Case Study Trying To Do Business in Mexi

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Create another working plan which can achieve the goal and and also more

suitable
Observe and find out about the relationships among staffs and their
working motives
Motive workers better
Need to observe the work closer, do not leave Manuel with too much power
and decisions
Learn the language or have a trusted assistance

Trying to do Business in Mexico, Gringo Style


Summary:
These objectives primarily focus on enhancing the cost-efficiency of the company by
reducing labor cost. Upon his arrival to Mexico with his family, his assistant pant
manager and cultural mentor, Manuel, greet Ted and he promises Ted that the plant
would become operational withen two weeks. Eventually, the operations at the plant
commence five weeks after the scheduled date which causes Ted to lose his trust in
Manuel. While, Manuel considers him too insensitive and impatient. As tensions between
Ted and Manuel continue to grow, the efficiency levels at the plant continue to drop.
Believing in the idea that cultural issues share no association with efficiency, Ted
proposes three recommendations to address the problem including the dismissal of low
performing workers and the implementation of an incentive-based pay system and a
participative approach to decision-making. When the proposed schemes do not yield
desired results, Ted realizes that Manuel did not fire five of the workers that should have
been dismissed, and as a result of the differences in the labor laws of Mexico and US, the
workers that were dismiss. would be entitled to a severance pay Feeling frustrated, Ted
contemplates his future at the company and thinks that perhaps his criticisms of Mexican
culture were indeed valid

Answers of the Questions


What mistakes did ted make in his management of SterMexicana?
According to our point of view Ted made some mistakes which made the plant running
unsuccessful some mistakes are listed below:
One major mistake he did was delegating and leaving more work to Manuel instead of
working hand in hand with him. By reading the case study it seems that he did not go to
the field with him to seek ideas about the establishment of the company. It seems that
they only met in meetings where Manuel could give him updates on the progress of the
establishment and hence he could not have a clear picture of the situation from the base.
The most fundamental mistake that Ted made in his management of SterMexecana is
related with his convenient assumption and misguided belief that falsely led him to
believe that his managerial expertise would transfer successfully to Mexico without the
emergence of any significant issues. Therefore, during his time as the plant manager of
the firm, Ted failed to acknowledge the cultural dimension of management in the
formulation of appropriate strategies to address business problems, in his dealings with
the company's suppliers, and also in the decision-making process.
For example, when Manuel showed in in introducing Ted to the culture of Mexico, his
reluctance in doing so was evident by his Impatience to discuss more significant matters
that were related to the business. By refusing to understand the dimensions of the
country's national culture. Ted ultimately developed recommendations and strategies
which could not yield deal results for the business

He also did not ensure that the hiring process was fair to all, this is seen when Manuel is
found to have hired nearly all of his relatives.

Question No.2: Is Manuel responsible for any of the difficulties presented in the
case? Manuel is responsible for some of the difficulties especially the one related with
the employees. Ted trusted him with the hiring process since he was the one who was
doing most of the ground work. When the efficiency of the work was questioned and Ted
directed him to lay off some employees, it was discovered that most of the employees
were his relatives. This means that even their level of qualification was in question since
unqualified employees cannot work satisfactorily. His poor planning methods also made
the establishment of the company to be behind schedule.

Question No.3: What should Ted do now to correct the situation?


Ted should now devote some time to reorganizing his company. Time
management will be difficult because his family requires his attention, but he should try
to strike a balance. He must find a suitable replacement for Manuel who is not overly
ambitious and can be relied on to act in the best interests of the company without fear or
favor. He should also do the majority of the work himself rather than relying on his staff.
Ted must first understand Mexican law and culture before he can plan his strategy and
carry out the activity.
He needed to act as a check and balance for the subordinate, but because of his
overall attachment to Manual, he grew to rely on Manual. These factors must be
considered before launching his business. Ted must determine whether or not the plant
operator is competent.
Ted should now spend some time reorganizing his business. Because his family
requires his attention, time management will be difficult, but he should try to strike a
balance. He needs to find a suitable replacement for Manuel who is not overly ambitious
and can be trusted to act in the best interests of the company without fear or favor. He
should also do the majority of the work himself rather than delegating it to his employees.
Ted must first understand Mexican law and culture in order to plan and carry out the
activity. He needed to act as a check and balance for the subordinate, but because of his
overall attachment to Manual, he grew to rely on Manual. These aspects must be
considered before launching his company. Ted must determine whether the plant operator
is qualified.
Ted should now spend some time to reorganizing his company. Time management
will be difficult because his family requires his attention, but he should try to strike a
balance. He must find an appropriate replacement for Manuel who is not overly ambitious
and can be trusted to act in the best interests of the company without fear or favor. In
addition, rather than delegating work to his employees, he should do the majority of it
himself. To plan and carry out the activity, Ted must first understand Mexican law and
culture. He needed to act as a check and balance for the subordinate, but because of his
overall attachment to Manual, he grew to rely on Manual. These aspects must be
considered before launching his company. Ted must determine whether the plant operator
is qualified.
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