub-groups within the population (such as landless farmers) are properly represented in the sample (Commonwealth of Learning, 2000). This is because errors in sampling procedures may not justify generalization of the results, thus lowering the value of the survey (Commonwealth of Learning, 2000). A semi-structured questionnaire will be used to collect data.             This survey-questionnaire will have two sections. The first part will intend to acquire the demographic profile of the respondents, while the other section will contain a set of attitude statements. The purpose of the set of attitude statements is to determine the level of agreement or disagreement using a five-point Likert scale. In the Likert technique, the degree of agreement or disagreement) is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses. (Underwood, 2004) The equivalent weights for the answers will be: Range                                                            Interpretation             4.50 – 5.00                                                    Strongly Disagree             3.50 – 4.00                                                    Disagree             2.50 – 3.49                                                    Uncertain             1.50 – 2.49                                                    Agree                0.00 – 1.49                                                    Strongly Agree Sampling The respondents to be surveyed are MNCs in the UK that have joint ventures or direct investments in Asian countries such as China, Japan, or Southeast Asian nations. Potential respondents will be first chosen from the DTI list of MNCs, and then emails will be sent for their approval on the survey. Questionnaires will also be submitted through emails and will also be returned to the researcher through emails. The formula suggested by Saunders, Lewis and Thornhill (2003) will be used to determine the actual sample size required in the study. First, the total population of a particular online MBA school and a traditional MBA school will be acquired. The estimated total response rate will be estimated with the formula that was suggested:             Total response rate  =              Total No. of Responses                                                         Total No. in Sample ineligible                                                                          Then, the actual sample size will be calculated with the following formula: nª =           n X 100                                                         re%             In the formula, nª is the actual sample size required; n is the minimum sample size, and; re% is the estimated response rate expressed as a percentage.              Systematic sampling will be used to calculate the valid number of respondents needed. A probability sampling approach was chosen to avoid the bias of non-probability sampling. Data Analysis Data will be analyzed through percentage and mean analysis. SPSS software will be used to compute the data gathered. Determining the mean and percentage on the level of response of the respondents on the items in the Likert-type questionnaire will statistically show the relationship between lack of cross-cultural training and learning, and poor performance of the HRM expatriate. Potential Limitations The study is limited only to MNC’s headquartered in Europe that has expansions in mainland China. However, persuading companies to participate in the study may be difficult because it will involve setting up appointments with the managers of the company. Another potential limitation of the study is that respondents may not take the questionnaires seriously since it is only structured; meaning answer choices are already provided. So, in order to promote participation among respondents, the study’s purpose will be clearly explained on the survey questionnaire. TIMEFRAME 5-April 15-May 1-June 25-July 10-Aug 25-Sept 5-Oct 25-Nov PROPOSAL INTRODUCTORY CHAPTER LITERATURE REVIEW RESEARCH DESIGN SURVEY-QUESTIONNAIRE CONDUCTING THE SURVEY CONDUCTING INTERVIEW DATA COLLECTION PRELIMINARY ANALYSIS FINAL ANALYSIS SUBMISSION OF PROJECT Table 1: Timetable REFERENCES: Adler, N.J. (1997). International dimensions of organizational behavior (3rd ed.). Cincinnati, OH: South-Western College Publishing. Balsley, H.L. (1970). Quantitative research methods for business and        economics. New York: Random House. Beer, M., Spector, B., Lawrence, P., Mills, D. and Walton, R. (1984), Managing Human Assets, Free Press, New York, NY.ER, Vol..26, p.6 Best, John W. (1970). Research in Education, 2nd Ed. Englewood Cliffs, N.J.: Prentice Hall, Inc. Briscoe, D.R. and Schuler, R.S. (2004). International Human Resource Management: Policies & Practices for the Global Enterprise. Routledge. New York. Commonwealth of Learning. (2000). Manual for Educational Media           Researchers: Knowing your Audience. Vancouver, Canada: Commonwealth Educational Media Centre for Asia (CEMCA). Creswell, J.W. 1994. Research design. Qualitative and quantitative approaches. Thousand Oaks, California: Sage. Fischer, C.B. and Hartel, C.E.J. (2003). Cross-Cultural Effectiveness of Western Expatriate-Thai Client Interactions: Lessons Learned for IHRM Research and Theory. Cross-Cultural Management, Vol.10, No.4; pp.4-28. Frankfort-Nachmias, C., & Nachmias, D. (1992). Research methods in the          social sciences (4th ed.). New York: St. Martin’s Press. Harvey, M. (1996). ‘The selection of managers for foreign assignments: A planning perspective’. Columbia Journal of World Business, Vol. 31, No.4; pp.102-118. Hitt, MA, Ireland, RD & Hoskisson, RE (2003), Strategic management: Competitiveness and globalization, 5th edn., Thomson Learning Asia, Singapore. Hofstede, G.H. (1980), Culture’s Consequences: International Differences in Work-related Values, Sage Publications, London. Hofstede, G. & Bond, M.H. (1988) “The Confucius Connection: From Cultural Roots to Economic Growth,” Organisational Dynamics, Vol. 16, No. 1, pp.4-21. Hutchings, K. (2002). Improving Selection Processes but Providing Marginal Support: A Review of Cross-Cultural Difficulties for Expatriates in Australian Organisations in China. Cross-Cultural Management, Vol.9, No.3; pp.32-57. Johnson, D and Turner, C (2003), International business: themes and issues in the modern global economy, Routledge, London. Kealey, D.J., & Protheroe, D.R. (1996). The effectiveness of cross-cultural       training for expatriates: An assessment of the literature on the issue.             In International Journal of Intercultural Relations, Vol. 20 No. 2, pp. 141-   165. Laurent, A. (1983) “The Culture Diversity of Western Conceptions of Management,” International Studies of Management & Organisation, Vol. 13, No. 1/2, pp.75-96. Lipiec, J. (2001). Human Resources Management Perspective at the Turn of the Century. In Public Personnel Management, Vol. 30, No. 2. Maguire, D., O’Donnel, D., Garavan, T.N., Saha, S.K. and Murphy, J. (2002). The Cultural Boundedness of Theory and Practice in HRD? Cross-Cultural Management, Vol.9, No.2; pp.21-44. Matveev, A.V. (2002). The Advantages Of Employing Quantitative And      Qualitative Methods In Intercultural Research: Practical Implications From     The Study Of The Perceptions Of Intercultural Communication        Competence By American And Russian Managers. New York: Russian        Communication Association. Rodrigues, C.A. (1998). Cultural Classifications of Societies and How They Affect Cross-Cultural Management. Cross-cultural management, 5(3), 29-39. Sadri, G. and Lees, B. (2001). Developing corporate culture as a competitive advantage. Journal of Management Development, Vol. 20 No. 10; pp. 853-859. Satow, T. and Wang, Z.M. (1994). Cultural and Organizational Factors in Human Resource Management in China and Japan. Journal of Managerial Psychology, 9(4), 3-11 Saunders, M., Lewis, P. and Thornhill, A. (2003). Research Methods for Business         Students, 3rd Ed. London: Prentice Hall Financial Times. Schermerhorn, JR (2001), Management, John Wiley & Sons, New York. Solomon, C. (1996). ‘Danger below! Spot failing global assignments’. Personnel Journal, Vol.75, No.1; p.85. Underwood, M. (2004). The Likert Scale. In Communication Studies, Cultural Studies, Media Studies (CMMS) Infobase. Available at: [www.cultsock.ndirect.co.uk/MUHome/cshtml/index.html]. Accessed: [03/24/06]. Wang, Z.M. (1993). “Culture, Economic Reform and the Role of Industrial and Organizational Psychology in China”, in Dunnette, M.D. and Hough, L.M. (Eds), Handbook of Industrial and Organizational Psychology, Vol. 4, 2nd ed., Consulting Psychologists Press, Inc., Palo Alto, CA. Welch, D., and L. Welch (1994). ‘Linking operation mode diversity and HRM’. The International Journal of Human Resource Management 5/4: pp.911-926. Credit:ivythesis.typepad.com

Internationalization of Human Resource Management

RATIONALE OF THE STUDY The internationalization of human resource management has increased the scope of traditional HRM. Tod...

International Strategic Marketing

Introduction This paper intends to analyze the case study of Curtis Automotive Hoists. The paper intends to evaluate which among the growth opportunities of European market entry and further U.S. market expansion have merits in terms of commercial and attractiveness. The paper will also discuss what market research/market information the company requires to support its decision over which new growth opportunity to pursue. Furthermore the paper will discuss the implications of a decision to enter European market particularly the advantages and disadvantages of each of the three European market entry options under consideration and what can be the best option to choose. Lastly the paper intends to discuss the relative attractions of the entry method into Europe and the operational implications of the market entry method given a situation wherein direct exporting is used as an alternative to the three market entry options. Summary of the case Mr. Mark Curtis the president of Curtis Automotive Hoist (CAH) asked Mr. Pierre Gagnon the company’s marketing manager to prepare a feasibility report on entering the European market. The said report contained the opportunities in the European Union and the entry options available. Mr. Curtis wants the company to grow more by deciding on whether to expand the United States (U.S.) market or enter the European market.  If the company decides on expanding the U.S. market they can be assured that the said market has unrealized potential and they can gain more profit from it. Additionally the U.S. market was 10 times the size of the Canadian market and through the market the goals of the company can be achieved.  On the other hand if the company decides on entering the European market the company can be assured that more service stations will be used for fixing more cars thus their products will be purchased more by these service stations. The company can also be assured that there is limited competition in Europe and there is no dominant manufacturer that can give them problems. CAH was a company that manufactured and marketed Curtis lift a revolutionary automotive hoist that  was different from other hoist since it has a scissor lift and safety locking mechanism that allowed the hoist to be raised to any level and locked in place. The scissor lift offered easy access for the mechanic to work on the raised vehicle, the hoist was easy to maintain because it had no chains or pulleys and was fully hydraulic. The hoist also had alignment turn plates which mean that mechanics can accurately and easily perform wheel alignment jobs. In less than a day the lift can be installed in the garage or any place the service station wants it to be placed.   Mr. Curtis constantly made improvements to the product and he continuously adds more safety feature to it. Safety was an important factor in the automotive hoist market, if hoist malfunction it may result to serious accident. CAH sells their products to independent service stations and garages specializing in wheel alignment in Quebec and Ontario in Canada. Mr. Gagnon eventually used distributors to sell the hoist to a wider geographic market in Canada. After a few years Mr. Gagnon signed an agreement with large automotive wholesaler to represent CAH in the U.S. market. The hoists are purchased usually by automotive outlet that serviced or repaired cars including new car dealers, used car dealers, specialty shops, chains, and independent garages. These firms that purchased hoists were part of an industry called the automotive aftermarket. This industry was involved in supplying parts and service for new and used cars. The company has sixteen competitors that included 4 Canadian and 12 U.S. firms. The company has two competitors that manufactured scissor lifts namely AHV lifts and Mete lift. Three types of distribution system were used by CAH namely a company direct sales force, Canadian distributors and a U.S. automotive wholesaler. Merits of both opportunities in terms of commercial attractiveness (First Question) The opportunity to expand the U.S. market has merits in terms of commercial attractiveness that include wider and more territories to occupy, more products to sell, more chance to overcome the main competitors and more chances to improve the product. To expand the U.S. market means that the company has a wider territory/ scope to occupy, the company has more places to introduce and sell their products. Since different states of U.S. has different data on the number of vehicles and the number of service centres that will cater to these vehicles needs, the company can have chances to introduce and sell products  to more service centres than their competitors. To expand the U.S. market means that more products can be sold not only in one place but in many territories not occupied by the competitors. Since the U. S. market has a lot of potential to be a strong territory and be a permanent market they can have greater chances of selling the products they have to service centres that needs the products they manufacture and they can counter any competitors that want to invade the territory they are selling in.  To expand the U.S. markets means that the company can have greater chances of overcoming competitors, they can overcome their competitors by putting up permanent or strong territories in uncharted sales territories and gaining more sales. The more strong territories and sales they have the greater their status can increase against competitors. To expand the U.S. markets means that the company can have more chances to improve the company’s product. Within the sales territories the company can ascertain what each territory needs, how the product can be adjusted to the demands of a certain territory, what are the problems/ weakness of the products, and what can be done to improve the product. The more territories the company has more feedback and opinion can be given on the product thus the hoist can be improved more to compete with the company’s rival and sell more. The opportunity to enter the European Market has merits in terms of commercial attractiveness that include newer territories to conquer, lesser competitors, bigger sales output, and employment opportunities for more people. Entering the European market means that the company can occupy newer territories and through this they can establish a strong territory that exclusively caters to the needs of the territories service centre without any threat from competitors. Entering the European market means that there are lesser to no competitors for the company thus they can have a higher sales output in the market. The company can also have no worries of threats from competitors thus the improvement of the product can be the one given focus. Entering the European market means that the company can have bigger sales output since there are no competitors and larger territories. Entering the European market means that more people can be employed by the company, this not only benefits Europe’s economy but it gives the company a positive image to its consumers thus triggering more service centres to purchase their products. Hiring more employees can give the company a chance to find a person that will help the company improve its status and achieve its objectives.  Market research can use to support its decision (Second Question)        Market Research or Primary market research is the only means of answering very specific questions relating to actual and potential customers and/or products. It is very different from secondary market research, which uses mainly data already available to answer whole-market level questions. Market or opinion research firms, such as Market & Opinion Research International, Ltd (MORI), Mar plan, IRN, SGA, NOP Market Research Ltd., Euro monitor, Data monitor or Research Surveys of Great Britain (RGB), charge large sums for the labour-intensive design, sampling, surveying, and statistical analysis necessary for reliable results. Most British firms guarantee standards by membership of the British Market Research Association, whose Quality Charter lays down minimum service standards of the Market Research Quality Standards Association. Most market research is commissioned by a specific client for a specific purpose, the results never likely to be available to anyone else. Market researchers refer to this as the consultancy side of their operations; as opposed to syndicated or multi-client studies which they have themselves initiated. Market Research is work carried out in the course of marketing research, either by a business organization itself or by specialist from an external consultancy, to assess the likely market for a given product or the effects of past or prospective advertising of that product on consumers. Depending on the kind of information required, the research may use either quantitative methodology, with survey research on large numbers of people, or qualitative methodology, with depth interviews of individuals and families and group interviews of 5-10 people in a face-to- face group. The international business of the company is still in its early stages and a correct decision on which growth opportunity to pursue is vital for the company. The market research can help in supporting the decision the company will make. The company to have lesser expenses can just have a market research by themselves. They can use quantitative methodology, with survey research on large numbers of people/companies to identify the marketing trends and problems in the European market. Through the research method the company can identify what service centres in Europe want or desire, what these service centres expect from hoists they will purchase, how these service centres deal with manufacturers, and what problems hoist manufacturers encounter towards service centres. Through surveys CAH can get the ideas of customers on how they want their cars to be handled, what safety feature should a hoist have, and what features of a hoist make them come to a service centre. Through the surveys CAH can get the ideas of vehicle mechanics on how they can be assured of safety while working on the vehicle, how they can have ease and comfort while working on a vehicle, and suggest what innovations can be done to the hoist so that they can reach parts of a vehicle that is hard to reach. The gathered information can not only support the decision on what growth opportunity to pursue but can assist in making relative changes to the hoist. The information gathered can help in knowing the weaknesses of the hoist and why some service centres don’t avail it. Advantages and Disadvantages of the market entry options (Third Question) Assuming CAH decides on European market entry, the three market entry options that can be used include Licensing, Joint venture, and Direct investment. The advantages of licensing includes easier entry of CAH into the new market, CAH can gain an understanding of the prospected market through the other company who wants to enter a licensing agreement, more parts of the European market can be reached.  Licensing agreement helps CAH to have an easier entry to the new market, since the company who wants to avail a licensing agreement has a name in the market it can assist CAH to penetrate the European market with less problems. The company may achieve a satisfying sales output because their product is sold by a known company in that market. Licensing can help CAH gain understanding of the prospected market, they can be given information about the market by the other company or they can observe the trends that the other company experience. Licensing can help CAH reach more parts of the market. The company who acquired license can introduce and sell products to other parts of the market that can’t be easily reached. If more parts of the European market is reached this result to increase of profit for the company. The disadvantages of licensing includes the other company might take advantage; lesser effort might be exerted on selling the product; and problems/complains regarding the product might not be given proper action. Licensing might lead CAH to be taken advantage of by the other company. The other company might seek to control the operation and they might claim all the glory in the product if it is praised. Licensing might make the products be given less focus and effort in selling; since the other companies might be selling other products they may give lesser selling effort and attention to the hoist. Licensing might make problems/complains be given inappropriate action. Since the proper venue to air complains over a certain product cannot be easily reached appropriate solutions to a problem cannot be done. The advantages of Joint venture include both companies can use the strengths of both companies, problems can be solved by more people, and ideas can come from more people. Through joint venture both companies can use each other strengths to reach their goals. CAH can use the other companies experience and knowledge in the European market while the other market can use CAH’s innovative products and introduce and sell it in Europe. Through joint venture the problems they encounter can be solved by more people, adding the experiences and knowledge of more people tends to help in effectively and easily solving the problem. Through joint venture ideas can come from more people. More people can assist in making the product/ both companies better.  The disadvantages of Joint venture include division of profit, more problems might be encountered, and both companies might both loose their identity from consumers. Through joint venture profit will be divided, this might not be good for both companies since their main goal is to acquire profit. Both companies have to divide their profits as part of them joining together, the company who contributed more to the venture can be sometimes the one who benefited less from the deal. Through joint venture more problems might be encountered. In joint profit the problem can come from two companies not just one. Through joint venture the identities of both companies to their respective consumers might be lost. Some consumers might be more familiar with the old identity of the company and not a new identity of joint venture; this may lead to consumers buying to competitors. If this happens both companies lose profits. The advantages of direct investment includes sole acquisition of profit, chance to experience first had the problems that can be encountered on a new market, more focus can be given to selling the product, and the design of the product and the way it is manufactured is according to the standards set by CAH. Direct investment gives the company sole acquisition of the profit. It does not have to share profit, it will not be taken advantage of, and credit for the product can be solely claimed by the company.  Direct investment gives the company a chance to experience the problems on the new market, through this experience changes can be implemented for a better product and company. Direct investment tends to make the product be given more focus and attention; more of the products can be introduced and sold to clients. Direct investment makes sure that the product is designed and made according to the standards set by the company; no specification is added or removed from the product. It also helps prevent safety problems to occur due to wrong manufacturing of the product. The disadvantages of direct investment include the company solely solving a problem, bigger expenses will be made, and difficulty of entry in the new market. If the company engages in direct investment they must solely solve a problem. CAH may not have encountered such problems and may take some time to solve the problem. If the company engages in direct investment they might have to spend more, the company might have a higher rate of expense but if the direct investment is properly run profits will replace all those expenses. If the company engages in direct investment they will have difficulty in entering the new market. The company might not be familiar with the environment and not be initially accepted by the consumers but in a later time they can adjust to the new market.  The option that can greatly benefit the company is the Direct Investment, although more expenditure can be acquired by the company its future result can compensate for it. In direct investment the company has full control over the operations in a foreign market. Problems can be given direct and proper attention and all the glory achieved can be acquired by the company. Exporting to Europe (Fourth Question) A. Relative attractions An alternative to the three entry market option is direct exporting to Europe. Direct exporting can ensure that no specification of the product is tampered thus the consumer is ensured that the hoist is of good standard, CAH can acquire all the profits of the sales in Europe, competitive advantage can be achieved since no other known company is direct exporting their products to Europe, and the number of products that are needed are the only ones that will be made and exported to Europe. B. Operational Implications In direct exporting a separate division has to be made so that production will not be halted, the separate division will focus on creating products to be exported. This means more employees, machinery, site of operation, and other things will be needed. Thus expenses can be made by the company.  A separate group of employees has to be formed to ensure that products are exported well, and no problems occur during and after shipment. If problems occur they must solve it. Speed of operation has to be doubled so that products to be exported will reach Europe in time. Products to be exported will be well accounted and according to the demand in Europe. Credit:ivythesis.typepad.com

International Strategic Marketing

Introduction This paper intends to analyze the case study of Curtis Automotive Hoists. The paper intends to evaluate which among the g...

International Strategic Marketing

International Strategic Marketing

Introduction This paper intends to analyze the case study of Curtis Automotive Hoists. The paper intends to evaluate which among the g...