Running head Assignment 3 Successful Domestic Company Goes Globa.docx

Running head: Assignment 3: Successful Domestic Company
Goes Global 1
2
Assignment 3: Successful Domestic Company Goes Global
Name
MGT510
Name
09/01/2014
Successful Domestic Company Goes Global
The following paper will seek to analyze the procedure that
should be followed before leveraging expatriates to other
countries. Subsequently, the paper will also analyze South
Africa as the country where my company will most likely
expand to. On top of that, the paper will explore Kenya and
Rwanda as key areas where foreign investors triumphs.
A guide to leveraging expatriates
To begin, expanding a business is the dream of all major
organizations that have achieved self-actualization. However,
before expatriates travel oversees they should have the
following tips in mind. The first one is sticking to what they

know. They should not be brainwashed by the new culture
(Mitchell et al, 2011). The second tip is for the expatriates to
find a trusted local partner. An expatriate should find a trusted
local personality who has relevant experience in the business.
The third tip that all expatriates should know is to bring the best
of the west. Instead of getting influenced by the local culture,
an expatriate should influence the local population with his or
her western culture. The last tip is to ensure that all expatriates
use their foreignness to their advantage. Being in a foreign
country can be humiliating. However, selling quality products
can ensure that as a foreigner you get a nickname according to
the quality products your company offers.
The major benefits that this report can provide for the
organization
While expanding overseas, there are several factors that the
company will put under consideration (Mitchell et al, 2011). It
is good for any organization to consider such factors so as to
avoid any form of glitches as it conducts business in the new
markets. It can be a great loss to a business, when it opens up
new markets only to find that the nation of investment does not
have a pleasant business environment. Therefore, before my
company goes beyond domestic operations and launches global
investments, the following factors will be considered.
At first my company will not buy land. Instead, I will make sure
that land is bought with the revenues my company fetches from
the country (Orr et al, 2012). For this reason, the company will
lease a building where most of the company’s affair will be run.
The time under which the expatriates will operate oversees will
be no more than three years. After a period of three years, an
expatriate may chose to remain or get back to his/her country of
origin.
My company would like to open new branch in South Africa.
The country is situated in a strategic position in the southern
parts of Africa. The country being a former Boer colony has
rich infrastructure. Under the country’s constitution, foreign
investment is allowed as long as the company pays taxes and

dues to the government of the day. Additionally, the South
African parliament has created legislations that protect foreign
investors from any form of domestic aggression (Orr et al,
2012).
Analyze the major factors that would influence company’s
choice of countries into which company would expand
South Africa has good roads that connect with major parts of
the country. Almost three quarters of the country’s roads are
tarmacked. Therefore, there is simple access. For example,
while transporting finished products to the markets, it would be
a simple procedure unlike countries with poor infrastructure. In
such countries, there is poor access and the transportation of
goods becomes difficult. Sometimes, the goods might perish on
the way. When the goods perish, it can be a very great loss. The
other means of transportation is railway. South Africa has ultra-
modern railway that is in line with the new technology. Hence,
transportation of bulky commodities becomes a simple task. In
addition, the country has a good air terminal that connects to
the rest of the world so easily. The air terminals are operated by
both local as well as international airlines such as Virgin
Airways, Kenya Airways, Ethiopian Airlines and British
Airways among others. With such quicker access, the country
has attracted international investors (Hisrich et al, 2012). For
this reason, my company has decided to invest in Pretoria which
is among the largest cities in South Africa.
Politically, South Africa is a democratic republic where leaders
are elected through a popular vote. A person running for an
elective post is required to seek mandate from the citizens. With
such provisions in the constitution, South Africa elects only
able leaders. Nelson Mandela, an Icon and a person who was
loved worldwide hailed from South Africa. He was the nation’s
founding father. In addition, he was the first ever South African
black president after the collapse of apartheid (Hisrich et al,
2012). Under his regime, the nation attracted a good number of
foreign investors. On top of that, the nation developed in terms
of infrastructure. Nelson Mandela was succeeded by Tambo

Mbeki who also steered national development. However, under
his regime foreigners were being discriminated and chased out
of South Africa by what was known as the xenophobic attack.
The current President, Jacob Zuma, has been applauded for
bringing up new developments and completing the stagnant
ones.
In terms of culture, South Africa is a multi-ethical nation. The
country has diverse culture. Most of the occupants are Zulus
and Xhosas. These people are so friendly and they welcome
foreigners with a big heart, unlike other countries where
foreigners are either chased away or discriminated. In such
areas, the investments are also burnt. For example, Zimbabwe,
the nation lacks foreign investors. The latter is because; the
nation’s president Robert Mugabe chased away all foreign
investors. Their properties were looted by the local communities
and their accounts were frozen by the local banks. Such
environment is not pleasant for foreign investments.
Basically, in South Africa, English is the main language. It is
even the national language. However, there are other minor
languages such as Zulu. Despite that, the language that is used
to conduct business is mainly English. Thus, if my company
opens up new investments in South Africa, language barrier
would be evaded.
In terms of religion, the country is inhabited by Christians.
They make up almost 85% of the total population. Other minor
religions are Hinduism. It is practiced by about 1% of the
remaining population, mainly Hindus. The Hindus came during
the colonial period. They are entrepreneurs who run small and
medium scaled businesses. The remaining population is
comprised of Muslims who form Islam religion. The Muslim in
South Africa is friendly. They don’t practice what other Muslim
around the Muslim world practice. They have refuted
mujahedeen.
The other factor that will influence my choice of country is
trade tariffs and Government taxes. In countries that taxes and
trade tariffs are high, a company cannot get revenues to sustain

and operate the business (Peng, 2013). Instead, all the revenues
will go to the governments in form of taxes. In addition, all the
trade barriers that creates an unpleasant working environment
scares away foreign investments. Luckily, South Africa is a
nation that has set good legislations that are aimed at limiting
trading barriers and high government taxations. The latter
makes South Africa a perfect place to conduct business.
The last factor I will consider is natural epidemics. I would not
like to invest in a country that is affected by diseases. Instead i
will concentrate in countries that are free from diseases and
other epidemics. For this reason, my company will not invest in
countries such as Liberia and Sierra Leone where Ebola has
forced major businesses to shut down due to lack of customers.
Apart from South Africa I would recommend that my company
opens up new branches in countries like Kenya and Rwanda.
Kenya, being the heart of East Africa has a strategic position
that holds business potential. Since, the country is still
developing, establishing an investment in it will make our
company successful. A good percentage of Kenyans love foreign
products. They have a notion that foreign products are of high
quality. Kenya has a stable government which has laid down
good policies that has attracted foreign investors. Uhuru
Kenyatta’s administration has enriched capitalism. Capitalism is
simply a system of private ownership, which is open for fresh
ideas. Capitalism could be traced during the times of Adam
Smith. Smith suggested that, the aspect of many buyers and
many sellers in the market would be a waste of necessary
resources. In the Marxist economies, capitalist enjoyed free
market where they sold their commodities without interference
from the government. It is evident that capitalism existed under
the many forms of governments. It existed after the collapse of
feudalism. As days progressed, capitalism became the
dominating ideology in the western worlds. It is believed that
capitalism was implemented by imperialists during
globalization. In the 19th century, this theory became the
dominant in the globe. Presently, capitalism is practiced in most

blossoming economies. The Kenyan concept of capitalism is
based on three key things. The first one is wage, private
ownership and lastly production for exchange and profits. On
the other hand, Rwanda has good business environment.
The criteria that company would consider when deciding
which employees to send abroad.
In deciding which employees will be sent abroad, my company
will use three criteria. The first one is experience. Before
sending any employee abroad, it is good to make sure that the
employee has a knowhow of how the affairs of our organization
are conducted. An experienced employee will enhance the
smooth running of a business. On the contrary, a lesser
experienced employee might fail to conduct business. For that
matter, my company will send experienced employees abroad to
launch our business globally (Peng, 2013).
The other criteria are education level. A well-educated
employee will blend in so easily will most likely blend in with
the local population. An educated person was taught
communication skills in college. Hence, interacting with the
local community would not be a problem. The last criteria are
socializing skills. My company will pursue an employee with
good socializing skills. An employee with good socializing
skills will interact at ease with the local population. Such
interaction will generate potential leads to my company. In
addition, my company will analyze performance. If an employee
has three of the aforementioned qualities, performance will be
used to determine the employees going abroad. A performing
employee will be encouraged to apply for the position. To
supplement the workforce, my company will employ local
graduates with relevant education. They will be used to fill up
positions such as sales. This is because; they know what the
local population consumes and what sells the most. Transport
department will also be supplemented by the local population
because they know the local road networks. Additionally, my
company will liaise with the local media for advertisement
purposes (Peng, 2013).

The major methods company would use in order to encourage
the selected employees to become expatriates.
As a good way of encouraging the selected team of members to
go abroad, my company will promise promotions, the individual
who have met the criteria and have relevant experience will be
given promotions inform of responsibilities. For example, a
person with the highest level of education will become the chief
executive officer. Others will fill other positions as they will be
created such as human resource managers, operations managers
among others.
Good salary is the next thing my company will promise
employees who will answer to the calling of shifting abroad.
Salary will be calculated based on the cost of living in the
country of investment. On top of that, workers will be given an
allowance for their loyalty. The allowance will be termed,
“Oversees allowance.” Furthermore, the company will oversee
that workers employed oversees get proper housing. In addition,
the company will give employees housing allowances.
Strategy to ensure that both the Executive Committee and the
Board of Directors are committed to the expansions
To make sure that, the Executive Committee and the Board of
Directors are committed to the expansions, I will use
globalization as a strategy, globalization in terms of expansion.
I will express and prove the importance of going global. A
company with global markets attracts huge customer base as
well as reputation. For example, Toyota has been so successful
worldwide unlike other car manufacturing company (Briscoe et
al, 2011). It is easier to find twenty or more Toyota Harriers in
third world countries like Uganda than finding two
Lamborghinis in the same country.
Recommend two books that the selected expatriates should take
with them when they go overseas.
Before the expatriates leaves for the new country I would
recommend that they take two books. One of the books should
be “Think Big” by Ben Carson. The book is so relevant as far as
encouragements are concerned. It has words of wisdom that

allows a person to rethink his or her decisions twice before
coming into a conclusion. Making decisions out of critical
thinking allows an individual to arrive at a proper decision that
will ensure that all parties are satisfied. The other one of the
books should be “The Big Guide To Living And Working
Overseas” by Jean-Marc Hachey. This guide does cover many, if
not, all the major aspects of living and working overseas. A gem
of The BIG Guide is its professional career building advice,
offering unparalleled expertise when compared with other US
publications.
A guide for expatriates
While the expatriates leave to work abroad. South Africa is well
known for its outdoor lifestyle, the high quality of life expats
can enjoy and a working environment with plentiful
opportunities for those with an elevated level of education or a
unique skill set. Furthermore, adapting to the culture is
relatively easy and enjoying the new lifestyle is absolutely
effortless. They should take with them their own furniture that
is customized according to their specific needs. The furniture
should be shipped using popular channels such as DHL. The
company is not only cheap but reliable. Since South Africa
doesn’t experience winter, it is good to carry light clothes that
will serve in cold and warm climatic conditions. Many reputable
companies offer shipping and air freight services to South
Africa. Cost usually depends on volume of goods, as well as
length of time involved in shipping. Air freight services are
more expensive, although quicker. Some companies also offer
storage services and insurance on goods. Shipping pets to South
Africa requires a Veterinary Health Certificate, or equivalent,
and may involve a quarantine period of three to six months. In
terms of accommodation, the company will make sure that all
expatriates have acquired a decent accommodation.
In conclusion
In conclusion, according to Rostow and Galbraith in their
theory of linear stages of growth model suggested that for a
company to develop and grow economically, it should focus

upon the accumulation of both domestic savings as well as
foreign investments. As per Galbraith (Galbraith, 1980), a
company should make sure that it has domestic applause before
seeking international markets. Therefore, before my company
materializes the dream of going beyond the domestic markets,
as the Chief Executive officer, I will ensure that we have
domestic approval. With good reputation from home, my
company will earn global applause easily.
References
Mitchell, S. M., & Powell, E. J. (2011). Domestic law goes
global: legal traditions and international courts. Cambridge
University Press.
Orr, G., & Roth, E. (2012). A CEO’s guide to innovation in
China. McKinsey Quarterly, 1, 74-83.
Hisrich, R. D. (2012). International Entrepreneurship: Starting,
Developing, and Managing a Global Venture: Starting,
Developing, and Managing a Global Venture. Sage.
Peng, M. (2013). Global business. Cengage Learning.
Briscoe, D. R., Schuler, R. S., & Tarique, I. (2011).
International human resource management: Policies and
practices for multinational enterprises. Routledge.

Galbraith, J. K. (1980), The Nature of Mass Poverty.
Cambridge, MA: Harvard University Press.
Question 1
1.
Global expansion is fueled by a(n):
Answer
shrinking customer market, lower foreign labor costs, and
advances in technology.
expanding new customer market, lower foreign labor costs, and
shrinking customer market, higher foreign labor costs, and
expanding new customer market, higher foreign labor costs, and
4 points
Question 2
1.
An organization, at the highest level of involvement in the
global market place, offering top products and lowest cost is
considered to be a(n):
Answer
international organization.

multinational company.
global organization.
transnational company.
4 points
Question 3
1.
Culture is the most important influence on human resource
management in international markets because it often
determines:
Answer
the availability of skill level available to employers.
taxes, price controls, and other activities.
the laws and regulations of the country.
a country's education, economic, and legal systems.
4 points
Question 4
1.
Concerning unions, evidence shows that:
Answer
on average, non-union workers receive higher wages than union
workers.

on average, unions have a large negative effect on productivity.
on average, unions have a large negative effect on profits.
on average, non-union workers have a large negative effect on
productivity.
4 points
Question 5
1.
Preparing employees to work across national and cultural
boundaries is known as:
Answer
cross-cultural repatriation.
cross-cultural preparation.
culture shock.
reverse culture shock.
4 points
Question 6
1.
Most day-to-day interaction between labor and management
involves the:
Answer

national union.
international union.
industrial union.
local union.
4 points
Question 7
1.
When companies establish performance management methods in
other countries they need to consider:
Answer
legal requirements, local business practices, and national
culture.
career development requirements, culture, and pay structure.
legal requirements, pay structure, and local business practices.
career development requirements, culture, and negotiation style.
4 points
Question 8
1.
The right-to-work laws:
Answer

require union membership.
restrict employees right to freedom of association.
make unions require membership illegal.
require members who receive union benefits pay union dues.
4 points
Question 9
1.
Which of the following BEST describes a craft union?
Answer
In a craft union, the business representative has a similar job to
a union steward.
In a craft union, the members are linked by their work in a
particular industry.
In a craft union, the association seeks to advance shared
interests of union members.
In a craft union, changing employers is less common than in an
industrial union.
4 points
Question 10
1.
Who of the following does the National Labor Relations Act
(NLRA) protect?

Answer
Organizing and joining unions
Mass picketing, and violent striking
Threatening non-striking employees
Rights of employers and supervisors
List and elaborate on the four factors that affect human
resources management in international markets. Which one is
the most important, and why?
Your response should be at least 75 words in length.
Evaluate the decisions companies face when compensating an
international workforce? What factors need to be considered,
and how do these decisions affect the company? Provide an
example.
What is the National Labor Relations Act (NLRA)? What is
protected, and what practices have been deemed unfair by
amendments to the NLRA? Who enforces the NLRA, and how?

Running head Assignment 3 Successful Domestic Company Goes Globa.docx

Running head Assignment 3 Successful Domestic Company Goes Globa.docx

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