Challenges of Management: Chicago Food and Beverage Company Analysis

This homework assignment examines the management challenges faced by the Chicago Food and Beverage Company, focusing on staffing approaches, expatriate management, and compensation strategies. The analysis begins by exploring the ethnocentric staffing framework and its benefits, such as better coordination and control. It then delves into the potential risks of this approach, including cultural clashes and high costs. The geocentric approach is presented as an alternative, offering flexibility in hiring and relocation. The case study considers the situation of Paul, an expatriate facing financial and work-related issues, evaluating his suitability for an expatriate position and highlighting key aspects of expatriate management. The assignment further discusses compensation packages, emphasizing the importance of fairness and considering factors like cost of living. The paper concludes by highlighting trends in expatriate management and the importance of integrating mobility with talent management. The document provides a comprehensive overview of the challenges and best practices in managing a global workforce.

Running head: CHALLENGES OF MANAGEMENT
Challenges of Management
(Chicago Food and Beverage Company)
Name of the student:
Name of the university:
Author Note

1CHALLENGES OF MANAGEMENT
Answer to question 1:
In the present study, the ethnocentric approach is chosen as the staffing framework. Here, the
main positions are fulfilled with staffs of parent organization. For the managerial decisions the
objectives vision and mission are been formulated at the headquarters. The same is bound to be
followed by host organization. This lies on the basis of the rationale that employees of parent nation
is best on others and can represent better on the interest of headquarters. The benefits of this include
better type of coordination between parent and the host company. The parent company’s culture
could be transferred easily to subsidiary business infusing practices and beliefs to foreign nation.
Next, there are effective control in subsidiary and parent company have close view over various
subsidiary activities. Further, there are better transfer of the technical know-how and efficient
communication between parent and the host company. Lastly, there is no necessity of any well-
developed local labor market that is well-developed (Zheng & Smith, 2019).
Answer to question 2:
Yes. Here, one the effective risk is that the business attempts to make people from host
organization in adapting the culture. Thus they have been denying human beings having skills from
home nation in utilizing the total ability as they are provided with positions of low level. They have
decline in cooperation and motivation. Again, there must be missing out of opportunities in hiring
bets personnel from host nation. There can be clashes of culture between executives of the parent
nation and employees of host nations. Besides, expatriates from parent nation are much costly as
compared to staffs at host nation. Further, restrictions of government at host nation might hamper
business of parent organization (Rees & Smith, 2017).

2CHALLENGES OF MANAGEMENT
Answer to question 3:
The geocentric approach can be an effective alternative approach. This is helpful for
recruitment to full-fill best ones to fulfill positions irrespective where they live or come from. It
indicates hiring of remote staffs. Chicago Food and Beverage Company can utilize the option as they
intend to hire anyone at the place where they never have offices. As any intend any sort of customer
support agent n other time zone for supporting their customers are there. Secondly, there are
relocating of the employees. It involves bringing foreign talent to parent nation along with relocating
individuals to new host nation. Chicago Food and Beverage Company can utilize that as they require
anyone to be present physically at particular nation, though the best one suitable for the task is
staying anywhere else (Can & Çetinarslan, 2017).
Answer to question 4:
Paul has needed the job. Firstly, the finical conditions of his expatriation contract has been
poor. He has been feeling frustrated and upset at Vietnam. Besides, he has been facing issues related
to his work. The results has been making him frustrated. As per subsidiary and relationship with his
colleagues at the nation. Further, the economic condition of subsidiary six months has been poor
after the arrival. There is been decline in motivations, revenues of the plant workers and employees.
Further, there has been lack of cooperation from the side of local management. Apart from that the
deployment of latest organizational strategy has been seen to very far from getting off the base (Ott
& Michailova, 2016).
Definitely, he is a good candidate for the expatriate position. He has bachelor’s degree from
renowned universities and recruited by New York subsidiary CFB Co. and worked as product vice-
manager. Furthermore, he has been working as regional product managers and country brands
managers at beverage centers at markets of U.S. Again, he holds the master’s degree of business

3CHALLENGES OF MANAGEMENT
administration in the subject of international management. Lastly, he has been working in the
expatriate position at Vietnam.
Answer to question number 5:
For performing expatriate management some of the key aspects are to be kept in mind. This
must be properly prepared before they are conducted. An effective communication must be
maintained and a support must be there across the overall project. Further, they must be repatriated
at the proper path. There are various expats who can be face complexity to adjust the environment of
home country. It can lead towards greater than the intended attrition level. As any failure is
witnessed by employers in concentrating on developing career and the ways of leveraging the
needed expertise on repatriation, that make expats unsettled. Thus, they could be targeted easily for
additional business desiring the experiences. Here, the business have the necessity to generate
individuals for role at further steps and provide clear indication of future prospects and opportunities
of career development. In this way, they could be paid back hopefully. The cost-effective and
successful expatriate management is the cornerstone of any successful strategy of talent acquisition
and global development (Bebenroth & Froese, 2019).
Particularly for expatriate recruitment policies the greatest trends are advent of worldwide
nomads and rise in connection between the talent management and international mobility. Chicago
Food and Beverage Company has seen that more that integrate with talent management mobility
challenges, less vexing are few of their conventional issues regarding expatriate management
involving repatriation localization and retention and many more (Guttormsen, 2018).

4CHALLENGES OF MANAGEMENT
Answer to question number 6:
Paul has been getting various packages of compensation that Hong Kong’s expatriate.
Factually, staying at Hong Kong has been more costly that staying at Vietnam. Due to that, some
advantages are there in the package of compensation that was never present in that package. The
housing and car benefits are deducted from the compensation for expatriate at Hong Kong that has
been never been deducted. Differences in package’s content has been relying on the nation. It has
been beneficial for employees working under that highly progressive area. Nonetheless, for anyone
stationed under less developed nation, with less advantages could be a drawback (Hill, 2016).
Answer to question number 7:
While generating a package of compensation for the expatriates that must have few contents
for assuring fairness. Here, firstly the human resources require to determine the kind of
employments. As every epacts have similar working line, the package must be similar with tenure
under company being just the difference. In this place, the different benefits with the allowances
must be similar (Tarique & Schuler, 2018).

5CHALLENGES OF MANAGEMENT
References:
Bebenroth, R., & Froese, F. J. (2019). Consequences of expatriate top manager replacement on
foreign subsidiary performance. Journal of International Management, 100730.
Can, E., & Çetinarslan, H. Ş. (2017). Expatriate staffing in foreign subsidiaries of multinationals: A
literature review. In Driving multinational enterprises through effective global talent
management (pp. 19-49). IGI Global.
Guttormsen, D. S. (2018). Does the ‘non-traditional expatriate’exist? A critical exploration of new
expatriation categories. Scandinavian Journal of Management, 34(3), 233-244.
Hill, J. E. (2016). Expatriate staffing in international corporate assignments (Doctoral dissertation,
Baker College (Michigan)).
Ott, D. L., & Michailova, S. (2016). Expatriate Selection: A Historical Overview and Criteria for
Decision-Making', Global Talent Management and Staffing in MNEs (International Business
and Management, Volume 32).
Rees, C., & Smith, C. (2017). Applying critical realism to the MNC: Exploring new realities in
staffing and expatriation. Multinational corporations and organization theory: Post
millennium perspectives, 49, 265-293.
Tarique, I., & Schuler, R. (2018). A multi-level framework for understanding global talent
management systems for high talent expatriates within and across subsidiaries of MNEs.
Journal of Global Mobility.
Zheng, Y., & Smith, C. (2019). Tiered expatriation: A social relations approach to staffing
multinationals. Human Resource Management, 58(5), 489-502.