Cafe Bella, an Italian coffee bar chain specializing in organic high-quality coffees and Italian pastries, has been immensely successful in Italy. Now, it aims to enter the Asian market by opening its first stores in Shanghai and Beijing. The new stores will mirror operations in Italy, maintaining the same product line to preserve their unique identity.

A General Manager (PCN) has been identified and is ready to relocate from Italy to China. However, the company seeks further guidance on staffing policies, particularly regarding the recruitment of local staff for management positions. As an experienced HR consultant, you have been approached to advise Cafe Bella on key HRM considerations for establishing their business in China.

1. What are the primary challenges that Cafe Bella will face in setting up in China?
• The key cultural differences between Italy and China and how they may impact HRM and managerial practices.
• Determining the most effective IHRM staffing strategy to adopt.
• Addressing the challenges expatriates may encounter while adapting to China and proposing solutions to overcome them.
2. What are the main challenges that Cafe Bella will encounter in setting up in China?
• The key cultural differences between Italy and China and how this may impact HRM and managerial practice.
• The most effective IHRM staffing strategy to adopt.
• The difficulties expatriates specifically may face adapting to China and ideas to overcome these.
• The difficulties expatriate specifically may face adapting to China and ideas to overcome these.