Tex-Mark - Spanning the Globe - Case Study

Case Study No. 1

Spanning the Globe - Tex-Mark

I. Problem identification

Introduction

Tex-Mark is a computer input-output manufacturer and supplier; which had started out as a 'spin off' of Dell Computers in the 1970s. The company is considered a "major force in the printer and optical scanner industry" according to Allen Engle. Tex-Mark inherited a production facility in San Antonio from Dell, and also has international production facilities in Monterrey, Mexico, Leith, Scotland and Jaipur, India. They are opening a new facility in Wuhu, China. Research and new product development activities are split between San Antonio, a location in Durham, North Carolina, and research in Edinburgh, Scotland. Major sales, distribution and customer service are located in Asia, France, United States, Australia, Brazil, Hong Kong, and Israel.

Background

Eric Christopher, an Associate Director for Global HR Development at Tex-Mark, is an individual who graduated from college with a major in History and minor in Spanish. He was born and grew up in Edinburgh, Scotland and spent several summers backpacking around Europe. He has an excellent working use of Spanish, French, Italian and German. After graduating from college, he backpacked around Europe and South American until his money ran out.

Fred Banks, is a Dell engineer that had stayed on with Tex-Mark after the spin-off in 1978. Considered a bright and promising young engineer then, he was one of the first people chosen to go to Scotland. He was later made lead engineer of a team that went to Mexico. Apparently the Mexico operation did not go as smoothly as planned and after reviewing Fred's file, Eric felt the problem was that Fred's team did not relate well to their Mexican counterparts. As a quick replacement in 1999, Fred was sent to India in what turned from an 18-month assignment into a 3-year assignment due to Fred's unwillingness to train and turn over responsibilities to local engineers.

Explicit and Underlying Problems

One of the first explicit problems stated in the case is the dilemma Eric is forecasting with reducing costs on training programs, shortening expatriate assignments and faster appointment of HCNs whenever possible. This particular issue was indirectly heard from his Vice President of HR, Juanita Roberto. An underlying problem with the statement of this explicit problem is that Eric has indirectly heard of the issue. He is making an assumption based on what he has heard from a third party. Eric has also mentally translated streamlined as meaning cheaper.

Another explicit problem in the case is the tension between Eric and Fred. Fred was angry and disappointed that his 18-month assignment in India turning into a three-year assignment, and that he was passed up for VP position Durham by a younger Durham resident. An underlying problem is one that Fred is trying to correct an error he made with his team in Mexico. Because the project did not go smoothly in Mexico due to his teams relations with local counterparts, Fred is more hesitant to turn over the training and responsibilities to local engineers in fear that the India project would go badly as well.

An additional underlying problem is the differences in background between Eric and Fred. Due to Eric's extensive language capabilities and experience backpacking through Europe and South America, he has a greater cultural competency than Fred. On the other hand, Fred has more technical skills with his engineering background.

Categorizing Short-term and Long-term Problems

Tex-Mark is dealing with short-term and long-term problems in this scenario. One of the short-term problems is the situation with Fred. He is not happy with his extended assignment in India and the fact that he was passed up for a position in North Carolina. This is an issue that would need to be resolved fairly soon or the company would risk loosing an engineer that could be very successful in another department or section. The long-term problem arising from this short-term issue is that the company is going to lose future employees due to the same expatriate failure problem. Without having a clear understanding of what caused Fred to fail at his assignment in Mexico and potentially India, will only result in a long-term problem for the company. Another way to phrase this long-term problem would be the lack of a formal policy regarding international assignments.

II. Analysis

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