Reference no: EM133276054

SCENARIO - Victoria Oilfield

Victoria Oilfield Equipment is a supplier of drilling equipment for oil and gas exploration. It is headquartered near Houston, Texas. The company has seven offices and warehousing facilities near potential markets for its equipment. Only 30 percent of Victoria's profits come from selling equipment; the rest comes from leasing the equipment. Within the company's leasing operations, half the profit comes from supplying operators for the equipment. Victoria has over 25 years of experience in Texas and Louisiana, and 10 years of experience in several Latin American countries. Most of its customers are large multinational oil companies. However, approximately 20 percent of its contracts are with small, independent exploration companies. Employees in Latin America move around within the region.

Victoria has just completed construction of a new facility near Port Harcourt, Nigeria-its first venture into Africa. Nigeria is the most populous country in Africa and has one of the fastest growing economies in the world and is the 12th largest oil producer. During the past few years, several armed militant gangs have disrupted life and commerce in the city. These gangs claim to fight for the interest of the indigenous people and ask for a share of Nigeria's oil wealth. However, they are mostly known for random and targeted killings, arson, bombings, and kidnappings of both foreign workers and indigenous people. The machinery, trucks, and equipment to operate this facility are to arrive within the next three months. These are some facts that you have been told to take into consideration.

a) Victoria wants to develop some of its current managers in international operations.

b) Many Nigerians have experience in the technical aspects of drilling for oil.

c) Victoria has built its reputation on the expertise of its managers and customer acceptance of its managers as knowledgeable professionals.

d) Although some of Victoria's managers have had experience in Latin America, none have had experience in Africa.

e) Political power within the Nigerian government shifts periodically, and many of those with whom Victoria negotiated its move into Nigeria are no longer in the government. There are rumors that the country might be moving to amend the laws governing work permits.

f) The supply of trained oil-drilling equipment operators in Nigeria is much less than the demand.

g) Victoria currently uses a regiocentric approach to staffing, but there is some uncertainty that this approach will work in this situation.

1. Based on the information in the case what mode of entry has Victoria utilized in Nigeria. 2 Marks

2. Identify one major difference between domestic and international HRM that Victoria's HRM would need to prepare its employees to face in the case.

3. You are the International Human Resource Officer for Victoria Oilfield Equipment:

Discusses the suitability of these three; ethnocentric, polycentric and regio-centric staffing approaches for Victoria in Nigeria.

Make recommendations for two of these methods as possibilities for staffing the new venture in Africa.