Kitchen Best Analysis Essay

designKitchen trump Appliance Comp either mustiness immediately address the honest, cultural, wakeless and poor handicraft practices in order for the social club to remain in contrast. If the beau monde continues to turn a blind core to much(prenominal) behaviors as bribes, nepotism, il level-headed behavior and reckless deathangerment to customer the company lead and continue to find itself in a position that leaves it vulnerable to practice of law suits, criminal charges, fines and incarceration of personnel. The case study provides a clear get word of what undersur display case happen to company that does not communicate, enforces and support policies and procedures established to admit a competitive, compliant, safe and ethical workplace.AnalysisThe major tender, ethical and statutory challenges that Kitchen exceed and new(prenominal) small-and-medium-sized enterprises (SMEs) face doing cross border tune will be determined below. Social challenges atomic n umber 18 most easily determine in cultural differences among regions. For instance language barriers house get social challenges as well as differences in cultural beliefs and behaviors. Businesses must be prepared to face language differences by having mental faculty available that abide speak and write in languages some other than their native tongue. Also the companies must be prepared to investigate and study the cultural differences for the countries that they wish to head lineage with. This is not solely to determine if the designated area is a unassailable place to conduct course, but similarly to acquire the necessary friendship needed to successfully conduct course.Ethical challenges are even more than difficult for companies when dealing with twain different sets of ethical standards, which usually are influenced by cultural standards. It is fully possible that in business dealing that a company has opposing ethical standards to operate within the two cou ntries. In some cultures such(prenominal) activities as bribes, kickbacks, and nepotism areencouraged whereas other countries frown upon such practices. This is where research plays an important graphic symbol for companies interested in expanding their business globally.Legal challenges just like ethical and social challenges realize a major impact of SMEs who conduct cross border business. at that place are many forms of governments as well as numerous forms of legal systems that vary among countries. While diversity is accepted, diversity basis get along business inter movement difficult as well as legally impossible. An interpreter of legal challenges can be seen in tax regulation, employee pay regulations, employee functional condition regulations, safety regulations and environmental impact regulations. If a SME is found in violation of a particular law or regulation it could face extreme penalties as well as sanctions from agencies as the World distribute scheme.Kit chen beat out has long since participated in offering entertainment and kickbacks to potential clients and business partners, which upper way has turned a blind eye to. such actions consecrate led Kitchen Best to be susceptible to legal risks. China, Macao and Hong Kong have active laws against such actions which are punishable by imprisonment and fines. Since Kitchen Best employees participated in such actions, with the knowledge of upper attention, in both jurisdictions the company is liable along with the employees.The focussing and overall governance system of Kitchen Best is below par. While the list of faults is long the company can amend the situation by changing the method in which it operates and creating effective policies. unitary of the longgest faults of management is the practice of round a blind eye to rottenness and inappropriate business practices. By turning a blind eye to such behaviors and activities management is essentially condoning the employees actions. This is obviously a shortcoming that has led Kitchen Best management to knowingly participate in wrong behavior such as bribes and kickbacks. Along with the practice of turning a blind eye to the previous mentioned behaviors and activities management also exhibited a shortcoming by not leading by example. In addition management did notcreate, maintain and enforce policies and procedures for employees to follow. This could have prevented the shortcoming of non-governance of competitive practices and safety regulations as in the case of Haus de Metro.Kitchen Best must utilize mechanisms such as effective compliance programs, risk assessments, accessible access of for employees to encipher of conduct and compliance policies and procedures. As well as the mechanisms mentioned above Kitchen Best must also use continual training for all staff including management on policies, procedures and authorized legislation. Use of weekly meetings and conference tools such as video conf erencing will enable the company to improve communication between all facets of the company. Technology overall will enhance the antic performance of employees, but can also be used to create checks and balances within the company. For instance a system of web based favourable reception could be used for the payment of invoices that would allow the company to approve of pass over any invoices including those for entertainment. With the advancement of technology companies have the ability to be big brother while also enhancing employee performance. hydrogen Chan can learn a lot from the U.S. Foreign Corrupt Practices Act (U.S. FCPA) or the U.K. Bribery Act. Chan can see the penalties that have been established for corrupted behavior as well as ways to prevent such actions. Since both are from occidental democracies Chan can compare to corruption acts from China. This will enable Chan to view a variety of subscribe tolines that will assist in creating his own policies and procedu res for Kitchen Best. other utility to Chan is that he will be better prepared for international business and the cultures of in which they exists.The problems at Kitchen Best are related to Horatio Sze and Ma Luk. by the years the company has made mis travel in regards to managing staff. Without checks and balances or enforcements of policies staff had unload reign with no consequences. Without direct supervision or accountability the management staff allowed the behavior to occur. The company allowed the inappropriate behavior of Sze and Luk by turning a blind eye to their actions. If the company had clearn direct action such as disciplinary actionsor even termination of both employee when their indiscretions became apparent the problems would have been prevented.Top managers are responsible when corruption is afoot, specially when cap management has knowledge of the corruption. It is the responsibility of top managers to be alert of what is happening within their busines s. There is also a necessity for top managers to actively participate in business operations and to investigate any alleged corruptions within the company. In the case of Kitchen Best top management ignored allegations of corruptions. Another responsibility of top management is to take and fictive preventative measures against corruption.It is imperative that SMEs practice ethical management locally and internationally. In order for global business to expand along with the actual companies ethical management must be enforced. Ethical management not only assists in creating a fair and competitive business atmosphere, but it also enables progressive business relations with countries. Henry Chan can enhance his role in this regard by participating and enforcing ethical business practices. He can also benefit from exposure to companies similar to Honghua who have transitioned from an unethical management to an ethical management system.When faced with local expectations of payoffs or r eferral funds staff should be advised to approach top management. Staff should ask policies and procedures beforehand taking any action, but in this case the unassumingness of the situation requires managements attention. Once management is notified of the situation the employee should thus work with management to determine the best course of actions. It must also be stated that if the company has researched the business atmosphere the expectations of payoffs or referral notes should not come as a surprise. Therefore the company can be prepared when the situation arises and will not have to make a snap decision.Guidance can be sought through numerous channels that include literature, educational classes, expert knowledge, legislation and other professionals. All of the resources could provide guide or research on business managementand international business. The internet could also be utilized for info regarding business policies, procedures and desired business behaviors l ocally and internationally. The World Trade Organization is also a good resources as well as looking at such education facilities as Harvard School of Business. Both previously mentioned offer limitless information via their websites.There are specific steps and methods that Henry Chan can use to help build Kitchen Bests collective culture for the long term benefit of the company. As mentioned before the creation, maintaining and implementation of policies and procedures that include compliance program. When creating and updating the policies and procedures of the company Henry Chan should shoot the breeze legal counsel as well as other professionals who can provide expert knowledge. Henry Chan himself needs to improve his management skills as well as his ability to interact within different cultures. Another step to improve corporate culture is to remove employees that previously participated in unethical behavior. It is imperative that management lead by example and elapse th ose who do not wish to contribute to a positive corporate culture. By creating a culture of compliance the company can successfully perform in a positive manner. This can also be accomplished by providing training to employees, continuing to guide employees in the tight-laced way in business processes, having incentives for employees to reward positive acts and disciplinary measures for non-compliance to policies and procedures. individually of the steps mentioned above will resolve the issues of bribery, kickbacks, safety violations and uncompetitive undertake awarding. Not only will the steps above stop the current issues of Kitchen Best, but also establish preventative measures against such behaviors.ConclusionHenry Chan and Kitchen Best can resolve their current business issues and improve the business operations of the company. While the Chan familys intentions were to create and maintain a company their lackluster attitude towards corruption has made the company liable. Wit h the suggestions provided in this analytic thinking Kitchen Bests business operations can improve and crush out the corruption within the company. The scope of improvements necessary for Kitchen Best is vast, which will take a significant amount oftime that will in the end prove worth wild.ReferencesDRS Daniels, J. D., Radebaugh, L. H. & Sullivan, D. P. International business. (14th ed.) U. S. Dept. of Justice (2012, November). A resource guide to the U. S. Foreign Corrupt Practices Act. http//www.justice.gov/criminal/fraud/fcpa/guide.pdf Goo, S. & Loo, G. (2011). Kitchen Best Ethics when doing cross-boundary business in Southern China (Product No. HKU948-PDF-ENG). Retrieved from http//hbsp.harvard.edu