Gold Diggers International (GDI), an American mining equipment firm based out of Spokane, Washington, is developing a business plan for expanding operations into the thriving Chilean mining industry. With the risk analysis complete, the next step is to evaluate various global considerations, which will affect the expansion plan and make decisions on how to address each issue. This paper will explain how GDI will address the following issues based on the risk analysis report: human resource management and cultural factors, supply chain management, information technology, research and development, and legal and ethics challenges pertaining to the Chile expansion project.
Human Resources Management and Cultural FactorsFocusing on human resource management can benefit this organization. As stated by Hill (2005), "A large and expanding body of academic research suggests a strong fit between human resources practices and strategy is required for high profitability"(p14). Human resource management, located in the Spokane Washington area, is an organization with well-developed manuals outlining the company's policies, and practices.
For expanding business in Chile, GDI intends to use a similar foundation as the one in Spokane. GDI has developed a new manual to address different laws of Chile as well as address issues with compensation, vacation, and cultural standards.
In considering the cultural differences, GDI believes in the importance of hiring experienced employees within Chile to help assemble the conveyor belts, once they are in country. Hiring experienced personnel who are familiar with the culture and fluent in the language will benefit the engineers and project managers greatly. GDI designed this process to narrow the cultural gap, which will initially exist in the new market.
Supply Chain ManagementThe strategy chosen to enter the Chilean mining market is the international strategy, by keeping the manufacturing of the equipment domestic and shipping the products to Chile. This will require...