FITZBURG TIRE COMPANYABOURMAD Lola

BOURDEAU Clara

Summer 1996

Spring 1997

MailsMeetings

Phone callsMemos

FITZBURG TIRE COMPANY, Philadelphia, USA

Ann Block, V.P., Overseas Operations

FITZBURG TIRE COMPANY, Cuernavaca, MEXICO

Max Bierman, General Construction Manager

John Perkins, Engineer and Max’s Assistant

Leopoldo Sânchez Garcia, Chief Engineer Miguel Munoz, Subcontractor

OVERVIEW

EXISTING SITUATION

ADVANTAGES

Good communication with regular memos and reports

DISADVANTAGES

Mr. Bierman and Mr. Perkins do not speak Spanish

Mr. Bierman does not listen to Mr. Sanchez’s advice

Mr. Bierman can be disrespectful towards Mr. Sânchez

COMMUNICATION

EXISTING SITUATION

ADVANTAGES DISADVANTAGES

INTERCULTURAL DIFFERENCES

Vision of the problems encountered

Vision of the relationship with employees and partners

Importance of timing (US) and quality (Mexican)

EXISTING SITUATION

ADVANTAGES

Mr. Sânchez has a 30 year-experience building plants in Mexico and Latin America

DISADVANTAGES

Mr. Bierman does not have any experience outside the USA

Mr. Bierman takes decisions following his own opinion

Hostile behavior towards Mexican workers (blame, ultimatum, siesta)

MANAGEMENT

EXISTING SITUATION

ADVANTAGES

Capability to evolve (young engineers, subcontractors)

DISADVANTAGES

Have recourse to too many subcontractors

Need of a bigger workforce for the construction to be done on time

PRODUCTION

STATEMENT OF

PROBLEMSHOW TO IMPROVE THE MANAGEMENT OF THE

PLANT’S CONSTRUCTION IN TERMS OF COSTS,

DELAYS AND WORKFORCE WHILE KEEPING A GOOD

RELATIONSHIP BETWEEN THE MEXICAN PLANT AND

THE AMERICIAN HEAD OFFICE.

#1 Status quo: Following Mr. Bierman’s instructions

+ No over cost, productivity increased and additional supervision

- Communication problems between Mr. Sânchez and Mr. Bierman, Mr. Perkins perceived as a “watchdog”, hostility and ultimatum

#2 Following Mr. Bierman’s instructions without Mr. Perkins supervising workers

+ No over cost and productivity increased

- Communication problems between Mr. Sânchez and Mr. Bierman, hostility and ultimatum

OPTIONS#1

#2

#3 Following Mr. Sânchez’ instructions

+ Better communication between Mr. Sânchez and Mr. Bierman, speed up construction and additional supervision

- Over cost, productivity not increased (siesta time)

#4 Replacing the General Construction Manager

+ Better communication and understanding between Mr. Sânchez and the General Construction Manager, speed up construction and additional supervision

- Over cost, productivity not increased (siesta time)

OPTIONS#3

#4

#5 Radical change: Stopping the construction of the plant in Mexico

+ No more over cost and no more loss of money

- Loss for the company, unemployment of Mexican workers, breach of contracts with subcontractors and bad advertising for the company

OPTIONS

#5

DEBATE