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Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to manage employment relations in a global environment. - HSC - SSCE Business Studies - Question 28 - 2007 - Paper 1
Question 28
Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to manage employment relati... show full transcript
Worked Solution & Example Answer:Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to manage employment relations in a global environment. - HSC - SSCE Business Studies - Question 28 - 2007 - Paper 1
Step 1
Outline the external sources of change for a business to expand internationally.
Answer
When considering the expansion of a business internationally, various external sources of change can influence this decision. Key factors include:
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Economic Factors: Fluctuations in currency exchange rates, interest rates, and overall economic stability of target markets can significantly impact international expansion strategies.
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Political and Legal Factors: Changes in government legislation, trade agreements, and political stability can create opportunities or barriers for businesses looking to enter new markets.
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Socio-Cultural Factors: Understanding cultural differences, consumer preferences, and social norms in different countries can be vital for tailoring products and marketing strategies effectively.
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Technological Factors: Advances in technology can enhance communication, logistics, and operational efficiency, thereby facilitating international expansion. Businesses must adapt to the technological landscape of the target market.
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Environmental Factors: Increasing awareness of environmental issues may influence a business’s operational processes and the types of products it offers, emphasizing sustainability in global expansion.
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Competitive Environment: The strategies and actions of competitors in international markets can also drive change, as businesses must position themselves strategically to compete effectively.
Step 2
Critically analyse the strategies a business may use to manage employment relations in a global environment.
Answer
Managing employment relations in a global environment requires a diverse and adaptive approach. Important strategies include:
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Cultural Sensitivity and Training: Businesses must ensure their workforce is trained to understand and respect cultural differences. This involves providing cross-cultural training programs that emphasize the value of diversity in the workplace.
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Flexible Employment Policies: Adapting policies to suit local labor laws and practices can enhance employee satisfaction and compliance. This may involve flexible working arrangements or tailored benefits that reflect local expectations.
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Effective Communication Channels: Establishing clear and open channels for communication between management and employees across different regions is critical. Regular feedback mechanisms can help address concerns and foster a cooperative working environment.
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Empower Local Management: Granting autonomy to local managers to make decisions can help cater to the specific needs of regional workforces. Local managers understand the context and can implement strategies that align with both business objectives and employee needs.
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Conflict Resolution Mechanisms: Implementing structured processes for addressing grievances can help mitigate conflicts that arise due to cultural misunderstandings or differences in work ethics.
In conclusion, a successful approach to managing employment relations internationally hinges on respect for local customs, legal compliance, and the proactive engagement of employees.