ABSTRACT

This chapter presents the attempt of a relatively small Australian company to appoint an agent and retain an employee to develop the Iranian market. Bangor Engineering (BE) had $10 million in sales volume in portable cement mixers in Australia; The company was interested in the Middle East and had taken initial steps to position itself in Iran. Pars Construct was a company established by several former employees of Changiz and Company, a leading Iranian construction material supply company which was also the local agent for German manufacturers of cement mixers. Despite these restraints, BE was caught up in the general mood in Australia at the time, which perceived the Middle East market as good and, therefore, fertile ground for easy sales. BE would be paying him to develop expertise on Iran and other Middle Eastern countries. BE figured that a person from India would be cheaper than someone from Australia.