• Hiring and Firing of Employees
• Team Spirit
• Business Expansions and Foreign Investments

People are the most valuable asset in a company. They are the driving forces behind a company's success. The task of hiring must be taken seriously, for even a few poorly chosen employees, especially at the managerial level, can be destructive to the company. It is against the law to hire someone on the basis of age, sex, race or creed in the U.S.A. and Canada.

It is important to define job responsibilities and have a clear idea of what skills are needed and the expectations from an employee. As an employer, it is equally important to make sure that the terms and conditions being offered in a job can be fulfilled, otherwise the employees may lose confidence in the job and company, as a result the company may run the risk of losing a valuable asset.

The health of a business fluctuates. At certain point in the business cycle, for example during a recession, it may be necessary to downsize the company---lay off employees---in order to reduce overhead.

Firing an employee may be painful to the employer but it can be a nightmare for the employee. It can be nerve shattering to the employee to be fired overnight without advance warning or notice, which is not an uncommon practice in some countries. Firing an employee disgracefully can ruin him/her emotionally and mentally.

Many companies lay off employees with class and dignity. They give advance notice of imminent job loss, offer a fair severance package, and provide counselling to employees in order that they may cope with the emotional and mental distress associated with the lay off.

The chief weakness in business is the lack of team spirit. It is very important to avoid destructive competition and opposition among colleagues, especially between managers and employees. Competition and opposition---the power struggle to reach the higher echelon of corporate office---among team members is destructive to team spirit. The power struggle may not be conspicuous in a silent competition, which is like a hidden destructive device waiting to explode anytime.

A high employee turnover rate in a company can be a sign of silent competition.

It is indispensable for a manager to motivate employees and develop them through work. It is not a healthy sign when a manager is more concerned about his/her own career than the careers of his/her subordinates. It is necessary to trust the employees and let everyone share in problem solving. In order to make the company productive, it is essential that attention be given to the employees. Quite often, the extraordinary performance is exhibited by employees who receive attention.

At certain point in business, expansions may be necessary to cope with the increasing demands for the products. The decision to expand productions in the OEM arrangement, however, must be weighted with extreme caution. There were cases of OEM suppliers who either went bankrupt or nearly bankrupt due to overly optimistic that the OEM buyers will continue buying from them by expanding the production facilities. Unexpectedly the buyers changed the sources of supply to another country with lower labor cost.

Investing abroad may be necessary in meeting the increased challenge, especially the increased labor and material costs in local productions, and in taking advantage of a lower import tariff (in importing countries) for the same export goods granted to other exporting countries. Setting up own overseas factory and then using the triangle trade method of exporting offers a solution in meeting the challenge.

Investment abroad can also be in the form of joint ventures or licensing agreements. The investment laws vary from country to country.

Asia, Eastern Europe, and Central and South America are popular areas for foreign investments.

Political stability in a country is the leading factor to consider in foreign investments.