HRM11111 HRM in an International Context

HRMIC Assignment – ‘Cafe Bella’

Cafe Bella is an Italian coffee bar chain specialising in organic high -quality coffees and Italian pastries. Cafe Bella is a huge hit in Italy and is looking to break into the Asian market and to open its first stores in Shanghai and Beijing (China). The new stores will operate in a very similar way to operations in Italy (HQ), with the same product line in order to retain their individuality.A General Manager (PCN) has been identified and is available to be flown over to China in the first instance from Italy, but the company require more advice on staffing policy and whether to hire local staff for management positions (as well as at barista level)?

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 question and make clear your reasons for recommendations:

1. What are the main challenges that Cafe Bella will encounter setting up in China?

2. What is International Strategy?

3. Why is culture important in an organisational context? Especially in relation to HR practices.

4. Draw on your own experiences to help you answer the question.

Answers will debate:

1. The key cultural differences between Italy and China and how this may impact HRM and managerial practice.
2. The most effective IHRM staffing strategy to adopt (citing appropriate models)
3. The difficulties expatriates (PCN’s & TCN’s) specifically may face adapting in China and ideas to overcome these.

Learning Outcomes

• Understand the strategies managers can adopt to compete more effectively in international business

• Understand standardisation/adaptation and integration/ responsiveness concepts and the inherent strategic links with International HRM