Managing Pibrex Russia Essay

Pibrex, a European draw in the production and development of polymers, faces the sledding of its threesome Russian subsidiaries. This menace stems from issues encountered after entering the region in 1992 and then being dish with the Russian financial crisis of August 1998. As result, a steering delegation comprised of three senior managers from Pibrex share Europe North (PREN) exercised many anti-crisis initiatives including delegate newly appointed financial controller Elena Michailova with the task of auditing entirely three Pibrex Russian subsidiaries. Upon completion of Michailovas audit, she has discovered that it is the combination of remaining issues from the lessening period and the Russian financial crisis that threaten the institution of Pibrexs existence in Russia. The steering committees ultimate goal is to break down these issues to ensure survival of the Russian subsidiaries and breaking financially even in the near future. IssuesShort term1. Lack of an int egrated operating contour line and task redundancy across departments2. Large differences in wages among managers, sales, marketing, and production workers3. Very little communicating between counseling and subordinates4. measly working conditionsLong term1. In the plant there is a deprivation of order and financial control2. Contention between ply and management3. Bad management and employee relations4. Outdated facilitiesAnalysislet us use of goods and services the five whys method of digest to find the root cause1. Why is Pibrex in danger of losing its Russian subsidiaries? Pibrex is in danger of losing its Russian subsidiaries because of unresolved issues lingering after the step-down period and the Russian financial crisis.2. Why were these issues left unresolved?The issues were neer resolved by previous management.3. Why were these issues never resolved by previous management? Managers were distant and many times unaware of issues inside the organization. 4. Why we re managers distant and unaware?There was a lack of dialogue and operational control for the management of Pibrex Russia. 5. Why was there was a lack of communication and operational control for the management of Pibrex Russia? Pibrex used a de alter structure worldwide. This structure was complicated and Russians did not easily adapt to it. Pibrex Region Europe North had many other subsidiaries besides Russia therefore issues in the Russian subsidiaries were often over looked. This limited progress and denied proper management of Pibrex Russia. The root cause of Pibrex being in danger of losing is Russian subsidiaries is the use of a decentralized structure. Alternatives1. Go to a much more centralized structure that the Russians are more accustomed to2. Restructure management my permutation all managers3. PREN would focus more on the Russian subsidiaries4. Drop all Russian subsidiaries and disperse production duties among other subsidiaries in PREN Criteria1. Financial losses from the Russian subsidiaries must stop2. Management should be more tender and properly trained3. Communication between managers and subordinates is key4. Improve manpower morale5. Increase efficiencyDecisionPibrex needs Elena Michailova to take the cheat of financial and managing director of Pibrex KZ. I believe that her taking on some(prenominal) positions is the only scenario where Pibrex scum bag keep the Russian subsidiaries and eventually make them remunerative again. Michailova has seen the issues and identified them through her audit. There is no one else more competent than her to take on these two positions. She also happens to be Russian a unlike her predecessor. This should help greatly in resolving the tense blood with the workers and management. With her experience and a well thought out restructuring plan, I own the up most confidence that the Russiansubsidiaries can be saved. program the DecisionElena Michailova as the experience, all she needs is a solid r estructuring plan. The fiddling term issues should be addressed immediately. Finances volition be stiff at first so she king have to think away(p) of the box to be able resolve some of these issues. For instance, if the bud shrink will not allow for a new integrated operating system she might have to find a better way of communication to cut down on task redundancy and revenue loss due to missed deliveries. Michailova will also have to decide if she can make the decentralized management work in Russia. If she can get the Russians to adapt to the concept it might be beneficial. Decentralized management makes admission fee to excellent expertise but if the Russians cannot adapt then it might be more productive to have a more centralized form of management for them. She will also have to deal with the financial crisis. This might mean more layoffs to cut costs. It will definitely mean do production more effective. The subsidiaries will not survive in this financial climate if it cannot find ways to save money and make a profit.