NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
developing a hiring strategy
Submission Date & Time: 2021-11-21 12:34:56
Event Name: NMO S4 Sprint One
Solution Submitted By: Amrita
Assignment Taken
Human Resources Department : Develop a Hiring & Incentive strategy for Human resources working on international expansion to enable a speedy growth.Case Understanding
Ramalingam Foods established by Mr. Ramalingam Venkatesh in South Bombay in 1965, is a successful fast food restaurant. It was famous for their authentic south Indian Freshly cooked food and filter coffee. During 1975, when India went under political turmoil and there was pressure in the market to sell goods at bare minimum price. But, Ramalingam Foods came up with innovative solutions and started selling Dosa-Idli Batter & packets of authentic south Indian chutneys. The next generation took over the business and thereby he thought to expand his business and started working on some innovative ideas to deal with the problem of low shelf life of Idli-Dosa batter. He came up with a wide portfolio: Instant Dosa Mix, Instant Idli Mix, Instant Gulab Jamun Mix, Instant Laddu Mix, instant coffee powder Instant Dhokla mix. They are available in different packaging. Now they are looking for expansion globally. Mr. Vijay has no prior experience of international business and hashired Infinity Business Consultancy for consultancy on international market expansion within a budget of INR 50 Crore for International Business expansion for FY 2019-20. As Ramalingam Foods don’t have enough capital and business acumen to enter more than one foreign region at a time thus they have requested Infinity Business Consultancy to suggest one region to start with international expansion.BCS Solution Summary
Ramalingam Foods, an Indian company, which has a ready to cook product portfolio including South Indian food mix of idli-dosa instant mix,dhokla, gulab jamun mix and filter coffee asked IBS for advice regarding international expansion. Since Malaysia, Singapore and Indonesia have a huge south Indian population, IBS has suggested that the company should expand in these regions. The company would start by expanding in the Malaysian market because of its higher ranking in ease of doing business ranking, followed by export to Singapore by road and Indonesia by waterways from there. The company would build a production unit in Malaysia to cater the demand of the Malaysian market in the initial phase. After expanding in the Malaysian market, the company will start exporting to the neighbouring countries of Indonesia and Singapore. IBS has even advised Ramalingam Foods to launch current products in these three countries this year with planned product portfolio enhancement over next two years. Possible Options for Expansion: Entering Malaysian, Singapore and Indonesian MarketSolution
If a company wants to hire local nationals, it has a few distinct possibilities. The following are some of the most prevalent worldwide hiring strategies:
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Foreign independent contractors
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Registering as a Non-Resident Employer (NRE)
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Establishing a foreign legal entity to hire full-time employees
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Partner with an International Professional Employer Organization (PEO)
We would like to go ahead with the method of Partnering with an International Professional Employer Organization, and further we would explore why this is the method most aligned with our goals:
International PEO is a cutting-edge service that enables businesses to hire personnel from all over the world swiftly, legally, and without the hassle of forming a foreign legal company.
Benefits of adopting this approach:
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When compared to forming a foreign subsidiary, an international PEO can have staff up and running in a new market in as little as 48 hours, and at a cost which is almost 60% lower.
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This method makes use of local experience to reduce liability and employment-related issues.
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International PEO is a flexible solution that allows businesses to exit a market swiftly and without incurring additional costs if necessary.
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This approach is used effectively by companies in many markets at the same time.
Conclusion
o enter Malaysia, Ramalingam foods need to extensively market their product through various channels and to create a top-of-mind recall and brand equity for the same. We are aware that there is a demand, we just need the consumer to choose Ramalingam Foods to fulfill their demands.Attached File Details
Comments
Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Type: Case Study
Stream: Management
Indian Institute of Management Sambalpur
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