1. What do you consider to be the most important factors of culture in terms of Star-Global‘s impact on business?
Culture is a significant part of any global business. In this context culture entails a collection of values, behaviors, beliefs, and customs of members of the society. Even in business, culture is a behavior of people in the community (Lerner & Schoar, 2010). Any business with the intention to grow beyond its local boundaries has to consider the impact that culture of the new market will have on its business. Analyzing Star-Global business activity, it is evident that the company has become a global business that opens up outlets in almost all continents. In this case, it is necessary to consider the most important issues related to culture that the business might face in different markets that appear all over the world. Star-Global is a world class business-to-business provider of customized engineering solutions. Culture is one of the major factors, which affect its business growth. On a general perspective, the most important cultural factors in relation to Star-Global business include language, social structure, and religion. This means that any expansions of the company beyond the United States must be accompanied by detailed analysis and understanding of the culture of the local market for it to become successful. This means that Star-Global’s management will have to understand the differences in values and ethical behaviors to make sure that the organization will operate efficiently in the new international markets.
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Language will help in communication and conduction of business in markets with diverse forms of communication. For instance, for Star-Global to successfully establish a market in China, the management will have to consider the language factor. Having an office, which can integrate different ways of communication in different cultures, will have a positive impact on the business. In this regard, the company will have to re-align its human resource department and ensure that only people who understand different cultures are hired. Language and communication are major obstacles in the process of any business communication. Social structure of any region also determines the impact of culture on the business. Social structure determines different ways in which the business is carried out in the region, hence the need for Star-Global management to explore different social structures of the business. Social structure refers to the organized system of a given society, which contains particular pattern of relationships. This has always influenced global businesses as the management has to function in line with the set system. In addition, the religion cultural factor has a strong influence on international business (Hill, 2009).
2. How might United States extraterritorial laws affect IHR for Star-Global?
With Star-Global company having long-term expansion objectives, various factors have to be considered if the business wants to remain successful. International expansion calls for incorporation of International Human Resource (IHR) aspects as most of the employees will come from foreign countries. In as much as there have been calls for free trade amongst countries, various factors have necessitated creation of laws to govern business operations. For instance, the United States has created extraterritorial laws, which govern relations between the US and other countries. Extraterritoriality exempts certain diplomatic agencies and persons operating in a foreign country from the jurisdiction of the host country. In this case, the agency or individual will remain accountable to the laws of the native country.
The United States is one of the nations with extraterritorial laws, which had varied impact on the growth of global business. US laws with extra-territorial intent include most of its anti-discrimination legislation, Foreign Corrupt Practices Act, and Sarnanes-Oxley Act. In relation to its application to employment rights, any US multi-national must comply with extra-territorial application of three given US anti-discrimination statutes. This implies that these laws protect US citizens working for US companies in their overseas offices. The impact of these laws on Star-Global business is seen during the process of hiring employees for the organization. This might limit human resource operations as they will have to adhere to the set rules and regulations. In some cases, certain regions might not be comfortable with allowing recruitment of people from their region and being governed by outside laws at the same time. In turn, this will negatively affect the recruitment process and lead to lack of balance in region terms (Dover & Frosini, 2012). The management wishes to integrate different functions at a global level while, at the same time, continue to be responsive to local conditions. According to Bob, the best department that can achieve this objective is human resource department. However, with the presence of extraterritorial laws, this objective may face obstacles beyond Human Resource department’s capacity. The HR department will have to greatly rely on four factors, which will determine the extent of company’s operations. These include interrelation of company’s operation, common management, centralized control of labor relations, and common ownership of the business. Through consideration of four factors, Star-Global will encourage teamwork, which will give the company a competitive advantage.
3. What factors of corporate social responsibility should Star-Global consider for its operations?
Adherence to rules of corporate social responsibility is mandatory for all companies, both at local and international levels. Star-Global company has ventured into different communities, hence the need to critically explore different corporate social responsibilities. On a general aspect, corporate social responsibility refers to “the way firms integrate social, environmental, and economic concerns in their values, culture, decision-making, strategy, and operations in a transparent and accountable manner. This in turn helps to establish better practices with the business, create wealth, and improve society”. In relation to Star-Global company, several factors of corporate social responsibility will influence their business growth.
Being an engineering based company, Star-Global has varied options to incorporate in corporate social responsibilities. First, the company will explore the external structure of the community. This factor seeks to understand social and economic needs of communities in which they operate. Next, the company will consider external actors of the business. In this context, Star-Global will need to know other actors, whom the corporation may seek to influence in a positive manner. External actors may include NGOs, government agencies, regional or international organizations, and even investors in the community. Internal structure of the business is also another factor influencing corporate social responsibility of the business. Engaging internal structure will create business opportunities for stakeholders, such as customers and suppliers, to get involved in corporate social responsibility activities. In addition, internal actors will be equally a major factor. At this point, the company will consider its beliefs, values, and interests, which govern decisions that executives and managers make in relation to social actions (Grabar & Tafara, 2009). By engaging actively in corporate social responsibility activities Star-Global stands out as a responsible company investing in various companies in the regions acquired. This improves company’s image on an international market hence more business opportunities and adaptation in new areas.
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