The Office Equipment Company

THE OFFICE EQUIPMENT COMPANY

Summary……………………………………………………………………………………..3

Identification of problems/solutions/optimal sol/implementation…………………………...4

Case summary

In 1992 the Office Equipment Company (OEC) had to replace its manager in San Salvador because the present managing director (a U.S. national) announced suddenly that he would leave within one month. Therefore the company needs to find someone to fill the vacant position in a short period.

OEC manufactured a wide variety of small office equipment (such as copying machines, recording machines, mail scales, paper shredders) in eight different countries that was distributed and sold worldwide.

OEC begun to construct their first manufacturing factory in El Salvador, as this would contribute to minimize their cost of manufacturing, assembling and laboring. This plant would be supervised by a U.S technical team and a U.S expatriate would be assigned to direct the production. This appointed supervisor will give direct report to OEC’s headquarters in U.S regarding production and quality control and matters regarding accounting, finance and labor relations would be reported to the managing director in El Salvador.

According to OEC’s internal policy, the replacement for the managing director should be from internal candidates. OEC used a combination of home-country, host-country, and third-country nationals in top positions in foreign countries. It was not uncommon for managers to rotate among foreign and U.S. domestic locations. In fact, it was increasingly evident that international experience was an important factor in deciding who would be appointed to top corporate positions. The sales and service facility in El Salvador reported through a Latin American regional office located in Coral Gables, Florida.

A...