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Case Analysis: Global Multi-Products Chile
Bob Thompson, Managing Director of Global Multi-Products (GMP) -Chile is confronted with a multitude of interrelated issues with reference to the company’s operations, working with corporate management to execute his proposed changes with his Chilean labor force, and with his attempt to collaborate with the regional managers from Bolivia and Peru in establishing a common business objective. This case demonstrates how culture can inhibit effective communication, distress leadership and in effect, influence the operating effectiveness of the entire company. In my attempt to recommend a solution, I will discuss my proposal from top management to local management.
The facts presented in the case collectively define GMP to be a non-aligned global business. With the lack of coordination among its subsidiaries, executive leaders and its functional activities, there’s no adherence to common goals, vision and value system. GMP’s vision is “to be the most innovative enterprise and be the preferred supplier by developing technologies and products that creates a new basis of competition and by helpings customers grow their businesses.” Note that GMP’s innovation in customer service from product group sales to related sales and ultimately to integrated solutions is merely an unconscious attempt to align its business model with the company vision –sales-driven operations derived from its vision to be the preferred supplier by providing products (factored in volume sales of products in GMP –Chile’s business model) in helping customers grow.
Weakly aligned companies rarely succeed in achieving teamwork, effective top management and in breaking the eminent silos effect. With its poor translation to Chile, GMP’s operations are carried out with emphasis on profits from volume sales foregoing the effect of numerous issues, as discussed throughout my analysis, which could’ve helped generate higher profits. Although motivated leaders,...
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