This business report analyzes the development of cross-cultural capabilities within Arthur Knight, a family-run shoe manufacturer in Northampton, as it considers expanding production to China. The report focuses on the Human Resource (HR) department, outlining opportunities such as access to cheaper labor and the implementation of new technologies, and risks including cultural shock, cultural differences, and communication barriers. It emphasizes the importance of employee training, particularly in language and cultural awareness, to mitigate these risks and ensure successful talent management. The report also highlights the strategic role of HRM in fostering better coordination among employees, recruitment, selection, and performance appraisal. The report concludes by emphasizing the need for the company to address the associated challenges to facilitate efficient, cost-effective production and successful business operations in China.
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