Case 30 Operating in an Unfamiliar Culture
Setting: Auto Parts Manufacturer; Your Position: Country Manager
Your firm has just acquired a small manufacturer of spare auto parts in Southeast Asia. The recent collapse in the economies in this region made the low price very attractive. Your senior management team decided to acquire a foothold in this region. It was less interested in the particular acquired firm, which produces parts for the local market, than it was in using it as a base from which to produce parts at reduced cost for the worldwide market.
When you arrived at your new assignment two weeks ago, you were somewhat surprised by the less than enthusiastic reception that you received from the current management. You attribute the obvious strain in working relations not only to linguistic and cultural differences but also to a deep-seated resentment of their new foreign owners. Your local top management team seems to get along very well with one another, but the atmosphere changes when you step into the room.
Nonetheless, you will need their help in navigating your way through this unfamiliar environment. They have the local knowledge which you need desperately if you are to be successful. Your immediate need is to develop a plan for acquiring land on which to construct new manufacturing and warehouse facilities. You and your administrative assistant, who accompanied you from your previous assignment, should be able to carry out the plan, but its development would be hazardous without local knowledge.