W Company
W Company
W Company
After reading the information given, I believe that it is a good decision for W Company to acquire an existing retail chain in L country. Since W Company is entering a foreign market that doesnt know anything about their brand, it seems that they would want to slowly introduce their brand with a known brand in L Country. They can acquire a retail chain thats fairly popular and one that the people in L country are familiar with and trust. By doing that, W Company is able to introduce their brand when people come in to shop for a brand that they already know. Compared to starting their own chain of retail shops where the people are not yet familiar with their brand. Acquiring a retail chain instead of starting their own can also save them money on property taxes, rental or building fees and other start-up costs thats included. Wages for employees in L country could also be lower than it would be in F country due to the exchange rate. If W Company is able to acquire a well established retail chain, they could also save on their advertising costs and focus more on promotional expenses in order to promote their product better since they are just starting out. As a result of acquiring an existing retail chain, W Company can save on start up costs and promote their brand better.
Managements responsibility is to focus on the company achieving its organizational goals, and they are mandated to achieve these goals. In order for W Company to achieve their goals, all personnel would always do whats best for the organization. However, this is not always the case because individuals are sometimes unwilling or unable to act in the companys best interest. This is why a set of control functions must be implemented to guard against undesirable behavior and to encourage desirable actions.
After acquiring the retail chain, W Company should implement a control function of segregating duties. For example, one administrative employee should not bear the responsibility of handling two related jobs in a company. Also, they should implement a personnel identification system that recognizes the employee as one of the workers for the company. Furthermore, they can assign individual passwords to each employee to open the cash register and designate a key to one or two employees in the store to open any areas that is restricted. Another important control function would be clearly explaining to all the employees the work rules, policies and procedures and codes of conduct. Clearly define what employees can or cannot do at the workplace, as well as giving rewards for conducting acceptable behavior and punishing employees for not following the companys policies and procedures. W Company can take what the old management team did that worked well and mix it with their ideas in order to create a good management-employee relationship. With that in mind, management should also have a clear line of communication between themselves and their employees. This is a key control function because in the case of W Company, there may be some cultural issues and that would make solidifying a good means of communication very important. The management team of W Company would have to clarify their expectation to the employees, as well as provide information for coordination of their newly acquired retail chain. As a result of good control functions of management, W Company will be able to achieve their goals with the help of their employees.
Reasons for expanding: