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Cases in International Human Resource Management

Cases in International Human Resource Management

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Published by imad rehman
International Human Resource Management
International Human Resource Management

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Categories:Types, Business/Law
Published by: imad rehman on Jan 16, 2011
Copyright:Attribution Non-commercial

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06/27/2013

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Cases and exercises
l ~
Jaguar or bluebird? (B) Mark Chan returns horne after hisexpatriate assignment
 
Staffing a new international venture
Y
our group comprises the top executive team of an Australian wine companythat trades under the name ofYarraRiverWines. The company is based in,theYarraValleywine district in the hills outside Melbourne. It has its own vineyards,but also purchases grapes from selected Victorian vineyards to use in its blendedvarieties of cabernet, shiraz, merlot and grenache. The wine is sold under thelabels of YarraRiverfor its blends and YarraEstate for its shiraz and chardonnay.Likeother companies in the YarraValley,it has a high-class restaurant attached toits winery that, along with winery tours and cellar door sales, attracts a constantflow of tourists. This is now forming an integral part of building domestic andinternational brand recognition.Since the late 1970s, the company has built.up reasonable levels of export salesof premium red and white table wines to three international markets: the UK,Scandinavia and, recently, the USA.Buoyed by rising global sales and industrypredictions for future growth, the I}oardhas given approval to acquire an existingwinery in southern France. The French acquisition is an important step for thecompany as it is the fIrstforeign direct investment. Exporting through agents anddistributors has been the company's mode of operation until this point. The Frenchoperation is a middle-level player in its home market, with limited sales toneighbouring EUcountries. Pre-acquisition evaluation revealed an efficiently runoperation, in the French context, with modest profIt margins.Toacertain extent, YarraRiverWines isalate starter, asitslarger Australian com-petitors such as>Orlando(Jacobs Creek) and BRLHardy have been operating theirown French wineries for several years. The renowned French champagne houseDomaine Chandon has a succes,sfuloperation in the YarraValleythat producessparkling and table wines, some of which are exported to France. However,Australianwine has gained aglobal recognition for qualitywine,'assisted bytechno-logical improvements and aggressive marketing, and your company expects thisto assist YarraRiverWines to 'ri~e the Australian wave' and gain market share inContinental Europe.The agenda for today's meeting is to decide on tht>staffing of the Frenchacquisition. Control is paramount as the Board is especially cautious given theperceived and real risks the new yenture presents. The top executive team iscon-vinced there is room for improvement, particularly in terms of wine productiontechniques and marketing. However, the group recognizes that care must be takenwith staffing decisions, given the potential fOf conflict between French andAustralian management approaches and the need for sensitivity to local is&ues.The HR Director will present the meeting with an assessment of the currentmanagement in the French acquisition, and provide a briefIng document on
 
French and
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employment laws, including retrenchment. Keypositions to beconsidered are: Managing Director, Marketing Manager, Wine Technologist (anewposition), Production Manager, Finance Manager and Human Resource 'Manager.In the time allocated, your group must decide on whether to use Australians(either from inside or outside the company), to retain the current French manage-ment team or to use amixture ofFrench and Australians. Whileyou are free to makesuppositions/assumptions regarding the HR assessment of the current Frenchmanagement team, you must be prepared to justify these, and provide the ration-ale behind the decisions your group makes.

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