Fitzburg company 2014 capu-lea

THE FITZBURG TIRE COMPANY

Consultants: Mrs Nicolas - Mrs Pahin

Tuesday, march, 4th

Table of contents

I-Overviewa) The organizationb) The situation

II-Statement of the problem

III-OptionsIV-Our recommandation

exhibits Background of the history of the

company EX 1 : A memo from Sanchez Garcia to

Max bierman EX 2 : A memo from M.Bierman to

S.Garcia EX 3 : The Bierman’s progess report to

american the head office EX 4 : A memo from Sanchez Garcia to

Max Bierman

I- overview

A- The organization

Ann Block V.P., Overseas

OperationsMax Bierman

Construction Manager

John PerkinsM. Bierman’s assistant

Leopoldo SanchezChief Engineer

Miguel Munoz Subcontractor

Mexican workers

a) Overview of the organization

I- overview

Fitzburg Tire company wants to build a plant in Cuernavaca, Mexico.

b) the situation

I- overview

Several problems:

Problems of costs and deadlines

Some of the contruction has to be redone

Misunderstanding between the american people and the mexicans

Different ways of management

b) the situation

I- overview

The ethic differences

c) The differences

Americans Mexicans

-They only blame mexicans-They don’t care about other culture

-Traditions are really important

I- overview

The communication differences

c) The differences

AmericansMax Bierman

MexicansLeopoldo Sanchez Garcia

-Don’t speak spanish-Threat helps to have results

-Respect mexican culture ( language, habits etc)-

I- overview

The intercultural differences

c) The differences

Americans Mexicans

- Time is money - Thourough is essential

-The traditions are mroe important than the deadlines- don’t respect the dictature of time.

I- overview

The management differences

c) The differences

AmericansMax Bierman

MexicansLeopoldo Sanchez Garcia

- Not enough supervision- Requires more efficiency- Stucks in an american way of management-Lack of experience

- listening to workers-Managing on the field-Lots of experience

II- Statement of the problem

Your company loses control of this building plant in

Cuernavaca. The several differences between America and Mexico put Fitzburg in a difficult situation in terms of

costs and delays.

How we can solve this problem?

III- OPTIONS 1- Follow Leopoldo Sanchez way of

working

+ --Mexican workers are in good conditions to work- No conflicts-Less legal entanglement-Model for abroad work of Fitzburg

-Still late concerning the delays-Loss of time to form people- Would-it be enough?-Increasing costs

III- options 2- Impose the american way of work

( 8h to 16 am with 30 min break)

+ -- Precised schedules- Regularized costs

-Conflicts with mexicans-Hostility of the workforce-Not realistic-Create a bad public image

III- options 3- Work more to earn more ( instaure

primes, sanctions)

+ -- encourage workers to give their best = create motivation- Catch up the schedules

-Could create additional costs-Risk of bad results due to the rapidity of work

III- options 4- Fire Max Bierman (hire an engineer

from america latina)

+ -- increase the understanding of workers-Manage on « the field »-Could decrease conflict between mangers and workers

-Time to recruit and form him-Money

III- options 5-Do not change the organization but

change expectations

+ -- No difficulty to change-Respect of different cultures-Plant could become a model

-Costs still increase-Still late -Bad image of the company -Bad results in terms of previsions

IV- our recommandation

Thank you for your attention,

any question?