Summary of the Case

Argos International decided to integrate its

european supplier under Argos Diesel Europe to
gain competitive advantage.
The post-acquisition integration of all European
suppliers into a seamless team is proving to be a
difficult task for Mr. Donaldson.
This happens primarily due to his lack of crosscultural knowledge and ethnocentrism of the
management.
To ensure smooth integration, it was suggested
that Mr. Donaldson be replaced by a suitable
European counterpart, while he continues as a
consultant for the process.

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.
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.

Contd..
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 farfetched, at its best.

Decision & Action Plan

Replace Mr. Donaldson with a suitable
European candidate.
Employ Mr. Donaldson as a consultant for
the process.
Request Loun to increase the time period
for implementation to three to five years.
Introduce a cross-cultural training and
unifying program for Mr. Donaldson and
family.