A Subsidiary Company in a European Union Country - Essay Example

A Subsidiary Company in a European Union Country Introduction Clothing industry is one of the oldest ventures in the world it is believed to have started as early as the eighteenth century or probably earlier. The enterprise mainly involves making of garments and other clothing such as table and bed linens. With time, the industry has drastically changed with significant changes being experienced. In the eighteenth-century, raw material was made by weaving and spinning. Currently the raw material for this industry is mainly textile made in manufacturing industries by the use of machines. In the older days clothing industry was mainly a household industry. But currently the industry has become multinational with a giant turnover. The clothing industry is among the most competitive and also most profitable ventures. It provides employment opportunities directly and indirectly to millions of people worldwide. Currently in the United Kingdom some of the leading clothing companies include Aquascutum, Aston Bourne, Austin Reed, Barbour, Bertie.co.uk, Elvi, Dorothy Perkins, Monsoon, I Love Cashmere, Next and countless others. The competitive environment in this industry is very high because of the enormous number of clothing companies in the market. Clothing companies have various challenges they experience which include increased expenses for operating costs and raw material. When the global economy weakens, it affects the clothing industry majorly because people tend to not purchase new clothes. The effects have been seen whereby some industry players do fallout during these periods. But when the economy strengthens the industry also improves. Rapid fashion and trend changes and changing customer preferences can also pose a significant challenge to the industry. Next PLC Next, a clothing company in United Kingdom headquarters in England, designs, manufactures and supplies clothing, footwear and home accessories. It has over 700 stores spread across the globe. Next boasts 200 stores in the Middle East, Europe and Asia. Other 597 stores are found in Ireland and the United Kingdom. Next was founded in the year 1964. It has approximately 54,507 employees (2013). In the year 2013 the company recorded a profit of £508.6 million. Next plc’s business strategies include developing and upgrading Next products, improving the company’s financial strength by promoting secure financing structure and increasing the number of online sales globally. Competitive advantage of Next is that it has many online sales and many retail stores internationally. Selecting a Subsidiary to Be Established in a Foreign Country Fitti Fit will be the name of the new foreign subsidiary to be located in Denmark capital Copenhagen. Denmark is a member of European Union hence the problem of work permit will not be a problem and also Copenhagen is currently ranked as fourth fashion city in Europe. Firms use many combinations of initiatives and measures to incorporate into a strategic plan (Steinum 2008). The foremost business strategy that will be used to make the company profitable is the opening of sub-branches, about 15, at different points within the country. Other promising strategies are incorporating local designer in coming up with unique designs which will be adorable to the local population and taking part in the Copenhagen fashion events in the capital in order to promote new designs and also to sell the company's name. In the view of market diversification, the subsidiary will aim to make the prices relatively fair in order to attract more customers and to give offers and discounts to buyers, especially the ones who are regular. Proper marketing of the firm’s products remains a significant strategy. The marketing will be done on all platforms including the media and online. To rhyme with technological advancement, Fitti Fit will take a large ground on starting online sales in order to expand the market and reach people far and beyond(Furunes & Mykletun 2005). The firm will adopt strong and appropriate financial assessment and monitoring patterns to avoid accounted financial losses. Of paramount importance and valuable to get hold of esteemed customers, the subsidiary company strategizes to improve its work quality and production output. Competitive Advantage Of The Company Over Other Companies The Company shall enjoy the competitive advantage that comes from lowered prices compared to other companies, the manufacture of high quality and the design of unique and trendy fashion wear, which probably the other companies do not have(Furunes & Mykletun 2005). Having been established in the year 1864, Next PLC has been on the market for relatively a long time compared to other firms that have been in the market for a short period. That, itself, puts the subsidiary at a competitive advantage over other sprouting firms. The subsidiary shall reap of the benefits of holding a big name in the clothing industry. For the subsidiary to be successful and function there are various factors that must be incorporated into its running and management of a firm. One factor of such significance is the identification of critical positions within the work force. Secondly is the appointment of competent individuals to assume these roles. The positions that are predicted to bear a lot of meaning to the success of the subsidiary company the General Manager, Human Resource Manager, Marketing Officer, Public Relations Officer, chief of security, Cashiers, Salespersons and Casuals (Furunes & Mykletun 2005). Human Resource Policies to Be Used by the New Foreign Subsidiary Recruitment All vacancies shall be advertised in local media or any other form of publication. Recruitment is gained through application and interview for a particular position. Code of conduct All employees are supposed to abide strictly by the given company regulations that include reporting to work in time. Not engaging in activities that may cost the company any loss. Maintaining good relationship with the company's employees without any conflict of interest. Working conditions The average working hour in a year for employees to be approximately 1631. Number of regular working hours per week to be 37 hours and six days for annual leave. Promotion All promotions in the firm will be based on merit, qualification, performance and work experience. Disciplinary Engaging in criminal activities in the company will lead to immediate termination of employment and pressing charges against the offender. For minor offences, a warning letter is given, and repeat of the same will result in immediate termination of jobs if no good reason is given. Financial misconduct will lead to suspension as investigations are being carried out. Workplace Violence Violence at work will lead to immediate termination of employment and payment of any property destroyed. Discrimination and harassing No member of the company should be discriminated against be it on the basis of race, religion or physical conditions whatsoever the position they have in the organization. Any form of harassment is also prohibited in the form. Grievances and conflict resolution Complaints are reported to the public relation officer or any other senior management staff member who is directly linked to the problem most probably the General Manager. Conflict resolution will be handled by the disciplinary committee whose members are the General Manager, Human Resource Manager, and two other staff members who will be selected by the board of directors of the company. Performance Assessment Assessment of employee's performance is done periodically after which best performers are given incentives. Recruitment and Selection Process for the Various Positions Advertisement of the job vacancies to be published in the local dailies newspapers. This is because newspapers are read by most people and are reliable (Ferris, Berkson and Harris, 2002). Newspapers can also be read online. Advertising job opportunity online using various websites (Judy Motion 2010). Qualifications Requirement for Successful Candidates GENERAL MANAGER REF: FFOO1/ADV/ 2015 Duties and responsibility · Overall in overseeing all the departments in the firm. · Planning firms Strategies · Delegating duties to the company’s various department · Decision-making to attain firms goals · Organizing and coordinating activities in the company · Represents the firm in seminars and other external activities · Developing marketing strategies to boost the company's turnover · Perform research that will ensure the company footholds in the sales. Requirements for Appointment Master’s degree in Business Management or any other related field from a recognized institution At least five years’ experience Should belong to a relevant regulatory body Must be of good morals. Should portray excellent interpersonal skills Should have team work skills Excellent interpersonal skills Good communication skills The ideal places for getting the various workforce are majorly the general population since it has a lot of people who have diverse expertise and qualifications but unemployed. After advertising the different positions applications will be sent and after verification of candidate's testimonials the successful candidates will be contacted and vetted through an interview before recruitment (Ferris, Berkson and Harris, 2002). The interviewers consist of a panel of senior staff members of other prominent firms, religious leader, and company's shareholders. The interviewing panel will forecast mostly on leadership styles, numerical, conceptual and verbal reasoning of individual candidate (Ferris, Berkson and Harris, 2002). That is used as an aptitude test. The interviewing panel will also take into account the position the candidate applied for when conduction the interview. The successful candidates should be chosen based on their merit, general knowledge, the way they present themselves and their work experiences. The highest scoring interviewee will be selected for the job. The appointee who will also be the interviewee will be selected based on their position in corporate world, their achievements in life, number of shares they have in the company, their profession and their influence in society. References Amit, R., Villalonga. B., 2006. How Do Family Ownership, Control, and Management Affect Firm Value. Journal of Financial Economics, 80, 41-385. Barney, J.1991. Firm resources and sustained competitive advantage, Journal of Management, 17 (1), pp. 99-120. Bernard, A., S. Redding, P Schott., 2007. Firms in International Trade. Journal of Economic Perspectives, 21, 105‐130. Bloom, N. J. van Reenen., 2009 . 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