The paper "Angelo’ s Tapas Bars Strategy and Structure" is a perfect example of a business case study. Companies go global in search of cheap labour and maximize their profitability. However, this pursuit has prompted some companies to indulge in unethical practices that are only aimed at exploiting their employees while benefiting themselves. With regard to this observation, International Labour Organization, international companies, NGO’ s and WTO have formulated global labour standards that multinationals must adhere to in order to improve best practices in their undertakings. Angelo’ s is a company that has decided to expand its operations to a global status.
In accordance with this, Angelo’ s must observe global labour standards with regard to its overseas operations. This report discusses the issues of globalization in relation to global labour standards, the structure and strategy of multinationals, the procedure used in selecting and recruiting an overseas manager, and lastly, the training and reward strategy of a multinational company are discussed. Issues of Globalization in relation to Equity and the Global Labour Standards Globalization has turned the world into a global village, goods, services and finances are easily moved around the world.
Multinationals and other international corporations have businesses running in different countries. Consequently, national companies have an unending urge to invest overseas in order to tap into readily available global market (Berrell, Gloet & Wright, 2002). Additionally, companies go global in order to ease their cost of operation, for instance, some global locations or host countries are chosen because they are cost-effective as compared to the home country. Similarly, in some instances the cost of labour and materials is cheap. Due to globalization also, employment opportunities are created in the host country, quality products and services that were initially unavailable are provided, and the standards of living are also alleviated (Berrell, Gloet & Wright, 2002).
Contrastingly, despite the good that globalization comes with, it has established that it can lead to various social ills. With regard to labour, various concerns have been raised in terms of globalization and equity. Some of the issues raised are that; not all workers benefit equally across the countries that a specific company has invested in. Nonetheless, it has been identified that inequalities among employees working for the same company but in different countries is on the increase (Cavanaugh, 1997).
Furthermore, the dynamics of global networks has encouraged the rapid transfer of people, capital and goods across the globe. This has resulted in the inequitable distribution of resources around the world. For instance, some countries are discriminated while others are favoured by multinationals operating globally (Cavanaugh, 1997). Accordingly, firms go global particularly in pursuit of competitive cheap labour. In the same way, it cab seen that cost is the primary factor for selecting the host country.
Companies always work to optimize their profits while minimizing the cost of operations. Because of this, there is extensive exploitation of labour on both sides by these companies, for instance, in the host country employees are poorly paid and less is invested in human capital while in the parent country, manual workers lose or are threatened to lose their jobs (Cavanaugh, 1997).
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