Case Study -2

Submitted by:
Riju Maskay
Abinash Lama
Ashish Ekka
Raju Pangeni
Identify the main problem (s) and issue of the
case by analyzing the incidents stated in the
case.
● The main problems and issue of the case is legal environment
that UHH is confronting with.
● The existing provision of the Labour Act 2017 states that no
company is allowed to appoint foreigners more than 5% of the
total workforce. However, the company is found to violate this
provision.
● UHH initially brought 10 hydro-mechanical engineers from Iceland
to lead its production activities. It again brought in 7 high-voltage
transmission line engineers and three technical managers. This
made UHH to have 20 foreign workers and 40 Nepalese
permanent employees. This remained against the provision of the
act.
How would you analyze the business
environment issues of this case? Justify
your answers.
The above case mainly highlights two environmental
issues.
● The first being legal environment which does not
clearly address the issue that some foreign companies
are likely to confront in Nepal. The Labour Act 2017
should be made flexible regarding the number of
workers in special cases like UHH that needs highly
specialized workers.
● The second issue is socio economic environment
that reveals Nepalese labour market not to be matured
enough to supply highly specialized workers.
If the UHH appointed you as its CEO, how
would you address the problem(s)?
If I am appointed as the CEO of the company, I would do
the following to address the issue:
● Request for diplomatic immunity or bilateral agreement
between Nepal and Iceland government regarding the
minimum workers that foreign companies can hire.
● Request the government to amend the act so that
companies like UHH do not have any problem
regarding this.
● Request Iceland Hydropower Company to look for
Nepalese citizens for workers.
Thank you!!