Prepare a 3page paper based on your online research and anal

Prepare a 3-page paper based on your on-line research and analysis.

You are a senior executive of a firm that is seeking to expand globally. The CEO has tasked you to develop a Business Plan for the global product/service identified in Global Business Plan Activity #1. During this case study, apply and refine your preliminary plans presented in Global Business Plan Activity #2.

Within your in dustry, the CEO believes that labor costs at American locations are too high and will hamper the ability of your company to compete. Health care costs, for example, can be very high.

The CEO wishes you to investigate the Human Resources aspects of a decision on where to locate the primary facilities for your global product/services. You are to prepare a report that addresses some fundamental questions:

Why might a company choose to produce in one low-cost country rather than another?

Now consider what new challenges come from producing in foreign locations. For your new global product/service:

How should wage rates be determined?

What about other parts of a compensation plan such as vacation days and health care packages?

Should companies participate in labor unions?

Finally, consider whether expatriates who manage the foreign operations should be paid according to their home country levels, or according to host country rates. Suppose a company location has two senior executives of equal rank, one hired locally, and one sent from headquarters.

How should their compensation packages be determined?

Tailor your responses to the firm you have been studying in this course.

Solution

Whether we are starting up a new business, taking over a business, entering a new phase of development or starting a new business activity within an existing business, we need to ask ourself fundamental questions concerning all aspects of your plans and provide the answers. The results of this vital thinking process must be formalised in a summary document called a business plan. Throughout an entrepreneurial project, the business plan is a vital strategic and communication tool. The business plan is used for both internal and external purposes. Internally, the business plan can be used by an entrepreneur to: structure and plan project; monitor the development of his project and regularly inform the stakeholders; motivate the staff. Externally, the business plan can be used by an entrepreneur to sell his project; communicate with the outside world to obtain financing and support. 1.0. E-commerce, technology advances and worldwide economic interdependence have made the business world smaller – and more accessible – everyday. As a result, global expansion is a now viable option for small businesses, even a one-person operation currently headquartered in the owner’s basement. 1.1 global expansion may be the key to unlocking growth opportunities, small businesses should proceed judiciously. That means solid research and a strong global business plan that covers the who, what, where, when, why and how of your plans for international expansion What Our business plan for global expansion should begin with an executive summary. It should be a succinct statement of our overall business objective for the region(s) we plan to target. If you plan to seek outside capital, the executive summary is a critical component to give potential investors an at-a-glance understanding of what you hope to accomplish with expansion. Where Examine the target market. our global business plan should include a market description of the geographies we plan to target. Outline the competition Why Justify our reasoning One of the most critical portions of the global business plan is to explain why you want to expand globally. It’s where you’ll provide your rationale for expansion and crunch the numbers. Present findings of the research you’ve done on your target market, including the overall health of its currency and economy. Who Summarize your company’s background and history. Take the opportunity to showcase major milestones and big successes. Outline both the organizational and leadership structure of your company, making note of key positions or business units you anticipate would be added to the organization as part of global expansion How Mind the details When Set a schedule. Why might a company choose to produce in one low-cost country rather than another A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something. In fact, someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it! How can that happen Since technological advances and productivity growth keep reducing the need for labor in manufacturing. However, it does suggest that smart companies are likely to conclude that the optimal manufacturing strategy depends on working out a subtle equation that includes the materials that go into the product, the product itself and the expected growth of the customer base. This equation must be monitored continually so that manufacturing and logistics solutions can be dynamic and flexible to meet the ongoing changes in the market Manufacturing is now going through a transformational period, driven particularly by increased labor costs in developing countries, shifting demand patterns, significant increase in risk, heightened market volatility and escalating oil prices Now many corporate planners are on the verge of a similar leap, from low-cost manufacturing to a more regional strategy. How should wage rates be determined Complying with wage and hour law and doing payroll are vital components of the process of paying your employees. First, however, you must decide what amount to pay them. What other employers in comparable businesses are paying is a good way to determine what an employee\'s salary or salary range should be. Several other reasons Eyou will want to keep on top of market rates INFLATION MOBILITY OF WORKFORCE CREDIBILITY THREAT OF UNIONIZATION What about other parts of a compensation plan such as vacation days and health care packages Employee benefits, sometimes called fringe benefits, are indirect forms of compensation provided to employees as part of an employment relationship. To compete for quality employees in today\'s marketplace, employers must do more than offer a “fair day\'s pay.” Workers also want a good benefits package. In fact, employees have grown accustomed to generous benefits programs, and have come to expect them Voluntary Leave. Voluntary leave includes all the leave companies offer employees for extraneous reasons (vacations, holidays, emergencies, etc). Paid sick leave is especially common for companies to establish and can be offered in a variety of ways. Employers can offer sick days based on how long an employee has been with a company and what position the employee has, or they can offer a flat number of sick days for all employees alike. CDHPs and FSAs. Due to rising health costs, many companies are choosing to repeal their health care benefits or offer alternative plans for their employees to find health insurance One of these options is the Consumer Directed Health Plan, or CDHP, which has gained more support in recent years. In CDHPs, employees work with companies to choose their own health coverage plan, tailored for them specifically Should companies participate in labor unions Labor unions are organizations in which employees bond together to create a collective voice for negotiations with employers. While some view labor unions as a negative, they actually can have several positive effects on the labor market in general. They can help both employers and employees, if they are utilized correctly. How should their compensation packages be determined There are serious problems with CEO compensation, but “excessive” pay is not the biggest issue. The relentless focus on how much CEOs are paid diverts public attention from the real problem—how CEOs are paid. In most publicly held companies, the compensation of top executives is virtually independent of performance CEO pay is certainly harder to justify in this manner. What part of corporate profit should be attributed to the CEO? How much of profit is due to a well-executed corporate strategy? How much credit should the CEO get for other upper management hires (and the profit they generate)?