Due to the complex operating environment of International Human Resources Management (IHRM) in transnational companies like Jones Corporation, HRM strategies will vary from company to company. Further, the triumph of global business relies on the quality of management in MNC. Further, the success of any transnational strategy has less impact on structural innovations than with formulating frequent sweeping varied organisational cultures.
Whittington introduced four fundamental conceptions of strategy namely fatalistic, rational, relativist and pragmatic. Whittington illustrates four generic approaches to strategy namely classic, evolutionary, processualists and systematic approach. Under the classical approach of strategy, rational planning methods are given top priority. Further, emphasis is given to the role of planning, with top managers accountable that strategy is matching or fitting between the company’s external environments or resource capabilities so as to facilitate to exploit opportunities evident.
The evolutionary approach footed on the philosophical metaphor of biological growth but substitutes the regulation of the market for the law of the jungle. Further, it places more stress on the part of environmental factors, its diversity, intricacy and resentment to which managers require to react. For instance, environment complexity would demand the introduction of decentralisation decisions to encourage organisational success. Market unpredictability is the real impediment in placing large investments in strategic plans.
It is to be remembered it is the market and not the managers secure profit maximisation and to settle on strategies as well as the triumph or failure of corporations. Further, Whittington was of the view that in the competitive scenarios, apart from those who enjoy significant market power, most corporations, by focusing on the sophistication of production, operating efficiency and cost minimisation which can efficiently perform as exemplary as possible can have an edge over the powerful companies which predominantly dominate in any market.
Processualists or the processual approach stress the oppressive defective nature of all human life, logically accommodating strategy to the imperfect processes of both markets and organisations. This approach recognises the strategy as an emergent and adaptive process forced by learning in a company or realistic retort to events in which managers make negotiations continuously and adjustments. From the actions of any organisation, strategies emerge.
The Systematic proposition is relativistic regarding the ways and means of the strategy as unavoidably associated with the powers and cultures of the local social systems in which it functions. Further, an organisation can plan tactically since there exists a difference among social systems. As compared to UK or USA, Germany and France have developed a much sturdy custom of state intervention. This has paved the way for a long-run approach to a strategy where national interest is more predominant than the short-run goal of profit maximisation.
Strategy is not only a long-run planning procedure but also a rational analytical carried out to achieve the maximisation of profit. Jones Corporation employs such strategy strides to supervise the establishment of new overseas business operations and to train the local workforce. Thus, expatriates from the home nations are selected mainly to conduct the business in a congenial atmosphere and for the long term. Due to designing of ineffective strategy and due to uncertainty and wrong expectation of future happenings, in the majority of cases, planned outcomes may not be achieved.
Jones Corporation present strategic choices are established from the combination of profit maximisation strategy. To envisage as a major global, Jones Corp needs a mixed approach both systematic and classical approach which would be a nice strategic selection for the operation of the corporation. Countries like India, Brazil, China and Argentina virtually espouse a long-run approach to strategy planning where national interest will be given top priority than the short-run goal of profit maximisation.
For penetrating the markets of the above-mentioned countries, Jones Corp may either incorporate a wholly-owned subsidiary or establish a Greenfield start-up by incorporating a new company. One another alternative available to Jones Corp is to expand its operations in the above developing nations through merger and acquisition. However, Jones Corp has to overcome cultural clashes in these nations to attain success. One another route to enter into these markets is to have joint ventures. A joint venture finds a solution to cultural clash issues but at the cost of sharing control and ownership.
Due to inherent advantages available in the joint venture, Jones Corporation is hereby advised to follow this route rather than other forms like greenfield or merger and acquisition for penetrating into the market of India, Brazil, China and Argentina.