For this assignment, you are the VP of Human Resources for Allied Sanitation Company (ASC) which is exploring the possibility of producing, marketing, and distributing its new, innovative portable UV sanitizer internationally. You are responsible for developing staffing plans for this new international venture. What are the three types of staffing policies used by international companies? Discuss the advantages of each.
Running Head: Allied Sanitation Company 1 Allied Sanitation Company 2 ALLIED SANITATION COMPANY Table of Contents Introduction3 Centralization of International Distribution3 Issues for Considering the Location3 Benefits to the Organization4 Merits of Centralization4 Aspects of Decentralization4 Conclusion5 References6 Introduction The process that has been addressed in the mentioned scenario reflects locating the potential international distribution aspects of the sterilization products in a certain region to smoothen the process of international distribution. This process is known as the centralization of international distribution of the products in the international market. This paper shall analyze the aspect of centralization of international distribution in the Allied Sanitation Company. Centralization of International Distribution The process of centralization in the international distribution mainly concentrates on the inventory operations and decision-making power in one of the distribution Centres serving many markets directly. This aspect refers to centralized control of the distribution of the products from a central location in all the parts across the global market. Issues for Considering the Location The issues that should be considered for deciding the location for centralizing the international distribution refer to the environmental factors that can effectively influence the market structure of the company. The political and the transportation system of the particular location is the major concern that is to be considered before deciding the location for centralization of international distribution (Abdul-Jalbar et al., 2018). The transportation infrastructure is one of the significant aspects that need to be considered thoroughly before storing the particular location for centralized international distribution. Benefits to the Organization A centralized international distribution and warehousing can reduce the cost of the story by renting whatever is required instead of the rent that had to be incurred because of storing the bulk of the products. A centralized distribution system is also effective. It can maintain goods in bulk because it occupies less space and will offer lower renting costs which will make the investors invest more in other aspects of marketing. These aspects of less cost and management issues are some of the rendered benefits to the organization Merits of Centralization The benefits of centralized international distribution are effectively discussed in the section. One of the major advantages of centralized international distribution is to have accurate control over the organizational setup and the central stores that are responsible for all the allied activities and the transport facilities for distribution (Picard, Boddewyn & Grosse, 2018). The effective benefit of centralization is the aspect of inventory management. A centralized distribution system can be effective to maintain a minimum material that is required for production purpose or distribution purposes. Aspects of Decentralization Decentralization of international distribution refers to the employment of many distribution centers for retail locations that are spread across the company's global footprint each serving separately in the local market. Decentralization International distribution can be costly but it is an effective measure to control the distribution of products in a particular location. Conclusion Both centralized and decentralized distribution has their own merits and demerits for considering as an aspect of international distribution models. Even though centralized distribution is cost-effective it is no potential to control a global network of distribution channels. In such a scenario decentralized distribution models are effective to control a large network of the company's global footprint. References Abdul-Jalbar, B., Gutiérrez, J., Puerto, J., & Sicilia, J. (2018). Policies for inventory/distribution systems: The effect of centralization vs. decentralization. International Journal of Production Economics, 81, 281-293. Picard, J., Boddewyn, J. J., & Grosse, R. (2018). Centralization and autonomy in international-marketing decision making: a longitudinal study (1973-1993) of US MNEs in the European Union. Journal of Global Marketing, 12(2), 5-24.