Fitzburg tire company

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Information about Fitzburg tire company
Business & Mgmt

Published on March 9, 2014

Author: alexialabrusse


CASE STUDY ANALYSIS Alexia Labrusse Virginie Leroy Group 306

 Overview  Existing Situation  Statement of problems  Options

Location Philadelphia Cuernavaca

Names and Positions ✓ Participants Max Bierman, construction manager Leopoldo Sanchez Garcia, Chief engineer ✓ Ann Block, VP Overseas Operation John Perkins, Assistant of contructor manager Mentionned Maestro Miguel Munoz, subcontractor Mexicans workers

Dates ✓ Beginning : August, 1996 ✓ April 1 – 30, 1997 ✓ May 1 – 30, 1997

Documents ✓ Dialogue between Max Bierman, construction manager and Leopoldo Sanchez Garcia, chief engineer ✓ Memo Business from Sanchez Garcia to Max Bierman – 29 April 1997 ✓ Memo Business from Max Bierman to Sanchez Garcia ✓ Bierman’s progress report to the Head Office ✓ Memo Business from Sanchez Garcia to Max Bierman

Problems ✗ Not respecting of the schedule ✗ Cost ✗ Work required to be redone

Known facts ✓ Fitzburg Tire company is building a new plant in Cuernavaca, Mexico ✓ Cost are over budget ✓ Problems of delays ✓ Work required to be redone ✓ Misunderstanding between Max Bierman and Sanchez Garcia

Strengths and Weaknesses Intercultural differences Americans Respect schedule and dedline Individualistic culture Money is more important Mexicans 90 minutes « siesta break » Work slow « Doing well is more important » Spirit of solidarity

Strengths and Weaknesses Communication Strengths  Many meetings and reports Weaknesses  John doesn’t speak Spanish  Max Bierman doesn’t speak to Mexicans workers directly

Strengths and Weaknesses Ethics Strengths American point of view : you are responsible for your mistakes Explications of Sanchez Weaknesses • Fault never comes from only one person: too many persons involved Bierman is self centered and blames only Mexicans workers

Strengths and Weaknesses Management Strengths Good experience for Mexicans workers Sanchez knows well about work in Mexico Good engineers Weaknesses • • • • Different ways of working Lack of supervision from USA Distance between the two countries is too important Disagreement concerning management

Strengths and Weaknesses Cuernavaca Plant Weaknesses Strengths

✗ Too many expenses : budget exceeded ✗ Schedule problems ✗ Delays Are these problems caused by cultural differences ?

1. No management changes The first option is to keep the same management, even if currently there are problems, it seems to be possible to finish the project correctly. No more conflicts Respect of both cultures American and Mexican Schedule not respected Overcost

2. More instructions from Philadelphia and presence on the ground The location of the plant creates problems. More presence at the plant could be a good way to reduce misunderstandings. Better management Take time and need interest

3. Bonus : Work more, earn more One of the most « human » options could be to provide bonus to workers that work well! It’s easy to observe which are involved and motivated to do the work in time and well-done so bonus can be a good way to motivate them. Encourage Mexicans Workers New Overcost

4. Fire John Perkins It could be an option because we know thanks to their discussions that John Perkins doesn’t speak Spanich, first of all and also he is not liked at all by the Mexicans so it creates tensions between him and them. He is not really involved in the project. Hire new assistant who is interested in the Mexican way of life Overcost Conflict

5. Impose changement of Max Bierman It is the most radical option because it means that Mexican workers have to obey to the USA head office and it is not the preferable option for mexicans workers but can be one if they never find another management. Project back on line in term of schedule and cost No respect of Mexican culture Conflicts

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