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Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to manage employment relations in a global environment. - HSC - SSCE Business Studies - Question 28 - 2007 - Paper 1
Question 28
Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to manage employment relati... show full transcript
Worked Solution & Example Answer:Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to manage employment relations in a global environment. - HSC - SSCE Business Studies - Question 28 - 2007 - Paper 1
Step 1
Outline the external sources of change for a business to expand internationally
Answer
External sources of change for a business aiming for international expansion include:
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Global Market Trends: Changes in consumer preferences and behaviors in different regions can drive businesses to adapt their products and services. For instance, the rising demand for sustainable products influences companies to incorporate eco-friendly practices.
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Regulatory Changes: Businesses must be aware of international laws and regulations which can impact operations, such as trade tariffs, import/export restrictions, and labor laws that vary by country.
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Technological Advances: Innovations in technology can facilitate access to foreign markets. Companies can leverage e-commerce platforms and digital marketing to reach customers worldwide more effectively.
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Economic Factors: Fluctuations in global currencies and economic stability in different regions can influence where a business chooses to expand. International economic cohesion or discord can also impact investment decisions.
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Socio-Cultural Factors: Understanding cultural differences is crucial for businesses when entering new markets. This includes adapting marketing strategies and product offerings to local tastes and customs.
Step 2
Critically analyse the strategies a business may use to manage employment relations in a global environment
Answer
In managing employment relations on a global scale, businesses can adopt several strategies:
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Cultural Sensitivity Training: To foster a respectful workplace, companies should provide training to their employees on cultural awareness and sensitivity. This can improve communication and reduce misunderstandings among diverse teams.
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Flexible Employment Policies: Tailoring employment contracts and workplace policies to reflect the local labor laws and cultural expectations is crucial. This includes aspects such as work hours, benefits, and workplace rights.
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Effective Communication Channels: Establishing clear communication channels is essential. This can involve using technology for regular updates and ensuring all employees, regardless of location, feel included and informed.
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Engagement with Local Unions and Organizations: Building relationships with local labor unions can aid in understanding and navigating employment relations. This engagement ensures compliance with local regulations and helps in addressing employee concerns effectively.
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Global Management Framework: Implementing a unified global management framework allows for consistency while also being adaptable to local needs, ensuring that all employees feel valued and respected regardless of their geographical location.