Top managers and CEOs of different companies are concerned about the success of their firms. At times, it might be tricky to assess the performance of companies. However, to determine the operation of different companies, it could be prudent to compare the performance of different companies. Therefore, this paper seeks, to focus on the comparison of international and local companies strategical planning to determine the feasible strategies that can be employed to make companies thrive in the business field.
Management practices in international companies are more advanced than in local companies. The management practices are done according to the international standard while in the local, management practices are done according to the standard of the countries. Management practices involve high technical skills that are involved in making decisions within the international companies while in the local companies, management is just considered within the small scale.
Human resource policy
The process of managing people in a company and how they are structured to achieve the set goals and targets as prioritized by the top management of the companies. Unlike in the local companies, many workers are employed in International companies to complete the enormous tasks that are in international companies. Foreign companies employ workers from all over the continent while local companies most use the local citizens. The international workers union presents the grievances of international workers while for local companies, the local or at times there is no representation at all. In International companies, human resource is responsible for managing workers' expectations and reconcile the figures to harmonize the salaries given to the employees. However, in the local companies, the human resource has a lighter role in undertaking and almost every employee receives the same amount t of salary.
In an International company, human resource management manages employees from the parent country, host and a third country while in the local region, human resource management only manages workers within the state. In local companies deals with the hiring of the employees, retaining the workers, negotiating their wages, as well as handling their performance. On the other hand, In the International company, human resource management ensures there is a balance between the control and coordination of subsidiaries and the ways to adapt to the local habitat. Human resource department does not need to deal with the ethical and cultural differences since most of the workers are from the same community. However, in the local company, human resource management has to deal with multicultural differences among the employees to manage a local subsidiary of the parent country.
International companies made decisions that consider global employees because the workers are from different countries while in the local companies, companies 'decision does not consider cultural differences. International companies' activities include international taxation and coordination of foreign currencies and decision involving the orientation of the employees. International companies have issues of cultural differences, which may affect the smooth operation of the company since employees come from different countries across the world. The foreign companies must obey the law protecting the rights of workers within their companies. The company's daily activities should not interfere with the power of every individual that comes from different countries.
The company should protect the hybrid legal system of its workers. For instance, the company should defend the obey the civil law that protects the code of relationship between the workers and the employees. There is also Islamic law applied to the international companies that state that a company should not benefit from the interest made within the company. Instead, the workers should be a party to the interest earned in the company. Most importantly, Islamic law instills the code of ethics within international companies since it protects the right of the workers. The legal system protects international workers from any form of exploitation. For instance, they protect the wages being offered by the company.
Any worker employed in the global company must be inducted to adapt to the local environment. The workers must be trained on how to handle the local citizens from where the company is located. Besides, the new employees must be oriented on a method to apply to make the company achieve its goal. Moreover, cooperation is highly encouraged among the workers since they come from different ethnic groups. Consequently, international companies are ethnically based since it employs people of different ethnicity. Global companies consider the geographical location and the marketability of their products.
The company is succeeding in marketing its policies since it has a broader market from various countries where the employees hail from. The local countries where the company is located also can provide a market for the international company. The objectives of the international company are to deliver universal and quality services to the global customers most importantly, I would use joint ventures to compete with this international companies because joint venture will have a united outlook hence attracting the sympathy of the clients. Eventually, a value chain and integration strategy are values that can help a business firm maximize its profit. The values chain ranges from ideas, productions and distribution. This chain of values can help the company realize its successful goal when implemented. Therefore, any company who wish to make profits should apply the value chain and integral strategy to make its dream feasible.
Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 6). New York: McGraw-Hill.
Doole, I., & Lowe, R. (2008). International marketing strategy: analysis, development, and implementation. Cengage Learning EMEA.
Morgan, N. A., Katsikeas, C. S., & Vorhies, D. W. (2012). Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science, 40(2), 271-289.
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