Answered: Enviro is an international…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Enviro is an international environmental engineering firm that is launching a project to market a new fuel-efficient car. In order to initiate the project, senior executives at headquarters must come to an agreement on the staffing framework to organize the overseas units that will take responsibility for international sales.

One executive, Sim, believes that this project calls for an ethnocentric staffing framework in which home-country nationals are sent as expatriates to countries around the world to establish market bases.

Another executive, Patil, thinks that a polycentric staffing framework, in which host-country nationals establish market bases in their own countries as local managers, would be more effective.

The executives should consider which of the following questions before making a framework decision?

A) Which type of framework best serves the needs of the project?

B) What type of framework has the company historically used?

C) Will the marketing team operate virtually or face-to-face?

D) Which type of framework would be the most cost effective?

E) Which employees are best qualified for the marketing team?

Expert Solution

Introduction:

The senior executives at Enviro, an international environmental engineering firm, are facing a decision in determining the staffing framework for the launch of a new fuel-efficient car.
Two executives, Sim and Patil, hold differing opinions on the framework that would be the most effective in establishing market bases overseas.
Sim suggests an ethnocentric staffing framework, which involves sending home-country nationals as expatriates, while Patil believes a polycentric staffing framework, with local host-country nationals serving as managers, would be a better approach.