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The internationalization of the company and human resource management

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  1. Introduction
  2. Summary of the text
    1. Different internationalization strategies
    2. Organizing for the International
    3. Managing human resources abroad
  3. Application examples
  4. If Carrefour
    1. Presentation of Carrefour
    2. Carrefour and its general approach to international
    3. The method of remuneration of expatriates in the Carrefour Group
    4. Return management in the Carrefour Group
  5. If Nestle
    1. Career management group's international Nestle
  6. Personal analysis
  7. Conclusion

Today, most French companies have had the "great leap" in international markets. With increased trade and international context, the phenomenon of globalization has forced companies to open their activities abroad. Even if we can see significant differences in their degree of internationalization, all companies show the same willingness to develop their international business.

With this phenomenon, companies had to adapt their entire organization to better manage this change. Thus, even human resources companies have transformed themselves. We will therefore consider the implications of this development on international companies and their management of human resources. First, we will present the summary of the text "The internationalization of business and human resource management," and later, we will analyze this phenomenon with two examples and conclude with our personal analysis.

Nowadays there are two main strategic logics: the movement of globalization on the one hand and national realities on the other. Large companies, who want to follow this trend of internationalization, should adapt their strategy and organization. That is why the great problem of this text lies in the nature of the consequences of international development companies on their policies and their management of human resources. We will follow the lines and text to outline first the different internationalization strategies, then we will see how to organize international and finally we will study the management of human resources abroad.

Internationalization strategies have evolved over the years. In fact before 1945 there were few companies in the CAC 40, which opened to international companies such as Michelin or Saint-Gobain. It was only after 1980 we could see a real acceleration of the internationalization that remained was that point. Many factors are to blame as the European Development or the crash of 1987. Since 1995, the major French companies that have mostly made the leap to the international emphasis on a policy of aggressive acquisitions and thus follows a wave of off-shoring and major acquisitions.

This internationalization is nowadays indispensable for the economic health of companies so that 65% of the turnover of the CAC 40 is made outside our borders in 2000. Moreover, it leads to higher numbers working abroad.

This openness to international meets not only will business growth, profitability and profit, but also at the opening and liberalization of trade in recent years. International trade is greatly facilitated and less expensive giving rise to the creation of companies with no national identity as EADS, entirely European.

Four factors are cited as pushing for internationalization: cost factors: lower production costs and distribution, economies of scale, experience effect; market factors: new markets, new markets, risk spreading; competitive factors: the anticipated demand in new markets, escape the competitive constraints; human factors: new rare skills.

To internationalize, there are different modes of internationalization, while acquisitions and alliances are the most common:

Takeovers and acquisitions of existing companies: This mode is the most widely used because it represents a fast and convenient as it is based on environments already formed (existing market, sites run in, knowledge acquired, and trainees).

Partnerships and joint ventures: This mode of internationalization will enable companies to develop relationships that eventually help them access to skills or a sales network while sharing the risks.

Creation of new bodies in the name of the company: This method, although more risky, still has seduced many companies wishing to relocate abroad directly as Renault and Carrefour.
Tags: human resource management, internationalization of companies, factors contributing to internationalization

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