In this case, we have a company which headquarter is based to Silicon Valley and has subsidiary into other countries. Cape Town is one of them, and the office was not structured as others, for the only reason that there was no developed market in South Africa for company to invest.
Yola was in his internationalization process beginning. The Problems of organization and human resource management were the major source of frustration in the South African’s subsidiary. The Lacks of communication between headquarter and his subsidiary is the worst thing to do when planning to develop a market. To manage this issue, Lingham should have thought first how to …show more content…
There are several issues raised in this case, starting from product diversification to generate more profit, opportunity to stay in the country knowing that it takes time for a company to make profits in developing countries ... but the major problem for the company is how to adopt appropriate strategy with its subsidiaries, for a growing company. Human resources is the main challenge because, he is involved in all issues strategy
If we analyze the company, Yola is a company that began looking to foreign markets. The market in South Africa is not as developed for the company to establish offices with all the departments necessary for operation. The subsidiaries are very dependent to headquarter in USA, country where the market represents more than 40% of sales.
As the company begins to think internationally, and the opportunities increase, it is time for Yola establish a strategy to integrate its human resources in its internationalization strategy. If we follow the evolution of stages of a company that wants to go abroad, the next step will be operations through wholly owned Subsidiaries. if yola wants to prepare for this evolution of market, it should have a solid strategy for human resources.
The strategy proposed in this case is to keep control at the head office. The reason is simple. The area in which the company operates, is an