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Feasibility study of Saints Construction expand to Germany 05162 - Essay Example

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Globalization has induced firms, especially of the western nations to expand into foreign nations from where they can achieve resource and cost benefits (H. Zhao and G. Zhu, 2000). Saint Constructions, a British manufacturer of digging and earth moving equipment for the…
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Feasibility study of Saints Construction expand to Germany 05162
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Download file to see previous pages It is anticipated by the company that the Belfast site would soon be closed down. The company has selected the U.S, Germany and China as potential nations for such expansion. The current paper analyses the potential sites and assess the various feasibility factors and human resources aspects associated with the chosen site.
Strengths- Since the political and the legal environment existing in the U.S is well organized, the regulations established in respect of protecting the rights of workers are well implemented and requires to be strictly followed by organizations. The U.S HRM (human resource management) policies and labour markets are well organized. Wages are regulated to meet the purchasing power existing in the market. HRM policies established in most companies of the U.S takes into consideration aspects such as adequate power distance, frequent performance monitoring and strict industry guided payment measures. Decentralization and increased market expansion have led to the availability of greater job opportunities. Workers of the U.S are highly skilled and technologically efficient, making the same quite expensive as compared with other nations. Also the localization effect existing in the U.S is dominant. This means that firms who chose to expand into the U.S must radically incorporate the conditions existing in the nation rather than following the parent nation regulations (Erickson, 1996).
Weaknesses- Implementations of regulations in the labour markets are not effective in few of the economic sectors such as the construction and production industrial segments. Although the standards of living of the general workers have enhanced, unemployment still persists. From the social point of view the U.S faces the challenge of labour shortage. An ageing population is the main crux of the issue of lack of labour availability. Culturally, the mindset of the people is quite liberal, however a number of cases associated with ...Download file to see next pagesRead More
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