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10. FUNCTIONAL STRATEGY

10.1 I nternational Human Resource Management Strategy

In South Africa the managerial culture differs as compared to the developed western

nations (Budhwar, S & Mellahi, K 2007). The culture is that that managerial positions

were filled with whites. The unions have been working towards advancing the blacks

into skilled and managerial positions, which is still not successful. The perception in

South Africa is that firms run by whites lack credibility and are not trustworthy. This

has brought in the aspect of cultural and contextual differences between the white

managers and black employees, creating a huge perception gap with respect to how

employees should be led in the organization.

Most of the managers in South Africa use western management styles contrary to the

blacks values and attitudes which entails rationalism, individualism, and autocracy

which do not reflect cooperative values and communal philosophy of workers (Wood,

G, Mellahi, K, Budhwar, P & Debrah, Y 2001). Hence Endless Wave Company will

need to familiarize itself with the culture so as to integrate with the environment so

that they can gain entry in to the market. The Human Resource Management

Department in the company will also need to learn more about the culture in order to

be able to handle the employees also since the company will use of location specific

factors like local labor, local procurement, and local sales in order to penetrate the

South African market and improve operational efficiency. Moreover use of local

external linkages such as subcontractors, distributors, customers, suppliers, as well as

government agencies will enhance penetration (Li, C 2011).

Ongoing monitoring and evaluation is definitely required in internal and external

benchmarking. Proper training for the employees is crucial to overcome illiteracy and

increase employee performance (Horwitz, F, Bowmaker-Falconer, A & Searll, P

1995). The company may realize importance of blending both white and black

workers to international trade and company efficiency and be in line with the unions.

That way it will gain knowledge of South African marketing and culture.

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11. FORECAST

Endless Wave will be entering a country with a diverse culture and it will enforce

both differentiation and cost leadership strategies while it tackles the issue of

integration into its new environment. When the business progresses it can expand

three subsidiaries and more retail outlets in and around Jeffreys Bay at the end of

2018 as a result of tax exemptions and FDI benefits.

In 2019 the company can call in for a feasibility report to move to other surfing

hotspots overseas through exports of its products or FDI. The study will also identify

the total demand for products in South Africa and assist in making a better decision in

terms of expanding to other regions. The report provides both medium risk and

medium cost base strategy in to the surfing business. Endless wave can accordingly

dive into new venture around 2019-20 depending of the demand and affordability.

12. RECOMMENDATIONS

Competitive analysis proves that competition is stiff for endless wave

company since there are competitors operating in the same niche market. Thus

the company will need to be innovative to differentiate their products in order

to gain a competitive advantage.

SWOT analysis illustrates that Endless Wave follows a single business

corporate strategy. This necessitates need for change and innovation to

increase its profitability and growth. Furthermore initiative is required to

create awareness of products through sponsorship of surfing events and

talented surfers

Necessary skills and knowledge with respect to South African culture will be

facilitated through training and development. Endless Wave will need to learn

new skills and incorporate experience from South African employees in order

to amalgamate with the industry and gain easy access to the markets. This will

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make strategies more practical. Moreover, Business processes should be

monitored through performance evaluation.

Guidelines under HRM and Marketing strategies will help the company

implement its overall market penetration strategy. Forecasts that have been

outlined is in line with the current and proposed strategies for future success

and will help the company align itself in accordance with its goals to exploit

sports tourism in South Africa.

REFERENCES

Budhwar, S & Mellahi, K 2007, Introduction: Human Resource Management in the

MiddleEast, International Journal of Human Resource Management, 18, 1, pp, 210,

retrieved 11 October 2013.

Horwitz, F, Bowmaker-Falconer, A & Searll, P 1995, Employment equity, human

resource development and institution building in South Africa, International Journal

Of Human Resource Management, 6.3, pp. 671-685, Business source complete,

EBSCOhost, retrieved 26 May 2014.

Li C, Henley, J, Dong, T 2011, Location Specific Facts, Location Strategy and Firm

Performance: A Case Study Of Taiwanese Manufacturing MNE Subsidiaries

Investing in China. Tijdschrift Voor Economische En Sociale Geografie (Journal Of

Economic &Social Geography, pp. 426-440, Available from: Academic Search

Complete, retrieved 26 May 2014.

South Africa, 2010, Brands & Branding Intelligence, pp. 210-211, Business Source

Complete, EBSCOhost, retrieved 26 May 2014

Wood, G, Mellahi, K, Budhwar, P & Debrah, Y 2001, Part II: Human resource

management in Africa: Chapter 14:Human resource management in South Africa,

Human Resource management in Developing Countries, pp. 222-237, Business

Source Complete, EBSCOhost, retrieved 26 May 2014.