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Case Study 4 :Office Equipment Company

(OEC)

Summary
In 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

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 Zimmerman
Brett Harrison
Carolyn Moyer
Francisco Cabrera
Juan Moreno

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.

PROBLEM STATEMENT
Sudden 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.

ALTERNATIVE
STRATEGIES
To select Tom Zimmerman as a new Managing
Director.
30 years of experience at OEC.
Well versed in technical and sales aspect
Never worked in foreign countries
Will retire in about 4 years
Doest speak Spanish
His current position will be redundant because

the operation he heads will be merged with


another

Brett Harrison
15 years of experience at OEC
Never been based abroad
He and wife speaks Spanish
Children are learning the language
Wife holds a responsible marketing position in
pharmaceutical company

Carolyn Moyer
12 years experience at OEC
Was second in command of product group as
big as the newly expanded one in Peru
Her performance was considered excellent
Graduate with international affairs major.
Has interest for international responsibilities
Speaks Spanish well
Unmarried

Francisco Cabrera
Assistant Managing Director in Larger Mexican
operations
Mexican citizen
12 years experience at OEC
Married with 4 kids. Speaks english well.

Juan Moreno
27 years old.
4 years experience at OEC
Unmarried
Good in sales
Peruvian
Well connected to local families

NO

CANDIDATES

AGE

Years
OEC

in

Tom Zimmerman

55

30

In
charge
Operations

Brett Harrison

40

15

NIL

CURRENT POSITION

of

an

NATIONALITY

INTL EXPERIENCE

SPEAK SPANISH

PRESENT ANNUAL SALARY

US

NIL

No

USD 70,000

US

3 Years

Yes

USD 75,000

Yes

USD 65,000

Carolyn Moyer

37

12

Planning staff team

US

No experience, but study


major in international
affairs. Also has interest
in international duties.

Francisco Cabrera

35

12

Assistant
Director

Mexico

Yes

USD 40,000

Juan Moreno

27

Assistant to the present


Managing director

Peru

Yes

USD 30,000

Managing

Tom Zimmerman
Weaknesses:
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.

Brett Harrison
Weaknesses:
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

Carolyn Moyer
Weaknesses:
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

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

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

THE BEST STRATEGY AND


JUSTIFICATION
The 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.

IMPLEMENTATIONS
Short Term
HR 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 Term
Increase 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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