Case study on culture and the implementation of manufacturing strategy in Mexico

Abstract

Even under the best circumstances, organizational change generates resistance. When the change results from a company in one country purchasing a plant in a different country, the complexity of change management and the resistance to change increase considerably. This case analysis examines one such change effort. Initially, the effort failed because the management of the acquiring (U.S.) firm communicated ineffectively with workers in the acquired (Mexican) plant, failed to establish a reward system that encouraged acceptance of change, and ignored cultural and subcultural differences. However, management quickly learned from its mistakes and made the adjustments necessary to turn failure into success. Implications for cross-cultural change management are discussed.