Summary of the Case

Summary of the CaseArgos International decided to integrate its european supplier under Argos Diesel Europe to gain competitive advantage.The post-acquisition integration of all European suppliers into a seamless team is proving to be a difficult task for Mr. Donaldson.This happens primarily due to his lack of cross-cultural knowledge and ethnocentrism of the management.To ensure smooth integration, it was suggested that Mr. Donaldson be replaced by a suitable European counterpart, while he continues as a consultant for the process.

Situation AnalysisArgos International, in an attempt to increase its competitive advantage, has decided to consolidate its parts suppliers, via acquisition, in Europe under the aegis of Argos Diesel, Europe.Mr. Bert Donaldson, who has been sent from USA headquarters to facilitate the process, has proven to be ineffective in his team-building program, after one yearThe managers of acquired companies are resentful towards him, as are his own peers and subordinates. The stakes for Mr. Frank Waterhouse, CEO, Argos Diesel, Europe, are very high as the success of this project will directly affect his chances to return to USA in top management position.

Contd..He is now reassessing the options of repatriating Mr. Donaldson - at the risk of jeopardising the latters career and chafing the US management, or continuing to work with him after providing him sufficient feedback and training which seems far-fetched, at its best.

Decision & Action PlanReplace Mr. Donaldson with a suitable European candidate.Employ Mr. Donaldson as a consultant for the process.Request Loun to increase the time period for implementation to three to five years.Introduce a cross-cultural training and unifying program for Mr. Donaldson and family.