Larson in Nigeria

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Executive Summary In June 1979 Larson flew to Kano, Nigeria, to begin a two-year term in an agricultural ministry in the Kano area. He returned to the United States in 1981 and enrolled in the Interdisciplinary track of Wheaton Graduate School. In June 1982 he returned to Nigeria under SIM, where he planned to complete his graduate degree while continuing mission work. In August 1984, Larson returned to Wheaton College Graduate School and received an M.A. in 1986. Larson established a joint venture in Nigeria in 1994, with local partner who held 25% of the joint venture equity. Basically, the summary is that the vice-president of international operations must decide whether to continue to operate or abandon the company 's Nigerian joint…show more content…
Expatiate staff is very costly. Additionally, entry visas for those expatriate are very complicated. The recruitment of qualified skilled experts is difficult and they are not staying long in the country. Because Larson had a promise to increase the share of local ownership, the local partner 's participation seems very important. If the expatriate general manager of the Nigerian operation has delivered a very negative report, the operation should still continue. There are great amount of demands for products in Nigeria and competitions seem not very high. Since different country have different business cultural, to successfully operate the company in Nigeria, Larson have to cope with their way of doing business. After the share of local ownership increase, they cultural of the business might change to the local way. And the company will have more access to negotiate with the government. Assigned Questions 1. What are the three major issues confronting David Larson? a. Cash flows b. Government constraints c. Labor and recruiting 2. How would you recommend that each be handled? CASH FLOW can be handled in the following ways a. Have a third party reevaluate proposals of valuation to provide for more realistic outcomes b. Institute regulations that will enforce shipments to carry legitimate paperwork and confirmed letters of credit. c. Facilitate access to lower cost credit, set up payment schedules with penalties. GOVERNMENT CONSTRAINTS can be
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