Infusion’s Greenfield Subsidiary in Poland Harvard Case Solution & Analysis

Infusion Development Corporation (Infusion) has been quite successful in opening up a subsidiary in Poland. Infusion started off its operations in the year 1990 where it started off by providing services to Johnson & Hayward in late 1990s. However, with the initial success, the company decided to open up a subsidiary in Poland after thorough market survey. The first 15 months of the company have seen considerable growth. The investment has been a success for the firm. In spite of the success, Infusion has been facing three major issues. Firstly, the company needs to decide how it can work with the manager to continue growth in the Poland market. Secondly, the company needs to decide the role of Infusion Poland in the future.The objective it needs to achieve and finally, the company needs to develop a succession plan where it needs to either select a local engineer or transfer someone from the headquarters to lead the firm.

The company can continue its success in the market of Poland by recruiting talented individuals within the market who can serve the need of the company in the future, where the country has been quite useful in terms of being a cheaper country as compared to the American market. The labor is cheap, the overall cost of production is also less, and therefore, the idea of expanding the reach in the local Poland market was a rather feasible option. One thing that is important for the headquarter of Infusion is to respect the ambition gap of the Poland market. As the two cultures are quite different, therefore, the ambitions also differ. While further expanding in the market, it is eliminatory for Infusion International to focus on identifying the ambitions of each subsidiary (J. Srtikwenda, 2009).

Infusion should install direct coordinating mechanisms for the company. This would help the organization in aligning all the subsidiaries with the design and structure of the company. The company should handover the signing authority to the local subsidiary, however as for now, extra time is spent in order to get a signature for a business process. The decision making authority should be delegated to the local market, because eventually they know how to handle the situation rather than an outsider coming over to fix up things. The control should be indirect so that the subsidiary is liable to make decisions and actually stand with the decision. One option, which the company can use, is to make Poland the headquarter, however the option might be unfeasible with the growing interest rates, inflation rate, intervention of European economy, therefore, the headquarters should remain in Canada only (Deresky, chp 8).

Finally, in order overcome the issue of leadership, where if the current manager is transferred, then the replacement for the position should be within the subsidiary. As the case states, the engineers working at Poland subsidiary had been quite experienced and committed with expertise in their respective fields. Therefore, the recruit should be within the office rather than allowing an outsider to take over the charge (Deresky, chp 8).


J. Srtikwenda and J. W. Stoelhorst, “The Emergence and the Evolution of the Multidimensional Organizations,” California Management Review 51, no. 4 (2009), pp. 11-13

Deresky, Helen. "Chapter 8."International Management: Managing across Borders and Cultures: Text and Cases. Boston: Pearson, 2014. N. pag. Print............................

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