Wilson Chemicals Ltd

Chen TianweiCéline HebrardChen Mofei　

OVERVIEW

Wilson Chemicals

• British company• Manufacturer of chemicals• Particularly chemical fertilizers

Wilson Chemicals (Ghana) Ltd.

• Subsidiary of Wilson Chemicals• Established in 1962• Had grown at a steady rate since its

opening despite the economic and political difficulties in the country

Structure Gerald Howard, President, Wilson Chemicals ↓

George Teele, Vice President, International Division, Wilson Chemicals ↓

Ian Thomas, Director, West African Division, Wilson Chemicals ↓Mr. Joseph Okono, subsidiary president (an Oxford-educated Ghanaian)

Dates• 1962: opening of the subsidiary in Ghana

• Since 1968: the company is responsive to the host country

• 1972: Joseph Okono named as President of the subsidiary

• 1984: Audit by a british-based company: reveal that Okono used £50.000 as incentives to facilitate bureaucracy, gain key contracts, and streamline procedures

Joseph Okono •Has proved to be an extremely able

manager:

oSales as increased at an average of 10% a year

oHe tripled real profitsoHe is appreciate by both employees and

clientsoHe knows how to work with whatever

government in power

Existing SituationStrengths Weaknesses

Ethics: the company is employing more and more native Ghanaians at top positions

Financial: the company is doing very well

Management: Mr.Okono is a native Ghanaian so he is familiar with local affaires.

Marketing: the sales in Ghana has grown continuously for 10 years

Policy: Ghanaian government officials’ “extra consideration” due to the bribery

Ethics: use bribery in order to make profit

Political environment: Rawlings governments trying to erase bribery

Econimic situation: Not good. Food production dropped.

Financial: £50.000 was unaccounted for by the financial officer Mr.Jonhson

Interculture: On the problem of bribery, Mr.Okono has different opinions with the top.

Exhibit 1

Exhibit 2

Gross SalesWilson Chemicals (Ghana) Ltd

0

2

4

6

8

10

12

14

16

18

20

1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983

Mil

lio

ns o

f P

ou

nd

s S

terl

ing

Exhibit 3

Exhibit 4

Rawlings’ crackdown against corruption:

In 1982:• A former leading member of the now banned People's National Party, was

imprisoned for accepting £5,000 from an Italian businessman.

In 1983:• A number of civil servants were dismissed on charges of corrup¬tion or

embezzling.• Nine senior police officials and fifteen others were retired early for alleged

profiteering.• The Director of Prisons and other senior prison officials were dis¬missed

for a variety of reasons.• Some officials of the Ghana Water and Sewage Corporation, the Ghana

National Trading Corporation, and the Cocoa Marketing Board have been ordered to stand trial for tax evasion.

• Sixty-nine officials, including sixteen principal and assistant prin¬cipal secretaries, have been forced to quit the Foreign Affairs Ministry for financial irregularities.

Statement of problemThere is evidences that Okono is using bribery, it seems necessary to do business successfully in Africa. Though, the Ghanaian government is doing crackdown against bribery. If the bribery of Wilson Chemicals is discovered, its business in West Africa will be adversely affect.

Should Wilson Chemicals stop the bribery and even fire Okono, or should it keep it going in a more concealed way?

Solution #1Maintain the Status Quo

Advantages:• Maintain the good

relationship with officials in relevant governmental departments

• Maintain the competitive advantage, avoid bureaucratic red tapes

Disadvantages:

• Okono may be caught, the entire business in West Africa be in danger

• Lose the Ghanaian market with nearly 20,000,000 sterling's profits

• Damage the global reputation of Wilson Chemicals

Substitutes for money (Scottish whisky, Stilton cheese etc.)

Solution #2

Advantages:• More concealed,

difficult to be detected by the anti-corruption department

• Reduce the cost of bribery

• Maintain the relationship with officials of relevant departments

Disadvantages:

• Risk to be detected

• May not be enough for officials, so it will become useless

Stop the bribery

Solution #3

Advantages:• No risk of being

detected• Reduce a big cost

(£47,000)• Increase the

relationship with President Rawlings

Disadvantages:

• No more “extra consideration” from the government

• Lose profits due to the present bad economic situation in Ghana

Dismiss Okono

Solution #4

Advantages:• Reduce a big cost

(£47,000)• Risk of being

detected has gone• Hire a new one

who will follow instructions from the top, strengthen the parent company’s control

Disadvantages:

• No more “benefits” from relevant governmental departments

• Okono is an native and experienced manager in Ghana

• Lose profits

Quit Ghanaian market

Solution #5

Advantages:• Never more being

affected by the complex economic and politic situation of Ghana

• No more cost to run the Ghanaian subsidiary

Disadvantages:

• Lose the Ghanaian market and 20,000,000 sterling's profits

• The entire operation of Wilson Chemicals being affected