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………………………………………………VitaFizz…………………………………………………………………
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corporate social responsibilities and ethics
3. Haya Mourad 209342 Task 3: Develop the human resource strategy+ The
designs of VitaFizz
*kindly note that formatting, numbering and/or referencing are not considered individual work.
The weight of the group work is 60% while the weight of the individual work is 40%.
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Module Leaders: Prof. Hadia Fakhreldin & Dr Marwa Anis
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Executive Summary:
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TABLE OF CONTENT
Executive Summery
Task 1:
Articulate the international business strategy------------------------------------------------
Task 2:
Develop the company's corporate governance----------------------------------------------------
Task 3:
Develop the human resource strategy-----------------------------------------------
Task 4:
Set the company's global marketing strategy-------------------------------------------------------
Recommendations
Conclusion
References
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Vitafizz is a sparkling drink company with distinctive flavors that is owned by
reduce stress and weariness. The vitamin effervescent drink is exclusively available
from Vitafrizz, and it comes in six distinct flavors. Vitafizz wants to revolutionize the
soda market so that customers may take control of their health and indulgence. The
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Bulgaria due to the opportunity the company has to expand their represents in having
the financial capabilities, human resources asset, and the need in Bulgaria for healthy
Organizations spread out across several nations and regions as they grow. One
crucial step that companies all over the world take to expand globally is the
of each one. Various countries adhere to distinct regulations and guidelines (Usmani,
2022).
These international business strategies take into account both global integration and
meet the needs of a particular market. It involves more than just translating the website
they grow. Companies that place a high priority on global integration exhibit minimal
practices global strategy (Vitafizz) views the world as a single market with minimal local
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variation and acts as a single source of supply. Products that employ this tactic are
more likely to be standardized than customized for regional markets (Schiffbauer, n.d.).
A company that employs a global strategy (Vitafizz) forfeits its ability to adapt to the
specific needs of each of its markets by prioritizing cost reduction and increased
productivity. A global strategy emphasizes the need to obtain low costs and economies
of scale by providing essentially the same goods or services in each market, though
some small adjustments to goods and services may be made in different markets. This
entails a single brand, a single line of goods, and a single message from a single
and a step-by-step path towards global market penetration by pursuing the Global
strategy (the most global integration strategy). Selecting this strategy to follow enables
processes, as well as to simplify product development with a single product line and
When implementing the global business strategy, Vitafizz objectives are to save costs
international markets, create and sustain a consistent brand image and messaging,
develop and implement standardized procedures and processes for global operations,
and maintain high standards consistently across all locations. Finally, Vitafizz wants to
make sure that its products and services comply with international standards and
regulations.
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Organizational structure
task completion, and specialization within functional domains. This is exemplified by the
fact that the CEO/President is the top executive in charge of the organization's overall
success and direction. The CEO is followed by the Global Operations Director, who
Global Marketing Director, who creates and carries out global marketing strategies that
are standardized; the Global Supply Chain Manager, who standardizes parts, supplies,
and transportation to maximize the global supply chain; the Product/Service Managers
who prioritize standardization and oversee particular product or service lines; the
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Regional Managers, who establish uniform procedures at the regional level and
collaborate with product/service managers; the Global HR Manager, who creates and
executes standardized HR policies and practices; the Finance Controller, who oversees
international financial strategies and resources; and the Quality Assurance Manager,
The hierarchical structure and distinct reporting lines of this organizational chart
global strategy for supply chain management, marketing, and operations. Vitafizz's
characterized by clearly established roles, job duties, chains of command, and decision-
making authority. Accountability, scalability, and specialization are made easier with a
functional structure. It also has a clearly defined chain of command and sets forward
channels. It is easier to supervise and hold managers accountable when workers know
who to report to and who they are accountable to. Moreover, organizations can develop
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their functions. Setting specialization as a top priority enables each team member to
become an authority in their field, improving the calibre and productivity of their work. A
functional structure also allows departments to function independently, which can result
in more efficient and well-coordinated work within each function (AIHR, Academy to
Innovate HR, n.d.). Vitafizz, which implements the global business strategy, is a good fit
for this structure because it permits specialization in each functional area while
sustainability of any company. The term "corporation governance" refers to the "internal means
through which organizations are managed and regulated,which include an array of connections
among a company's management, its board of directors, its shareholders, and other
return on their investments" (Shleifer & Vishny, 1997). Vitafizz will create a durable
ensuring that its growth makes a beneficial contribution to its present Egyptian and
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Bulgarian markets, as well as prospective new nations into which Vitafizz aims to
develop into.
backgrounds and expertise. This would assure effective supervision and decision-
making while limiting the possibility of conflicts of interest.This varied group would bring
a well-rounded viewpoint to the table and guaranteeing that decisions are taken in the
best interests of the firm and its stakeholders, eliminating any potential disputes of
code of conduct that describes anticipated behavior for employees and executives. This
would assist in fostering an integrity culture and guarantee that all corporate operations
are carried out ethically and responsibly. By creating vitafizz code of conduct, the
corporation would offer its employees with clear norms and expectations, ensuring that
they recognize the necessity of ethical behavior. Conflicts of interest, bribery, corruption,
data privacy, and environmental sustainability will all be addressed under this code of
would aid in ensuring that all employees understand the significance of ethical behavior
and are held responsible for their activities. by upholding strict corporate governance
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guidelines and making sure that stakeholders are treated fairly, openly, and responsibly.
The organization encourages its staff to make ethical decisions that support
sustainability and are consistent with the company's values by clearly defining
expectations for their behavior. (Almashhadani & Almashhadani, 2022). By doing so,
Vitafizz builds a solid reputation and stimulates a work environment where people are
proud of what they do and feel accountable for maintaining the company's ethical
business practices
issues without worrying about facing consequences. In addition, it's critical to undertake
frequent training sessions to teach staff members about the code of conduct and instill
and case studies from the real world. By funding these training programmes, the
organisation would provide staff members with the information they need, as well as the
ability to make moral choices under pressure. As a result, the company will be prepared
to handle any possible concerns as soon as they arise, preserving its reputation as a
Vitafizz will also incorporate its corporate social responsibilities internationally within
each country it operates and serves in. Given that ischemic heart disease, stroke, and
hypertensive heart disease were the top three causes of death in Bulgaria in 2019 (European
Commission, 2021). Vitafizz will contribute investment in ischemic heart disease research as
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In addition, Vitafizz may work with nearby nonprofits to offer educational materials and
“Step for Bulgaria Foundation”. In Egypt, Vitafizz will focus on funding educational
projects through investing in educational projects through “Educate Me”, Vitafizz aims to
empower young students and improve their future opportunities. As well as investing in
Baheya Hospital to cure women with breast cancer in Egypt. With suchCSR efforts of
vitafizz in both countries, this will contribute to achieving the United Nations' Sustainable
Development Goals (SDGs). As vitafizz promotes good health and well-being (SDG 3)
Ultimately, Vitafizz's actions in Egypt and the Bulgaria are consistent with their mission of
positively impacting society and the environment. vitafizz hopes to create a meaningful and
lasting influence on the well-being of individuals and communities by extending its corporate
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social responsibility to both nations. vitafizz recognises that implementing ethical practices will
not only earn the confidence and loyalty of its stakeholders, but will also attract new investors
who respect responsible corporate behavior. Vitafizz seeks to develop a sustainable and
socially responsible company model that not only maximizes earnings but also improves the
entails the development, coordination, and execution of human resources policies and
regulations to cope with the strategy of VitaFizz and Bulgaria, in addition, there are
factors of the complexity of IHRM to contribute with. To illustrate more, there are 6
factors, but the report will only discuss the new HR response such as international
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The second thing, VitaFizz must provide a comprehensive employee education
Bulgaria, like every other country, has a tax system. To illustrate, Bulgaria has a
progressive personal income tax (PIT) system for individual, with rates ranging from
10% to 29% on taxable income and a variety of tax allowances and deductions
available, contributions to social security which is when employers and workers are both
obligated to contribute to social security. These payments pay for a variety of social
after researches it shown that the total rate of social security contributions is 24.7% to
25.4%, with the employer paying 14.12% to 14.82% and the employee paying 10.58%.
The total rate of health insurance contributions is 8%, with the employer paying 4.8%
and the employee paying 3.2%. The overall national insurance contribution rate (social
security and health insurance) is 32.7% to 33.4%, with the employer paying 18.92% to
19.62% and the employee paying 13.78% The aforementioned rates apply to Bulgarian
nationals as well as EU/EEA nationals who are subject to Bulgarian social security
contributions. Non-EU/EEA nationals are also subject to these contributions, with the
Bulgarian permanent residency visa, they will also be required to pay health insurance
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2. International Relocation and Orientation: Create complete relocation packages
housing and settling in the new location. In addition, helping them understand
business culture and social norms in Bulgaria to avoid culture shock for the
Egyptian employees.
3. Services for Expatriates: Provide services such as support with work permits, visa
children education and healthcare services for the Egyptian employees that are
moving to Bulgaria with their families to help employees relocate to Bulgaria have
a smooth transition.
officials.
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All of these designs were designed by me
In addition, In Bulgaria, the minimum wage is 780-840 BGN as (400-471 USD) (Full-
Time Job) and the maximum is 14,700 BGN as (8,244 USD) (Full-Time Job) and it is
based on the job positioning of the individual and job description (CMS, 2023), They
work 40 hours per week (5 day working and 2 days off), 8 hours per day excluding 30
for VitaFizz HR department, more Egyptian employees will be hired (PCNs) and few
Bulgarian employees (HCNs) will be hired as well. To illustrate more, here are some
In Egypt:
trade rules.
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Logistics Coordinator (PCN): Oversees the transportation and logistics of
sparkling drinks from the Egyptian production site to the Bulgarian distribution
center.
Quality Control Inspector (HCN): Ensures that the sparkling drinks fulfill
Export documents Specialist (PCN): Oversees the creation of all required export
In Bulgaria:
logistics.
Client Service Representative (HCN): Deals with client queries, orders, and any
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Task 4: The company's global marketing strategy and determine the
methods used to achieve it.
Vitafizz, a company that specialises in a
help Vitafizz successfully target international markets and attract more ecologically
4.1-Product
The product is called Vitafizz; it is written in English to be understood by all customers
from any country. It consists of two syllables; the first one is vita; it comes from the word
vitamins, because the product contains the eight types of vitamin B, which are thiamine
(B1), riboflavin (B2), niacin (B3), pantothenic acid (B5), pyridoxine (B6), biotin (B7), folic
acid (B9), and cyanocobalamin (B12). So there is a circle on the can with litter B inside
it, which refers to the eight B vitamins. And the second syllable is fizz, referring to the
fact that this product is under the fizzy drinks category. Therefore, the name is easy for
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consumers to remember and recall when they need to make a purchasing decision. It is
This is a new, healthier sparkling beverage with four main features: 100% natural
flavours; enhanced with several vitamins; fewer calories; and honey bee extract.The
products cater to the growing need for healthier sparkling beverages that will maintain a
healthier lifestyle, increase vitality, and strengthen immunity.The product has six
flavours, which are Apple, Blueberry, Pinacolada, Pineapple, Pomegranate, Lemon, and
Mint, in 100 recyclable cans. Each can has different colours according to its flavour, so
it is easy for the consumer to know the flavour without reading it on the can, as shown in
this photo. With the slogan Bubbling with energy on it to attract the health-conscious
consumer, the jingles that will be used in the ads are the sound of the soda bubbling
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4.2-Place
For the short-term plan, the company is manufacturing and producing in Egypt and
exporting its products to Bulgaria using the global strategy to expand or internationalize
in the Bulgarian cities because Bulgaria is one of the world's leading health-conscious
countries (united nations, 2020) with a good tax system and suitable exporting and
importing rules (Bulgaria Country Report, 2023). Therefore, it is a market with a large
target audience that is in need of and willing to buy healthy products to replace the
ordinary fizzy drinks that harm the health of consumers. The distribution in Bulgaria will
be through the distribution centre that will be located in the capital city of Bulgaria, which
is Sofia, and the products will be distributed from this centre to the wholesalers and then
to the retailers in the capital and the rest of the Bulgarian countries.
And for future plans, the company will expand more in Bulgaria, not just exporting in
Bulgaria, but building a full supply chain system there and exporting from Bulgaria to the
4.3-Price
The pricing strategy that is used in Egypt will be different from that used in Bulgaria, as
in Egypt a competition-passed strategy will be used; in other words, the price of the can
will be determined to be the same as the price of the other competitors. Since this
industry is new and the competition is limited, the company will use the same price,
which is 13 EGP, of the only competitor in the Egyptian market, which is v7.
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For Bulgaria, a penetration strategy will be used at first to attract customers to the new
product; therefore, the can will be sold at 1 BGL; this price will only cover the costs of
the product, and after three months, a competition strategy will be used, in other words,
4.4-Promotion
The company will be sponsors of some health events that take place in Bulgaria, such
2023). The company will also use billboards and commercial TV ads to target health-
conscious consumers. They will also make product endorsements by making ads that
show celebrities talking about the product and how it has a good taste and high
benefits.
The integration of these four components will enable the company to expand and
Recommendation
A possible recommendation for future corporate governance in the Vitafizz firm may be to
Conduct a frequent internal and external audit to ensure accountability and openness and
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Another recommendation is to create a business culture of open communication and
feedback that encourages workers at all levels to express their ideas and concerns,
and feedback that encourages workers at all levels to express their ideas and
Conclusion:
In conclusion, Vitafizz, an international beverage company, recognises the necessity of
fair treatment of stakeholders. Vitafizz wants to have a positive influence on society and attract
new investors who respect responsible business behaviour by adhering to ethical standards and
Vitafizz, not only secures the company's long-term success but also develops trust and
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confidence among its stakeholders. Vitafizz's goal is to establish a solid reputation and keep a
devoted consumer base. Furthermore, by incorporating social and environmental obligations into
its business operations, Vitafizz aspires to contribute to sustainable development and build a
brighter future. It employs the global business strategy in a strategic manner, prioritising
standardization. The company's objectives are to reduce expenses, increase its market share
internationally, uphold a consistent brand image, and introduce standardised procedures. The
organisational chart of the company displays a functional structure that guarantees effective
coordination and designated roles. through introducing a sustainable marketing plan to expand
internationally. The company will incorporate sustainability concepts in product, pricing, place,
and promotion. Vitafizz will manufacture and produce in Egypt and export to Bulgaria, targeting
References
Commission staff working document - economy and finance. 2023 Country Report - Bulgaria.
(2023).
https://economy-finance.ec.europa.eu/system/files/2023-05/BG_SWD_2023_602_en.pdf
European commission. (2021). State of Health in the EU Bulgaria - public health. State
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12/2021_chp_nl_english.pdf
Luthans,F., Doh, J. (2020) International Management: Culture, Strategy & Behaviour. 11th
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AIHR, Academy to Innovate HR. (n.d.). What is functional organizational structure? |
AIHR – HR Glossary. AIHR. https://www.aihr.com/hr-glossary/functional-
organizational-structure/
Shleifer, A., & Vishny, R. (1997, June). Home | scholars at Harvard. The journal of
finance . https://scholar.harvard.edu/files/shleifer/files/surveycorpgov.pdf
OECD. (2015, July 8). OECD Principles of Corporate Governance. OECD Legal
Instruments.
https://legalinstruments.oecd.org/en/instruments/151#:~:text=Corporate
%20governance%20is%20one%20key,its%20shareholders%20and%20other
%20stakeholders.
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Governance Mechanisms. International Journal of Business and Management
Invention (IJBMI). https://www.researchgate.net/profile/Mohammed-Almashhadani-
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Profitability-Reviewing-the-Role-of-Internal-Corporate-Governance-
Mechanisms.pdf
United Nations. (2023, June 14). Global Sustainable Development Report 2023. Global
Sustainable Development Report Advance, Unedited Version.
https://sdgs.un.org/sites/default/files/2023-06/Advance%20unedited%20GSDR
%2014June2023.pdf
Organ, C. (2023, July 31). 7 Organizational Structure types (With examples). Forbes
Advisor. https://www.forbes.com/advisor/business/organizational-structure/
CMS. (2023, October 11). Labour Law and Regulation in Bulgaria: CMS expert guides. Labour
law and regulation in Bulgaria | CMS Expert Guides.
https://cms.law/en/int/expert-guides/cms-expert-guide-to-labour-law-in-central-eastern-
europe/bulgaria#:~:text=Overtime%20work%20performed%20shall%20be,a%20weekly
%20or%20longer%20basis.
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