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Global Leadership and Management - Essay Example

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This research is being carried out to evaluate and present strategies to tackle political and economic issues during global expansion in business with special focus on the issues during global expansion and strategies to address the issues. …
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Global Leadership and Management
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"Global Leadership and Management"

Download file to see previous pages The paper tells that the French economy had withstood the economic recession better than most other nations because of the resilience of the domestic spending of consumers, having a large public sector and because it is less exposed to the global demand and thus less exposed to the downturn. However, the GDP of the nation has been contracting since then. GDP contracted by 2.5% in the year 2009. Additionally the unemployment rate has also increased from 7.4% to 9.5% between the years 2008 and 2010. This could be a potential threat for the company seeking to expand in France as it could face inadequate demand for its products. Additionally the labor market in France is not much competitive. That is why the French government has been trying to reform the labor market and modernize the economy. Workers productivity remains low in France. The president of France has tried eliminating the annual flat business tax and has also tried to increase tax credit for the investments made in the small and medium scale enterprises. This could act as a favorable factor for the company trying to expand in France. Moreover France also represents strong presence of labor unions which and the French Government pays particular attention to the protection and safeguard of workers both in the public as well as the private sector. This could be detrimental for the company to take strategic actions in case of low productivity of workers or the organization. (Central Intelligence Agency, 2011). Strategies to address the issues The main issue could be the problem of low demand arising out of the GDP contraction in the economy. The problem can be tackled with an extensive marketing campaigning of the company’s products. This would be effective in spreading awareness about the products and making them accessible to the customers. The idea is to develop efficiencies in the operations of the company. It would be crucial to develop economies of scale such through increasing efficiencies in all its work processes. Moreover the high unemployment could be used for the company’ advantage as it would be possible to get labour at low costs and high efficiencies. Labour productivity could be a growing concern for the company seeking to expand in France. This problem would have to be tackled with the use of proper human resource management strategies. HRM theorists have increasingly identified the need for linking HRM strategies with the performance of the workforce. HRM strategies should be such that can attain the maximum contribution from employees and their exploit their maximum potential. The most suitable strategy in this case could be to employ performance based pay in which workers would be paid as per their performance and productivity in the organization over and above their basic pay. Pay linked with performance would be effective in driving up performance standards in the organization through enhanced efficiencies and expertise. The idea is to develop competitive advantage in all activities through increased efficiencies such that costs can be lowered and economies of scale can be attained (Cooke, 2000, p.1-2). However, compensations would have to be backed with rewards structures and training and development programs to ensure maximum involvement of employees in the organization. It is crucial to rewards employees for their good performance in the organization. However, rewards must not always be monetary; employees can be provided with non monetary rewards like words of appreciation, promotions, gifts etc. it can also ...Download file to see next pagesRead More
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