Fitzburg Tire Company is building a plant in Cuernavaca, Mexico that is over budget and three months behind schedule due to cultural misunderstandings between the construction manager Max Bierman and the chief engineer Leopoldo Sanchez Garcia. Bierman, an American with no overseas experience, insisted on applying American construction practices but failed to understand Mexican cultural norms around work schedules, specifically siesta time. Communication problems arose between Bierman and Sanchez regarding solutions. Going forward, options include hiring American staff experienced in Mexico, adopting Sanchez's approach incorporating Mexican work culture, or continuing with Bierman's solutions despite risks of further conflicts and delays.

1. Case Study 1
Mrs Lebeau
Mr Allegot

2.  Participants:
◦ Max Bierman, Construction Manager
◦ Leopoldo Sanchez Garcia, Chief Engineer for Fitzburg in
Mexico
◦ John Perkins, Bierman’s assistant
◦ Ann Block, VP, Overseas Operation

3. ◦ Fitzburg Tire Company builds a plant in Cuernavaca,
Mexico
◦ Costs are over budget and construction is three months
late
◦ Work made in the last three weeks must be redone
◦ Misunderstanding between Bierman and Sanchez about
the solutions of the problem

4. 
Massive cultural misunderstanding:
◦ « Siesta » issue.
◦ Organization of work between workers is different from US:
 Efficiency of workers
 Working time arrangements
◦ Language issues

Communication problems between Sanchez and Bierman:
◦ B. persuaded of having the good solution:
 Bases the issues on his american experiences.
◦ Sanchez tries to explain why there are problems ( planning)

First experience for Bierman abroad
◦ Open minded?
◦ Overwhelmed

5. Strengths :
Weaknesses:
•Management core well organized
•A local Chief Engineer qualified
•A construction manager who has great
experience.
•Bierman has a lack of experience abroad
•Bierman is not open minded on the
cultural aspect
•Planning was unrealistic
•Too much subcontractors
•Communication between S. and B.
•Hostile attitude toward workers
•Less of qualified personal speaking
spanish (memo 4)
Opportunities:
Threats
• Hire more working force at a low cost (qualified
and non-qualified)
•Language
•Culture
•Working technics
•Work organization
:

6. 
Loss of Control by Bierman:
◦ Budget
◦ Time

Conflicts between Mexican workforce, Bierman
and Sanchez.

Main issue: Working time, especially the siesta.

7. 
Option 1: B. doesn’t change the organization of
the construction:
◦ Cost will still increase
◦ More delay expected
◦ Lead to a bad experience for B.

Option 2: Reduce the number of subcontractors,
keep better relation with them+ Hire new
workforces:
◦ Cost increasing
◦ Time loss sinking
◦ Still bad experience

8. 
Option 3: Hire American staff who already has
worked in Mexico
◦ Help in the language conflict
◦ Supervize workers and managers could anihilate
tensions between B. and workers

Option 4: Choose Sanchez way of work
◦ Keep cultural aspect of the « siesta » .
◦ Time behind schedule won’t increase that much anymore
◦ Costs increasing
◦ Model for abroad work of the Company.

9. 
Option 5: Implement B. solutions
◦ Conflicts between workers and managers.
◦ Possible time sinking, not realistic because of certain
conflicts
◦ Costs will be more over budget
◦ Bad Public image of the Company