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ABC Garments: HR Strategy and Market Entry

1) ABC is a new garment company in the UK that is planning to introduce a new product. It needs to conduct market research and develop a business strategy to enter and succeed in the competitive market. 2) ABC is currently in the introduction stage of the product lifecycle. It needs to determine its position using tools like the BCG matrix and Porter's competitive strategies. HR strategies around training and developing employees are important for improving product quality. 3) Recommended HR strategies for ABC include understanding future growth plans, determining long-term direction, gaining competitive advantages through speed, and ensuring adequate financing for operations. Forecasting manpower needs is challenging for HR.

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0% found this document useful (0 votes)
23 views12 pages

ABC Garments: HR Strategy and Market Entry

1) ABC is a new garment company in the UK that is planning to introduce a new product. It needs to conduct market research and develop a business strategy to enter and succeed in the competitive market. 2) ABC is currently in the introduction stage of the product lifecycle. It needs to determine its position using tools like the BCG matrix and Porter's competitive strategies. HR strategies around training and developing employees are important for improving product quality. 3) Recommended HR strategies for ABC include understanding future growth plans, determining long-term direction, gaining competitive advantages through speed, and ensuring adequate financing for operations. Forecasting manpower needs is challenging for HR.

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carnivale_bd
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

1

Introduction
ABC is a completely new organisation in the Garments producing industry
functioning in Wembley since 2009 that has been planning thoroughly to bring
completely a new product to the UK market. On the beginning of market study there
are ample of garments items producing company currently exist in the market but
that one would be insolently distinguished than the rest the similar product in terms
of many aspects. Prior to entering the market there must be some market appraisal
to get an impression about the market surroundings. It also wants to be measured
the business strategy to penetrate and uphold in to the market.

Planning of a business strategy


First an operational business strategy has to be established. This particular strategy
should be on the basis of current market circumstances and specification. A HR
planer and strategist can be able to implement resolutions and those strategies can
be suggested for this organisation to attain the goal and objective. During formation
of a business or for a particular product an HR management are capable of to relate
those suggestion such as product life cycle, BCG matrix, derivation of Porter’s ideas
on competitive advantage and strategic behaviour and organisational activity. It can
be suggested that on the basis of market research and R&D ABC standpoint would
be in the introduction stage in the product life cycle chart. This particular product of
ABC is still in research and there are more progress is so far to be made subject to
consumer require and market access. Strategies should be altered to get the best
result out of plans if it requires. A perfect contingency theory is similar with structural
change that is dynamic which keep up with studies of organisational shifting over
time. For example, workers are more likely to meet Employment Insurance (EI) and
information involvement if they have employment promise and their workplace is
relatively status-free. It should also be stated that new recruits are more usual to
take on elastic working practice and welcome team works. In ABC It is also
obligatory to offer broad training and coaching to the employees to improve the
product quality and at the same time improves the effectiveness.

(Human resource management at work, by: Mick Marchington and Adrian Wilkinson, third edition,
published-2005, published in London, publisher- Charted institute of personnel Development (CIPD).
2

ABC

Exhibit: 1, product life cycle.


Obtained from: [Link]

Boston consulting group anticipated the best way to recognize that how a business is
carrying out is to rip open the business down into its lesser functioning parts, usually
established as yardstick business unit (SBU). SBU supervision became very popular
trend and forced manageress away from think their companies as incorporated
entity, somewhat managers began to view companies as a portfolio of SBU’s.

(The fast forward MBA pocket reference. By Paul A. Argenti, 2002. Publisher: John
Wiley and son, Inc. NY)
3

In the BCG matrix the organisation’s position can be recognized in terms of the
market share and market growth. Bellow it has been directed out the real
standing of the ABC Company.

High Low

High
Stars- ensure cash flow Question Marks- It has
exceeds required high market growth but
investment that is high relatively low market
Market growth and low
share.
market share
Market Growth rate ABC
Company

Cash cow- foundation of Dogs- Needs liquidate


a company. High profits with their low market
and low investment. share and low market
growth.

Low

Market share
Exhibit: 2, BCG Matrix related to ABC company
Obtained from:
[Link]

Recommendation of HR corporate strategies:

In the following five most credible strategies have been recommended.

• Understanding upper level judgment: This organisation has to imagine for


the way ahead of future to expand and improve the services by increasing the
business all over the UK and attempt to go Europe. Without rising in the
marketplace it is never achievable to think about merge and joint venture so it
could be an well-known corporate goal to get better the organization’s market
share and market growth in the industrial business. When the organisation
desires to go for merge, take over, joint venture or strategic alliance than it needs
to alter the strategic approaches to keep up the flow and competitive advantages.
The employees need to be trained to adjust themselves in the new environment
and utilise the most recent technology for better customer services.

• Determining a long-term direction of the organisation: HR also assigns the


needs of worker and type of employees. HR staffing policy includes with major
new production, health and safety legislation as the origination are answerable to
the government for any kind of HR policy. It needs to be recognized the most
feasible geological location which is most likely to continue and grow for the
product.
4

• Dynamic speeding up to get competitive benefit: ABC must always try to


find out a new product that can be supported even rivals strive to take the benefit
of similar gains. Cost has to be lesser than the related product at present existing
in to the market and product feature must be satisfactory.

Adequate financing to establish a business: Location is one of the major


concerns to be considered and prime location also costs large amount of money
to get. Operations strategies are concerned with how the various subunits for
example: marketing, finance and manufacturing work consolidate. To construct
communications and recruit skilled and experienced employees the organization
has to be prosperous to pay out different costs. The finance needs to allocate for
the each and every department to run their activities smoothly and efficiently.
Financing also depends on number of employees and size of the business.

(Human resource management at work, by: Mick Marchington and Adrian Wilkinson,
third edition, published-2005, published in London, publisher- Charted institute of
personnel Development (CIPD).

Obstacle of HR strategy
There may be other factors which might make forecasting seem difficult, for instance,
persons required for equipment maintenance in ABC drink Ltd. would alter with the
reliability of the machine and its age. This would likely to require a details
assessment of the signify time between failures as indicators for determining the
number of persons required for the activity. Forecasting manpower requirements
maybe the hardest part for HR and it might be the weakest link in HR planning.
Prognosis based on modern practices may have inherent limitation as it based on
the assumption that the present practices are appropriate.

(Corporate Planning and Strategic Human Resources Management, By Mrs. Radha


Raj, Publisher: Nirali Prakashan, 2007, India.)

Solutions for HR limitation

The most important confront has to be created and HR can take important method to
brush away the unexpected event that might cause the production collapse if
suitable steps are not put into operation. According to David Benjamin statement
it has been known that, the major reason of not capable to arrange sufficient
labour for the ABC is primarily not enough funds to pay off the employees. It
should be bear on mind regarding the ideal productivity of ABC Ltd. to meeting
the target and supplying the product in the market within time limitation. In the
following it has been discussed rigorously:

► most essential HR planning for ABC Ltd. can be make sure high employee
turnover which can affect staff confidence. This particular strategy would assist
affecting the production of high quality goods and services and the retention of
organisational capability.
5

► obtain and keep super talent is critical to an organisation’s achievement but it can
be a resource of competitive advantage. 3 efficient employees can sometime
work more skilfully than 6 employees. ABC LTD. HR department could provide
high training and development to minimize the incident of poor performance.

(Corporate Planning and Strategic Human Resources Management, By Mrs. Radha


Raj, Publisher: Nirali Prakashan, 2007, India.)

Growing business prospective in France


Development in progress in France over the last three years are being changed the
legal environment in which companies can be set up and prolonged. The invest
France Agency of France; their government has designed mainly for foreign
company executives who would like to put in France. It should be mentioned that
more than 20,000 foreign companies are previously established and functional
businesses under many various legal structures. The reason Why ABC Ltd. should
enlarge the business in France are discussed below:

• support R&D and sustainable expansion;


• encouraging the entrance in France of foreign skills and proficiency.
• shorten and reducing taxation on investment;
• bring in more flexibility into the workplace;
• modernizing company law and matching it with European legislation;

([Link]
may-2010_en.pdf)

Negative aspect of expanding business in France


Foremost barrier for the ABC appears like the word of mouth because French people
are repeatedly is likely to have altered their mind. It would be logically well off if ABC
gets the business agreement in written design so that French people do not alter
their mind at the midpoint of the business development. It is know that French
bureaucracies are notorious for their inflexibility. For ABC it can be the most
annoying pressure to enlarge the business in France. It is also particularly known
that French bureaucrat are self-important, it may sometimes impolite, not
cooperative and narrow-minded of their thoughts. French people however often to
quit from their work place to the disturbance concerned whilst foreign person will
keep on in attempts to overpower them. On the other hand ABC Ltd. could ask for
assistant to the French lawyers who are able to handle to bureaucratic obstruction.
French people do not like informality. They insist on politeness and respect in
business and they expect from other people to dress properly at the same time they
require to observe all the social amenities.

(Understanding cultural differences 1990, By Edward Twitchell Hall, Mildred Reed


Hall, Publisher: Intercultural press, Inc, USA. Page-113,114,116,117)
6

HR strategies developing in terms of MA, SA and JV in


France
The French tend to believe that the basic reality on which and those belief are
immutable or universal law. They behave on individualistic manner. The ABC Ltd.
should be very careful to imbed those principles to the customers improvising that
phenomenon. Be formal and polite all time. ABC Ltd. approach should be low key
sculpturally correct. French people are often late so it should bear on mind for ABC
Ltd. Hr team not to be offensive to them. They like leisure and socialisation.
Sometime they take 2 hours for their lunch. It all has now become part of their
culture. HR strategy of ABC should be like taking patience and adhere to the plan
and target. French are very inefficient in customer services role. In order to merge or
go for strategic alliance would be challenging. However to penetrate the market ABC
Ltd. should more focus on customer service.

(Managing cultural differences: Global leadership strategies for the 21st century
2004, By Philip Robert Harris, Robert T. Moran, Sarah Virgilia Moran, Publisher:
Elsevier Butterworth-Heinemann, UK

Joint venture will greatly improve the study and growth capability. JV will boost the
gaining entrance of capability. Both companies could go for cooperative
exploration they could set up for joint training for the employees. It enhances the
combined delivery system. For example if any garment producing organisation in
France and ABC work side by side that will allow one or both of them to have
higher delivery network for their products. Joint venture can be developed for
huge variety to business reason. For example: two companies have strong
resources that when blend can be used to generate of market specific product.
For instance, Garment producing company in France is manufacturing company;
they might feel interested working with ABC as it is a same producing company.
The garments company might want to research and develop R & D resources of
the business to develop a particular product to aim some specific consumer in
this regard some of France garments producing company might fell interested.
The garments manufacture company may have broad range of marketing
network that will be able to quickly capture market share when the ABC is
ultimately being urbanized. It would be such a big for ABC to sell their product in
France market. Cultural distinction between two companies may turn out to be
visible when both organisations will be mixed up in Joint Venture and Strategic
Alliance. ABC will be able to take on the culture in France in order to get the
competitive advantage. Both companies can be valuable for each other subject
to their specialising of particular quality. For single probable product Strategic
Alliance will be suitable to minimize the cost, both organisation will use their
unique ability to market their product.

(Mergers, acquisitions, and corporate restructurings, Ed. 4th, By Patrick A. Gaughan, 2007,
publisher: John Willey & Sons Inc. New Jersey.)

Examination of constrict regarding recruiting Ashley Jones


7

It was known that Ashley has fail to spot her aim for the last three months in a row
that it seems that depicts that she had been going over tough moment with her task
or she was unable to get along the responsibilities. It has been observed that Ashley
Jones was employed by personal reference in the Marketing department though she
had earlier understanding in the field of administration. But her recruitment should
have been in the field she is concentrated in and if that had been done than she
would have worked much better. The cause that could possibly go wrong for Ashley
is discussed in details:

Internal process: Ability level is another major concern for Ashley Jones to get by
her job duties and for that she needs to have increased her perception ability. In the
internal process Ashley needs to be more self motivated to have enthusiasm to
learn.

External process: This process is obsessed by relationship, reward and sentence.


The reasons of Ashley’s performance decline could be strain and strain she has
been going through.

The causes of stress of Ashley Jones have been discussed below:

►Interpersonal skill: there should have skill to work with the colleague and
junior employees in to the professional environment and Ashley must have
made blunder by not working with her associate as it should be.

►Inadequate communication: interaction if the largely important thing for


any organization. Without convincing communication method the whole plan
could be twisted and changed. Ashley Jones may have some complexity in
communication with other workers that forced her to get less production.

►Working situation: sometimes it is very hard for a man to grip overload


work than the he or she should be. That might decrease the working skill and
force to slow down the performance.

►Work overload: if Ashley Jones has been attractive excess of work it would
be pretty a bit hard to keep working persistently. That can be another cause
for her to be less proficient in meeting the target set by the organisation.

►Work role problem: May be Ashley was not completely conscious about
her job role and her responsibilities accordance to needs.

►Excessive demand of work: Almost certainly sometimes Ashley could not get
beside the overload require of work at her place of work and she was not capable to
work in to the fast pace environment in the marketing department.

►Conflicting loyalties: Being truth and loyal is another most important issue in the
working environment and to earn the acceptance to all it is essential for everybody to
8

be loyal. There may have lacking in the loyalty for Ashley Jones and then the
disaster happened.

► Worries of change: Ashley was hesitated to alter and for that reason she could
not go through. In the fast swiftness environment it is very necessary for changes
and to convert but Ashley could not manage it.

►Personal circumstances: There may have some personal issue which might be
responsible for Ashley’s performance reduction. Such as she was having stress for
her family reason.

Proposal to get better efficacy of employees


In an organization it truly inevitable to escape stresses, but at the same time finding
the ways to overcome the obstacle is another big challenges for any organisation.

►Relax and exercise: In the work place there no need to be rush. To get jobs done
correctly employee needs to be calm and cool down all the way through their
working movement.

►Doing other things: At the side of doing usual work employees require to be
doing some chat with their co-worker so that they possibly will feel eager and certain
to work.

►Manage time effectively: Ashley needs to be more imaginative in order to amplify


the productivity and mange time properly. Time is money so it is the most important
task for any employees to manage the time very productively. But

►Take regular break: Getting smashes increase the job efficiency and
presentation. For Ashley’s case this similar means could be very efficient and
helpful. It not feasible to labour constantly and eternally without obtaining breaks and
pauses.

►Be realistic: To avoid any unexpected event it is very important for an ideal
employee to recognize the genuineness and act on that. Ashley Jones can get the
example form her prior experience and be more alert next time. To avoid any sudden
occasion it is very vital for an ideal employee to believe the faithfulness and act on
that.

►Share the problem: To avoid the gap between the problem and remedies of
problem it is the most brilliant idea to distribute the difficulty. If the problems are not
shared with manager than the problems would be rising and things got worse.

Grievance management:

Grievance negotiation is a means by which a third party resolves disputes arising


from different understanding of a labour contract. These practices should not be
confused of contract of issues settlement. Grievance process is formal channels of
9

communication designed to resolve grievances as soon as possible it take place. For


Ashley’s case first line supervisors are usually closest to a problem as she already
confronted with her employees. It is very natural that in the work place not every
employee would agree the rules set by the authority and so some sort of objections
might be raised from the employees.

► knowing the situation of the workplace: Ashley has totally failed to understand
the situation of the workplace and could not manage the employees of her
department. Before operating in to a wholly new environment it should be recognized
about the incident of the workplace. The result needs to be taken on the basis of
condition that might arise for any occasion.

► Management of self assessment: Ashley Jones was not capable enough to


manage herself to the ABC. Employees must asses himself or herself whether or not
he or she is making convincing progress on the work. If something goes wrong it
should be rectified straight away.

(HUMAN RESOURCE MANAGEMENT, By ROBERT L. MATHIS, JOHN


H. JACKSON)

Dismiss influence on employee


Organisation will have to even imagine about the productivity before out of a job the
specialist employees. The other employees can loos their morale and feel depress
working the same organisation. Scale down and redundancy are sometimes used as
an alternative term. They added downsizing should be seen as a strategic issue
whereas redundancy is an operational one. Another method to redundancy comprise
the use of early retirement, natural wastage, redeployment and forms of work
sharing, for instance working hour reductions and job sharing.

Redundancy strategy:

Organisation redesigns strategy which engages non layering, get rid of area of work
and job redesign so that the amount of work is reduced as well as the organisation’s
headcount. Workforce reduction strategy focuses simply on reducing an
organisation’s headcount. It is extremely likely that redundancy will carry bad
impression to the employees who are being laid off and it also might be depressing
for the all employees as a whole. Brockner et al. (1992b) found that the survivors
who are most likely to experience from response are those who are were highly
performed to the organisation prior to downsizing, where the management of this
procedure is apparent to be unfair. According to Armstrong-Stassen (1994) said that
survivors who perceived them self to be in control of their situation adopted coping
strategies that reflected this feelings and who do not notice this may be less
probable to cope efficiently.

(Employee relations: understanding the employment relationship


10

By Philip Lewis, Adrian Thornhill, Mark Saunders)

Getting better constructive employee relationship and


performance appraisal of ABC Ltd.
To produce a believable relationship with employee it has to be supervises
resourcefully by the HR and employee should get such incentive so that they might
fell encouraging working more resourcefully. There are many ways that helps to
enlarge the employee such as: job enrichment, empowerment, bonus or incremental
salary. Employees ought to have reward for their exceptional performance and
achievement. It inspires the employees and assists to enhance their skill to work
more professionally and loyally. It also inspires other employees to be more
competent than rest of the peer. Charles S. Carver and Teri L. White have
conducted a research regarding a Behavioural Inhibition system (BIS) and
Behavioural activation system (BAS). The purpose of the research was to assess
psychological activity of human. Gary has invented a theory regarding brain function
and behaviour which postulated two dimension of personality. Gary had also used
measures of impulsiveness to asses BAS sensitivity. Colinger (1987) had also
developed Tridimentional Personality Questionnaire (TPQ) to asses three dimension
of strategy. Such as, try to evade a punishment stimulus, which resembles BIS
sensitivity, in response to the cues of potential reward or relief of punishment,
Tendency of reward reliance concerns tendency towards responsiveness of
unconditioned signals.

Job enrichment: It is a process of motivating employees by offering them mixture in


their responsibilities while giving them some job and organize over their work.
Employees gain new skills and acquire a broader perspective how their individual
work contributes to the goals of the organisation.

(Business By William M. Pride, Robert J. Hughes, Jack R. Kapoor, 2010, Cengage


Learning, USA)

Job enlargement: ABC is able to propose such thing to increase the efficiency of
the employees. Employees would like to get promoted time to time in order to obtain
higher salary
(Charles S. Carver and Teri L. White, Journal of Personality and Social Psychology,
1994. Vol. 67, No. 2. 319-333)

Job empowerment: ABC can hold this appraises to connect hearts and minds of
people so that they can take the chance available to them for enhanced
responsibility. It means letting them more autonomy. Empowerment releases the
creative and modern capacities of people and provides the greater job contentment,
motivation and commitment.

(How to be an even better manager: a complete A-Z of proven techniques By


Michael Armstrong, 2004, Kogan Page: Great Britain.)
11

BIS are theoretically to be approachable to cues of punishment, in this study it has


been uncovered subjects to cues of at punishment. It was essential that the cues be
definite, in the sense that there should be no suggestion of a possible reward which
would connect the BAS. Reward makes an employee enthusiastic to work in the fast
pace environment and at the same time if any employee doesn’t fulfil with any rules
and type of the company than he or she must be punished. To authenticate the
Behavioural Inhibition System (BIS) scale desired to produce a situation that
connects the BIS but not the Behavioural Activision System (BAS).

(Journal of Personality and Social Psychology, 1994. Vol. 67, No. 2. 319-333)

Performance appraisal serves over a dozen different organisational purposes:

• advice poor performances

• shaping compensation changes

• encouraging coaching and mentoring

• supporting manpower planning or succession planning

• formative individual training and developments needs

• verify that good hiring decisions been made

• getting better overall organisational performance

• give feedback to employees about their performance

• determining who get promoted

• ease layoff or downsizing decision

• give confidence performance improvement

• Motivating superior performance

• placing and measuring goals

Performance appraisal is a official management technique that supply for the


assessment of the quality of an individual’s performance in ABC. Performance
appraisal can core every person’s awareness on the company’s mission, vision and
values. This approach is not so easy to take on and it requires assess many different
issue depending on the situation. The ABC HR department should take following
inclusive approach to amplify the ability of their employees:

Formative compensation changes: ABC can consider in the viewpoint of paying


more for performance so that employees will be stimulated and devoted to their work
more. This is a diverse use of performance appraisal.
12

Encouraging training and mentoring: Performance appraisal recognizes the area


where training is essential and encourages manger to take an active coaching role.
Ashley as a Manager is likely to be good coach to their team member and mentors to
their experienced person.

Following man-power planning: Well-managed organisation frequently measures


their bench power to create sure that they have capacity in their ranks so that they
might develop them in future for improvement.

Formative individual training and development needs: Performance appraisal


system comprises a requisite that individual development plans be resolved and
conversed, after that an individual can make high-quality choice about the ability and
competencies and they need to obtain to make greater contributing to the company.

Guidance poor performance: For ABC this process would assist the managers like
Ashley Jones to deal with those whose performance is not meeting the company’s
probability.

(The performance appraisal question and answer book: a survival guide for By
Richard C. Grote, 2002, USA)

Conclusion
ABC can assess the overall performance of their employees in order to understand
regarding the ability and competence. The performance appraisal will also help to
raise the inspiration by offering the suitable guidance and coaching on the basis of
their existing situation. ABC will get the competitive benefit if they go in France in
form of merge, acquisition, joint venture and strategic alliance because Europe is a
possible market for any perfect company. The HR strategy of ABC Ltd. should be to
recruit right people for the right task to avoid any probable collapse of the
organisation. As ABC Ltd. has experience some rough ride from the inception and it
is very like that there must have limitation in their strategic result

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