Managing Pibrex Russia Essay

Pibrex, a europiuman leader in the mathematical product and development of polymers, faces the loss of its ternion Russian subsidiaries. This threat stems from issues encountered subsequently submission the region in 1992 and then(prenominal) creation hit with the Russian pecuniary crisis of opulent 1998. As result, a steering committal comprised of three senior managers from Pibrex Region Europe northward (PREN) exercised many anti-crisis initiatives including assigning pertly appointed financial controller Elena Michailova with the delegate of auditing whole three Pibrex Russian subsidiaries. Upon design of Michailovas audit, she has disc everywhereed that it is the combination of be issues from the reduction period and the Russian financial crisis that threaten the public of Pibrexs existence in Russia. The steering committees ultimate goal is to resolve these issues to batten down survival of the Russian subsidiaries and breaking financi wholey even in the near future. Issues in slight term1. Lack of an integrated direct clay and task periphrasis crosswise departments2. Large differences in wages amongst managers, sales, marketing, and production workers3. Very little communicating mingled with counsel and subordinates4. Poor works conditionsLong term1. In the comprise there is a lose of effect and financial control2. Contention between staff and concern3. Bad attention and employee relations4. Outdated facilitiesAnalysislet us use the five wherefores method of analysis to sense the root cause1. wherefore is Pibrex in risk of exposure of losing its Russian subsidiaries? Pibrex is in danger of losing its Russian subsidiaries because of unresolved issues lingering after the reduction period and the Russian financial crisis.2. Why were these issues left unresolved?The issues were neer resolved by prior forethought.3. Why were these issues never resolved by previous wariness? Managers were distant and many quantify unaw b e of issues within the organization. 4. Why were managers distant and unaware?There was a drop of communication and operational control for the focal point 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 change coordinate worldwide. This structure was complicated and Russians did not intimately adapt to it. Pibrex Region Europe North had many former(a) 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 oftentimes to a greater extent centralized structure that the Russians are more than accustomed to2. Restructure management my replacing 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 accessible and properly proficient3. Communication between managers and subordinates is key4. reform workforce morale5. Increase susceptibilityDecisionPibrex needs Elena Michailova to take the ruminate of financial and managing director of Pibrex KZ. I weigh that her taking on both positions is the and scenario where Pibrex can keep the Russian subsidiaries and lastly consume them profitable again. Michailova has seen the issues and identified them through her audit. There is no one else more qualified than her to take on these two positions. She as well as happens to be Russian a unlike her predecessor. This should help greatly in resolving the tense relationship with the workers and management. With her association and a well thought go forth restructuring plan, I take the up nigh confidence that the Russiansubsi diaries can be saved. Programming the DecisionElena Michailova as the experience, all she needs is a solid restructuring plan. The short term issues should be addressed immediately. cash in hand testament be tight at first so she big businessman have to think outside of the box to be able resolve some of these issues. For instance, if the cipher will not allow for a new integrated operating system she might have to get a better way of communication to let down down on task redundancy and revenue loss due to missed deliveries. Michailova will also have to spawn back 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 access to refined expertise but if the Russians cannot adapt then it might be more prolific 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. I t will definitely mean making production more effective. The subsidiaries will not hold out in this financial climate if it cannot find ways to save money and make a profit.