Office Equipment Company

OEC is a company that made a variety of equipment for small office in eight different countries. In one, El Salvador, they face the problem that their manager announced his resignation. Therefore, they had to choose a suitable candidate.

OEC does not have a manufacturing facility in El Salvador, but they have been selling there for more than 22 years old at the time. Proven sales and profits improved every year.

In 1993, OEC decided to build a factory. Machine components are imported and assembled locally as El Salvador can offer a large supply of cheap labor. Construction will be overseen by American technical team. Director, also American, will report to the U.S. all the problems of production and quality control and managing director of El Salvador, all the problems of accounting, finance and labor relations.

Managers of foreign subsidiaries OEC used to rotate among foreign and domestic locations that offer them significant international experience.

Problem Statement

The main problem outlined in this case study is that the committee did not know that the best candidate will meet the managing director position.

The cause of this problem

 Current Managing Director has submitted his resignation and will leave in a month.

 OEC current policy only allows for the promotion, do not hire from outside the company.

 Loss of international competitiveness if the new Managing Director is not able to handle the job.

 Image OEC in El Salvador may be contaminated because management had to make a new selection and not necessarily know to handle the task.