Winning the human resources challenge when expanding internationally: Focus on China

Abstract As educators, we seek engaging ways to demonstrate the crucial importance of developing appropriate management (HR) practices when undertaking international expansion. In this exercise, teams are asked to formulate and justify human resource/talent management policy modifications that contribute to a competitive advantage for a hypothetical North American niche grocery chain (Friendly & Fresh Foods) planning expansion into China. The exercise's unique value is its focus on the interconnectedness between business strategy, talent management, and culture in helping to “win” the local challenge when entering an unfamiliar territory where global leaders may need to adapt both competitive strategy and cultural practices to achieve business entry success. Recommendations are honed after consideration of their assigned home country's business model (differentiation or cost leadership) and the host country's culture. The choice of China as the expansion country serves to magnify the “distances” that must be examined when expanding internationally, in this case when a North American operation decides to expand its operations to China. The exercise's theoretical foundation is informed by international business, global human resource management, and cultural research. The exercise's effectiveness is well supported by graduate students who have experienced the exercise and by faculty evaluations of team presentations.