Packard Electric Division of General Motors - Rio Bravo IV Management Team

The Packard Electric division of General Motors is the leading producer of power and signal distribution products in the United States and wanted to expand to international markets. The strategy that Packard Electric used to penetrate international markets was to utilise Rio Bravo IV to manufacture the wiring harnesses in Mexico.

Rio Bravo IV management team failed to analyse Japanese and Mexican markets, this is demonstrated by lack of proper planning and customer focus. It is also evident that language barrier was a problem. They went a step further to salvage the problem by partnering with Sumitomo Wiring, a company with a reputation for outstanding quality, and a major supplier to the Japanese auto industry. Packard Electric thought because they were the leaders in the US market, they could do the same internationally.

One of the problems was that none of the management team had the required experience for their managerial positions and hardly anyone spoke Spanish. Furthermore, the factory was poorly managed; hence, they could not deliver the requirements of New United Motor Manufacturing Industry (NUMMI).

The Midrand syndicate team recommends that Packard Electric should apply transformational change strategy to appoint a competent General Manager. Jim and his management team should have been properly trained to operate a manufacturing plant. It is further recommended that Rio Bravo IV should embrace cultural differences by providing training.

According to Fred Fiedler, leadership performance is based on two interrelated factors:

The degree to which a situation gives the leader control and influence to get the job done (position power)