1) What are the four international staffing approaches and which one would best suit the case of an Australian SME establishing a subsidiary in Venezuela?
2) What are the three international business ethics approaches and which one would be most effective in addressing corruption issues in the new subsidiary in Venezuela?
3) What are the potential negative factors that can influence the repatriation adjustment process in the case of the Australian SME establishing a subsidiary in Venezuela?
1) The four international staffing approaches are ethnocentric, polycentric, regiocentric, and geocentric. In this case, the polycentric staffing approach would best suit the Australian SME establishing a subsidiary in Venezuela. This approach involves hiring locals to run subsidiaries, which would be beneficial in navigating the local environment effectively. The Australian founder lacks Spanish and regional knowledge, so the polycentric approach with a Venezuelan national as the Technical Manager would ensure success in the Venezuelan context.
2) The three international business ethics approaches are Utilitarianism, Rights and Justice, and Virtue Ethics. In addressing corruption issues in the new subsidiary in Venezuela, a Virtue Ethics approach is recommended. This approach focuses on individual character and virtue, promoting integrity and honesty in the culture of the subsidiary. Utilitarianism and Rights and Justice approaches may not effectively combat the widespread corruption in Venezuela.
3) The repatriation adjustment process may be influenced by factors such as expectation management, cultural re-adjustment, career management, and family adjustment. In the case of the Australian SME establishing a subsidiary in Venezuela, repatriates may face challenges in managing expectations, readjusting to their home culture, finding suitable roles in their careers post-repatriation, and ensuring their families adjust to the new environment.
International Staffing Approaches:
Ethnocentric Approach: This approach involves recruiting domestic staff from the parent company's home country for managerial positions in foreign subsidiaries. In the case of Venezuela, the Australian founder could be considered under this approach. However, her lack of Spanish and regional knowledge may pose challenges in managing the subsidiary effectively.
Polycentric Approach: The polycentric approach hires local staff to run subsidiaries. This approach would be most suitable for the Australian SME in Venezuela, as it allows for better understanding and navigation of the local environment by employing Venezuelan nationals who have the necessary skills and cultural knowledge.
Regiocentric and Geocentric Approaches: These approaches focus on regional and global expertise, respectively. In the context of establishing a subsidiary in Venezuela, the specific challenges and requirements of the market may make these approaches less suitable compared to the polycentric approach.
International Business Ethics Approaches:
Utilitarianism: This approach seeks to maximize the overall good for the most people. In the context of addressing corruption in Venezuela, utilitarianism may not effectively combat the prevalent issues due to the complex nature of corruption in the country.
Rights and Justice: This approach aims to protect individual rights and ensure fair distribution of benefits. While important, it may not be the most effective in dealing with corruption issues in the new subsidiary in Venezuela.
Virtue Ethics: Virtue Ethics focuses on individual character and virtue, promoting honesty and integrity. Implementing a Virtue Ethics approach in the culture of the subsidiary would be most effective in managing and reducing corruption risks.
Repatriation Adjustment Factors:
Expectation Management: Repatriates may have high expectations post-return, which could lead to dissatisfaction if not managed effectively.
Cultural Re-adjustment: Returning expats may struggle with readjusting to their home culture after an extended period in a foreign country.
Career Management: Repatriates may face challenges in finding suitable roles or advancement opportunities upon their return.
Family Adjustment: The adjustment of family members to the home environment post-repatriation can be a significant factor in the overall repatriation process.