Galmiche Alos Pellegrino Jean-baptiste

International Management
Case Study : Argos/Donaldson

I) A SHORT DESCRIPTION OF THE CASE

Donaldson was a professor of American studies in Cairo for five years. When he arrived in the States, he was hired by Argos and improved a lot the organization. He helped to create the cross-divisional, cross-functional and reduce costs for the USA Company. So Bill Loiun, CEO of Argos International, decided to send Donaldson in Europe to create seamless European team and facilitate the communication between the different European supplier parts because frank Waterhouse, CEO of Argos Diesel Europe, was very busy and the rest of the managers were not efficiently driven. So he deserved to get the best help. But, when Donaldson arrived in the European division, many problems appeared. Frank Waterhouse was competent and was achieving many important contracts abroad but Bill Louin wanted to improve the financial goal and create a real team. However, when Frank Waterhouse and Bert Donaldson were working together, communication and organisation problems bother the progress. Donaldson has also many problems with his colleagues, like the Spanish manager, Sauras, the Rome manager, Maurizio. Furthermore, he lobbies for Donaldsons replacement, because according to him, he cannot handle the European environment. Donaldson stayed focused on his Americans ideas. He thought the corporate culture was working the same everywhere whereas each region has its own culture and working way. Bettina Schwert, responsible of organization Donaldsons programs, wasnt satisfied by this manager and as she is very competent (she speaks five languages...) His culture is yet very different. Bettina is childhood friend with another employee, Ursula Lindt. Ursula Lindt is the Waterhouses executive assistant and she too is dissatisfied by Donaldson. She received many complaints against Donaldson and has made a report which show that Donaldson is contributing to low morale and cant manage an multi-cultural organization For example: Also that Donaldson would give the keynote address for the second meeting for training and education department, he calls Waterhouse to say that I didnt think that the address would be very good. Waterhouse has achieved three major government contracts in Moscow, Ankara and Warsaw. Whereas Donaldson doesnt seem to manage the Argos Europe very well About Sale plan: French and Germans are not agree General malaise during a meeting, because Waterhouse recall Local manager (Saura and Maurizo): lobby for Donaldson replacement This case could explain the difficulty of relationship between people when the corporate culture is different and the globalisation increase this phenomenon.

II) PRESENTATION OF THE DIFFERENT CHARACTERS AND THEIR STATE OF MIND

Bill Loun
- CEO of Argos International (Holding company) - Stayed focused on US ideas and would not understand why Donaldson would have not been successful in Europe with Waterhouse

Bert Donaldson
- Was a professor of America Studies in Cairo (Egypt) - He has achieved a considerable cost-reduction in America - When Donaldson arrived in Europe, the corporate environment became tense and dysfunctional - Friction with Frank Waterhouse when Donalsdon arrives in European division - He recognizes the problem but he didnt have an immediate solution. - Donaldson was given to Waterhouse without any formal cross-cultural training on the assumption that is Cairo experience was international - He keeps his US references and makes mistakes in EU - Arrives in late in the schmooze meeting - Good in US but bad in Europe. This corporate culture is not adapted - Donaldson seems to recognize his inability to work in a multi-cultural environment This man is charismatic, he is a hard worker. He was called by Bill Louin to improve the organisation in Zurich (in 1995). But when he arrives, this relationship with the CEO of Argos in Europe was not this effective.

Frank Waterhouse:
- CEO of Argos Diesel Europe - Sent a mail to Louin in USA because he thought Donaldson was not able to manage, but Louin doest trust him. Cf Thats Rubbish Frank (pp. 28). - Waterhouse appears to be competent executive with a busy schedule - He recognizes Donaldson skills in US but not in EU - After that Donaldson was late in schmooze meeting, he doesnt want walk with him (he said that he was busy) - Awaiting Donaldson to work together, but he recognizes the Donaldson failure for the culurally adaptation.

Bettina Schwert:
- Responsible for organizing Donaldsons programs - Schwert is Ursula Lindt childhood friend - She speaks 5 languages and writes 3 with styles - Extremely familiar with local culture

Paul Janssen
- Waterhouse friend, a trusted colleague - He has seen a lot of important details about Donaldson when they were training. - Same observations as Lindt: Donaldson isnt the good man at the good place

Ursula Lindt
- Waterhouses executive assistant - She received many complaints against Donaldson, about: the need to adapt to local culture - She wants to inform Waterhouse were met with a frown (pp. 25) but Lindt changed the subject - Report from Ursula shows that Donaldson is contributing on the low morale and was not able to manage an multi-cultural organization

III) WHAT ARE THE MAINS PROBLEMS AND WHAT CAN BE OUR RECOMMENDATIONS FOR EACH?
- The corporate culture is American in Argos USA. The culture is in the most of the case linked to the place culture. => No chance to succeed for Donaldson - No cultural training for Donaldson. The expatriate shock was high and as he arrived the night before starting his job, he could have not checked how the European culture was. So there is a lack of cultural understanding from Donaldson. He acted American as soon as he arrived. So he was anxious, irritated. => Louin could have offer a cross-cultural training for Donaldson to be ready. He had a domestic point of view thinking that European management was the same as American one. - Plus, to go further in the cultural side, we know that the hierarchy is not seen the same way. Each country has it own way to consider someone as a leader and Donaldson was not good on this point. What made him successful in the USA could have made him very unpopular. => A cross-cultural task force could have been created with one major manager from each country so Donaldson could have had a survey and evaluate correctly each culture. - No respect from the other is equal to no authority. He made a great mistake, not to participate. => He should have used the Scherwi knowledge and a lot of problems highlighted in the case would have not occurred. => Wrong person chosen by Louin. He should have consult Waterhouse first. Donaldson had a superficial international experience. He was not a good candidate. A good choice would have been a Argos Europe person which was internal and so know how things work. => Too much time waited by Waterhouse to send the first warning to Louin. He was busy but he should have been faster. Donaldson was incompetent since the first day and Waterhouse waited to have enought feedback to warm the CEO. _________________________ Bill Loun should call back Donaldson, because his work in States is very appreciate and he isnt adapt to European culture. Its seems that Donaldson isnt ready to change, so an European culture training wasnt adapted. Bill Louin could give the responsibility to Waterhouse to hiring an manager in charge of Donalsdons tasks. Waterhouse should hiring an European manager with a corporate culture appropriate to European Argos culture.

Bill Loun could also create a flowchart less flexible which doesnt made in competition Donaldson and Waterhouse. In this case, its should better that Donaldson so be it a consultant and explain to Waterhouse the ways which he has used in States to improve the organization but with an European touch.