Solartron Case Analysis

make the JV successful & save the awarded project

Critical management issues

1. poor communication between the parties – resulting in unrealistic expectations and assumptions made in terms of contribution of both parties to the joint venture
2. also allocation of time and focus continues to be a problem
3. confidence in solatron and their Kenyan entity freezeking was diminished in the eyes of the kda  - (unreliability of supply components from Canada – delays in canada blocking shipment container)
4. quality of local tanks fails local standard established by solatron specs – unsuitability of locally made tanks with the solatron system thereby failing the local standard established by solatron with KDA.
5. Lack of knowledge and application by Freezaking
6. Inadequate transfer of technical and marketing expertise, support, product knowledge and product application

Canadian solar engineer expatriate intended to be technical expert not available until December. Marcil did not backfill to meet this need.
Grant from CIDA came through rapidly and contract proceeded ahead of getting everything set up properly.

the priority to addressing the achievement of the goal

 regain confidence in Freezeking and resolve issues relating to delivery of contract namely – in terms of  unreliability of supply, inadecuatte technology transfer and technical support, fix the local standard, lack of contract management/delivery skills.

If these issues can be resolved, then the goal will be achieved.

Culture affect

Power distance

Masculinity vs femininity

Individualism vs collectivism

• High collectivism makes Beida feel like being part of a cohesive group. He expects Marcil to show his attachment too. However, Marcil is from a high individualitst culture and therefore feels that he has to deal with his own firm concerns first. 
• Marcil – high in masculinity therefore cares about ambition, competitiveness and outcome.
• Beida is from collectivist culture and therefore cares a lot about relationships and communication
• POWER DISTANCE – Marcil does not feel like having to be in Nairobi all the time, he can delegate the decision process as he comes from a low distance culture – whereas Beida comes from high distance culture and believes in strong hierarchy – he needs his partner showing more commitment dealing the firm in Kenya and thinks that the jv success depends on marchils involvement in both technical and management matters

Solution:

Marcil needs to get to Nairobi fast, and listen to partners.

Ship finished product out of Canada until integrity of local assembly of product resolved.

Resolve the issue of the tanks (re-spec them for local production, or bring in products from Canada)

Needs to get access to components sitting in container at Canadian embassy, or get more there from Canada – (warehouse ahead of demand) Resolve bureaucratic delays – get to bottom of issue).

Marcil needs to take business partners out to dinner and make amends for his failure to heed warning about how serious the issue was.