Global Expansion

Abstract

The following paper will address the following scenario: PPQ Parts has determined that in order to successfully expand globally, it will be a great benefit if the managers are trained in multiculturalism, diversity management and are made aware of the political and economic concerns that may arise during the expansion. This will allow them to be properly equipped with the knowledge and required plan of action to handle such situations as needed.

Currently, there are many organizations that plan to become global companies in order to reach the international markets that have a need for the specific products and services provided. This form of expansion has also been identified as a necessity in order to for businesses to survive financially in the current economy. It will decrease costs for the company, open a new market for new ideas, and allow a more competitive position within the new market (Heizer & Render, 2012, p. 27). An international strategy will help to diversify and expand a business; therefore management should be trained and have a clear understanding on the multiple aspects, including multiculturalism and diversity management.

It is important to understand the difference between multiculturalism and diversity. Multiculturalism refers to the acceptance or the practice of providing equal attention/representation to individual(s) from different backgrounds or minority groups ("Multiculturalism,"). On the other hand, diversity is defined as the differences between individuals, including but not limited to:

 Race

 Gender

 Background

 Socioeconomic status

 Religion

Both are important to the PPQ Parts, especially in the growth efforts. Diversity in the workplace will allow PPQ Parts to remain competitive in the market. Multiculturalism and diversity training for management will create a better a better work environment; develop better employees for future leaders (Garcia). Trained management has the ability to address diversity issues locally and globally.

What are some of the issues the host foreign country could face as a result of the expansion?

During an expansion, there are many issues the host foreign country could face. These factors consist of social and cultural behaviors and laws (Heitzer & Render 2012). Other factors include both internal and external (Heizer & Render, 2012, p. 38). For example, internal factors can consist of the following:

 Human resources (Heizer & Render, 2012, p)

 Physical resources (Heizer & Render, 2012)

 Host country's infrastructure (Heizer & Render, 2012)

These issues can include:

 Employment

 Production

 Resources

 Infrastructure

When human resource (HR) managers begin the recruitment process for filling positions for PPQ Parts' international office, more than likely they will encounter cultural barriers including but not limited to language hurdles (Lewis). Another albatross HR may encounter is finding qualified candidates that meet the minimum education requirements, and convincing employees within the local office to relocate outside of their comfort zone.

It is important that leadership of PPQ Parts have a clear understanding of the infrastructure in the new country and take the appropriate steps to assess how its reliability will impact the company's success. For example, the communication infrastructure is extremely important and should be taken into consideration and researched to confirm whether it is modern and reliable. Does it have the capacity, efficiency, and security needed in order to conduct day to day business. PPQ Parts management and field workers will require reliable networks for telephone, mobile, and data delivery. The status of the infrastructure also has the ability to affect the power (power outages) and cyber-attack vulnerability.

Explain what cultural barriers and diversity issues are commonly encountered by international or multinational (MNC) and global organizations.

One critical factor in international business is cultural differences in a global economy; therefore, in order to successfully reach astounding profitability, PPQ Parts will need to reconcile the differences between the cultures by utilizing cross cultural