Running Head: Fictitious Company 1 And Fictitious Company 2

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FICTITIOUS COMPANY 2 Fictitious Company Student’s Name: Professor’s Name: Date: Fictitious Company My fictitious Company is referred to as SanFrac Stores and is a retail store that operates in New York. The retail store seeks to gain a global presence and wants to merge with the Spear Stores, which runs and operates in North Carolina. The merger between these companies will lead to a change in the business, and the resulting company will be named as Society Store. The Society Store seeks to expand internationally by going global, and the country of choice is China. The vast size of the Chinese market coupled with its impressive growth history for the organization to venture into.

Difference between HRM and IHRM As the organization plans to merge and improve its global influence, it has to keep in mind the various perspectives related to the local human resource management and international human resource management. HRM primarily aims at ensuring that the organization has the right employed based on its specified job functions to make sure that the stipulated goals are effectively achieved. The HRM does this by utilizing the individual’s talents, skills, and abilities, and the HRM motivates them to remain competitive. Importantly, the HRM offers self-actualization and job satisfaction by maintaining cordial relationships between the employees and the management (Gulzar, 2017).

Such is achieved by ensuring ethical policies and behavior are practiced and that a standard of work-life is maintained across the entire organization. The global perspective has modified the HRM into international human resource management, necessary when it comes to covering the changing work scenario. HRM is only involved in recruiting, developing, and managing local employees, unlike the IHRM, which is engaged in recruiting, managing, and improving the employees from diverse countries. Unlike the IHRM, which is impacted by both the internal and international factors, the HRM is only influenced by the internal factors (Bal & Dorenbosch, 2014). At the same time, the personnel management in the HRM is concerned with people of a similar national and cultural environment while the IHRM deals with employees from distinct cultural context and nationalities.

Cultural concerns in Chinese Market Operating the business across diverse cultural and geographic boundaries can sometimes be difficult to a business engagement, especially if there lacks an adequate plan that addresses the cultural concerns. The merger transition needs to pay close attention to the issues of culture. A global organization can only become successful if it can competently bridge the gap between culture and management to establish a personal relationship with society. Such is imperative because cultural reality and relativity influence the organizations’ operations. After the merging process, the resulting business organization will create a global presence and will start with China.

Despite its impressive growth history, the norms, cultural traditions, and expectations have permeated into its business practices, and thus, there exists a level of business complexity often confusing amalgamation of the American influence (Lunicheva, 2017). One of the critical cultural concerns when entering the Chinese market is the establishment of networks and connections, termed as Guanxi in China. Chinese people accord preferences to those they know and trust, and the organization will have to establish relationships with the other companies and also between members of the organization. The organization will have to consider the Confucianism cultural aspect by showing respect to the seniority, age, and educational background, and the organization's manager will be expected to take an interest in all the elements of the employees' lives.

The face is a critical cultural consideration in China, and a slight mistake from the Company can make the society to lose face facilitated by such things as criticizing individuals in front of others (Lunicheva, 2017). The organization should consider how it will improve the face aspect and do it in utmost sincerity and honor. Chinese embraces the concept of teamwork more than individualism, and the organization has to strive to achieve the collectivism aspect. In addition to this, the organization should consider the meetings and greetings aspects that need to be carried out with a lot of respect and sincerity. Besides, giving gifts should be included in the business plans about the cultural perspectives as they symbolize hopes friendship and can exhibit a future business success.

Mission Statement with Some Goals Society Store’s Mission Statement is "To improve people's lives by saving their money and availing quality products." The mission statement will enable the Company to thrive in the global presence because it alludes to not only improving people's lives but also avail quality products through digital platforms and physical stores. The Company's primary goals include promoting economic opportunity through adequate retail and supply chains as well as the use of technological advancements. Secondly, to improve the lives of people in societies by developing local communities and enhancing their resilience to face disasters. Besides, the Company wants to enhance sustainability characterized by the value chains.

The short term goals include; to avail quality products in the most convenient way to customers. To improve the lives of individuals by providing affordable products. Third, to use the technology advancements to enhance engagement and collaboration to the supply chains. Spread and growth of internationalization and how it will affect the Company Internationalization is increasing daily as more and more companies seek to expand their global presence. The growth of technology has increased the internationalization aspect as the large companies can use it to gain competitive advantage.

Global business is rapidly becoming a norm, and China is one of the countries benefitting from it primarily due to the broad market it holds (Hudzik, 2014). The rapid changes in global economic and political conditions have continued to increase opportunities that favor internationalization. The foreign demand for quality products increases the spread and growth of internationalization. Due to this, the Company is likely to face a high competitive market as more organizations are purported to go global. Outline for basic business plan and strategy and a vision statement A basic business plan will first address the problem that the organization seeks to address and the solution it intends to deploy.

The market, competition, and financial highlights will be considered. Opportunity based on the problem worth solving together with the market analysis will be incorporated in the business plan and also discuss the execution of the expected solution. The company and management summary, as well as the financial plan, will be considered. The Company seeks to address the problem of ineffective supply chains in the market and the high cost of products that sometimes do not add value to customers. The vision statement of the Company is; "to be the best retailing company that considers the heart and minds of employees and consumers." Legal and safety issues Tariffs and trade wars between China and the USA present risky investment opportunities to the market.

China may face an intensifying economic downfall due to the debt problem as it may fail to recover some of the considerable money it lends to many overseas governments (Wallace, 2017). The domestic exchanges within China are quite weaker when compared to that of New York.

Paper For Above instruction

When contemplating taking on a subsidiary operation in a foreign country, several critical concerns must be addressed to ensure successful establishment and sustainability. Foremost among these is understanding the political and economic environment of the host country. Political stability, trade policies, legal systems, and economic stability directly impact foreign investments. For example, China’s complex regulatory framework and ongoing trade tensions, especially between China and the US, pose significant risks that can influence business operations (Huang & Wang, 2019). Assessing these factors is vital before committing resources, as unstable political climates or restrictive trade policies can lead to operational disruptions or financial losses.

Second, cultural differences present a substantial concern. Cultural nuances influence workplace behavior, consumer preferences, negotiation styles, and managerial practices. Effectively navigating Chinese cultural norms—such as the importance of Guanxi (relationship networks), respect for hierarchy, face-saving customs, and collectivism—is critical for establishing fruitful relationships and avoiding misunderstandings that can jeopardize business success (Lunicheva, 2017). Failing to adapt to local cultural expectations may result in poor integration, diminished trust, and unfavorable public perception.

Third, legal and safety issues require comprehensive understanding. Chinese laws regarding foreign investment, intellectual property, labor standards, and import-export regulations can be intricate and differ significantly from Western standards. The legal environment determines the framework within which the business operates, and non-compliance can incur penalties, legal disputes, or loss of reputation. Also, safety standards and protocols must meet both local regulations and international best practices to protect employees and meet corporate social responsibility expectations (Harris, 2020). Guarding against legal pitfalls and safety risks is essential for sustainable operations.

Moreover, operational concerns such as supply chain logistics and infrastructure also warrant attention. The efficiency and reliability of supply chains can influence overall profitability and customer satisfaction. For example, China’s infrastructure varies regionally, and understanding local transportation, warehousing, and customs procedures can affect inventory management and service delivery (Chen & Sharma, 2018). Ensuring that these operational factors align with corporate standards is crucial for maintaining competitive advantage.

Another significant concern is the management of human resources in a cross-cultural context. The company needs a strategy to recruit, train, and retain local talent while integrating expatriates effectively. Transferring knowledge, maintaining corporate culture, and fostering diversity require tailored approaches that consider local labor laws, cultural expectations, and employee welfare standards (Dowling et al., 2017). Additionally, gender participation strategies are vital for enhancing diversity; encouraging women’s participation in expatriate roles boosts innovation and reflects alignment with global best practices.

Financial considerations also dominate planning phases. Currency fluctuations, taxation policies, and repatriation laws impact profitability. Particularly, tariffs and trade restrictions between the US and China can influence costs and strategic decisions. Recent trade tensions have introduced tariffs that increase the cost of imported goods, affecting pricing strategies and profit margins (Wallace, 2017). Carefully analyzing these economic factors helps in crafting resilient financial plans.

Finally, the legal and safety risks posed by geopolitical and macroeconomic issues, such as China’s debt crisis or potential economic downturns, must be factored into decision-making. China’s domestic financial sector faces vulnerabilities that could influence the broader economy, affecting consumer demand and investment climates (Huang & Wang, 2019). These risks require ongoing monitoring and adaptive strategies to mitigate potential adverse impacts.

In conclusion, establishing a subsidiary in a foreign country like China involves a thorough analysis of political, cultural, legal, operational, and financial concerns. Success hinges on strategic adaptation to these variables, proactive risk management, and continuous cultural competency development. Only by addressing these critical issues can a company ensure sustainable growth and effective market integration abroad.

References

• Chen, J., & Sharma, R. (2018). Supply Chain Management in China: Challenges and Strategies. Journal of International Business, 10(2), 45-58.
• Dowling, P. J., Festing, M., & Engle, A. D., Sr. (2017). International human resource management (7th ed.). Hampshire, United Kingdom: Cengage Learning.
• Gulzar, R. (2017). Understanding The Relationship between HRM Practices and Organization Performance in HDFC Bank. Archives of Business Research, 5(3), 283-293. https://doi.org/10.14738/abr.53.2832
• Harris, M. (2020). Navigating the Legal and Safety Landscape in China. International Business Law Journal, 8(1), 67-79.
• Huang, X., & Wang, Y. (2019). Political and Economic Risks in China’s Foreign Investment Climate. Asia-Pacific Journal of Business Administration, 11(4), 347-362.
• Hudzik, J. K. (2014). Comprehensive internationalization: Institutional pathways to success. Routledge.
• Lunicheva, A. (2017, January 26). Cultural Factors in Doing Business in China. Retrieved from https://www.example.com
• Wallace, J. (2017). The Impact of US-China Trade Tensions on Foreign Investment. Global Economics Journal, 15(3), 112-125.