Introduction
Diversity is an expression that asylums numerous multifaceted subjects inclusive of themes related to the workplace. To say that an individual work in a diverse workplace entails getting surrounded by individuals with dissimilar backgrounds, the variability of financial pasts, religious philosophies and difference in nationalities. Additionally, these differences increase the forte of the place of work as companies use it to acknowledge and react to the external world; however, the same diversity could pose significant challenges. Managing diversity forms and retains a working atmosphere that is positive and one that embraces all the different and similar traits of employees and customers in a company.
Gains And Difficulties Of Forming Industrial Tasks Outside US
Gains
Establishing an industrial company outside the US is cost-effective as renting out factories and workers tend to be cheaper. Furthermore, easy access to inexpensive labor is a massive benefit in subcontracting as most production firms extend services to shipping. Additionally, foreign employment comprises of staff that are theoretically skilled, have high levels of educations, and polyglot laborers willing to work for slice salaries. Also, it’s an added advantage to have laborers that can converse with international customers efficiently due to their multilingual trait and the same workers appreciate the job offers given (Strain, 2019).
Considering that most companies open intending to reach international levels, establishing an overseas industry aid in the exploration of a whole new market that has negligible competition. Additionally, research helps the company in the advertisement of its brand globally, heightening economy, especially if the company has already reached its highest potential in its own country (Joseph). Also, choosing an area that has many manufacturing plants gives a company access to the best quality manufacturing products.
Difficulties
One of the most significant disadvantages of operating manufacturing firms overseas is the risk of financial security. Uncertainty in business is significant abroad as individuals cannot predict when delinquency, radicalism, exploitation or sometimes governmental variability could hit and destabilize the company. Even though inducement is an integral part of business overseas, it is not ethical and may introduce a company to legal risks, but an omission disadvantages the company. Also, outsourcing productions means an introduction to second-rate quality products, misunderstood task requests and even competition with customers to get the attention of manufactures (Strain, 2019)
To control the quality of a company’s product, the company has to spend more monies to fund management by employing managers that will live close to the firm.
Additionally, one may need to upsurge travel expenses to cater to the managers as they travel to the firm occasionally, thus reducing savings. Shipping issues is another disadvantage as a company incurs extra costs and never-ending problems such as duties, levies, postponements and also logistics. Additionally, Some communities even refuse to procure from companies if goods get shipped from overseas leading to loss (Ashe-Edmunds, 2017).
Managing Diversity When Forming Manufacturing Operations Overseas
To achieve diversity in a workplace overseas, supervisors need to understand, respect and embrace the multicultural varieties in the workers they employ. Diverse personnel include persons from various backgrounds with different pious beliefs, genders, disabilities, sexual advances and races. However, such diversity can overcome leaders, therefore, placing policies during the establishment process of a company helps in maintaining the values of a company while respecting the employees (Leonard, 2019). Company policies in a company overseas should embrace comprehensiveness and has to stretch equal chances to all personnel and also change some parts of the system when the need arises. Hill and Hult say that to manage business globally, companies needs to embrace the four scopes of administrative construction, namely perpendicular, parallel, incorporation and regulator methods (Studocu University).
Soon after sorting out diversity needs, the company needs to look at its assignments and goals and then implement policies that embrace business ethics. Additionally, plans have to be included in the contracts or handbooks of employees and the company’s website and also asking the employees to read and sign the arrangements as well. Furthermore, company policies need to have a consequences section that addresses the ramifications of disobedience and also permit victimized workers to report cases of abuse and come up with ways to handle such situations. The decorum in which reported incidents should be followed involves communicating with both the plaintiff and the respondent thereafter issuance of documented warnings (Leonard, 2019).
Communication in establishments has to be in such a way that the employee understands what the company requirements are. Thus, the use of demographics or translation methods and symbols goes a long way when dealing with language barrier issues in workers (Dyson). Also, employees are expected to treat workers individually, not in a discriminative manner and also encourage workers to intermingle with other diverse workers to erase ethnic misinterpretation. Moreover, interviews held at the company have to be anti-biased when assessing aptitudes of interviewees resulting in the employment of the most qualified persons irrespective of their culture (Dyson).
Just-In-Time Manufacturing
Most manufacturing companies encounter issues when lining up procuring of raw materials with their manufacturing timetables. Consequently, inadequacies within manufacturing operations end up in loses; thus, most manufactures have embraced just-in-time manufacturing to curb the loss of revenue. Companies such as the Toyota manufacturing firm and DELL have used this technique to protect income and minimize loses (Wilson). Just-in-time production is a form of inventory that uses regulatory technology to reduce periods within manufacturing and responding time from distributors to consumers. Additionally, the technique expects most manufactures to forecast demand efficiently; however, it has its pros and cons (Planettogether, 2019).
Pros of Just-In-Time
Just-in-time ensures that manufactures use very little space for goods as good supply will be efficient and on in-stock basis saving on a lot of funds that can be utilized on other activities in the company. Additionally, it favors minute manufacturing establishments that are scarce in human resources to stock a large number of goods and also supports the efficient reversal of products which stops retention of dead stock thus saving funds (Planettogether, 2019).
Cons Of Just-In-Time
On the downside, the just-in-time technique exposes companies to the risk of running out of stock as it only allows stock based on demand forecasting. Consequently, if forecasted stocks are wrong, it eventually leads to having the incorrect amount of goods for consumers to access. Also, the technique is time deficient as companies are expected to depend on the trader’s timeframe resulting in delayed products which result in non-repeat orders. Furthermore, not all businesses are alike, as some activities are seasonal. Therefore JIT technique demands that some annual companies stock excess goods meet consumer demands (Plannettogether, 2019).
Although companies such as Toyota and Dell made it big in international business, others such as Home Deport were not able to stimulate the market in China. These were because china saw do-it-yourself technique as a sign of poverty and preferred to pay for services unlike other Western countries (Burkitt, 2012). Additionally, a company like General motors failed as a result of being average and losing its stand gradually.
Companies seeking to invest manufacturing internationally have to embrace the strategies focused on by Hill and Hult that require investors to focus on technological factor, location of the business, procurement of products, and the implementation of just-in-time systems among others (Studocu University). Similarly, I would advise the investors to precisely identify the customers that have distinct purchasing traits that are dissimilar from others and also invest in communication strategy to have better product advertisement. Additionally, companies need to do proper forecasting so that they can withstand catastrophes when they happen. (Emott, 2008)
Conclusion
Operating a business requires a lot of planning and organization as it covers a wide range of variables such as location, employee diversity, finances expected, and business ethics, among others. Operating an international business needs a lot of commitment and implementation of ethical business policies that encourage diversity, giving a company a competitive edge over other companies in related to novelty and proprietor marking. Additionally, implementing techniques such as the just-in-time technique and proper forecasting help the company in curbing loses that might be detrimental to the company’s success. Finally, managers need to implement technologies that work for them, incorporating policies that highlight the mission and the values of the company making sure that all workers get the memo equally irrespective of the nationality, religion or culture.