PROBLEM 1&2
The firm needs 14 managers. There are not enough available candidates: with the appropriate background (MBA), technical skills, with Latin-American experiences and who speak Spanish.
This problem is linked to another problem: the compensation system is not competitive with European and American telecommunication firms.
DESCRIPTION OF THE PROBLEM
In 1990, a program designated to anticipate Latin American market expansion: hiring recent graduates with appropriate backgrounds from MBA programs, a technical education, substantial Latin American backgrounds and spoke Spanish. By 1996, only 10 of these young international managers have been retained by the firm.
Among the managers selected, only 4 are "young international managers" (=who speak Spanish fluently and had already lived and worked in Latin-America), and 4 others are "traditional and international managers" (=who speak Spanish and have already had an international experience).
The problem is also that even if the firm has available candidates, it is not able to retain them. Actually, the perception of young international candidates is that other companies' salaries are higher than Marconi's ones. If the compensation package can be considered as correct, compared to competitors, the base salaries alone are less than those of competitors and this makes Martel vulnerable.
ALTERNATIVES
Marconi needs to find a way to attract international managers and to retain them.
1_The program which has been taken in place in the 90's could be a part of the solution. The best way to attract recent graduates is to work in partnership with universities. Marconi could propose some practices to students and hire the candidates who are suitable for the strategy of expansion.
2_The problem is not only to attract new managers. Marconi must be able to retain them and to motivate them to work abroad. The compensation system must be