Hamleys Expansion into Global Market - Coursework Example

HAMLEYS EXPANSION INTO GLOBALMARKET MGT4A1: INTRODUCTION TO GLOBAL MANAGEMENT Introduction Hamleys is one of London’s landmark, which is locate on Regent Street and have been existing for more than 100 years ago. When the company decides to globalize itself, benefits such as a wide market will be achieved. To succeed globally the company has to position itself and adopt a management perspective that is characterized by a global strategy. Products offered by the company are desired all over the world, any family with children around the world would wish to purchase a toy for their kids (Hoyle 2002). For this reason the question of market overseas is not an issue. Though the product (toys) is consumed worldwide countries will continue to differ in aspects such as language, culture, political system, religion, legal institutions and rules of trade. It is such factors that will continue to influence globalization and will determine the success of a business that is contemplating to globalise. Shaping a perfect globalization strategy can be determined by factors like leadership, motivation, corporate social responsibility and Information Technology (IT). LEADERSHIP The leadership model that the CEO of Hamleys, Gudjon Reynisson has adapted is Transformational leadership. The fact that the chief executive officer is a manager, he does not assume the important part that he is thought to perform in terms of transforming the company. One of the transformation is making the company global company. Leadership can be defined as a process whereby one individual influences others to achieve a common goal (Northouse 2001). This is demonstrated by Reynisson in the manner in which he has influenced the stakeholders of the company to globalize the company. Transformational leadership will lure people to change, to expand, and agree to be led. The motive of the associates will be assessed, their needs will be valued and their needs satisfied (Northouse 2001). These thoughts imply that a transformational leader will make a company to be more successful, which is exemplified by the mode in which the CEO is determined to make the company a global company. Four main factors influence transformational model of leadership as demonstrated by Reynisson, idealized influence, inspirational motivation, intellectual stimulation, and individual consideration. Hamleys’ CEO has can be described as a person who practices these influential factors. Idealized influence: Hamleys’ CEO depicts transformational leadership since his ideas influences the associates of the company. The idea of making Hamleys a global company is an influence that is not disputed. Inspirational motivation: this aspect is characterized by managers who are determined to encourage team spirit in order to increase market growth and income for the company. Expanding Hamleys will no doubt achieve broaden the market, and this is an idea that the CEO is using as one of his leadership style. Intellectual stimulation: since the inception of the company 133 years ago the idea of expanding the company globally has never been taken into thought. Intellectual simulation describes a leader who embolden age innovation and also challenges the normal beliefs that have existed. Individual consideration: it describes a manager who trains and advices his associates, the fact that Reynisson is able to advice and train the associates of Hamleys on matters of expanding the company globally makes him a transformational leader. The vital role that transformational leadership plays in an organization can’t be disputed since the business is prone to succeed beyond imagination. The influential factors that can be illustrated by Reynisson is evident that he is an effective leader in the business world (Hesselbein and Cohen 1999: 263). MOTIVATION Motivation is a key part of the manager’s job since through it the manager is capable to make workers want to perform undertakings to achieve the corporate goals. Management is a process that influences the behaviour choices of individuals. There are various models of motivation, but this research is going to focus on two models then relate it to Hamleys Company. I. Abraham Maslow’s Need Hierarchy (Maslow) 1943 developed a hierarchy of needs, which influences motivation, he based his idea on the fact human needs can be arranged in order of importance from the most basic. The moment a need becomes fairly satisfied it no longer motivate behaviour and man is then motivated by the next higher level of needs. He classified the needs into five level: a) Physiological needs: These are the basic needs such as food, shelter and clothing b) Safety or security needs: These are the needs that are expressed by the desire of protection against danger such as social safety or economical c) Social needs: these are needs for belonging, love, acceptance association and friendship d) Esteem Needs (EGO): The only way that these levels become a motivation is if the preceding level is full satisfied. It is characterized by aspects such as self-respect, self-esteem and self-confidence. (Maslow 1943). e) Self-actualization Needs: These needs are achieved when all the other needs have been achieved. II. McGregor Theory X and Theory Y There are two styles of managing according to McGregor (McGregor 1964) Theory X which implies Autocratic Management This theory assumes that an average person dislikes work and must be coerced through means such as punishment. It also suggests that people don’t like responsibility and for this reason they desire to be managed. Theory Y which implies Participative Management Theory Y assumes that work is a normal phenomenon, and punishment is also a way to make people work. It is also characterized by ability to think, innovate and solve problems Hamleys can be said to adapt Abraham Maslow’s Need Hierarchy to motivate its workers. The work force of the company is given a salary that makes sure all their employees’ needs are met. The workers are also assured of social security fund, satisfying their second level. Enhancing the third level is done by ensuring that there is a peaceful co-existence and avoiding discrimination, which makes the employees feel loved. Most of the worker are autonomous, which boosts their self-confidence and self-respect. The manner in which a worker is going to be self-actualized is by ensuring that there promotion for the hardworking employees. CORPORATE SOCIAL RESPONSIBILITY (CSR) When a company aims at expanding globally it must embrace some social responsibility to benefit the company. In order the CSR to be conventional there are various factors that should be integrated to make it acceptable, such as ethics and legal frame work of the community living around the business. There are four action of corporate social responsibility that should be adhered to. These actions constitute of economic responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities (Freeman and Velamuri 2006). Legal Responsibilities It is the obligation of a corporation to adhere to the legal framework of the state or region. There are some explicit guidelines and conventions that are set and should be followed to the letter. Hamleys expansion globally means that it should follow the business laws that are set in the states that it is going to establish itself. Business laws in Russia are from the laws in German, each country has different company laws as well as financial and accounting legal frameworks. Economic responsibilities The main purpose as to why the business is created is to provide goods and services as it makes profit. The goods that the company provides should help towards the economy of the particular state that it is going to establish itself. Economic responsibility is aimed at improving the state of economy in terms of employment, GDP and development. If Hamleys is to establish branches overseas it should for example ensure that the employees of the branch are mostly the locals. Ethical responsibilities There are some morals that the society despise though they are not incorporated in law. Standards, expectations and norms that are a concern to employees, consumers, shareholders and the community that are supposed to maintain justice and respect should be strictly adhered to. When a company is perceived by a community as ethically responsible, it is likely to make more sales due to the relationship it has as well as confidence. Philanthropic responsibilities These are the actions that a company will take to help the community, which can financial or infrastructure. Programs that are meant to promote the welfare of the customers should be put in place, education, medical and financial resources provided to enhance the welfare of the company. Reputation of the company will be boosted and the confidence level of the community will be enhanced. INFORMATION TECHNOLOGY (IT) IT can be labelled as any system of technology employed by a business to generate, stock, exchange and use information it its numerous form. The company should make sure that it has a policy that is aimed at securing its infrastructure in order to avoid any business interruption. IT employees that should be qualified enough in matters relating IT, they should also adhere to the company’s policy that relates to IT. Any employee who breaches the policy should face a very stiff disciplinary action, and to some extent dismissal. Business information is very important, and it should be protected at all cost, which if not protected will fall to wrong hands disadvantaging the company. It will also be prudent for the management of Hamleys to ensure that information, training, instruction and leadership to make sure that there is appropriate IT system are provided to all employees. New employees of IT department should also be inducted on the software especially the branches that will be established overseas. CONCLUSION Hamleys quest to expand its business globally it should broadly consider leadership, IT, motivation and CSR. The CEO should continue using a transformational leadership model which is positioned to growth and success of the company. Motivation is very important in terms production and satisfying the employees. If the workers are not motivated there will be no production. IT should be employed in a sophisticated manner to protect the company’s data. RECOMMENDATIONS 1. The company should make sure that all the senior managers adapt a Transformation model of leadership in all the branches oversees. 2. Motivation of workers should be developed and practiced by all the senior managers, Abraham Maslow’s Need Hierarchy should be the best form of theory to apply in terms of motivation. 3. Pillars of Corporate social responsibility should be implemented in the states, which Hamleys is contemplating to set up business 4. Protection policy of IT infrastructure should be formulated to avoid any instance where the company’s crucial data will be lost. Bibliography Brown, H., de Jong, M., & Lessidrenska, T. (2007). The Rise of the Global Reporting Initiative (GRI) as a Case of Institutional Entrepreneurship. 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