Critical Analysis of Possible Causes of Expatriate Failure at AFW Direct

Essay from the year 2014 in the subject Business economics - Personnel and Organisation, grade: 73 (outstanding), University of Hertfordshire, course: Leadership and Management Development, language: English, abstract: Anglo-French Wines Direct (AFW), a large multinational company based in UK, established a 'High Flyers Programme' four years ago in order to develop middle and senior managers of the future to enable the achievement of its global growth objectives. The aim was to send them to one of the international subsidiaries for two years and bring them back for a more senior position in the UK. However, the new Global HR Director of AFW has discovered several problems associated with this leadership programme. More precisely, she identified the following three types of assignment failure: 1. 25 per cent of the expatriates returned home early due to dissatisfaction. 2. Over 35 per cent of the expatriates who remained in post were considered to be underperforming compared to local management's expectations of them. 3. Around 30 per cent of those who completed their postings, left within a year of their return to England. These outcomes, however, are not attributable to a particular cause but are rather influenced by a variety of factors which will be analysed more closely in this report. Generally speaking, it can be assumed that the reasons for the present difficulties are mainly due to an ineffective management of the 'Ideal International Assignment Cycle' (see Figure 1) which includes the key components recruitment and selection, hiring, preparation, expatriation and repatriation and will be elaborated on below: [...]