Managing in Globalized World

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Managing in Globalized
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Managing in Globalized World 1
Contents
Introduction......................................................................................................................................2
Background of Case.........................................................................................................................2
Problems with Zespri.......................................................................................................................3
Solution............................................................................................................................................4
Conclusion.......................................................................................................................................9
Recommendation.............................................................................................................................9
References......................................................................................................................................11

Managing in Globalized World 2
Introduction
The purpose of this paper is to enlighten details about the case of the company Zespri to the
reader in the environment. The report evaluates details about the background case of the
company along with the issues faced by the company and conducted by them while performing
business functions in the external environment. Zespri’s operations in the country are analysed in
the paper. Further, it should be noted that human resource management of the company is the
most crucial resource that the business holds. This resource of the company helps them to make
use of other resources and significantly grow in the external international environment and be
competitive as well. Issues faced by the human resource management of company makes it
difficult for the management to secure their position in the environment and initiate activities
according to the expectation in the environment (Thompson 2019). The below mentioned paper
highlights the mandatory details about the human resource management issues of the company
Zespri. Further, solutions to eliminate the issues and support the business establishment are
provided in the paper. Successful change in human resource management activities of the
company Zespri will help the organization to improve the productivity effectively and grow in
the international market as well. More details about the paper are discussed below:
Background of Case
Zespri is an organization that deals in import and export of fruits products in the environment.
The case study evaluates the business operations of the company conducted in the country China.
The company was facing service ethical as well as legal issues in the environment of China due
to which the growth of company in the Chinese market was depleted. The company Zespri came
under several controversial issues that affected its current position in the Chinese market and
made the organization to pay several penalties as well. The first scandal of the organization in
the Chinese market was that an agent of the company was found guilty of double invoicing in the
year 2012. The agent was also evading the taxes by not paying the import duty of the goods that
were coming to China from outside market (Hill 2015).
The Chinese subsidiary of the company was fined with $1m and an employee of the company
was also jailed for five years because of not paying custom duty on the kiwifruit for the years

Managing in Globalized World 3
between 2008 to 2010. This was the first scandal that defamed the name of the company in the
external environment of China. Further, talking about the second scandal of the company, it
should be noted that 9 staff of the same agent mentioned above were arrested for not providing
custom duties in the environment and importing prohibited fruits in the country as well.
Resulting in which, the officials of the country held the staff in their custody because of
performing such acts in the business environment. After facing such issues in the market of
China, Zespri realized that all this is happening because the management does not have good
command on the Chinese employees (Irwin 2012).
The top management of the company decided bring more employees from their ground in
Chinese field. This activity will help the organization to increase the grip on the business
functions in China and save themselves from penalties as well. In China, the company has started
focusing on the quantity of the products rather than the quality of the product. The main aim of
the organization is to increase its sales and productivity in the market by focusing on the
distribution of quantity in the market at low rates. The company depleted rates of the goods
along with the quality as well, resulting in which customers in China started purchasing more
kiwifruit in the environment (Westropp 2015, 53). However, this practice of the company is
inappropriate because they are serving low quality goods in the market that can affect the health
of the customer on consumption.
Problems with Zespri
There are several problems affected with the functioning of the company Zespri, some of them
are mentioned above while analysing the background of the case. Further, below mentioned is
the clear elaboration of the human resource issues faced by the company Zespri in the market of
China:
 Lack of Trust on Employees: the company does not trust on the employees due to which
there is presence of communication barrier in the organization. Communication issues at
workplace give rise to several malpractices in the environment discussed above. If the
organization would have trust on the employees and if they would be able to effectively
communicate with them then the company would not face several other issues in the