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Case Study: Blue Ridge Spain
This case looks at a joint venture between an American fast-food company and a Spanish agricultural firm. The key manager in the case is Greek, Costas, who has been asked to dissolve the joint-venture so that the US firm can pursue opportunities alone. (You should be able to identify both US businesses in the first two pages.) One of the key corporate officers is Finnish. Many of the issues that we have discussed in class to date about how different cultures do business come into play here. Once they are all identified, there is the problem of what Costas should do and why.
1. What have been the major difficulties between the joint venture partners in the past? How much of this is due to a different business outlook and how much of the outlook is a reflection of the culture?
2. What were some of the signs that Costas understood the intangibles of culture and business systems prior to the hiring of the new VP? Will Costas be able to execute the plan? If you were Costas what would you do? Remember he has been 17 years at Delta Foods.
3. As Terralumen management, if Delta continues with its dissolution strategy for the joint venture what would you do? That is, how would you go about wrapping up the joint venture for your best interests given your goals and the way you do business? Will Delta accept your solution?
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