Corporate venturing

The levels of competition in the business world have tremendously increased. As a result of these, majority of global firms have initiated several strategies that will enable them have a competitive edge over their competitors. Corporate venturing is one of those strategies employed by organizations to gain specific competitive advantage. The process is accomplished when a large firm takes an equity stake in a small but innovative and specialist firm. The larger firm will provide management and marketing expertise to the small firm for mutual benefit. The corporate venturing process can be a way of the larger firm to broaden and grow the entity without necessarily acquiring the small companies(Cullen & Parboteeah, 2009).

Investments under corporate venturing can be categorized under three main categories and are aimed at minimizing business risks.  The first category involves hedging where proprietors are concerned with the option that has least risk to the firm. Corporate venturing can also be implemented through capability upgrading of the organization where aspects such as technology and marketing strategies are improved significantly. The other strategic purpose of corporate venturing is capability leveraging.  In capability leveraging the corporates aims at supporting start up business.

Realizing effectiveness of corporate venturing is difficult to assess. However, corporate venturing has been in practice for long and has significantly helped many corporations realize their objective and have competitive edge. Strategic and financial positions of corporations involved in capital venturing(Cullen & Parboteeah, 2009). New businesses that are attached ton well established firms gain significantly through marketing and branding. Corporate venturing is an effective way through which an organization can realize its internationalization strategy. A major organization can form a joint venture with smaller firms in different countries which will help the organization expand its market.

Human resource management

Human resource management is a very important aspect in the realization of organizational goals. It is a process of managing the organizations workforce in such a way that optimum potential can be realized. Human resource management is involved in planning, selection, recruitment, rewarding and retention of the organizations task force. Organizations can realize their objectives through strategic and effective management of its workforce. The obligation of maintaining a reasonable workforce in an organization lies purely on the human resource department in an organization.

The human resource should ensure that the techniques through which they use in human resource management to ensure success of the organization. Important aspects such as recruiting and staff selection must be carried out in an effective way to realize the overall objective of the organization. For instance, validity and reliability I selection process is critical in ensuring that quality is not compromised in the hiring process. The techniques in the selection process must show high degree of consistency and must match the job requirements (Cullen &Parboteeah, 2009).

Several human resource practices are critical for overall organizational performance. Among the most practices include compensation, workload management, induction, rewarding and performance appraisal are critical for genera performance of organizations. International organizations are not exceptional in the effects of such HR practices. For instance, international businesses are greatly affected by the cultural differences which must be clearly dealt with by human resource management. Good induction practices and compensation in international business must be of great concern for effective management of the organizations (Cullen & Parboteeah, 2009). Effective diversity in management of workforce in international business has been critical in the realization of overall performance of international business.

Reference

Cullen, J. B., & Parboteeah, P. (2009). International business strategy and the multinational company. New York: Routledge.

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