Submitted by: Submitted by mpaig005
Views: 10
Words: 661
Pages: 3
Category: Business and Industry
Date Submitted: 11/18/2015 06:22 AM
mMarcus Paige
SID: 2015843300
Case 3 (Individual)
What were the problems facing luis Morales as he began implementing Ben Fisher’s
international expansion strategy?
The main problem facing Morales was strained relationship with Kent Chemical’s
international partners. The US main branch became too involved in the dealings of its
international subsidiaries who were used to having more independence as a business. The new
strategy undermined country managers’ understanding of the local market and culture.
Lack of communication was also a big issue facing Morales. Conflicting self interest and
lack of willingness to compromise caused competition between international subsidiaries
already in or trying to enter the similar markets. Growth also made technology transfer difficult
due to lack of communication with appointed technology managers.
But one of the most difficult problems facing Morales was that the regional organizations
within his international division had difficulty coordinating issues with global consequences. this
issue was highlighted on when their “Brazilian subsidiary unilaterally reduced prices on a line of
general purpose polycarbonates as a loss leader to sell more of the expensive technical medical
products the pricing impact was felt throughout Kent’s worldwide medical plastics business.”
This incident really brought it to their attention that nobody was coordinating major factors of
income globally.
How would you evaluate the organizational changes he made in response to those
problems? Why were they unsuccessful?
I think that the reorganization of the KCI helped facilitate Morales to mend strained
relations with international plant managers. This worked in the short term, however, as
international operations grew Morales was unable to maintain efficient communication with
subsidiaries. In the long run having one person handling negotiations with all the regional ...