Leadership amp; Communication Strategies for MOA Beer Prepared by - Jugal Presswala Student Id - 13482184 Tutor- Dr. Femi Subject - IBS804 Managing...

Executive Summary ...……………………………………………...…………. 2

Introduction 3

Leadership Strategies ………………………………………………………... 4-5

Communication Strategies 5-6

Discussion……………………………………………………………………….7

Conclusion 8

Recommendation 8

Bibliography…………………………………………………………………… 9

1. Executive Summary

This report is created for Board of Directors, Top Level Management and Decision Makers of Moa Brewing Company from a point of view of Human Resource Department to develop Leadership and Communication Strategy for their company and mainly its MOA Beer product based in New Zealand which is planning to expand its reach by entering into India.

The main purpose and aim of this report is to focus on the formulation and understanding of leadership and communication strategies which are very important for the smooth running of the company in the globalised environment and also required to prepare in advance for the challenges which may arise in the near future while entering the Indian Market.

HRM is the common acronym use in the report which is used to describe Human Resource Management which defines the activities of using the human resources successfully and competently.

Recommendations that are made are also discussed in detail in the below report like different methods of communication that should be considered and also proper leadership and staffing procedures that is to be chosen. We will be discussing these recommendations in detail with the solutions of various challenges that can be faced upon in India like language barrier, child labour, corruption, ethical challenges and legal issues. (Khan, 2014).

1. Introduction

MOA Beer is a product of the MOA brewing company which is a New Zealand based brewery located in the Marlborough region of New Zealand. MOA brewing company was founded in 2003 by Josh Scott. It is mainly engaged in manufacturing of craft beer. Craft beer is a beer made in a traditional or non-mechanized way by a small-medium size brewery. MOA Beer is a medium sized organisation with total revenue for the year 2017 being NZD$ 102 million (MOA Beer, 2017). MOA Beer is now planning expand its business at an international level by entering India. Thus, being the head of human resource division, a leadership strategy and communication strategy needs to be created for the organisation to start up its business in India.

The report talks about administration methodologies which needs to examine the issues of differentiations in culture, moral issues, political issues and so forth. Expansion and extension is the central objective of every business which gives new heights to the business. This report examines about the organization procedure which helps the relationship in managing the business superiorly by overseeing towards the right heading. Correspondence causes the relationship to exchange the thought, information and considerations with each other so authentic channel for the correspondence which has to be developed.

Different issues are confronted by the association amid the development of the business at global level. These issues incorporate contrasts in the way of life i.e. culture, correspondence hindrances i.e. communication barriers, moral issues, legitimate issues and administration of the human asset. Every aspect of these issues are discussed and analysed in the report and also this report has tried to suggest some strategies to overcome these issues.

1. Leadership Strategies for Moa Beer

Leadership skills are the strengths and capabilities that an individual shows which helps to guide initiatives, look over the processes and help the employee towards achievement of goals (Rouse, 2014). The process of combining good leadership skill along with well tactics to foresee a vision for an organisation in known as Strategic leadership. The strategies of leadership are essential for making an organization capable of facing the issues like Staffing - selection of employees, ethical issues, training and development, cultural differences between nations.

1. 1. Leadership Strategy

Leadership is just not only about being a leader, but it’s about leading by examples, motivation and taking the team to the next level by achieving the targets set by the company (Hill W. C., 2012). In order to form any leadership strategy, many important factors are to be taken into account like geographical location, staffing policies, legal environment etc.

It’s the job of Human Resource Management to take into consideration appropriate strategy for recruitment and selection of staff. There are mainly three different types of staff selection strategy that we will discuss further in the report and they are:

Ethnocentric Approach: In ethnocentric approach the key positions in the organisation are filled by the employees of the parent country. All the important managerial decision like mission, vision and objectives are decided by the parent company and the same is followed by the host company. In this approach it is believed that the staff recruited from the parent company can easily understand and follow the same ethics and goals of the parent company (Business Jargons).

Geocentric Approach: In geocentric approach the organization hires the most suitable candidate for the job irrespective of his or her nationality. The ideology behind this is the world is a large pool of talented staff and the most suitable employee who has the ability to perform the job efficiently despite of his/her nationality should be appointed for the job (Business Jargons).

Polycentric Approach: In polycentric approach the national of the host country are recruited for the job. The idea behind this approach is that the locals from the host country have more knowledge about their culture and can run the business more efficiently as compared to home country managers (Hill C. W., 2015).

Here, Moa Beer is planning to operate and start their manufacturing unit in India. So at an initial level it would be better for the Moa Beer to adapt to the ethnocentric approach. By doing this the value and the ethics followed the parent company will be incorporated at the host company as well and the fear of misleading the company won’t exist as it’s very important for any company to have a steady beginning. As a human resource department head, the recommendation would be for sending an expatriate manager to India as expatriate managers are the one who has the capabilities and expertise of the business and can easily help in setting up the new unit. Further down the line Moa beer can switch to geocentric approach once the ethics and value that are followed by the parent company are transferred and accepted by the employees of the host country which they have been a part of from past few years.

1. Communication Strategy for Moa Beer

Communication is the exchange of information between receiver and sender. It is no necessary that a communication has to be face to face, with a change in technology methods of communication has also changed. Communication can be of many types like external-internal, verbal–nonverbal, formal-informal, etc. It is important for people to take into consideration every aspect of how they are passing information. This is where communication strategies come into play. Communications strategy lays the plan of how the information will be passed from one department or person to another department or person (Johns, 2017). This communication plan is made for passing on the message and information between the representatives of Moa Beer, New Zealand at the home country and host country. As a result of the absence of correspondence plans between the different zones of business issues related to overall trade rises.

The organization of Moa Beer, New Zealand requires to take into action some particular strategies of communication with the ultimate objective of conferring the specialist frameworks for the satisfaction of the goals of the affiliation. These procedures helps to tuning in, addressing, using reasonability, messages, coordinating between workshops, conveying articles or notices of the association and get-togethers.

1. 1. Communication Strategy

By this report we have tried to create a communication strategy for different management levels for Moa beer, also it focuses on creation of clear communication plans not only for different levels of management but also different department working in the company. This would help in removing any miscommunication and improving relationship internally within the departments. The communication strategy for Moa beer is as follows:

Upward flow - Communication in a company that is flowing up the chain give the management important feedback about the current work conditions of the company. Feedback, reports, information about the customer and suggestions all important information passes from subordinate to manager. Devices that encourage open correspondence starting with one level to another level includes surveys, standard meetings, an open-door policy and furthermore permitting workers on take part to counselling panels (Johnson, 2017). This will help the employees to work freely as they would be able to discuss their problems or ideas with the superior giving them a sense of ownership in the company.

Downward flow – In this the communication flows from the top level management to the employees as well as different departments. The communication here includes appraisals, feedbacks, directives from the owners of the company or parent company (Johnson, 2017). By doing this the management shows the control over the departmental heads and the day to day routine activity.

Lateral movement - People of the same or similar level communicate among themselves. The managers of departments do as well. These horizontal communications allow people to coordinate efforts so that one hand knows what the other is doing. Horizontal communication also includes external contacts with suppliers and customers. The information gleaned can then be shared with departments or team members. Besides direct contact and written messages, horizontal communication relies on tools such as toll-free numbers and email support (Johnson, 2017).

Hence, this report suggests that Conferences, Notices on notice board, Emails should be the best communication plan which should be followed as Emails will be helping in maintaining the records of communication and conferencing will help in exchange of thoughts, ideas etc.

Communication strategy differs for each department and it can be adapted and modified according to the need of the departments. Below are some of the strategies for communicating for different departments:

Sales Department- It is one of most important department for any organisation as it is the department which helps in revenue generation and increase in profitability and growth of the company. However, it is not the only department which solely contributes into revenue, as all the other departments needs to work together with each other. But still, sales department is one of very important department for any organisation and hence the communication needs to be clear in terms of the sales targets, revenue target, business growth etc. This report suggests that sales department should be communicated by Emails only as it is important to have the numbers in writing so that it can be reviewed timely.

Marketing Department- It is a department which helps in brand promotion. Strategies should be discussed with marketing department on regular basis as they need to change the strategy depending upon the market situation and also depending upon the competitor’s strategy. They really need to be active and hence communication should take place every week or on fortnightly basis. Communication can be done through various means like Emails, Conference Calls and Meetings.

Production Department- Production department is one of those department which gives the final product that the helps in achieving the sales targets and to plan the marketing strategy. This department needs to be monitored and communicated regularly by means of doing meetings as well as email as it is very important to keep a note on aspects like quality and quantity of the product that is produced. Hence, this report advice that production department should be communicated very regularly through formal means of communication. This will help in analysing the effectiveness of the department as well.

Purchase Department- Purchase department needs to regularly be updated mainly by the production department of the progress made of on the production and also the usage of materials they have done. This would help the department to keep a track on the raw materials and other inventory and the same can remain available when needed.

1. Discussion

Formation of strategy is important for running any business; these reports are made for the board with a view of entering a new country and establish its manufacturing unit and expand the business of Moa beer. Hence it is very important to make notice of any challenges that can occur while entering the new market and also the steps to mitigate the risk and challenges.

The market that Moa brewing company is planning to enter with its product Moa beer and establish the manufacturing unit is the Indian market, so in this report we will focus more on the issues and challenges that are faced in India like culture, politics, economy, religion, etc. The major ethical issues that would be faced in India are as follows:

• Language barrier: Main issues would be the communication problem that would occur due to the difference in the language spoken in both countries. India is a country in which every state has its own language so it will be difficult to communicate without knowing the local language.

• Child labour: India has the second largest population of the world. Not all can afford good life for their family and about 30% of people live below the poverty line (Business Today, 2016). Due to lack of basic necessities and to make ends meet child labour exist in India.

• Corruption: Poverty and low wage rate is the main cause of corruption in India. Ethically the Moa beer company would not follow that as they would not bribe for their work to get done and so this may be a serious issue as the work may get delayed than the time decided due to the prevailing corruption.

• Cultural differences: As entering a new country involves all together entering into a new culture. And it is obvious that differences in culture will be there and they will have a major impact on the activities and operations of the businesses. All these things needs to be considered like values, believes, religion, languages used and social structure etc.

• Ethical challenges: These moral difficulties incorporate work related issues like human rights, ecological contamination, moral obligations or commitments of the associations working at global level and defilement.

• Legal issues: Law is different in every country. Every country has its own different rules and regulations and this is an important factor as legal framework of the country majorly affects the business activities. There are various laws related to employee’s welfare, pollution of environment etc. Few major challenges are issues and laws related to problems of child labour, issues of corruption, problems and challenges related to raw materials sourcing etc.

1. Conclusion

This report has been prepared with the ultimate objective of change of an organization system and a correspondence approach among the staff of the relationship between the host country and the home country.

As we realize that both Communication and Leadership are important and depend upon one and other for keeping up the measure of the company’s achievement of the objectives and growth in an organized manner. Leadership helps in driving the labourers and keep up the correspondence between the particular levels of the administration while communication helps in passing on the plans, goals and philosophies to the agents. An expert procedure has been analysed in this report keeping in mind the end goal to control the agents towards the right attitude and for the betterment of labourers.

Thus, this report has attempted to concentrate on recommending Leadership and Communication Strategy to Moa Beer as they are intending to extend their manufacturing business by entering India and set up their assembling unit over there. This report additionally includes and discussed about the challenges which may come during the time spent setting up manufacturing unit in India. Report closes with couple of suggestions to be considered which is talked about in next section.

1. Recommendation

The above report suggests some solutions based on the discussion about the challenges, issues and problems that could be faced by the company in setting up the manufacturing unit in India. The main focus of the report is on Leadership and Communication strategy that has to be formed and implemented in the new manufacturing unit. The strategy should be formed considering the flexibility of the level of employees working with the organization in a way that each employee should be benefited by the same and should feel that he or she has been given importance so the effectiveness and efficiency of the communication remain intact.

As we discussed earlier in the report, different communication styles should be adopted for the smooth running of the information between departments and managerial levels.

Human Resource management should adapt to ethnocentric approach at the initial level of the start-up and once the company is running and completes few years it can switch to geocentric approach of staffing. This report also recommends that a proper research needs to be done before entering Indian market related to their culture, language, ethical issues etc. These are the few recommendation that is to be made to board of MOA Beer by the HRM department.

1. Bibliography

• Business Jargons. (n.d.). Retrieved from businessjargons.com: http://businessjargons.com/ethnocentric-approach.html

• Business Today. (2016, october 3). India has highest number of people living below poverty line: World Bank.

• Hill, C. W. (2015). International Business (10e ed.). McGraw-Hill.

• Hill, W. C. (2012). Strategic Management Theory - An Integrated Approach (7th Edition ed.). Auckland: Cengage Learning.

• Johns, A. (2017, np np). study.com. Retrieved august 15, 2017, from http://study.com/academy/lesson/what-are-communication-strategies-definition-types-examples.html

• Johnson, S. (2017, np np). How Do the Levels of the Communication Hierarchy Work in an Organization. Retrieved from http://smallbusiness.chron.com/levels-communication-hierarchy-work-organization-65717.html

• Khan, M. (2014, June 29). Major 40 Problems in India. Retrieved March 21, 2017, from Quora: https://www.quora.com/India-What-are-the-40-major-problems-India-is-facing-today-and-why

• MOA Beer. (2017, March 31). Static 1. Retrieved August 10, 2017, from static1.squarespace.com: https://static1.squarespace.com/static/542c8a0ee4b01476e3472920/t/5959ac4e3a0411448681acea/1499049127648/Chairmans+%26+CEO+Report_v3.pdf

• Rouse, M. (2014, June NP). searchcio.techtarget. Retrieved from http://searchcio.techtarget.com/definition/leadership-skills