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INCIDENT 1-2 Canadian Bio-Medical Instruments Ltd. Canadian Bio-Medical Instruments Ltd., founded 10 years nonstop flight facilities that currently exist from Toronto, ago, manufactures a variety of biomedical instruments where the firm’s head office is located. Three employ- used by physicians and surgeons, in both clinics and hos- ees were sent to Germany to identify possible office sites pitals. The high quality of the company’s products led to and to learn about European testing procedures and what quick market success, especially for products such as arti- documentation would be legally required to prove the ficial heart valves, operating-room pumps, and respira- safety and effectiveness of the company’s medical instru- tory modules. The company, which had sales of less than ments. All three employees were fluent in German. If the $900,000 in the first year, today enjoys an annual reve- reports on Germany are favourable, the firm expects to nue of $150 million. However, the industry is competitive have about 20 employees working in Europe within the and the research development and promotional budgets of next year. some of the key players in the industry are several times that of the firm. DISCUSSION QUESTIONS Given the successful track record for its existing prod- ucts and the competitiveness of the North American mar- 1. Assume you are the vice-president in charge of human ket, the management of the firm believed that gaining new resources. What additional information would you market shares in Europe would be easier than expanding want these three employees to find out? against well-entrenched domestic producers. Preliminary 2. What human resource issues or policies are you likely market studies supported management’s thinking. to confront in the foreseeable future? A decision was made to open a small sales office in Europe, probably in Frankfurt, Germany, given the
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