- The Fitzburg Tire Company is building a new plant in Cuernavaca, Mexico but the project is facing delays, cost overruns, and conflicts between the American and Mexican managers. - Max Bierman, the American construction manager, wants the Mexican workers to abandon their siesta break and work at a faster pace to reduce costs and stay on schedule, but the chief engineer Leopoldo Sanchez Garcia believes this will damage relationships with the workers. - The best solution is to change managers, hiring a new bilingual and qualified engineer that can improve communication between the workers and managers and deal with the cultural differences more effectively to get the project back on track.

1. FITZBURG TIRE
COMPANY
Case Study Analysis
Emma Barraquier

2. OVERVIEW
Case situation

3. Names & Positions
• MAX BIERMAN – Construction manager
• JOHN PERKINS – Assistant of general construction
manager
• ANN BLOCK – VP overseas operations
• LEOPOLDO SÂNCHEZ GARCIA – Chief Engineer
• MIGUEL MUNOZ – Subcontractor
• Mexican workers

4. Dates & Locations
• Spring 1997
• Head office : Philadelphia, Pennsylvania
• New plant : Cuernavaca, Mexico

5. Synopsis of dialogues
Dialogue : Between Max Bierman & Leopoldo Sanchez Garcia
• Max Bierman called Leopoldo Sanchez Garcia at
home to discuss and develop solutions for the
problems at the company
• Most of the work completed had to be redone
• Bierman blames everything mexican
• The situation is out of control – delays, workers …

6. Synopsis of exhibits
• Exhibit 1 : Memo from leopoldo Sanchez Garcia to
Max Bierman
Leopoldo Sanchez has initiated changes
Solutions for Leopoldo Sanchez : Hire four engineers
to supervise

7. Synopsis of exhibits
• Exhibit 2 : Memo from Bierman to Sanchez Garcia
Solutions for Bierman :
Not to hire more workers.
To get people who are on the job working
Problem about the siesta break
Work tempo : increased
Costs : remain the same

8. Synopsis of exhibits
• Exhibit 3 : Bierman’s Progress Report to the Head
Office
Summary of work Previously Completed
Work Completed
Work Scedules
Proposed changes

9. Synopsis of exhibits
• Exhibit 4 : Memo from Sanchez Garcia to Bierman
Proposed changes won’t work
Cooperation with the workers is needed not hostility

10. REVIEW
Existing situation

11. Strengths & weaknesses of
the firm
• Communication
• Intercultural differences
• Ethics differences
• Management

12. Communication
+ -
Monthly report with
philadelphia
Fast meetings
Bierman not enought
present
Language Barrier

13. Intercultural differences
Philadelphia Cuernavaca
Gap between traditions
Lack of trust
Gap between traditions -
things are done
differently
Beautiful city in the
mountains, people
seemed friendly

14. Ethics differences
Philadelphia Cuernavaca
Don’t care about
mexicans problems
Misunderstandings

15. Management differences
Philadelphia Cuernavaca
Strict management
Experienced engenieers
Sanchez want to hire
people
Lack of supervision
Hostility at work

16. STATEMENT OF PROBLEM
The project is out of control with bad
relationship, time schedule unrealistics and costs in
excess.
The major problems are siesta and management.

17. OPTIONS
1. Adapt Siesta
2. Change the time schedule
3. Deal with workers and managers
4. Change team
5. Change managers

18. 1. Adapt Siesta
Advantages Disadvantages
Workers who want siesta
: keep it
Workers wo don’t want
siesta : work more & earn
more
Overcosts
Changes Mexican
tradition

19. 2. Change the time
schedule
Advantages Disadvantages
The plant would be a
success
Need time to adaptation
Philadelphia don’t agree
Overcost

20. 3. Deal with workers and
managers
Advantages Disadvantages
More communication
Better management
John have to learn
spanish
Would take time and
motivation

21. 4. Change team
Advantages Disadvantages
Hire workers unskilled
and subcontractors
Overcosts
Need a better
communication and
management

22. 5. Change managers
Advantages Disadvantages
Hire a bilingual and
qualified engineer
Worker will appreciate
Fire Perkins
Need time and
communication

23. RECOMMENDATION
Recommendation from the Above possible solutions
for one course of action that represents my opinion
of the best solution or combination of solutions

24. Thank you for your attention..