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T1 (Ch1) (Morgon model of IHRM (p.3) (Countries of operation (Other…
T1 (Ch1)
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MAINFREIGHT
External factors
PESTLE
Sociological - needing Asia as a hub, but significant cultural differences to manage there
Technological - big focus on this, using this as a significant competitive advantage and a way to punch above their weight
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Legal - difficult in US market, also needing this as an important hub and potential market
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Environmental - huge influence as the logistics industry is so heavily reliant on non-environmentally friendly methods, big focus on finding alternatives here
Org links to other MNEs
Big priority for them in terms of their customers, need to link with big MNEs and provide for theirs full logistics needs, this helps them push into new markets
Org factors
MNE structure: MF have needed to accept different structures in different markets to maximise the chances of success, i.e. in US market they act more as an agency, rather than performing the work themselves, in Asia they often enter with a local partner, then take over the operation once their brand is established
Firm size and maturity: MF are still in their infancy really, although they have made significant growth in their first 40 years. They prefer a very flat structure but as they grow they acknowledge the need for more layers than they would like.
Balance of global integration and local responsiveness: MF acknowledge they got this wrong at first, trying to impose Kiwi methodology in international settings, they have progressed to a much more localised method, allowing local branches more control over their practices and policies to fit their culture
HQ int orientation: This is strong in MF, they have clear visions of being a truly global MNE and all strategies consider this goal
MNE culture: MF culture is very strong and unique, a very people centric focus, this can cause challenges in different cultures where hierarchy and tradition are strong so MF has to consider this.
IHRM definition - Covers all issues related to managing the global workforce and its contribution to the firms outcomes. (p.4)
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