STUVW Industries PESTLE analysis
STUVW Industries PESTLE analysis
Description of the assessment
In the module handbook you learnt that that for this coursework you have two assessments: an individual report based on a PESTLE analysis and an individual report focusing on HR practices. Both assessments will require you to assess the challenges of managing teams based in different countries. You will explore cultural differences as well as organisational strategy at a global or international level.
The task is outlined below:
STUVW Industries (STUVW) manufactures ball bearings, chassis components for large trucks and earthmoving parts, including over 1200 steel parts for the wholesale supplier market. Since the early 1940s the business has relied on ingenuity and creativity which has allowed it to grow into a modern state-of-the-art factory. It is a multimillion-pound business with clients spread across Europe. The company has for a long time managed with a smaller workforce of around 150 workers with approximately 10 per cent managers and office workers, 5 per cent supervisors, and the rest production workers. From the earlier years of the business until the present day, crafts workers are trained on the job as most work is completed by hand with a mix of old lathe technology and new computers that bend and shape steel materials. However, over the last few years, computers and robots have been increasing productivity by effectively reducing the need for workers by about 20 per cent.
The majority of workers are allocated to one of five production pods, which are designed around customer products such as ball bearings, steel parts, truck chassis, steel panels, and also earthmoving parts. The production of ball bearings and truck chassis is increasingly being taken over by robots which has increased productivity by 18 per cent within a short time frame. Over 60 per cent of the company’s workers, including all the engineers, are over 50 with a further 20 per cent over 60 years of age, which is the reason for looking to expand into new markets and diversify the skills in the workforce.
The company has managed to use the craft-based approach as the basis for marketing and promoting its business; it is a large part of their branding. They highlight the fact that their products are made with the utmost care and attention, many of them by hand, by a group of highly knowledgeable workers. As a family run business, the approach therefore is focused on caring for staff, providing a safe and enjoyable work environment, giving extra leave for personal circumstances in addition to statutory requirements; they want to maintain the existing family-based culture.
Your task: STUVW has appointed you as HR Consultant to assist them with a review of country and cultural factors they need to be aware of before starting to expand their business. You are required to select two countries of your choice (country A and country B) for STUVW to expand the business into. You have been asked to carry out a critical review of the main challenges that they may face using PESTLE and Hofstede’s Cultural Dimensions. You will provide a report focusing on your analysis and recommendations based on the following:
- What are the major institutional and cultural differences in country A and country B? How do they compare to the culture of STUVW? Use relevant models and theory to support your discussion and analysis.
- What are the challenges and barriers of working in a multicultural managerial team comprising representatives from different countries and cultures? What aspects or factors should STUVW focus on?
This coursework assesses learning outcomes one (LO1):
- Critically evaluate approaches to managing the human resource on an international basis
To answer these questions, you will be expected to:
- a) Develop an analysis about the major political, economic, social, technological, environmental, and legal factors with special emphasis on the institutional and cultural differences between country A and country B. This analysis will be based on a critical evaluation of the relevant literature about the theoretical debate on International HRM.
- b) Discuss the role of national cultures of both countries (A and B) on the transfer and/or creation of a new organisational culture
- d) Draw conclusions and your recommendation for which country would be the best option.
We will explore the content of the coursework together in a synchronous session in Weeks 1-5.
The assessment rubric on the next page shows the complete criteria of the CW and how you will be assessed. We will explore the content of the rubric together in a synchronous session in Weeks 1-3. When the assessment is returned you will receive a digital version of the rubric showing how you performed against each criteria.
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