international human resources management class B u s i n e s s F i n a n c e
The Mythical Corporation
The Mythical Corporation was expanding – again! Shativa Gupta, the Human Resources
Director, was finally brought into the loop after months of negotiation and secrecy while
the deal was being made. The company had just acquired a clothing company in
Venezuela which had Shativa excited as well as concerned. The clothing company was
similar to operations they currently owned and ran in South Korea and Peru. Now that
Shativa had been included in the board room, it was her turn to start working on this
Shativa had to support the MNE in their business strategy in the international market. But
how does business work in Venezuela? She had been told that half the staff had already
left the struggling company before Mythical acquired it so there were not many people
left there. She also had to assist in getting this company back to its full potential by doing
the recruiting for five factory managers that knew the clothing industry, as well as a recruit
a Manager of Operations for Venezuela.
The operations in South Korea were challenging now too with two of the managers there
suddenly leaving for competitor companies. There were also complaints about pay and
some hints of forced labour being used in the area.
Peru was working out better as they could pay lower wages than in Vancouver and sell the
high priced clothing around the world. She had heard some complaints that men got paid
more than the female employees, but she had not looked into it yet.
Shativa had some things to investigate before she started staffing for the new clothing
factory in Venezuela. Luckily, she had recently completed her International Human
Resources Management class as part of her ongoing MBA. She had six years of Human
Resources experience already but it was all so complex and she was only hearing part of
the story or rumors.
Now that the President had brought her into this project she had been advised to look into
the situation in South Korea and Peru as well as Venezuela and get this on the right path.
She knew global companies were sometimes strained with this type of expansion and
possible bad surprises and discoveries along the way.
1) Present how she should proceed with the Acquisition of the clothing
factory in Venezuela.