The action plan includes: job description for each role to be written down and communicated along with KRA's and ask William Stevenson to identify suitable replacement for Li Ping Check if two controllers are required, if necessary divide their roles and responsibility Give deadline to Jack Bartlett for operational changes, replace him if he is unsuccessful Evaluate all workers at the plant for skill levels using tests and pay accordingly, provide suitable training Evaluate managers on MBO, objectives defined with the help of Balance Scorecard
Situational Analysis.
Gentran Machinery has entered into a joint venture with Chinese State Corporation for a CKD assembly and part production plant, in order to gain access in the Chinese Construction machinery market and to later use it as a low cost parts supplier source for its plants in the US. However it quickly ran into operational problems like operational delays and slow start up. From the provided information, it becomes apparently clear that there exist a dissonance and an apparent lack of trust between Chinese and American Management style which is magnified by the language barrier. There also exist a lack of strong leadership at the top and an environment of mistrust among the middle managers. .
The situational analysis as revealed by SWOT is as follows:.
Strengths.
The Joint Venture heritages a strong technical and engineering background and support from the parent company Gentran Machinery which is presently growing at an annual average growth rate of 12%. It is known for high quality products and possesses Advanced American technology and knowhow. The company has 15 manufacturing plants in US with 8 plants present in foreign locations and an experience of successful JV in Brazil.
Weaknesses.
However, in 6 months of its operations, the sales results are below plan and its costs are well above plan. There exist a language barrier and cultural differences in the style of functioning and management in the American and Chinese counterparts.