OPERATING IN AN INTERNATIONAL ENVIRONMENTBY GROUP 5:

ANKUR RANI (ID: 0580811)

ASHWINI BALAN ( ID: 0582951)

EMMELINE PAN (ID: 0580854)

MANAGING PEOPLE IN INTERNATIONAL SETTINGS

INSTRUCTOR: DEANNA ROBINSON

Objective

The purpose of this power point is to

• To show organizational structures and strategic vision of our company as it is entering the marketplace and expanding into different geographies

• Tell you more about country and cultural aspects, in which we are transitioning.• Provide an overview of the company’s resource structure, and HR strategy that

will facilitate this expansion.

Preview

Company overview

Mission statement

Organization structure

Resource structure

Parent and host country profile

HR Strategy and Services

Who we are?

Company Name: Bread Chariot

Type of business: healthy food through automated serving model

Product line : Soup, salad, sandwiches and quinoa bowls

Headquartered in Malaysia and registered with Malaysian stock exchange (Bursa Malaysia)

Business model: Chain of health food restaurant franchise

Focus on multi geographic expansion through accusation in Europe and Asia

Focus on Product (Food) development & customization to cater to the local taste of the region

Our Mission

“Our mission is to build healthier eating habits.We are dedicated to deliver the quality, service, cleanliness and value our customer’s interest

and priorities”

Source: yourdictionary.com, anmore.com

Organization structure

Malaysia- Headquarters Country Overview:

Located in South East Asia Multi ethnic & multi cultural; one of the 17 mega diverse countries on earth Malaysia is open state oriented Foreign direct investments to the tune of ~ M$ 35.3 bn making it a very investment

friendly country Large domestic-ethnic Chinese population gives Malaysia special advantage as a

closer trading relations are developed with China Country characteristics:

Extremely polite and diplomatic communication style Business is hierarchical World leader in the energy market Influence of Islam on business ( Halal)

High level risks: Low business freedom and labor freedom

Age requirements: Malaysians are eligible for full time employment at the age of 16

Work hours : 8 working hours a day & 6 working days. Employee must work for 48 hours a week

Employment requirements:

Long visa process for entering Malaysia on work permit Flexibility for employees and their family to arrive on social passes and

apply for work permit thereafter

Monthly wages: 3142.10 MYR / $ 767.00

Cultural aspects: Business meetings: Malaysia’s have a relaxed attitude towards meetings

and meeting timings Meetings are to be avoided on Friday as it is reserved for Muslim to pray Greeting: Malaysians address people with their title and surname Physical touch between people of the opposite sex is seen as inappropriate

and therefore it is advisable to keep safe physical distance

Germany – Host Country

Country Overview: It is EU’s strongest economy Europe's most industrialized and populous country Famous for its technological achievements High fiscal discipline, consensus-driven industrial relations and welfare policies GDP growth was 1.7 % in 2015. Germany is the 4th largest nominal GDP in the world

Country characteristics: Germany is the EU's largest economy Germany is the world’s strongest economy Extremely low unemployment rates

High level risks: Germany is one of the most rapidly aging countries in the world. Close proximity to other EU countries that are facing Economic backlash High-cost workers

Age requirements: Germans are eligible for full time employment at the age of 18

Work hours: Average of 35 hours per week

Employment requirements:

Non EU nationals must receive a work permit to work in Germany

Germans promoted the entry of specialist professionals like graduates with special knowledge

Monthly wages: € 3612 / $ 4,021.89

Cultural aspects: Efficient and masters of planning. Forward thinking Extremely punctual Guard personal space and prefer an arm’s length while

dealing with other people

Japan – Host country

Country Overview Located in east Asia Third largest economy GDP Growth 0.9% in 2016

High level Risk Sluggish Growth in Wages Japanese firms are investing much more abroad Struggling for sustainable growth Poor work life balance

Age requirement : Children over the age of 15-18 years may be employed for non-hazardous jobs. Retirement age has increased up to 65 years in 2013

Work hours: 60 hours a week

Employment requirement A work visa is required for non-Japan citizen wanting to work in Japan for pay Not permitted to engage in any paid activities on a tourist visa Permanent residents of Japan and spouse visa holders are allowed to engage in any paid activity Student visa holders are not allowed to engage in paid activities

Monthly wages: JPY 310,000 / $ 2919.89

Cultural aspects The Japanese are very conscious of age and status and is a very hierarchical country Highly process oriented and risk averse Group consensus is key for a change in process. No room for individual decision Business cards are talismans: a business card is an extension of their identity Japanese people are private and reserved . Ex: Men wear conservative business suits

Resource Structure

Bread chariot will have a combination of HCN and PCN

Skeleton structure of Bread Chariot is franchise system

Malaysia being the headquarters would house the local staff and a few Host country

Nationals (HCN)

In Japan and Germany, Bread Chariot will have a combination of both local staff and Parent

Country Nationals (PCN)

Resource structure

Headquarters or Parent Country – Malaysia

In Malaysia, Bread Chariot will have a mix of PCN & HCN across senior & mid management roles They would hire local talent (PCN) at junior staff level – purely execution roles A few senior management HCN’s would travel to the HQ

Host Countries – Germany & Japan

In Germany and Japan, there would be PCN’s at Senior Management roles who would travel from Malaysia

Local staff (HCN) would be hired in the respective host country for better management of the brand and adherence to local laws and regulations

Local staff would report to local managers within the country along with matrix reporting to PCN’s

Why is this Resource structuresuitable to Bread Chariot

HCN HCN working in the subsidiary country would know

local preferences and buys tastes Awareness of government policies, culture and

customs and would help management in setting its roots in the subsidiary

Continuity of management, since HCN would return to their original countries and stay longer in the position.

Morale among HCN’s would improve as they see future career potential

Language barriers eliminated Low hiring costs as no work permit is required

PCN PCN’s would have better

organizational control Best suited to support expansion

due to their skills and experiences Ensure consistent business

practices get implemented Ensure subsidiaries policies &

practices mirror the MNE

Text

HCNPCN

HR Strategy and Services

Planning expansion and working on various stages of company acquisition Deploy staffing strategy: Geocentric approach Training & Development Employee Retention Managing cultural integration & driving assimilation Performance management Employee Retention Employee engagement Conflict resolution Manage the equity issues that arise when employees of various nationalities work together International relocation and orientation activities:

Administrative services – Insurance, taxation, language training Housing & accommodation Spouse assistance, children schooling

References

Malaysia; EIU.(2016, May 24). The Economist. Retrieved from http://minimumwages.mohr.gov.my/employers/about-minimum-wages-policy/#accordion-child-1

Reconsider raising minimum wage, MEF urges govt. (2016, February 16). Retrieved fromhttp://www.freemalaysiatoday.com/category/nation/2016/02/16/reconsider-raising-minimum-wage-mef-urges-govt/

Malaysia Minimum Monthly Wages. (n.d.). Retrieved from http://www.tradingeconomics.com/malaysia/minimum-wagesHuman Development Index and its components.(n.d.). Retrieved from http://hdr.undp.org/en/composite/HDIGNI PER CAPITA - PPP (US DOLLAR) IN MALAYSIA. (n.d.). Retrieved from http://www.tradingeconomics.com/malaysia/gni-per-capita-ppp-us-dollar-wb-

data.htmlTrade economics: Malaysia Credit Rating. (n.d.). Retrieved from http://www.tradingeconomics.com/malaysia/ratingBackground to Minimum Wages In Malaysia. (n.d.). Retrieved from http://minimumwages.mohr.gov.my/employers/about-minimum-wages-policy/

#accordion-child-1Comparative Wages in Selected Countries. (2016, February 29). Retrieved from http://www.nwpc.dole.gov.ph/pages/statistics/stat_comparative.htmlJapan Average Monthly Wages. (n.d.). Retrieved from http://www.tradingeconomics.com/japan/wagesJapan Employment Law Update. (2013, April). Retrieved from http://www. herbertsmithfreehills.com/-/media/Files/PDFs/2013/Japan

EmploymentJapan - Working conditions. (n.d.). Retrieved from http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Japan-WORKING-

CONDITIONS.html

References

Martinuzzi, B. (n.d.). Retrieved from https://www.americanexpress.com/us/small-business/openforum/articles/doing-business-in-japan-10-etiquette-rules-you-should-know/

Culture Crossing. (n.d.). Retrieved from http://guide.culturecrossing.net/basics_business_student_details.php?Id=13 Ten tips for German business etiquette. (2013, March 25). Retrieved from http://www.thelocal.de/20130325/48679 Germany Working (Employment) Visa - Germany VISA. (n.d.). Retrieved from http://www.germany-visa.org/work-

employment-visa/ Legal working age. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Legal_working_age Phillips, M. (2016, January 05). Germany is the world’s strongest economy. Retrieved from http://qz.com/586547/germany-

is-the-worlds-strongest-economy/ Germany country profile. (2016, January 12). Retrieved from http://www.bbc.com/news/world-europe-17299607 Mcdonald organizational structure chart - Google Search. (n.d.). Retrieved from https://www.google.com/search?q=mcdonald organizational structure

chart Malaysia Among Top 20 Best Economies and First Among Emerging East Asia Economies for Ease of Doing Business. (2015, October 28). Retrieved

from http://www.worldbank.org/en/news/press-release/2015/10/28/malaysia-among-top-20-best-economies-and-first-among-emerging-east-asia-economies-for-ease-of-doing-business

Andrew, A. (2015, October 04). Retrieved from http://panmore.com/mcdonalds-organizational-structure-analysis Germany country profile. (2016, February 12). Retrieved from http://www.bbc.com/news/world-europe-17299607 Phillips, M. (2016, January 05). Retrieved from http://qz.com/586547/germany-is-the-worlds-strongest-economy/