Mid Term Assignment (Essay Sample)

MID-TERM ASSIGNMENT
Name
Institutional Affiliation
Companies start out as small enterprises that then grow gradually. A real firm always aims at expanding and becoming bigger than its competitors.It takes hard work and proper management for a company to grow successfully. The success of a firm occurs once the achievement of the set objectives occurs. Companies have many methods they can use in order to expand worldwide. An example would involve mergers and takeovers.
Fast Retailing Company intends to buy and take over Gap incorporation. A takeover refers to a situation in which the management of a firm changes from one to another (Wyatt, 2004, p. 111). The type of takeover, in this case, would be as an acquisition. The reason behind this is that Fast Retailing Company would like to become a stronger and more competitive firm once it acquires Gap incorporation Fast Retailing Company has set aside billions specifically for carrying out acquisition of enterprises. The company has a goal of carrying out acquisitions all over the globe especially in new markets. They aim at becoming a global company with branches worldwide and a threat to all competing counterparts.
Fast Retailing Company should employ an effective service delivery strategy that will lead to its success. The services it delivers should be one of a kind. One of the major objectives of the firm should include fulfillment of consumer expectations (Joza, 2015, p. 100). Quality services provide an increasing demand from the clients. A rise in the number of consumers then results in more sales and profits. The strategy may be quite expensive to provide since the equipment required should be of the best quality as well (Joza, 2015, p. 120). Some firms may have fewer resources than others and that may prevent the provision of the necessary quality of service.
The success of a company depends on employees’ level of motivation and hard work. The managers of Fast Retailing Company should ensure the hiring of appropriately motivated and disciplined persons. The employees should work hard towards raising their company’s standards. Employees should undergo a training that prepares them to perform commendably (Browne, 2013, p. 200).Properly motivated and trained employees can work as is required of them. These employees work under any circumstances and can make the expansion process a reality for Fast Retailing Company.
In their quest for development, Fast Retailing Company should use an appropriate staffing approach. Ethnocentric approach is an effective one in this particular case. The method involves sending expatriates to represent the company in all their foreign subsidiaries (United States, 2011, p. 232). An advantage of this approach is that it ensures the alignment of the subsidiary with all the interests of the parent company (Hunt, 2007, p. 230). Taking this approach is important since Fast retailing company intends to spread its market base even to the under-developed nations. Such nations would require the expertise of expatriates to guide them through. Language barrier elimination occurs out since the expatriates communicate directly with the parent firm. Ethnocentric approach would be the most practical in case our case.
The acquisition process has an impact on the employees of the firms involved. The workers face a risk of layoffs because of the acquisition that occurs (Hart, 2006, p.300). Avoiding layoffs occurs by delegating other roles to the employees. The process may involve some training to make them legible for the new tasks that they will be performing. The training process should cover every technical aspect that required of the employees. Another impact is culture shock. Preparation of workers psychologically should occur for them to anticipate all the changes that come because of the acquisition.
The international human resource department plays a big role in the procurement process. Cultures of both firms should integrate to have a single body. Human resource helps in the integration process and ensures a smooth sync (Hunt, 2007, p. 257). The human resource also takes the responsibility of ensuring that employees settle smoothly. Employees in such a case are confused and require guidance. The department is also responsible for integrating the goals of both firms (Brown, 2013, p. 345).Each firm had its set goals, but the union requires them to have common objectives now.It is up to the international human resource department to ensure a smooth transition in the acquisition process.