La Costbucks is an Italian coffee bar chain specialising in organic high quality coffees and Italian pastries. Its unique stance on CSR (corporate social responsibility) and ethically sourced delicious products have made it a big hit in Europe where it also has stores across the UK, France and Spain. La Costbucks is looking to break into the Asian market and is planning to open its first stores in Shanghai and Beijing (China).
As before, the new stores will operate in a very similar way to operations in France (HQ), with the same product line in order to retain their individuality and unique ethical selling point.
A General Manager has been identified and is available to be flown over to China in the first instance from France, but the company require more advice on staffing policy and whether to hire local staff. The company has approached you, as an experienced HR consultant, to advise them about key HRM considerations for establishing their business in China. Your report should address the following key areas and make clear your reasons for recommendations:
- What are the key cultural differences between Italy and China, and what significance will this have for the HRM approach? (25%)
- Should the orientation of the organisation be ethnocentric, polycentric or geocentric?Explain your reasons why. (25%)
- What difficulties might expatriate staff encounter and how would you select and prepare them for an assignment? (25%)
- Discuss ethical issues which could be relevant for a European MNC setting up in China, witha specific focus on’decent work’ and the role of HR in ensuring fairness at work. (25%)