Market Entry and Cross Cultural Environment - Assignment

Added on - 21 Apr 2020

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Running Head: Market entry and cross cultural environmentInternational HRPracticesAnalysis of Danone
Market entry and cross cultural environmentTable of ContentsIntroduction................................................................................................................................2Task 1.........................................................................................................................................3Challenges associated with global market entry....................................................................3International development strategies......................................................................................4Effect of international strategies on functioning of Human Resources..................................5Task 2.........................................................................................................................................6Hofstede’s culture in UK........................................................................................................6Cultural Shock........................................................................................................................8Conclusion and recommendation...............................................................................................9References..................................................................................................................................91
Market entry and cross cultural environmentIntroductionInternational human resources management is to achieve the goals in the globalmarket. It tends to outsource the employees from different regions and countries and makingthem learn the manner and culture of the native country and providing training in the contextof tradition and values of the organisation and creating the environment of unity bydeveloping its own culture (Saleeth, 2010). The challenges are to establish the business at theglobal level and make a wise market entry. There are various development strategies tocommence entry in the international market, though there are certain issues attached with theoverseas business but along with issues there are benefits attached as well. These strategiesaffect the working of human resources as well.The report discusses the challenges that are been faced while making the entry in theinternational business along with describing the various modes of entry followed by thelimitation and benefit of choosing the particular mode. Afterwards the effect of suchstrategies on HR has been examined. Thereafter the overseas culture has been investigatedusing the Hofstede’s six dimension theory and culture shock has been discussed followed bythe issues and solutions for the defined situation.2
Market entry and cross cultural environmentTask 1Danone is originated in Barcelona, Spain and it is the multinational corporation thatproduces food stuffs in Paris. Danone deals in the nutritional activities; they basically focuson the baby care and later on progressed towards the healthcare and supporting the youngparents, care takers and professionals in medical field be it a pedia nutritionist orphysiotherapist that deals in the field of health care. For around 100 years it dealt in thestream of baby care and then took a step forward towards researching on the topic of breastmilk and nutritional level of baby at their early ages. The company consists of a portion ofGroup Danone that holds the position in 500 Fortune company and studies the health care ofhuman and thereby considered as the successful health food company of the world thatconcentrates on the dairy, water and medical nutritional product along with the early-lifenutrition. In order to gain success and expand the business, awareness should be spread infavour of business thereby enlarging the field to establish the position in the internationalmarket (Danone, 2017). To set up business across the domestic border is a challengingactivity and the challenges involved in establish international business has been quotedhereby:Challenges associated with global market entryOverseas organisational structureIn order to establish the business in the global market there is a need to design the team andset up the coordination among them. The entrepreneur need to study about the consumerbehaviour by performing the full-fledged research so that the business plan could be designedaccordingly and the flaws could be handled. At initiation level it could be made byestablishing head office in the origin country and controlling the other outlets from thereonly. The major decisions come from head office only so that single handed managementtakes place and conflicts are resolved. The issue that is faced is selection of appropriateorganisational structure, failing which might result in adverse effect and closure of the outlet(Kar, 2017).Legal procedures of foreign countriesThe legal proceedings differ from country to country and this is the major challenge that thecompanies faces when they groom up to grow in the international market. Every country has3
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