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Compact case
Case
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Reference no. 382-044-1
Authors: Malcolm Harper (University of Nairobi)
Published in: 1982
Length: 5 pages
Data source: Generalised experience

Abstract

The Manager of an East African subsidiary of a multinational engineering company has to decide on a radical reorganisation to cope with the fact that work permits for a number of expatriate staff will shortly no longer be available; the main difficulty is that the company is in a number of ways avoiding local taxation by draining resources from the company back to head office, and the Manager feels that these practices could not continue if the expatriates were replaced by local management. If they did not continue, however, the subsidiary would not earn a sufficient return on its investment. The case was used to introduce prospective employees of multinational companies in developing countries, and of governments attempting to work with these companies, to the devices which such companies introduce in order to make their operations profitable.
Location:
Industry:
Size:
Large
Other setting(s):
1973

About

Abstract

The Manager of an East African subsidiary of a multinational engineering company has to decide on a radical reorganisation to cope with the fact that work permits for a number of expatriate staff will shortly no longer be available; the main difficulty is that the company is in a number of ways avoiding local taxation by draining resources from the company back to head office, and the Manager feels that these practices could not continue if the expatriates were replaced by local management. If they did not continue, however, the subsidiary would not earn a sufficient return on its investment. The case was used to introduce prospective employees of multinational companies in developing countries, and of governments attempting to work with these companies, to the devices which such companies introduce in order to make their operations profitable.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1973

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