Case Study in Human Resource Management Case Study in Human Resource Management SWOT Analysis of the Cooper & Lybrand in Hungary Strengths 1. Worldwide presence 2. Major client in the form of well-known major corporations 3. Variety of financial and auditing services offered 4. Aligning itself with accountancies existing within new markets entered into 5. Perceived low cost local provider Weaknesses 1. Overstretching in terms of serving two distinct markets with four distinct products simultaneously 2. Deciding on and implementing the ‘right’ management model 3. Acquisition of the ‘right’ staff for the new Hungarian office to last the first half decade of operations 4.
Lack of skill by West-European expatriates on Hungarian tax system, language barrier and extended time required for training them 5. Pay discrepancies affecting the Hungarian staff that threatened to stall the operations of the firm 6. Lack of standardized manuals on how to open up a new branch or office 7. The quality of information sought and issued by the organization made the briefings complex and timely 8. Slow organizational growth rates than anticipated in the investment plan Opportunities 1. Emerging growth of the aggregate Hungarian economy following shift from ‘full communism’ towards a relatively free market 2.
Developing strong personal relationships with groups of leaders in charge of major firms in Hungary 3. Relative political stability following successful elections in four decades 4. Flux market for the firm’s four distinct products 5. Opening up of the market through planned privatization of state-owned institutions 6. High level of client loyalty especially in auditing services Threats 1. Variations in financial accounting practices and standards amongst countries 2. Migration of clients from traditional markets to new ones in geographically distant areas 3. Limited availability of cash for the new office setup and initial operations 4.
High level of Hungarian patriotism amongst both workers and client 5. Insufficient information regarding how long the bubble in the Hungarian market will last 6. Legislations requiring that audits of particular enterprises be conducted by only Hungarian auditors 7. Presence of other two major Western accountancies in Hungary (i. e. Ernst & Young and Price Waterhouse) and many more were targeting entry soon 8. Taxing nature of Hungarian audit system 9. Most individuals in the Hungarian labor market lacked a high dedication for work 10. Difficulty in obtaining timely, accurate and reliable information increased the firm’s operational cost. Course of action Roomer-lee must stretch the firm’s expected break-even period for its investment in Hungary so as to allow for ample time for adequate training of some expatriates as well as allowing for the native workers to improve work quality and general performance through work training programs and performance reviews (Edfelt, 2009).
Secondly, the firm should continue on its quest of mingling with the business community in Hungary so as to ensure there is adequate business goodwill that will sustain the firm through its cash strapped period as it engages in capacity building.
Although the firm’s majority clients are major companies in the Middle East and Europe, the firm should diversify to meet the demands of middle to small organizations as they comprise the larger part of the Hungary market. This will also boost flexibility of earnings such that the firm’s liquidity position is not affected. References Brewster, C. (1995). Towards a "European" model of Human Resource Management. Journal of International Business Studies, 26(1), 1-21. Carnall, C. (2007). Managing Change in Organizations. Financial Times Management. Edfelt, R.
B. (2009). Global Comparative Management: A Functional Approach. Sage Publications, . Kotter, J. P., & Cohen, D. S. (2002). The Heart of Change: Real-Life Stories of How People Change Their Organizations. Boston, MA: Harvard Business Review Press. Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2010). Fundamentals of Human Resource Management. McGraw-Hill/Irwin. Trompenaars, F., & Hampden-Turner, C. (2004). Managing People Across Cultures. Capstone. Woodman, R. W. (2009). Research in Organizational Change and Development. Emerald Group Publishing Limited.