Identifying Human Resources for Global Business Activities
Primarily, we are opening a new business venture in a foreign market. As such, we must develop and execute a new human resource team that will be mandated with meeting individual requirements. Typically, the labor force for running and operating the new entity shall be recruited from the local community. It is our believe that the people residing in the local area are likely to cost less than contracting individuals from our country and sending them abroad. For example, expenses such as incentives for relocation, local living allowances, and per diems will be avoided (Tarique, Schuler, and Briscoe 52). More so, we believe that the locals will attract more customers as advised by the parent company. We intend to recruit 40 employees as modeled by a rival who can be classified as having a similar size of our prospective business unit. However, these individuals will be trained before they begin undertaking …show more content…
Thus, the business owners must view the premises that will be built as business assets that can be liquidated when necessary. In addition, the fluctuations of the exchange rate can occur at any given time because the United States and Germany do not use the same capital. As such, the exchange rate may not favor the business operations during lengthy periods of economic shift. Besides, language translation may pose a risk because the natives usually use German while most of the company executives are only conversant with English. However, the use of translation technologies will minimize this risk. Lastly, the risk posed by government regulations in Germany regarding issues such as tax will be mitigated by working closely with the local authorities to ensure the firm complies with all
Primarily, we are opening a new business venture in a foreign market. As such, we must develop and execute a new human resource team that will be mandated with meeting individual requirements. Typically, the labor force for running and operating the new entity shall be recruited from the local community. It is our believe that the people residing in the local area are likely to cost less than contracting individuals from our country and sending them abroad. For example, expenses such as incentives for relocation, local living allowances, and per diems will be avoided (Tarique, Schuler, and Briscoe 52). More so, we believe that the locals will attract more customers as advised by the parent company. We intend to recruit 40 employees as modeled by a rival who can be classified as having a similar size of our prospective business unit. However, these individuals will be trained before they begin undertaking …show more content…
Thus, the business owners must view the premises that will be built as business assets that can be liquidated when necessary. In addition, the fluctuations of the exchange rate can occur at any given time because the United States and Germany do not use the same capital. As such, the exchange rate may not favor the business operations during lengthy periods of economic shift. Besides, language translation may pose a risk because the natives usually use German while most of the company executives are only conversant with English. However, the use of translation technologies will minimize this risk. Lastly, the risk posed by government regulations in Germany regarding issues such as tax will be mitigated by working closely with the local authorities to ensure the firm complies with all