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The Case of the Floundering Expatriate

Case Analysis

Executive Summary
Argos International has recently decided to integrate its European parts suppliers under Argos Diesel, Europe, to gain competitive advantage. However, the post-acquisition integration of all European suppliers into a seamless team is proving to be a difficult task for Mr. Donaldson. This is primarily due to his lack of cross-cultural knowledge and ethnocentrism of the management. This has resulted in a lack of morale amongst employees and delays in the implementation schedule. To ensure smooth integration, it is suggested that Mr. Donaldson be replaced by a suitable European counterpart, while he continues as a consultant for the process.

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Table of Contents
Executive Summary ..................................................................................................................................................... 1 Situation Analysis ........................................................................................................................................................ 3 Problems ..................................................................................................................................................................... 3 Decision Criteria .......................................................................................................................................................... 4 Retrospective Analysis ................................................................................................................................................ 4 Options and Evaluation ............................................................................................................................................... 5 Decision and Action Plan ............................................................................................................................................. 5 Contingency Plan ......................................................................................................................................................... 5

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Situation Analysis
Argos International, in an attempt to increase its competitive advantage, has decided to consolidate its parts suppliers, via acquisition, in Europe under the aegis of Argos Diesel, Europe. However, after two years of starting the programme, unsatisfactory progress has been made towards the seamless integration of the acquired suppliers. Mr. Bert Donaldson, who has been sent from USA headquarters to facilitate the process, has proven to be ineffective in his team-building program, after one year. The managers of acquired companies are resentful towards him, as are his own peers and subordinates. The stakes for Mr. Frank Waterhouse, CEO, Argos Diesel, Europe, are very high as the success of this project will directly affect his chances to return to USA in top management position. He is now reassessing the options of repatriating Mr. Donaldson - at the risk of jeopardising the latters career and chafing the US management, or continuing to work with him after providing him sufficient feedback and training which seems far-fetched, at its best.

Problems
Poor selection Bert Donaldson was chosen based on the following rationalizations: o International experience at Cairo However, Mr. Donaldson taught American Studies at Cairo, which no way indicate his ability to adapt to an international assignment as this. o Successful implementation of cross-functional teams at USA However, the current situation adds another vital variable to such building teams cross-cultural integration. There is no precedent to show that Mr. Donaldson was suitable for it. Lack of cross-cultural training before deployment Argos International did not provide Mr. Donaldson with any professional training about: o European business and societal culture o European lifestyle and language As a result of these, Mr. Donaldson arrived at Europe, completely unaware of expected conduct, and without a customized solution. Lack of detailed Plan of Action - Argos International did not seem to have any detailed plan of action in place for post-acquisition team building. Thus Mr. Donaldson was resorting to ad hoc measures as running team-skills workshop. Lack of effective leadership at several levels - It seems, the sole onus for the progress of the activity lay on Mr. Donaldson, as might be concluded from the lack of attention by Mr. Waterhouse to the cause. The latter did not act pro-actively to prevent the worsening of the situation in the first place. Also, Bill Loun ignored any concerns raised by Mr. Waterhouse, and
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failed to monitor the progress of the integration activities. He too supported the force-fitting of American way of business in European setting. There was also lack of effective communication between various leadership levels. Lack of adaptability in Mr. Donaldson Apparent ethnocentrism, as evident in Mr. Donaldsons modus operandi prevented him from entering into learning mode. It led him to believe that the American way of business and conduct must be thrust upon the managers and employees in Argos Europe, to allow team-building. This was also apparent in his inability to effectively command valuable resources as Mrs. Schweri & Mrs. Lindt, who could have been instrumental in helping him to implement his plans. Unrealistic schedule The management wanted Mr. Waterhouse and Mr. Donaldson to deliver the entire integration within two years this led to unrealistic expectation and lack of patience.

Decision Criteria
Mr. Waterhouse must consider the following points while evaluating options for the way ahead: Morale of employees and suppliers Acceptability by US Management Career of Mr. Donaldson Time period for implementation Cost of implementation

Retrospective Analysis
The following steps, if ensured in the first place, would have prevented the current crisis situation: A European expatriate working with Argos International USA, with relevant skills and experience of setting up such international project would have been much more effective. If not feasible, other candidates with suited skills and experience could have been selected. Mr. Donaldson should have undergone a cross-cultural training program before taking up the role. Mr. Loun should have, in the first place, ensured the preparation of a detailed project plan, with sensitivity to European way of business. Mr. Waterhouse should have been held accountable for the progress of the team-building activity. Mr. Waterhouse should have transferred his knowledge of the environment to Mr. Donaldson and given him time to settle down in, and learn the European culture. Greater reliance on local resources as Mrs. Schweri would have led to easy implementation. A time frame of three to five years should have been provided for the project.

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Options and Evaluation


The current options available to Mr. Waterhouse are: Option 1: Send back Mr. Donaldson to USA. Employ a local European with relevant experience to implement team-building. Option 2: Replace Mr. Donaldson with a suitable European candidate. Employ Mr. Donaldson as a consultant for the process. Option 3: Send back Mr. Donaldson to USA. Take up himself (Mr. Waterhouse) the responsibility of change leader. Option 4: Explain Mr. Donaldson the current situation and his shortcomings. Arrange crosscultural training program for him, and ask him to revamp the team-building plan. They may be evaluated as: Criterion Morale of employees and suppliers Acceptability by US Management Career of Mr. Donaldson Time period for implementation Cost of implementation Option 1 High Low Low Medium Medium Option 2 High Medium Medium Medium Medium Option 3 Medium Low Low Low Low Option 4 Low High High High High

Decision and Action Plan


We recommend the following action plan, along with Option 2 from above: 1. Replace Mr. Donaldson with a suitable European candidate. 2. Employ Mr. Donaldson as a consultant for the process. Other steps in action plan: 1. Request Loun to increase the time period for implementation to three to five years. 2. Introduce a cross-cultural training and unifying program for Mr. Donaldson and family.

Contingency Plan
To prevent any ill-effect on his own career, and to try and achieve success without major overhaul in the current structure, Mr. Waterhouse may choose Option 4 from above: 1. Explain Mr. Donaldson the current situation and his shortcomings. 2. Arrange cross-cultural training program for him, and ask him to revamp the team-building plan.
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