Case Study 4 :Office Equipment Company (OEC)

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SummaryIn 1997, the managing director of Office Equipment Company (OEC) in Lima Peru announced his resignation and will be leaving within 1 month.A committee at Sales and Service Facility office in Peru had to select best candidates for replacement

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The committee has shortlisted five candidates from internal selection for the position, and all of them has years of working experience with OEC. They are :Tom ZimmermanBrett HarrisonCarolyn MoyerFrancisco CabreraJuan Moreno

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And OEC also has selection policy and criteria for the position as listed below:Must be internal candidates.Company policy is to employ combinations of home-, host-, and third-country nationals for the top position in foreign countries.Managers rotate from foreign and US locations.Candidate must have international experience.Ability to speak in Spanish will be an advantage.

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PROBLEM STATEMENTSudden announcement by current Managing Director to resign within one month has caused problem to OEC to select best candidate to be the new Managing Director amongst 5 shortlisted candidates which need to be done as soon as possible and start working in Lima Peru before the existing Managing Director leave to ensure any outstanding task can be handed over smoothly.OEC has to find candidate who is willing to work at Peru which is currently in schedule to construct its first factory and also experiencing a political turmoil which could boil to a full fledge civil war.

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ALTERNATIVE STRATEGIESTo select Tom Zimmerman as a new Managing Director.30 years of experience at OEC.Well versed in technical and sales aspectNever worked in foreign countriesWill retire in about 4 yearsDoest speak SpanishHis current position will be redundant because the operation he heads will be merged with another

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Brett Harrison15 years of experience at OECNever been based abroadHe and wife speaks SpanishChildren are learning the languageWife holds a responsible marketing position in pharmaceutical company

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Carolyn Moyer12 years experience at OECWas second in command of product group as big as the newly expanded one in PeruHer performance was considered excellentGraduate with international affairs major.Has interest for international responsibilitiesSpeaks Spanish well Unmarried

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Francisco CabreraAssistant Managing Director in Larger Mexican operationsMexican citizen12 years experience at OECMarried with 4 kids. Speaks english well.

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Juan Moreno27 years old.4 years experience at OECUnmarriedGood in salesPeruvianWell connected to local families

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NOCANDIDATESAGEYears in OECCURRENT POSITIONNATIONALITYINTL EXPERIENCE SPEAK SPANISHPRESENT ANNUAL SALARY1Tom Zimmerman5530In charge of an OperationsUSNILNoUSD 70,0002Brett Harrison4015NILUS3 YearsYesUSD 75,0003Carolyn Moyer3712Planning staff teamUSNo experience, but study major in international affairs. Also has interest in international duties.YesUSD 65,0004Francisco Cabrera3512Assistant Managing DirectorMexico0YesUSD 40,0005Juan Moreno274Assistant to the present Managing directorPeru0YesUSD 30,000

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Tom ZimmermanWeaknesses: He has never worked abroad for OEC and will retire in about four and a half years. If the committees appoint him to be the new managing director, similar problem might occur. He also currently tied up with present position as the operations he heads is being merged with another. Furthermore he doesnt speak Spanish.

Verdict:As such Tom Zimmerman is NOT LIKELY to be the best candidate for the new Managing Director in Peru.

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Brett HarrisonWeaknesses: Even though Brett Harrison has working experience abroad, but he lacks experiences in international affairs. If Brett Harrison appointed to be the new managing director of OEC in Peru, he might encounter problem dealing with international affairs. Furthermore, his annual salary is the highest among 5 candidates selected.

Verdict:As such Brett Harrison is NOT LIKELY to be the best candidate for the new Managing Director in Peru

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Carolyn MoyerWeaknesses:Even though Carolyn Moyer graduated major in international affairs in her undergraduate studies, she actually has no working experience internationally.

Verdict:Carolyn Moyer is LIKELY to be the best candidate for the new Managing Director in Peru due to her interest in international duties, has good performance ratings, unmarried, and speaks Spanish

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Francisco Cabrera.Weakness:Francisco has no international experience. He got 4 young kids (aged 2-7). His wife does not work outside the home nor speak English. This could be the major barrier if he is selected for the position as it is difficult to relocate to a foreign company because of his young family.

Verdict :As such Francisco Cabrera is NOT LIKELY to be the best candidate for the new Managing Director in Peru

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Juan Moreno.Weaknesses:Juan Moreno is lack with experience and only work with OEC for four years. He has no international experience and might have problem dealing with international market. If he selected as a new managing director, he might face problem controlling the new assembly factory. Besides that, his education also lower compared to Carolyn Moyer and Francisco Cabrera.

Verdict:As such Francisco Cabrera is NOT LIKELY to be the best candidate for the new Managing Director in Peru

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THE BEST STRATEGY AND JUSTIFICATIONThe best strategy is to select Carolyn Moyer as new Managing Director at Lima Peru. Carolyn Moyer has more strength compare to weaknesses. Even though she has no international experience, but her positive attitude and willingness to learn and take international responsibility will be the advantage. Her knowledge in international affairs will be very useful in dealing with international market. Beside that her salary is not so high and compensation package is quite low.

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IMPLEMENTATIONSShort TermHR to inform Carolyn Moyer on her appointment and prepare the appointment letter.Email the appointment letter including the compensation package to Carolyn Moyer and ask her to sign, scan and email back to HR. Email should be faster and more efficient.Arrange transportation to Carolyn Moyer to Lima Peru and arrange her accommodations accordingly. She has to be in Lima Office Peru before the existing managing director leaves for job hand over.Long TermIncrease resignation notice period from one month to two months for the company to find replacement and better job transition. Revise the company policy and include this new requirement.

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