Background
As a local company based in Chicago, Flex Limited has established itself as a preferred brand for sportswear in the United States. The company offers both male and female clothes for all ages. The company merged with MasterSP, a leading sportswear brand in Italy. The merging of the two companies was an opportunity for Flex to penetrate the Italian market under MasterSP Brand. This report addresses various international factors that are crucial for the success of Flex Limited in the Italian market.
Differences between Domestic and International HRM
There are several differences between domestic and international human resource management. Firstly, in domestic HRM, the human resource manager is less concerned with the personal life of the employees. However, in international HRM, the manager is much involved with the personal life of the employees, ensuring that they are faring well. This is because employees on international duty tend to experience several challenges, such as difficulty in adapting to the new environment. This may affect their personal life and hence affect their work performance (Farndale et al., 2019). Secondly, there are few regulations and external factors that the HR manager has to handle in the domestic market compared to the several factors that affect a business in a foreign country (Farndale et al., 2019). Countries have different policies that manage foreign companies. All these factors tend to affect the ability of a business to succeed in the market.
Cultural Concerns
The Italian culture is hierarchical, where the highest position in the business hierarchy makes the most significant decisions. Age is a vital factor when designing the hierarchy of an organization. In Italy, the highest organizational position tends to be occupied by older people while the young occupy the other lower positions. However, all members of the organization play a significant role in determining the decisions made by the management. Additionally, social relations are highly valued in Italy. People tend to establish personal relationships with foreigners and learn from their culture. Most business agreements are based on trust and friendship. Therefore, developing a close connection with the locals may be a great strategy for the business to succeed in the market.
Mission Statement
The company’s mission is to establish a friendly relationship with customers by offering them quality and affordable products according to their preferences.
Growth of Internationalization
Internationalization involves creating a product that conforms to the international market and can be consumed in several countries. Internationalization has been on the rise recently, courtesy of technology (Schmid, 2018). Through technology, companies can easily know the preferences and expectations of customers in foreign markets and develop their products to meet these dynamics. Internationalization has affected our company positively by facilitating easier integration of our products into the market because they already conform to Italian standards (Schmid, 2018). However, there is increased competition from rival brands from America and other countries that have ventured into the Italian market through internationalization.
Business Plan
Executive summary
Flex Limited aims to provide quality and affordable sportswear to meet the growing local and international demand. The company is headquartered in Chicago, Illinois, and is headed by a chief executive officer assisted by the product manager, marketing manager, and human resource manager. Flex Limited sells sportswear products, including hoods, tracksuits, sweatpants, and sneakers.
Strategy
Flex Limited is customer-centered and aims to provide the most quality products at an affordable price. The company projects a 50% profit for at least three consecutive years. The company also projects a growth rate of 10% within the same period.
Vision Statement
The company’s vision is to be the most preferred brand for quality and affordable sportswear internationally.
Legal Issues
The company aims to follow all international procedures, including complying with tax laws, intellectual property such as trademarks, and obtaining the relevant licenses to operate in a foreign country.
References
Farndale, E., Horak, S., Phillips, J., & Beamond, M. (2019). Facing complexity, crisis, and risk: Opportunities and challenges in international human resource management. Thunderbird International Business Review, 61(3), 465-470.
Schmid, S. (2018). Internationalization of Business. Springer International Publishing.