HRMIC Assignment - ‘La Costbucks’ 2020 Management Essay

HRMIC Assignment- La Costbucks’ 2020
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Abstract
The current era of globalization has influenced organizations to expand operations to the overseas markets as a way of enhancing growth and profitability. Human resource managers encounter dilemmas in the process of managing cultural variations between groups or countries. Therefore, top executives need to involve all the stakeholders in making ideal decisions regarding operations. Lo Costbucks, an Italian coffee bar chain dealing with quality coffee and French pastries, decided to venture into the Asian market through opening stores in Shanghai and Beijing. However, the management would have to invest in training based on the cultural variations between Italy and China. In such a case, the company would ensure that employees would address the needs of customers and meet the set goals. If the company utilized corporate social responsibility (CSR), it would be possible to have a good reputation in the market and increase overall sales and productivity. However, adhering to CSR policies can improve the total costs of operations or even make the customers impatient in waiting for certified products. The study’s core objective is to address the aspect of cultural variations between Italy and China and recommend the ideal human resource management approach.
KeyWords: Corporate Social Responsibility (CSR), company, coffee, Lo Costbucks, stores, market, and venture
HRMIC Assignment- La Costbucks’ 2020
Culture plays a significant role in international business, especially enhancing interactions between the various stakeholders involved. In most cases, cultural aspects are valid representations of successful partnerships and cooperation in different countries. Therefore, an organization ought to consider the new culture and government policies while venturing into the foreign country market. In the case of La Costbucks Company, it would encounter challenges in the process of expanding its operations in Shanghai and Beijing. The Chinese culture can have an essential influence on the business strategy of the Italian company, especially in business management and network building. Notably, organizations have numerous opportunities for investing in the Chinese market, which is dynamic. However, every organization ought to conduct a comprehensive study of the Chinese culture before venturing into the market. Since culture and business are complementary contexts of international trade, La Costbucks would need to understand the Chinese culture before venturing into the new market.
In the current era of increased business competitiveness, the global marketplace has become more accessible to organizations to operate internationally and enhance growth and profitability. Currently, cross-cultural teams and multinationals have become prevalent, thus making it possible for organizations to benefit from the diverse knowledge base and ideal approaches in addressing business issues. Although La Costbucks might encounter stumbling blocks while venturing in China, it can accrue numerous benefits if the management invests in acquiring insight into Chinese culture and international business. According to Garg and Berning (2020), Chi...