HR-related issues of partial production shift to offshore locations

HR.-related issues

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Explanation of scenario...............................................................................................................3
Risk, opportunities indulge in a move for expansion in other countries....................................4
HR related considerations and cross cultural factors requires to shift the production................6
REFERNCES:................................................................................................................................12
Books and Journals:..................................................................................................................12

INTRODUCTION
The report aims to provide various opportunities, risk and aspects of management for business
environment. Every business organisation work on the aim to achieve long term target by
creating expansion, brand name, customer reach and retention and undertaking opportunities.
Business get established with a foremost aim to make highest profit and be the market leaders.
Therefore, an entrepreneur is the one who brings certain ideas, creative thoughts and approaches
to regulate each business practices that must bring innovation and change into society and people
could experience valuable products and services. Therefore, Crown Northampton is a world
class superior small organisation that believes in fine quality and self made goods that have a
unique presence into market(Legorburu, Johnson, and Kerr, 2018). They are the finest
manufacturer of shoes and the company was established in 1908. The report is going to talk
about many risk, opportunities and challenges faced by company to start operation in the
countries like China, Vietnam and Ethiopia. Therefore, the report will present various issues and
what consequences the organisation have to face while working on offshore locations. These
issues mainly would describe as cross cultural barriers in language, believes of different people.
MAIN BODY
TASK
Explanation of scenario
The small business organisation are known for the great contributor in economy in terms
of income and creative positive impact with their sustainable and unique ideas of doing
business. Similarly, one of the supreme organisation that is Crown, the company is the finest
manufacture of shoes in Northampton. This city is situated in England and has known as the
main manufacturer point where all the shoes manufacturing takes place. The city comes under
the large coverage of UK due to availability of high quality resources such as material, labour
and technology. The company serve their handcrafted shoes across many countries and has large
customer base. But now, the company wants to move on the track for expansion in other parts of
countries like China, Vietnam and Ethiopia. For that instance, they require to analyse risk
involved while working oversees by identified market culture, people preference, technology
and legal restrictions. An organisation covers its cost by eliminate unnecessary labour cost and
fixed charges that create more wider space for earning profits. So that, The crown needs to keep

this technique while move for expansion. Also, there is requirement of effective and talented
employees as well as low costs factory workers in order to cover the margins and enable
profitability and productivity both in the organisation. The three cities are known as the
emerging market which provide many effective opportunities for the company. China is known
for the cheap labour supply and advanced technology which could promote effective working.
Vietnam has low cost production in terms of material and other resources. Therefore, it is
essential for the company to analyse the suitable market and their potential customer so that,
chances of failure would be neglect and best human resources practices must be promoted.
Risk, opportunities indulge in a move for expansion in other countries.
Risks are an integrated part of every business which reflects in every small or large size
organisation. As there is dynamic environment which keeps on changing at a fast pace which
give rise to new uncertainties and risk whether they are competitors, high cost labour and
technology or many others factors. On the other hand, opportunities are also there in every new
market , it is up to the entrepreneur how they analyse it and implement into their business. Some
of these are described below for The Crown company:
Risks:
Transfer of capital: it is the major risk for the small scale organisation to transfer their
capital assets and liabilities form one country to another, as it hold many legal formalities and
restrictions that may losses potential market opportunities. transferring capital as per the rule in
different countries systemic rule is time taking provide as it include labour supply, cots of tools
and equipments, hiring workforce and employees and many more. The Crown company needs to
look for investing a fresh capital in the manufacturing unit in new countries and create strict rules
of suppliers so that, the risk will get eliminated.
Risk of market demand: a business undertake a lot of different market requirement that
impact in the whole procedure of manufacturing and delivering foods and service into market.
Different areas have different customers who follows various kinds of trends and their cultural
believes. Due to which organisation may attempt failure to acknowledge the market properly.
Therefore, the Crown company needs to identify their potential customer and trends. China,
Vietnam and Ethiopia (Conrad, . and Kostka, 2017). For example, In Northampton, people like
to wear sober and classy shoes whereas in China, people look for some unique styles and
customisable designs so that, the company needs to manufacture products according to that.