Pibrex Russia

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Victoria Management School

MMBA 558 International Business

Assignment 4: Managing Pibrex (A): New Crisis, Old Grievances

Student Name: Deane Nicholls
Student ID: 300 181 563
Course Coordinator: Val Lindsay
Due Date: Monday 11th April

Executive Summary:

Pibrex is one of the world’s largest developers of petrochemical polymers for the plastics market. The company has purchased a plant in Russia and after three years of serious operating losses it has appointed a new general manager of the plant. Then plant lacks a strong organisational culture; communications within and between departments are poor; there is inequity between in wages, working conditions and training and problems with motivation and
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Russian law required each of Pibrex’s subsidiaries to maintain separate bank account and pay local taxes (p125). There were also many other bureaucratic hassles

(d) Difficulties with Organisational Issues.

Organisational obstacles included PR never being legally registered as the Russian mother company. The Russian subsidiaries were opened at different times and were therefore registered as different entities. Also the distance between the subsidiaries were substantial leading to taxation constraints.

(e) Difficulties with Old and Poorly Maintained Plant and Buildings.

The old plant and poorly maintained and buildings reduces the effectiveness of production, potentially creates health and safety concerns for the workers but more than that, it severely affects the morale of the workers who see it as ineptitude on the part of management and indicative of how they value the production workers.

(f) Poor Management and Employee Relations

There are old and deeply held resentments between factory workers and middle management whom the factory workers believe “stole” the workers share of the company when privatization. This resentment has never gone away. The workers were also deeply resentful of the dual wage structure whereby sales and management staff who were transferred Pibrex AO (the Moscow sales and
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