FITZBURG TIRE COMPANYCase Study Analysis

Emma Barraquier

OVERVIEW

Case situation

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

Dates & Locations

• Spring 1997

• Head office : Philadelphia, Pennsylvania

• New plant : Cuernavaca, Mexico

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 …

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

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

Synopsis of exhibits

• Exhibit 3 : Bierman’s Progress Report to the Head Office

Summary of work Previously Completed

Work Completed

Work Scedules

Proposed changes

Synopsis of exhibits

• Exhibit 4 : Memo from Sanchez Garcia to Bierman

Proposed changes won’t work

Cooperation with the workers is needed not hostility

REVIEW

Existing situation

Strengths & weaknesses of the firm

• Communication

• Intercultural differences

• Ethics differences

• Management

Communication

+ -

Monthly report with philadelphia

Fast meetings

Bierman not enought present

Language Barrier

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

Ethics differences

Philadelphia Cuernavaca

Don’t care about mexicans problems

Misunderstandings

Management differences

Philadelphia Cuernavaca

Strict management

Experienced engenieers

Sanchez want to hire people

Lack of supervision

Hostility at work

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.

OPTIONS

1. Adapt Siesta2. Change the time schedule3. Deal with workers and managers4. Change team5. Change managers

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

2. Change the time schedule

Advantages Disadvantages

The plant would be a success

Need time to adaptation

Philadelphia don’t agree

Overcost

3. Deal with workers and managers

Advantages Disadvantages

More communication

Better management

John have to learn spanish

Would take time and motivation

4. Change team

Advantages Disadvantages

Hire workers unskilled and subcontractors

Overcosts

Need a better communication and management

5. Change managers

Advantages Disadvantages

Hire a bilingual and qualified engineer

Worker will appreciate

Fire Perkins

Need time and communication

RECOMMENDATION

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

Thank you for your attention..