INFUSION’S GREENFIELD SUBSIDIARY IN POLAND Harvard Case Solution & Analysis

INFUSION’S GREENFIELD SUBSIDIARY IN POLAND Case Study Solution

Problem Statement

The case evolves a tweak situation of adopting a subsidiary of Infusion’s Greenfield into Poland. Several opportunities and threats were driving towards the future consideration of the established hub of the company. However, three problems had raised to theinclusion of the Poland’s subsidiary operations of Infusion. The first issue was build relationships and control of the country managers because if the company would hire alocal manager, then it could adopt a culture suitable for the country’s perspective. In other words, managers were an old generation of Poland and didn’t allow to adopt decentralized concept instead of using the traditional concept of bureaucracy within certain rules and regulation imposed on the country itself(Williams, Wendelie, & Le, 2012). The second problem that Infusion might suffer was the future perspective of having a hub (Poland’s Infusion) of all operations in other nations that could have a significant impact on changing the country’s economic and political situation in the near term. In addition to that, another issue was the company’s ability to hire a local or expatriate manager into Poland to look after the operations if the current country’s manager would hire to another position based on promotion. Therefore, AlimSomani (President of Infusion) was aware of such changes and made a critical review of how to control shortly if the specified circumstances would happen and cause for immediate actions to replace all the problems with alternative solutions.

Analysis of the certain issues

To look after the problems highlighted by AlimSomani and Ryan Hunter, it shows various political, economic and legal factors would hinder the future growth of the subsidiary within a country. Under the political situation, the government imposed strict rules and regulations over the labor safety as well as country specific business structure (Based on bureaucratic structure) that could limit the business freedom to operate in a decentralized way(Farnoux, Lanteri , & Schmidt, 2004). Also, the tax was eligible for every activity based on the transaction and other business activities that would reduce the profit margins. Economic factor includes raising the operating costs that could hinder the emerging business growth of the country regarding high labor costs and mis balance in FDI investment criteria. The legal issues illustrate the stringent rules and regulations by the governing bodies which would be unable to adopt a change in a country subjected to non-bureaucratic culture and other free involvement of the business entities to consolidate the various cultural aspects. Therefore with all these issues, Ryan should have to identify the relative alternatives that could resolve for the future benefit of the company’s principal subsidiary.

INFUSION’S GREENFIELD SUBSIDIARY IN POLAND Harvard Case Solution & Analysis

 

Recommendation

From the following situation, it recommends that Infusion should first adopt a culture and legal aspects of Poland to initialize a business hub for other branches. Furthermore, a local country manager should hire because he/she would have the skills and abilities to quickly adopt the corporate culture and provide an outcome that would exceed the company’s or meet the objective in the future. AlimSomani should consider a relationship through the recommended actions to survive and build a better position in a country like Poland...............

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