Question: Write a consultancy report for a United Kingdom based MNC seeking to establish a subsidiary abroad. Description of the assignment: You are an independent, external
Write a consultancy report for a United Kingdom based MNC seeking to establish a subsidiary abroad.
Description of the assignment:
You are an independent, external HR consultant employed to advise a UK based MNC on what they
need to consider in order to establish a subsidiary in Brazil, China, India or Nigeria Select ONE
country
You are expected to write an word report excluding the cover sheet, table of contents,
any appendices and references
Ensure that you cover the following from a HR perspective:
What are the important factors MultiNational Corporations MNCs have to consider when setting
up in different geographic locations internationally? Explain why these factors are important.
Apply your understanding of these factors to recommend which of your MNCs functions should be
managed from the UK Headquarters HQ and which functions should be managed locally, in your
chosen country. Provide a rationale for your recommendations. You must select the functions, but
they might include recruitment, performance management, learning and development, functional
and general management roles in the company etc.
Additional instructions:
The coursework has been designed to be as wideranging as possible both in terms of HR functions
and offering students the opportunity to display their knowledge of crosscultural issues, the role of
expatriates and the role of national managers. Utilise a range of academic and industry sources to
support your argument.
It is not necessary for students to write about every factor that an MNC will take into consideration, but
to choose those which are critical to decisions and relevant to HR considerations. This offers the
opportunity to write in depth on several key topics, rather than writing very little about very many topics
and failing to critically analyse the important issues in detail.
You can choose a fictional MNC or a real one but please bear in mind we are interested in how you
apply ideas rather than the specifics of the company involved. The country's context is more important
than the nature of the business. You do not need to research what a real company already does, but
comparisons derived from industry sources can be used. State any assumptions you make in relation to
the company.
Theoretical underpinning
As a starting point, you might consider the following chapter in the modules recommended text which
provides the academic focus for this coursework:
Hollinsheads International and Comparative HRM Chapter Staffing the multinational
enterprise: expatriation and managing across borders
Issues that you may want to consider:
Sustainability what risk factors will MNCs take into consideration when deciding to move into a
foreign country? This should underpin the remainder of the discussion since no MNC will move
without scoping and assessing the risk of failure.
Hofstedes theory and notions of cultural familiarisation and adaptation
The functions of IHRM which will link to what the critical factors are in decision making before
moving to a new location and possible discussions of systems and good practice convergence
Cross cultural issues that required knowledge, understanding and adaptation for MNCs to be
successful; possible host country effects
Legal requirements and local processes, systems and procedures; government and local
government requirements eg labour market, industrial relations, health and safety regulations,
work practices
The four influences framework country of origin, dominance, international integration and host
country effects
Application and discussion of ethnocentrism, polycentrism and geocentrism, with application to the
practical examples being cited
A definition of host and local managers and the importance of deciding which to use in moving to
a new location
A discussion of glocalisation in the merging of MNCs host country expertise and the employment
of local managers
Where appropriate, better answers may discuss the specific issues of moving into a developing
nation and the impacts of Foreign Direct Investment
Blacks model of incountry adjustment
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