Larson in Nigeria Essay

The legislation and the regulations by Nigerian officias has bend genius of the major problems of Larson. The value of the company by the Securities and Ex pitch Committee has been passing low and the sales collection and payment to suppler are delayed in Nigeria. All these factors affect the liquidity and cash flow and raise the lend cost of the company. Maintaining the operation was also complicated by problems in staffing. augment staff is precise costly. Additionally, entry visas for those expatriate are very complicated.The recruitment of qualified skilled experts is difficult and they are non staying long in the country. Because Larson had a promise to increase the share of local ownership, the local accessorys participation seems very important. If the local equity participation keeps very low like current situation, the profit of both companies go forth become little or even lost capital. Recommendation The vice-president of international trading operations should decide to continue the companys joint venture in Nigeria.However, the company needs to address the problems of coping with local indigenization and hire a new joint venture habitual film director. Discussions Although the expatriate general managing director of the Nigerian operation has delivered a very negative report, the operation should lock away 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, we have to cope with their way of doing business. later 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 conduct with the government. As a result, after increase the local equity percentage, in lay out to maintain the business in Nigeria, Larsons first tint is to deal with the Nigerian business cultural. This will help the company decide the problems of cooperate their joint venture partner with divergent views.In order to increase the cooperation, senior management might have to give advance(prenominal) retirement to Ridley and hire a new joint venture general manager who has more adaptability. The new manager will help Larson to manage and keep good relation with the local equity side. Moreover, the new manager should have an excellent human recourses skill and understand the labour market. This will help the company with the staffing problem which they can hire or mark the local experts.