Cross Cultural Activities in Manufacturing Shift

Developing Cross
Cultural Activities

Tables of content
Tables of content..............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Opportunities and risks of a partial shift of manufacturing.........................................................3
The value offered in the field of Human Resources....................................................................5
The associated issues around purchasing, logistics, and others, are handled by other
departments..................................................................................................................................6
Literary review.............................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Businesses around the world are looking forward to expand and increase production looking at
the higher demand that the market has displayed over the years. There are multiple ways to
expand the business like opening a franchise or serving a completely new market in order to
increase the market share. In the field of manufacturing the expansion comes in the ways of
taking the process of manufacturing at a place that offers low cost of production with multiple
other benefits. In this way the company is able to increase the production rate along with the
profit margin (Goldstein 2019). This report based on the partial expansion of medium scale show
manufacturing company Shoelegant based in Northampton. The company is considering making
a partial shift in the manufacturing of the shoes in China. This report consists of opportunities
and risk involved in the partial shift of manufacturing, human resource challenges and ways of
overcoming them along with a brief discussion of the issues in such form of expansion.
MAIN BODY
Opportunities and risks of a partial shift of manufacturing
In the ever growing international market and with the effects of globalisation all the countries
around the world are moving to expanding their operation in the countries that operate with low
cost and hence increasing the profit for the company. Just like all other business functions there
are several opportunities and risk factors involved in the process of the shifting the
manufacturing to another country (Gui, Walker and Harshaw, 2019). These are as follows,
Opportunities
Skilled and Low costing labour: One of the major factors that attracts the established and
growing companies to make a move to shift its production in another country is the availability
of the labour in low cost. In any form of manufacturing it is the labours that play a crucial role
both through the activities and in the budget and finance of the company. Through the partial
shift the company Shoelegant can increase its production at much cheaper rate thus allowing the
company to meet the rising market demand and ultimately making more profit. Another major

benefit of this shift is the recruitment of skilled labours that help in the quality of the product
along with the increased effectiveness in production.
Large potential market: When a company makes a partial shift in the manufacturing of the
product, not only does it increase its efficiency of production to satisfy the existing market but
also increases its market share by offering the products in the same market it has expanded its
production to. In this way the company has higher chance of market expansion and thus
increasing the sales of the company (Laconi and et.al., 2018). There are various companies in
China but there is always scope for the success of foreign brand that serves quality to the people
of the country.
Risks
Cultural difference: The risk involved in the process of manufacturing shift is the difference in
the working culture of the two nations. Organisation culture refers to the working methods,
ethics, values and belief of an organisation. Communication also decides the organisational
culture. In every business the culture plays a crucial role in the effective working and
performance of the company (Shiraev and Levy, 2020). There is a huge difference in the work
culture of China and UK. that clearly reflects in the working methods of the companies of
different origin.
Political instability: When a company take it processes to another country in the search of low
operational costs, it has to face the challenges and issue in the external environment of the host
country. There is a reason behind the low cost of labour in every country. This reason is the
comparative low economy of the company which is turns a result of all the external factors.
Political instability is one of the main risks that are to be faced when the company moves its
production to China.
Low skilled-labour retention: With a high number of companies moving to china in the search
of low costing labours there is an increased demand and thus cost hike in the among the skilled
labours of the company. There is always another big market company that is making its entrance
in the manufacturing market of China thus resulting in the low retention of the skilled labour for
a company that is tight on budget (Carlson and et.al., 2019). It is because that every time the