The document summarizes a meeting between consultants and the Fitzburg Tire company about problems constructing a new plant in Cuernavaca, Mexico. There are cost overruns and delays in construction. Cultural differences between American managers and Mexican workers are causing misunderstandings and conflicts. The consultants presented 5 options to address the issues: 1) follow the Mexican project manager's approach, 2) impose the American work style, 3) offer incentives to encourage faster work, 4) replace the American construction manager, or 5) change expectations while keeping the current organization. Each option has benefits but also risks that could increase costs or cause further delays or conflicts.

1. Consultants: Mrs Nicolas - Mrs Pahin
Tuesday, march, 4th

2. a) The organization
b) The situation

3.  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

4. a) Overview of the organization
 A-
The organization Block
Ann
V.P., Overseas Operations
Max Bierman
Construction Manager
John Perkins
M. Bierman’s assistant
Leopoldo Sanchez
Chief Engineer
Miguel Munoz Subcontractor
Mexican workers

5. b) the situation
 Fitzburg
Tire company wants to build a plant
in Cuernavaca, Mexico.

6. b) the situation
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

7. c) The differences
 The
ethic differences
Americans
-They only blame mexicans
-They don’t care about other
culture
Mexicans
-Traditions are really important

8. c) The differences
 The
communication differences
Americans
Max Bierman
-Don’t speak spanish
-Threat helps to have results
Mexicans
Leopoldo Sanchez Garcia
-Respect mexican culture (
language, habits etc)
-

9. c) The differences
 The
intercultural differences
Americans
- Time is money
- Thourough is essential
Mexicans
-The traditions are mroe
important than the deadlines
- don’t respect the dictature of
time.

10. c) The differences
 The
management differences
Americans
Max Bierman
- Not enough supervision
- Requires more efficiency
- Stucks in an american way of
management
-Lack of experience
Mexicans
Leopoldo Sanchez Garcia
- listening to workers
-Managing on the field
-Lots of experience

13.  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

14.  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

15.  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

16.  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

17.  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