Growth Strategies, Human Resources, and Recruitment in Business
Growth Strategy in Dispute at Fashionista® PLC
Internal vs. External Growth
Internal growth, also known as organic growth, occurs when a company expands its operations and increases its revenue and market share through its own resources and activities. This growth strategy involves investing in existing operations, products, or services to improve efficiency, expand production capacity, enter new markets, or develop new products or services.
External growth involves expanding a company’s operations and increasing its market share through mergers, acquisitions, joint ventures, strategic alliances, or partnerships with other companies. This growth strategy allows a company to rapidly increase its size, market presence, and capabilities by integrating with or acquiring other businesses.
Joint Venture vs. Merger as a Growth Strategy for Fashionista®
Joint Venture (JV)
Advantages:
- Access to New Markets: By partnering with a retailer like Max™, Fashionista® gains access to new markets, potentially increasing its sales and brand visibility.
- Expertise and Resources: Fashionista® can benefit from the expertise and resources of its partner, especially in areas where it lacks experience or knowledge.
Disadvantages:
- Loss of Control: Fashionista® may have to compromise on decision-making autonomy as decisions will be made jointly with the partner, which could lead to conflicts.
- Shared Profits: Profits generated from the joint venture will be shared with the partner, potentially reducing Fashionista®’s overall profitability.
Merger
Advantages:
- Market Dominance: The merged entity can achieve greater market dominance and power, allowing it to negotiate better terms with suppliers and retailers.
- Brand Enhancement: Fashionista® can enhance its brand image by associating with a well-established retailer like Max™, attracting more customers and improving brand perception.
Disadvantages:
- Employee Resistance: Mergers often lead to job redundancies and changes in organizational structure, which can result in employee resistance and morale issues.
Impact of Multinational Companies on Host Countries
Evaluating the impact on the host countries of Vietnam and Bangladesh of multinational companies such as Fashionista® opening factories there:
- Employment Opportunities: Opening factories in these countries provides jobs for local residents, which can contribute to reducing unemployment rates and improving livelihoods, particularly in areas where job opportunities are limited.
- Economic Growth: MNCs bring investment into host countries, which can stimulate economic growth. The presence of Fashionista®’s factories in Vietnam and Bangladesh contributes to these countries’ GDP through taxes, export revenues, and other economic activities associated with manufacturing.
- Social and Cultural Impact: The presence of MNCs can have social and cultural implications, including changes in local lifestyles, values, and traditions. It is essential for Fashionista® to engage with local communities respectfully and ethically, taking into account their needs and preferences.
Rolls Royce Goes for a Quality Location
Labor Turnover and Appraisal
Labor turnover is the rate at which employees leave a company and are replaced by new hires. It is often expressed as a percentage of the total workforce. Low labor turnover indicates that employees are staying with the company for longer periods, which can be indicative of positive factors such as job satisfaction.
Appraisal is the evaluation of an employee’s performance, typically conducted by a supervisor. The process involves reviewing the employee’s job performance, identifying strengths and weaknesses, and suggesting areas for improvement. Performance appraisals are often used to provide feedback to employees for improvement and to make decisions about training and development opportunities.
Human Resource Planning (HRP)
HRP is the process of forecasting an organization’s future human resource needs and developing strategies to meet those needs. It involves analyzing the current workforce based on business objectives and projected growth, and implementing recruitment, training, and retention strategies to ensure that the organization has the right people in the right positions at the right time.
Staff Vacancies at Select College
Human Resource Management (HRM)
HRM refers to the strategic and coherent approach to managing an organization’s most valuable assets – its people. It involves the recruitment, selection, training, compensation, and development of employees to achieve organizational goals. In this case study, the deputy principal is responsible for HRM, which includes identifying staffing needs, recruiting suitable candidates, and managing employment contracts.
Recruitment and Contract Types
Recruitment is the process of identifying, attracting, and selecting qualified candidates for job vacancies within an organization. It involves seeking potential candidates, conducting interviews, and making hiring decisions. Effective recruitment ensures that the organization has the right talent in the right positions to achieve its objectives. In this case study, the college needs to recruit additional administration workers and lecturers to support its expansion.
Part-time contracts are employment agreements where employees work fewer hours than full-time employees, often with a schedule of less than 40 hours per week. Temporary contracts, on the other hand, are employment agreements with a fixed duration, typically for a specific project or period. Part-time and temporary contracts offer flexibility for both employers and employees. In this case study, the principal proposes offering part-time and temporary contracts to office workers to manage costs, while full-time temporary contracts are suggested for lecturers to have the option to terminate employment at the end of the year if needed.