HRM Policies and Organisational Performance †MyAssignmenthelp.com

Question: Discuss about the HRM Policies and Organisational Performance. Answer: Introduction The dynamic nature of the modern world has seen rapid changes in business operations and investment patterns. Organizations are going far and beyond to reach the diversified and ever changing global markets. Technology has reduced the world into one single global village and having a company in another country is now much easier than ever before. Cosmetics industry is an ancient business that dates back to several years ago before the advancement of technology to this current state. Cosmetics are attributed to early civilization including Egypt in the B.C. era. Oils and creams were used to protect civilians from hot scorching dessert sun and also dry winds (Chaudhri Jain 2009). It is founded on the rich ancient history from the periods of the Roman rule to ancient Greek and Asia, and now it has found its place in the modern history. The industry has grown to present a big opportunity for business ventures. The US economy is comprised of a set of consumers of different ethnic background, and provides a good source for cosmetics market. It is also a country characterized by strong economic base and frequent new lifestyle trends that accompanies trying of new products in the markets (EY 2014). The global cosmetic trends also favour products with health benefits to the bodies of the consumers. The country is also safely popular when it comes to the sales of cosmetic products which provide glimmering hope for the cosmetic business ventures. Therefore, Australian Cosmetic Company intends to exploit the American market with precision of quality products, and in addition to collaborate with local cosmetic companies in providing the best for the industry obsessed with the best. The collaboration will be a breakthrough technique of accessing the American market. It is a necessary and cautious step of breaking into a new market structure in a different country with different culture and beliefs. Joint venturing is deemed as a perfect transitional step into full operations. The Description of Cosmetic Venture The Australian Cosmetic Company intends to gain a great share of American cosmetic market through collaboration with other popular local cosmetic dealers in a joint business venture. Given the potential the US cosmetic market holds, the business has higher chances of gaining rapid market share (EY 2016). The foreign nature of the company in the US could have been a tricky hurdle to overcome, but given the approach taken to jointly venture in the business with local dealers, then all is made easy as they will help in the transitional process of understanding the market trends and practices. The partners will also aid in market analysis for the product, which is a strategy that will boost the performance of the Company products (Abbas 2017). Going by the market potential of the US economy in the cosmetic industry, the Australian Cosmetic Company plans to launch a wide range of cosmetic products from body lotions and perfumes, to deodorants and other body sprays after the debut launch of the makeup paper strips. The company will further set a product line specifically for both men and women among its future plans. It is an emerging trend in the cosmetic global industry whereby, unlike the previous years, currently most companies have developed a line of men cosmetic products that have same resemblance to that of women (Aginsky Consulting Group 2007). It is a market strategy aimed at tapping into a tight men industry, which is preoccupied by the general assumption that cosmetics belongs to ladies. The inception of the Australian Cosmetic Company was inspired by the love of the American people for new cosmetic products, and the promising market boom the US has been experiencing, which promises a better future. The market trends promises huge returns on investments, with the target market being the vibrant youth of between 20 to 45 years of age. It is a project intended to break into the US cosmetic market with the real intent. The Management In every organizational set-up, management is always at the center of operations and functionality of the organization (Hussain Ahmad 2012). It promotes workflow and gives direction to the flow of all organizational operations. Human resources will guide the company in hiring of the right employees for the job, enhance good working environment and employee satisfaction, conduct performance appraisals, replace the underperforming workers and cultivate good and sustainable employee-management relationship. In addition, the management will devise strategic plans to guide the business in the desired direction. The company also intends to utilize the management to play a role of creating awareness about the mission, vision and the values of the cosmetic company, lure partners through proper representation of the company interests to the highest stakeholders within the American industry, with an aim of constant growth (Katou Budhwar 2010). The management structure will be set in a way that reflects the set goals of the company and primary objectives of accessing the cosmetic market, creating a superb network of reliable clients, establish certified distributors of the company products, conduct market research to set reasonable price and embark on customer analysis research to determine the consumer behaviors and response to the product. From that point of view, the company management will comprise of the Chief Executive Officer who will oversee all the organizational processes for the firm at the pinnacle of the management. Then the company will employ a series of departmental managers for the head office, regional state managers in each state of the US who will collaborate closely with local and popular managers of other cosmetic companies. The company will also have sales representatives, company workers and above all, the Human Resource Manager in charge of human resources. The Companys Marketing Plan Marketing provides grounds for the sale of the products. It is one of the most vital factors to consider that can make or break a business venture (Isoraite, 2009). It is a crucial process of identifying and making efforts to diversify your products for the buyers in the market. It involves the process of informing the potential clients, customers or consumers about the presence of your product within the market and convincing them about problem-solving abilities of your product, much better than other existing or non-existing products (Copeland Borough Council n.d.). The Australian Cosmetic Companys marketing plan is just more than an ordinary set task of announcing the new line of cosmetic products into the American market. Furthermore, as much as local partners in joint venture will provide a boost in penetrating the product to the heights of the market; it does not guarantee market success. Therefore, the company has a planned strategy on how to effectively strike the mind of the potential customers with the new cosmetics. The bottom line of understanding a clear way of marketing your product is by first establishing and knowing your target market audience (Lynn, 2011). In this case, the target market of the companys products is the youth ranging from twenty years of age to middle-aged adults of not more than forty five years. These are the people who will provide the needed customer base, with their social vibrancy and curiosity of trying out new products. Globally, it is known that the highest consumers of the cosmetic products are the young adults. They are confident and have the desire to look more attractive among the rest. It is this behavior that explains the inevitable profiling of this group of people as the potential buyers. Obsession with flashiness and attractiveness makes them number one target, and the only remaining part is to get them. The Australian cosmetic company will analyze all the macro environmental factors, that is, all the external factors beyond the companys control such as political state of the US (Sammut-Bonnici, 2015). The Micro environmental factors such as the company suppliers will contribute significantly to the marketing quest of the firm. However, given the stable economic and political situation in the US, there are very good and favourable marketing conditions. The company will employ the marketing mix strategy as part of efforts to steer their marketing agenda. The marketing mix refers to the wide range of efforts and options organizations decides in process of bringing the new product to the market. It involves all the efforts the organization will apply to make known of its new line of products to the potential clients. Marketing mix uses 4Ps; which stands for the Product (or service), Place, Price of the item and the Promotion. It is an effective method of reaching the new product to the customers and provides very reliable basis for good results when properly utilized (Ehmke, Fulton Lusk n.d.). The company intends to first introduce the makeup paper strips as its debut product within the market. It is a product which will have good impression to its users. Having definable product in the market is one of the advantages the firm will bank on in quest to salvage their market share. In terms of the place, the Australian cosmetics company is an international cosmetics company from Australia, entering the US market space. The product prices will be set in consideration to the existing market prices and the makeup paper strip will go for $20, in an opening pricing strategy to lure the target customers. Promotion is the most important part in fulfilling intended goal of the product. It will involve different techniques such as limited offers, free samples of the product for testing, media advertisements and social media marketing to promote the product to the target market (Cuellar-Healey, 2013). Competitor Analysis One of the most competitive cosmetic industries is based in the US. There have a constant growth on the national revenues posted from the industry in the recent years. The country boast one of the best cosmetic companies and globally recognized, therefore, that is an important point that the Australian cosmetic company will determine to establish their counter measures on how to compete favourable and graciously among the established best. Business micro environment contains competitors that pose a very huge threat to the goal of achieving maximized profits (Ray Ross, 2008). They are the direct predators that also target the same market with the same similar products and outperforming them is the only way for the survival of the business. Top cosmetics company Burts Bees, has over thirty years of operational experience while Maybelline Cosmetics dates back to 1915 and still provides a competitive edge for its long stay in the game. They pose a huge threat to the success of any new entrants, especially if the new player in the industry is a foreign one. Most of the American cosmetics companies have grown to sell their products abroad and their products are based on higher pricing, an exploitation which the Australian firm intends to utilize. The collaboration with the local companies mean, there will be a blend of new and old to bombard the market (Procurement Leaders, 2013). The products will be portrayed as something new ever seen in American cosmetic industry and market. But above all, one common factor that seem to trend in the American cosmetic market is the overpricing of products. The Australian Cosmetic Company will introduce an overly new health-friendly product at slightly lower prices as compared to the direct competitors. Financial Analysis Finances are primarily the engine of the business and it matters most to have enough finances for the advancement of the business venture. Sources of finance are scarce and rare to come by even with ideal and promising business venture, sometimes financiers may decline to support the projects for no apparent reasons or sometimes because of unknown fear (Thomson Reuters 2008). The amount the Australian Cosmetic Company requires to establish its full operations in the cosmetics industry is close to $60 million. With 75% projected success rate, the company is estimated to make rapid economic progress in the market, competing favorably and earning its market share which in turn results if profits. The Australian Cosmetic Company will seek seed funding from any venture capitalist to enable the projected successful running of the company. The firm provides a real deal in cosmetics industry, first coming in with an overly new product never used before within the American cosmetic context, a new perspective and using tactful pricing criteria to lure customers. A quick look at the current American cosmetic industry notifies you about a significant increase in financial figures in terms of investments and total revenues in profits earned. The US market invests an annual amount of nearly $60 billion in the cosmetics industry with annual profits of $11 billion reported within the industry. The amount in the industry in terms of investments and the profits earned showcases the possibility of successful venture Australian Cosmetic Company can become in the American market. The combination of proper funding, successful market penetration and coordinated business operations with the partners promises better results for the company. Risks and Challenges Success comes after a battle against the opposing circumstances, overcoming hurdles and all the obstacles that can derail the progress. This is referred to as challenges. The obstacles to success are everywhere especially in the business sector (A Director's Guide 2012). Australian Cosmetic Company is faced with numerous challenges and the most common and conspicuous one is the stiff competition within the US cosmetic industry. The challenge provides a real threat to the successful establishment of the company within the new environment. But this will be easily solved through strategic collaboration with the local popular ventures who understand the market dynamics much better. In a high paced economy like that of the US, technology is advanced in every activity, which will initially affect the performance of new entrant Australian Cosmetic Company. However, this is a question of adaptation to business processes, and the firm will also invest in complete technology in the overall processes to compete at par with other tech warriors. And finally, the problem of consistent funding is a valid challenge that will affect performance of the cosmetic firm, and in addition getting the product to the market. It is a challenge that needs the most address and attention. However, when the financial security will be secured, all the business activities will swing into place and the company will set aside a marketing budget to facilitate promotional activities that would create awareness of the new cosmetic product from Australian Cosmetic Company. References A Director's Guide 2012, Business Risk: A practical guide for board members, Director Publications Ltd, London SW1Y 5ED. Abbas, A 2017, 'The Beauty And Personal Care Market: Global And Regional Overview', Euromonitor International, pp. 5-16. Aginsky Consulting Group 2007, 'Cosmetics market research summary ', pp. 1-8. Chaudhri, SK Jain, NK 2009, 'History of cosmetics-A Review', Asian Journal of Pharmaceutics, pp. 164-167. Copeland Borough Council, 'Health and safety in the beauty industry ', (Revision 2), pp. 5-60. Cuellar-Healey, S 2013, 'Marketing Module 8: Promotion ', Marketing Modules Series. Ehmke, C, Fulton, J Lusk, J, 'Marketings Four Ps: First Steps for New Entrepreneurs', Purdue Extension. EY 2014, 'Challenging growth in the luxury and cosmetics sector ', The luxury and cosmetics financial factbook , pp. 2-55. EY 2016, 'Keep calm and care about your consumer ', The luxury and cosmetics financial factbook , pp. 2-82. Hussain, M Ahmad, M 2012, 'Mostly Discussed Research areas in Human Resource Management (HRM) A Literature Review ', International Journal of Economics and Management Sciences , vol II, no. 3, pp. 10-10. Isoraite, M 2009, 'Theoritical Aspetcs of Marketing Strategy', Ekonomika ir vadyba: aktualijos ir perspektyvos, pp. 114-125. Katou, A Budhwar, P 2010, ' Causal relationship between HRM policies and organisational performance: Evidence from the Greek manufacturing sector ', European Management Journal, no. 28, pp. 25-39. Lynn, M 2011, 'Segmenting and Targeting Your Market: Strategies and Limitations ', Cornell University School of Hotel Administration: The Scholarly Commons. Procurement Leaders 2013, 'Strategy Guide: Supplier Relationship Management'. Ray, P Ross, M 2008, 'Competitor Analysis ', Gateway Series Sries No 21. Sammut-Bonnici, T 2015, Macroenvironment, Wiley Encyclopedia of Management. Thomson Reuters 2008, 'Financial Analysis CS', Sample Reports, pp. 2-74.