Organisation's entry into a foreign market - internationalisation Essay

Organisation's entry into a foreign market - internationalisation process - Essay Example As these factors could be influenced by local cultural, political, social and economic issues, they have to be studied in an in-depth manner before entering the foreign market, and that will be focus of this report. Introduction Organizations wanting to achieve optimal success will always want to expand their geographical and financial ‘boundaries’, thus going on the path of internationalization. That is, organizations could think of entering newer or foreign markets after achieving sizable success in their domestic markets or due to strong competition or saturation in their domestic market or importantly after seeing feasible and good opportunities in foreign market or markets particularly due globalization facilitated opportunities, etc. Thus, internationalisation is kind of becoming a happening concept used by many organizations to expand their reach globally. â€Å"As the global economy expands, as more products and services compete on a global basis and as more and more firms operate outside their countries of origin, the impact on various business functions becomes more pronounced† (Briscoe and Schuler 2004). Whatever be the motivations or objectives for the organizations to enter foreign markets, it is of crucial importance for that organization to study that foreign market in a deep and extensive manner. According to Hill (2009), if a firm wants to expand its business to overseas markets, it must evaluate the potential of country and the country specific factors. Recruitment process After the organizations make its entry, to start their operations there organizations will have to send their own employees who are working in their home operations, then will initiate the recruitment process to recruit the local qualified employees and could also bring in employees from other Third countries. This factor of recruitment is in line with the theoretical concept of recruiting the three types of employees, Parent Country nationals (PCNs) who are brought from home operations, Host country nationals (HCNs) who are local employees and finally Third Country nationals (TCNs) (Scullion & Collings 2006). Among these three groups of employees, organizations has to focus maximally on the HCNs. Entering organizations are duty bound to recruit high number of HCNs because they have to give something to the population that host their organization and also for practical purposes including low cost labour, logistical reasons, etc. Thus, when qualified at the same time low cost labour is available, entering organizations can achieve two objectives in one stroke. Peng and Meyer (2011) discusses about this recruitment process by stating how it involves â€Å"identification of suitable local employees, convincing them to apply for a job, and selecting the most suitable candidates for each job.† Management of recruited employees After recruitment process, organizations have to consider the factor of aptly managing culturally differe nt employees. That is, as each country will have certain distinct cultural traditions, and as the local employees would have imbued those traditions, it could be visible during their functioning, thereby necessitating apt management. Like the above mentioned recruitment process, during organization functioning, it would be better for the organization to prepare and promote local employees to managerial positions. This is line with the theoretical concept that the organizations operating in foreign soils should follow polycentric