Capstone
Introduction
Similar to most businesses, corporations faced by numerous challenges when operating within an international market. Although some challenges are common to all types of business regardless of their size the operations within the international sector is characterized by more unique challenges (Coulter, 2010). Globalization of business and operations liberations offers intense opportunities for market expansion and profit maximization within the broader market, however, certain strategies must be created to support the expansion and the management of operational and Human resources threats. Most companies have acquired success in their operations in the international market but this is mainly fueled by their ability to transition and adjust to changes in the market without affecting its operations. For instance, McDonald's is categorized to be among the most influential firm across the globe (Coulter, 2010). This does not imply that the company has operated smoothly rather it has consistently been able to mitigate these challenges. With the international market growing each day there is a need for companies to strategically position in the market for more gains.
Several challenges persist when operating in the international market whether for large or small corporations. Most of these challenges are related to operations and employees management. In that once all the operations for the daily production have been created then the management is required to adhere to the set strategies and beyond to ensure that there is reliability (Coulter, 2010). Regulations and standards differs from a state to another and based on the current market situation which is characterized by rapid and consistent changes managing and ensuring that employees are motivated and satisfied in order to concentrate on the maximization of quality production and performance are expensive and time-consuming. In that operating a foreign subsidiary implies that the workforce is ruled by diversity thus several aspects in regard to the differences should be considered. Some of the challenges that will be faced while dealing with the workforce are high turnover rate and low motivation (Coulter, 2010).
A company will not succeed if it is unable to ensure the satisfaction of every employee that is involved. In that, the most important asset of every company is its workforce and it is not operational this, therefore, means that the company will find it hard to accomplish the set objectives (Paul & Kapoor, 2008). Employees are the primary determinant of the company’s success and failure and with that, it might, companies do all they can to motivate and retain their skilled personnel’s. In this context resources managers are required to overcome certain cultural challenges in the quest of finding the most skilled persons for certain positions in the foreign state. Even though certain foreign industries are advantageous because they offer cheap labor it might be challenging to get skilled personnel leading to outsourcing which in most cases is beneficial but result in high operating expenses. This is dependent on the foreign countries state since in some the level of education and training is below what most companies operating in the international market would necessitate (Coulter, 2010).
With respect to operations issues such as supply disruptions and the lack of reliable distribution network might affect the performance of the business. In that production cannot be maximized if there is no supply of the needed materials on a good time to ensure that all the operations needs are addressed. If the supply system is inefficient, companies will in most cases be forced to settle for materials that are readily available which might be acquired at a high cost and might not adhere to the quality value (Coulter, 2010). For most of the big corporations such as McDonald's, they have specific suppliers and distributors of their products an aspect that has supported in maintaining its three primary operations values which are quality, convenience, and affordability. In addition, an international corporation is likely to face challenges related to low production and performance. In that, if the personnel is not highly motivated then they tend to accomplish their tasks within a more extensive period which leads to delay (Paul & Kapoor, 2008). With this, the demand for speedy provision of commodities at a speedy rate is not accomplished and the consumers end up unsatisfied which will, in turn, affect the company’s market share and profitability.
In order to effectively manage a workforce in a foreign subsidiary and to ensure that they are fully motivated a company should always set a compliance code and incentives (Coulter, 2010). In that, through performance evaluation, the company can compensate those that perform well as sacrifices their personal goals for the wellness of the company through reimbursements or promotions. In that, this is a way of ensuring that the employees are inspired to perform better. In addition, outsourcing is an effective approach that seeks to ensure that only the most qualified staffs are hired for different roles. In regard to mitigating challenges related to operations using specific supply organizations and distribution, options are needed. In addition, the company can adopt technology in managing its supply chain system while seeking to create efficiency and overcome competition (Paul & Kapoor, 2008).
In conclusion, it is evident that although operating businesses are characterized by a number of challenges operating in the international market is more problematic. In that, the international market is broader and therefore, needs a wide range of skills and strategic positioning, Employee turnover which is common when operating in the international context might harm a firm finically as well as lead to reduced production and profitability. The ability to retain good performance in the market can be eased by the use of incentives such as compensation and training to motivate employees and technology to manage the supply chain system more effectively.
Reference
Coulter, M. (2010). Strategic Management In Action (6th edition). Missouri State University. Pearson Publishers.
Paul, J., & Kapoor, R. (2008). International marketing: Text and cases. New Delhi: Tata McGraw-Hill.
