Human Resource Considerations for PetSmart Subsidiary in Japan - Case Study Example

The paper "Human Resource Considerations for PetSmart Subsidiary in Japan" is a great example of a case study on human resources. PetSmart's business strategy involves the provision of pet retailing services and general solutions that covers all solutions and needs of pets. In so doing, the company must adhere to the needs of not only its present customers and staff but also prospective customers. In its goal of expanding to have its subsidiary in Japan, the company ought to expand its focus as well, to include an international perspective of customer focus (Hitt, Ireland and Hoskisson 98). It must also ensure a diversification of products and services that it offers to the customers.

Japan is a nation existing in a region of diverse socio-cultural and demographic characteristics that are different from that of the US and Canada. The country’s GDP per capita is approximately 38, 492 USD. Its growth rate stands at 1.5 percent with a customer spending $3891. 899Billion. The population has a high education level. The population is subject to deep influence by the American culture. Considering the Japanese population’s characteristics, PetSmart should diversify to accommodate its socio-cultural divergent Asian societies of Japan. Economically, the country is among the developed nations. The condition means that the product price ranges would not vary significantly. Rather, it would remain relatively the same. Market reconnaissance and feasibility study must focus on the product preference, customers’ tastes and demand, market reliability, competitors, and target-audience base.

The nature of the new subsidiary prompts the company’s top management to develop a strong human resource strategy that would provide both professional and local-oriented company-customer relationship; where both the customers and the employees would feel a sense of belonging and ownership of the franchise (Hitt, Ireland and Hoskisson 98). The strategy must include in its ways, means and procedures of hiring; staff and customer training services and programs; ways of retaining customers and employees to the company; and compensation practices, guidelines, and procedure.

When hiring employees, a wide range of factors needs to come into consideration. First, the company must give priority to locals or natives of Japan especially in casual services and some levels of management. Second, hiring must be on merit and must give first priority to individuals with special needs. Hiring shall only take place whenever there is a need demanding so, and opportunities must undergo advertisement to reach every prospective employee at the right time and in the best format. Furthermore, the company must have in place customer and employee retention advancement and strategies. Acquiring employees or securing the trust of customers is a relatively expensive endeavor for the company in terms of cost implications. Therefore, the company’s management must have in place, a comprehensive strategy that would ensure that customers and employees remain satisfied with their service and work environments respectively on a long-term basis.

Training is also part of human resource strategies that the subsidiary and its management must employ to ensure effectiveness in managing its business affairs in the host country. The process shall cover both employees and customers alike. The rationale for training would be to assist in providing a strong baseline from which other daily operations, including production, distribution; sales, customer evaluation, and the company may manage feedbacks. One of the most critical importance of training is that the company would reduce time and money wastage in dealing with constraints likely to arise because of the absence of training in the long term.

The company must also have a clear compensation structure for its clients, staffs and the host government. PetSmart must not only focus on fiscal remittances on customers and employees but also compliance with the government’s tax regulations and other duty charges. Establishment, management, and adherence to a legitimate compensation and payment structure ensures that the company maintains its positive reputation in the face of not only the public but also the Japanese government.