Analyze the environments in which High Tech Co is currently operating.
High Tech Co is United Kingdom based company, which is principally engaged into the development and research, sale and production of automobile parts. The company has categorized its products into three different segments; accessories and sensors, interior parts of the automobiles and accessories of the fuel systems. The sensors as well as accessories of the company include fuel level vent valves, sensors, accessories and water level sensors. The technological company’s accessories of the fuel system highly include assembled parts of oil filler pipes, imported control valves, joint pipes, locknuts, filter brackets, fuel pump fixed thimbles, lock rings and others (Anitha 2014).
The interior parts of the company’s automobiles include high level technology, airbag, air conditioning duct, dashboards and others. The company also has huge distribution of its products as well as services within the domestic market as well as overseas market segments. However, the company has flourished a lot in the domestic market and gained huge profits. In addition to this, the city of York, United Kingdom, have seen a boom among the high technology and science firms, as the companies have expanded a lot (Van den Brink, Fruytier and Thunnissen 2013). Moreover, the High Tech Co has managed to win the hearts of many employees and its customers as well. The Company is now planning to expand their business in the markets of Thailand (Ashleigh, Higgs and Dulewicz 2012).
The purpose of this report is to analyze the environments in which High Tech Co is currently operating while taking into consideration its expansion in the future. The company has flourished in its native market and now it is planning to expand its business in the markets of Thailand. Moreover, the report also suggests some policies as well as procedures which the Chief Executive Officer of the company needs to adopt in order to become an employer of choice and also to retain and attract the most talented employees and staff members. In addition to this, the report consists of some strategies on how the organization can develop its human resource management procedures and policies, in order to attain a healthy working environment. It is very important for an organization to keep its human resource policies and procedures in place. A strategic human resource management can help the company survive on the long run (Ball et al. 2012).
In addition to this, the report also throws light on the introduction of a proper and appropriate reward system in order to attract highly talented candidates, by taking into consideration the functions of the existing employees. A good reward and recognition system is considered as a ‘pulling’ strategy. The core reason behind this is that the systems pull the organizational employees to give their best shot and perform up to the mark. The human resource managers of the High Tech Co are responsible for designing as well as implementing an appropriate reward system for encouraging and motivating the staff members (Austin and Pinkleton 2015). Furthermore, the report makes some recommendations on how to develop the business and human resource management of the company in order to increase the overall performance level of the employees, considering the competitive environment.
The human resource management of any company refers to the overall procedure of selecting as well as recruiting the employees and staff members, providing them with orientation and induction, development and training for the assessment of the employees (Ball et al. 2012). The High Tech Co is a United Kingdom based company, which has managed to win the hearts of many consumers as well as their employees. The company has a sound human resource management policy and procedure (Twarowska and K?kol 2013). Interview with their workers have proved the fact that the company highly provides the employees with a well balanced work as well as personal life. The employees have no complaints against the organizational leadership or management. In addition to this, the company’s human resource policies as well as procedures are highly admirable and appreciated by others (Cavusgil et al. 2014).
High Tech Co has managed to introduce various policies related to work health and safety into their organization, in order to manage and retain talented employees as well as staff members. However, the company boasts about their work life balance. In addition to this, High Tech Co believes in hiring the best skilled workers, who have sound knowledge regarding technology and the automobile industry. According to Deyoe and Fox (2012), it has been found out that the employees are being given thirty to forty minutes of training each day, in order to develop their behavioral skills towards their customers. Not only these factors help in improving the workers’ personality but also foster the environment of working. The company hires the right employees and organizes orientation programs for them, which in turn proves to be beneficial for the company itself.
Recently, the High Tech Co is planning to expand their business in the international markets. Initially, they have chosen the market of Thailand for building up their business. However, for future expansion, the company needs to have a clear idea regarding their current operating environment. It includes both the internal as well as the external environment of the organization. The internal factors which affect the environment of the organization include; conflicts among the staff members, money, culture of the company and others (Kumar et al. 2012). The external factors which highly affect the environment of the organization include, the economy of the country, competition among other companies, political and legal system of the country and the changing preferences of the consumers as well as the suppliers. Such factors highly impact the working environment of the organization. Therefore, it is immensely important and necessary for the High Tech Co, to keep such factors into mind before expanding their business into the international platforms (Dillon 2012).
Currently, the business of the High Tech Co is flourishing in the market of York, United Kingdom (Downs and Swailes 2013). However, it is important to discuss in this part of the report, about the political, economical and other factors, which is affecting the company’s progress and growth. The factors under which the company is carrying out their organizational strategies are discussed in the form of PESTEL analysis. The purpose of the PESTEL analysis is to discuss about the different political and other factors of various countries. Different countries have different political and legal systems, customers’ preferences, environmental factors and many more (Teague and Roche 2012).
Political Factors
The political factors of any country play a very important role and also have a direct impact on the overall profitability of any automobile industry. The government officials are all around the world favoring for the low emission vehicles. In addition to this, the taxes on the luxury cars have grown higher in the last few decades. The environmental friendly cars are in demand globally (Tian 2016). However the High Tech Co has been receiving higher support from the government officials for their lower impact in the environment. The company also uses certified interior parts and sensors, from exclusive brands. In addition to this, the rules and regulations of the government heavily matters from brand to brand. Moreover, the company has technology which is highly fuel efficient and also low on the emission, thus, it can pass the government rules very easily.
Thailand is the second largest country of Southeast Asia, in terms of economy. However, the country is currently facing some political issues, which is hampering its economic growth. In previous times, Thailand was one of the most politically stable countries. The country receives support from international partners and therefore, it is high time for High Tech Co to enhance their business opportunities in order to flourish. Furthermore, if the company wants to expand their business into the markets of Thailand, it needs to have a clear idea regarding their political situations and factors. In addition to this, the import and export rules as well as taxes highly vary from region to region. A thorough research and development would help the company perform better (Dunning 2012).
Economical Factors
The economic forces are of particular importance when taken into the context of the automobile industry. High Tech Co has been planning to expand their business into the markets of Thailand. However, according to recent reports, it has been found the economic sector of the United Kingdom has been hit hard by the current crisis in the economy (Killing 2012). At the times, when the overall economic condition of the country is not good, the sales of the technology and vehicles fall to a huge extent. The demand for such luxuries and high priced items also get hugely affected due to the country’s overall economic crisis. In addition to the normal prices, the taxes are also huge (Sutcliffe 2014).
If the country’s economic conditions are good, then the sales remain high in the developed countries. However, while expanding the business into the markets of Thailand, High Tech Co needs to keep the economic factor of the country into consideration. The company needs to keep a track of the past economic crisis, which affected the country and how it is going to combat that. The subsidiaries will help in attracting and keeping highly skilled employees and staff members. It can be done through stock compensation procedure as well as profit sharing. Subsidiaries also help in providing better outlets for research and development. In addition to this, it will help High Tech Co to reduce liability and provide the company with additional privacy as well as security. In addition to this, for expanding the business, the company will require additional capital. A for-profit organization can obtain traditional loans from the banks and even venture funding for the capital (Forsgren and Johanson 2014).
Socio-Cultural Factors
The markets are highly influenced by the socio and cultural forces of the country. The automobile and technological industries get highly affected by the changing socio and cultural needs and trends. In addition to this, recent reports have conveyed that the market of High Tech Co is also getting affected by the changing preferences of the consumers. Consumers and their preferences change over time. Therefore, it falls under the responsibility of the company to keep a track of the changing preferences, behaviors and attitudes of the consumers, in order to cater according to their choices (Killing 2012).
The technological companies need to adopt certain strategies in order to cater to the most of their target consumers. The companies should introduce new and innovative items as per their target consumers’ choices as well as preferences. In addition to this, the latest social trends also keep changing on a continuous basis, which affect the overall popularity of the brands as well as models. The human resource managers of the company should focus on the employees’ English proficiency level. Moreover, they must have good communication skills and be able to read and write in English. This will help in promoting the communication between the subsidiaries and headquarters. English is the primary language through which they can communicate with overseas employees; therefore, the managers must focus on this factor (Girling 2012).
The human resource managers of the company should introduce some latest technologies within the organization. Moreover, installation of feedback machines within the organization will help in getting feedbacks of the consumers. In addition to this, the human resource managers should implement new and innovative working strategies within the organization, so that it motivate and encourage the workers to work better every day. Furthermore, introduction of reward and recognition programs will also benefit the company to a huge extent. Gathering feedback from the employees as well as the consumers helps in gaining an understanding about the rights and wrongs of the company (Hamilton and Webster 2015).
Technological Factors
The innovation and technology have become the two most important determinants of the automobile and technical industry’s market share. The more the company is innovative, the higher is their market share. Taking this fact into consideration, it is worth mentioning that all the major companies plan to make huge investments in the segments of research as well as development. This is because, they prefer researching and developing the resource units before actually considering their capabilities. Moreover, the High Tech Co has invested huge in their market development section (Schuler 2015).
In addition to this, they have made further investments into the research and development areas. They are planning to introduce latest developments in the recent years. However, before entering the markets of Thailand, the company should further make investments into getting an idea regarding the country’s marketing strategies and more. Moreover, the company can also focus on to fuel efficient vehicles and more innovative technology, in order to rule the markets of the new country (Grant 2016).
Additionally, the human resource managers of the company need to adopt latest strategies in order to cope up with the technological factors of the company. E-learning can provide excellent opportunities to the employees to increase their level of knowledge. Therefore, the human resource managers should send the employees online training materials. Both the employees and trainers should have the accessibility of the training materials. Moreover, through technological development, the human resource managers of the company, settled in United Kingdom, can send various materials to the company which will operate in Thailand. In addition to this, the employees present in remote locations can also get benefitted through this procedure (Stone 2013).
Moreover, setting up of the Integrated Human Resource Information Systems will have profound effects on the firm on implementing them. Most often the organization tends to replace several systems which are related to these. In addition to this, the managers need to focus on the personnel database systems, benefits and payroll systems which are the major factors to be taken into consideration. Focusing on the improved processing as well as reporting units will prove to be highly beneficial for the company itself. In addition to this, creating a webpage of the company will let the overseas employees or applicants get an idea regarding the company’s overview. Moreover, a career portal should also be created as a part of recruitment strategy so that the applicants can apply, based on their qualifications (Schuler 2015).
Environmental Factors
The environmental factors are much related to the political factors are various laws related to the environmental friendliness as well as carbon emissions in different countries. The automobile and technological industries play a very important role in this. It is not easy for a technological company to open and expand their business into any country they want. They have to conduct high level research work, before actually making the plan a successful one. The vehicles which are favored by the government as well as the law emit less fuel. They receive tax subsidies on less fuel consumption. The pollution tests and other tests related to technology have grown stricter and the companies who pass such tests are allowed into the markets of United Kingdom. However, the High Tech Co has passed several tests in the past years. In addition to this, the company also has some government verified certificates. Therefore, it can be said that the company will not have any problem in this aspect, while expanding into the markets of Thailand (Hamilton and Webster 2015).
Legal Factors
Law is yet another important factor, which every organization needs to keep in mind, while expanding their business into other international countries. It highly affects the overall performance as well as profitability of the vehicle and technological brands and companies. The technological and automobile companies which are planning to expand their business into the international markets have to pass through several legal tests in order to prove its quality as well as safety (Stone 2013). The laws related to pollution have gone stricter. The items which are being exported have to pass emission controls, which is becoming stricter day by day. However, the High Tech Co’s core mission and vision is the safety their target consumers and employees.
In addition to this, there are several laws related to the employment, like Labor Laws and others. The act is one of the most important acts of Thailand, which was promulgated in the year 1998. It establishes the minimum standards of work practices in the labor utilization women as well as child labor utilization, severance, employees’ welfare fund and remuneration. Therefore, this aspect will also not pose a great threat for the company’s overall expansion in the markets of Thailand (Hoejmose, Brammer and Millington 2013). Thus, it is important for the company to keep the above factors into mind before taking the next steps.
Threat of new entrants: Weak
The threat of new entrants is comparatively weaker for the High Tech Co because of the difficulty of the newer brands to enter into the technological and automobile industry. Large amount of investment is required for the new companies who want to open their business. Along with that, the newer markets may face several competitions with the existing ones. In that aspect, the High Tech Co has some advantage, as the company is a matured one, with some good human resource management policies and procedures (Majaro 2013).
Bargaining power of the suppliers: Weak
The bargaining power of the suppliers of the High Tech Co is weaker as majority of them are smaller players. There power does not lay impact much on the company’s overall progress and growth. However, High Tech Co human resource management policies as well as procedures are quite strong which helps the company combat with the bargaining power of the suppliers. In addition to this, the company has gained an understanding of the changing preferences of their suppliers, which in turn is beneficial for the company itself (Putnam, Myers and Gailliard 2014).
Bargaining power of the buyers: Moderately strong
A large part of the buyers have a strong power to bargain. In addition to this, with the introduction of huge variants, long lists of alternatives and options, the buying power of the consumers are increasing day by day. The technological and automobile company faces the most of it. People prefer buying the most efficient item at the most affordable price. In such cases, they prefer changing their stores and look out for more and more options (Wild, Wild and Han 2014). Therefore, the bargaining power of the customers is moderately strong for the High Tech Co, which the company needs to keep in mind. The human resource management needs to introduce some new and effective policies for the betterment of the organization and to cater to the most number of audiences (O’Donnell and Vogenberg 2014).
Threat of substitutes: Weak
With the ever increasing competitive environment and globalization, huge number of substitutes is getting introduced into the market. Several alternative modes and substitutes of transportation and others are increasing day by day. Newer and more advanced technologies are getting introduced on a daily basis. However, the threat of substitutes is comparatively lesser for the High Tech Co. This is because the company has managed to gain huge admiration and support from its target consumers and the government as well. In addition to this, the company’s highly appreciated human resource policies are also well build and managed (Oleszek 2014).
Competitive rivalry in the industry: Very Strong
The competitive rivalry in the industry is the last and one of the most important factors of Porter’s Five Forces. However, with the ever increasing competition, many more companies are emerging. Moreover, increased globalization has led to the increase among the companies. Even the new companies are now ready to fight with the matured and older ones (Verbeke 2013). Therefore, it can be said that even if High Tech Co have been admired by all, its competitive environment is very strong. The company needs to keep an eye on the strategies and human resource polices of their rivalries in order to get benefitted on the long run. The overall competition is quite strong in an automobile and technological industry as compared to any other industry (Peltier 2016).
High Tech Co’s human resource management policies and procedures are commendable and highly appreciated. The company is now planning to expand their business into the international markets. The first and foremost initiative taken by the company is expanding into the market of Thailand. However, with the current strengths of the company, it can be said that the organization’s reputation will result into its overall success and growth. Moreover, the company has highly verified documents and human resource certificates which can be used for legal and political factors (Rohrbeck, Konnertz and Knab 2013). Additionally, it can be said that the company has given years of promising services to its consumers and target market. Therefore, it will not be a problem for the company to understand the ever changing behavior as well as preferences of the consumers (Homan 2013).
In addition to this, the company can introduce some good reward and recognition theories and policies, in order to manage and retain the maximum number of employees. The company considers the theory of reward system as a major part of pulling the employees into the workplace. Moreover, High Tech Co has taken other initiatives like giving the employees a perfect balance for work and personal life. In order to retain and manage the employees, the human resource managers of the company also organizes social gatherings as well as events for the staff members, where they are allowed to bring their family members (James Sunday Kehinde 2012). These theories have assisted the managers of the company to retain the best employees at the workplace. Furthermore, the organizational leaders and managers conduct sessions on team management where the employees are motivated and encouraged to voice their opinions and issues (Ireland, Hoskisson and Hitt 2012).
In addition to this, the human resource managers of the company conduct an orientation or induction program for the newly employed workers, where they are given an overview of the organization. Moreover, the company understands the shift in the consumers’ demand and the expanded regulatory requirements for health and safety, which has helped in increasing the number of opportunities for the technological industry (Rugraff 2012). Trainings on such sessions are conducted by the human resource managers, for making the employees capable of handling such situations. Proper planning as well as budget planning is also done by the human resource managers, before conducting any kind of research (Lamba and Choudhary 2013). Therefore, these sessions prove to be highly beneficial for the overall development of the High Tech Co. In addition to this, if the company is planning to expand their business into the international markets, these factors can benefit the company to a huge extent. The human resource managers are also introducing some new concepts in order to manage and retain their employees, which will benefit the company on the long run.
Charles Handy popularized a model of organizational culture, which is classified into four major types that is the power culture, the task culture, the person or support culture and lastly the role culture. It refers to the organizational structures and associated culture of the organization. However, the Ambrosia Company doesn’t believe in the power culture as the culture influences power as well as influence. Rather, it believes in the role culture which focuses on assigning the employees with specific roles or tasks. In addition to this, it also focuses on the person culture as the organization is people focused, value oriented and meeting the employees’ self actualization needs (James Sunday Kehinde 2012).
High Tech Co has managed to win the hearts and admiration of many of its consumers and employees. Moreover, the company has some strong human resource management policies and procedures, which provides its employees with a secured and healthy working environment. The company has also managed to provide its employees as well as staff members with a balanced professional and personal life. In addition to this, the company maintains a strict policy while hiring fresh candidates. High Tech Co believes in hiring the best candidate for their organization. However, the company needs to reshuffle some of its strategies. When it comes to performance management, High Tech Co needs to take the factor into serious consideration. The vision as well as mission of the company must be to achieve greater results. The company can monitor the performances of its employees on a daily basis and convey them their areas of improvement.
In addition to this, evaluation of the overall performances can also help them work together. Furthermore, mentorship, orientation and training programs can be organized for the new employees, where they must be motivated as well as encouraged to voice their opinions and issues, without any fear. Moreover, reviewing the existing employees’ performances can also give them an idea of their standards and levels. In addition to this, they will get to know about the areas which they would have to improve in future. It is always needed to be kept in mind that fairness plays a crucial role in the growth as well as progress of the organization. Furthermore, the human resource management policies and procedures of High Tech Co must include the rewards and recognition programs of the employees. Rewards and recognition programs of any company acts as a pulling strategy, which motivates and encourages the staff members to perform better every day.
This segment of the report discusses about the various limitations which the High Tech Co may face in future expansion of the business. Those are the political factors, legal factors and others. Various countries have various policies and legal systems. Therefore, while expanding the company needs to keep certain factors in mind, otherwise it may pose severe limitation for the organization itself. In addition to this, the company can face huge competition in the newer markets. The market of Thailand is already occupied by some matured and older companies. The customers’ preferences also play a major role in this, which is also considered as a limitation for the company itself. The High Tech Co needs to keep these factors in minds before expanding its business. A thorough research work will benefit the organization to a huge extent.
Conclusion
To conclude, the human resource management, often abbreviated as HRM, is referred to the overall procedure by which any organization selects and recruits new employees. In reference to that, the report consists of the strategic human resource policies undertaken by the High Tech Co. The company is based in the United Kingdom, city of York. It has managed to build a good rapport as well as business there. The company has also good consumer base, who appreciates their management services. In addition to this, the company has managed to provide its employees with a good and balanced work and personal life.
The human resource management policies of the company is highly recommended and appreciated. The company has strong reports and certified documents from the government officials. In terms of loyalty, the company has managed to gain mass attention as well as appreciation. However, now the High Tech Co is planning to expand its market into the markets of Thailand. The company needs to invest huge into the research and development section, in order to check the current scenario of the overseas markets. In addition to this, the company can also use the digital marketing strategy, in order to aware more and more consumers on the international platform.
The company must keep a track of their political, economical, socio-cultural, technological, environmental and the legal factors. It is to be kept in mind that different countries have different policies and procedures, which can be political, legal, environmental and more. Therefore, High Tech Co, before expanding, needs to do a thorough research in this segment, in order to avoid severe issues later. Moreover, the company should also provide its employees with opportunities of socializing more. Socializing will help the employees in mixing with others, which in turn will enhance their communication as well as convincing power. In addition to these factors, the company must also keep a track of their competitors’ strategies and human resource policies for its own betterment.
More and more categorical programs must be organized for the employees for their betterment. In addition to this, the company should also build strategies in order to improve themselves. Feedback machines can also be installed in order to gain an understanding of the behaviors and attitudes of the employees as well as target consumers. Moreover, the company can also engage into some social activities like setting up of advertising campaigns, poverty alleviation and others, in order to gain the maximum amount of consumer’s appreciation. Such campaigns will prove to be highly beneficial for the overall betterment of the High Tech Co.
Furthermore, performance management plans undertaken by the High Tech Co, can also prove to be highly advantageous for the overall benefit of the company. The company should emphasize more on their strategies as well as employees’ performance and outcomes. It is important to review the performance of the employees, so that they are able to understand their areas of in-competencies. In addition to this, an evaluation plan must be organized, which will help the managers to keep a track of their employees’ competencies as well as in-competencies. Such factors will in turn, prove highly beneficial for the company. In addition to this, the report discusses in detail regarding the strengths, weaknesses, opportunities as well as threats of the company, which can be followed for further expansion of the business.
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