Monday, May 18, 2020

Expanding to China Essay - 1583 Words

Expanding to China The purpose of this proposal is to explore the potential challenges involved in expanding business activities in China. Of specific concerns are (1) the need to identify expatriates; (2) recruit local talent to staff the business units; (3) develop those employed in the expansion project; and (4) identify and address cross-culture issues that will inevitably emerge and determine the most efficient and effective strategies for addressing the deployment of expatriates and local talent. In attempting to respond to these challenges substantial research was done, providing guidance, which can be considered in the expansion efforts. Expats versus Hiring Local Talent In pursuing expansion into the China market, the company†¦show more content†¦However, it is equally important to have expatriates, specifically at the managerial level, to ensure the functionality of daily operations and act as liaisons between local government and other Chinese local interests (Ahlstrom, Young, Nair, 2003). Ahlstrom, Young, and Nair posit that foreign firms can also reduce the likelihood of confronting local pressures ...by hiring people with established connections and influence... (Ahlstrom, Young, Nair, 2003, p. 4). This also will allow for a smoother transition and set the basis for long-term stability in the Chinese locality. Attract and Develop Expats and Local Talent Regarding the identification of competent expatriates to establish business operations in China and the recruitment of local talent, the challenges are formidable, however, manageable. For example, according to Johannes Meier, Javier Perez, and Jonathan R. Woetzel, in their article, Solving the Puzzle: MNCs in China, foreign businesses are experiencing considerable difficulty in â€Å"identifying skilled local managers and experienced expatriates capable of leading China initiatives (Meier, Perez, Woetzel, 1995, p. 20). In response to these challenges, the authors recommend four important strategies for ensuring success in China. First, the company must establish a strong China corporate center to coordinate external relationships, including investment decisions and strategic development andShow MoreRelatedExpanding Ikea into China: An Analysis673 Words   |  3 PagesTO: Ikea Board of Directors and Human Resource Managers FROM: I.B Analyst, International Expansion Project RE: Movement into China Globalization has brought the world closer in communication, economics, politics, and especially business. 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