Rhodes Case Analysis

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Chapter 6, Case 3 Rhodes Industries 1. Would the subsidiaries still be competitive and adaptive in local markets if forced to coordinate with other subsidiaries around the world? RI is considering using the globalization strategy to help increase their efficiencies and profits. They have realized that they are using breakthrough technologies in some subsidiaries and not in others. Since subsidiaries are basically run as completely different companies, they are refusing to lower their profits to increase the overall profits of the company. In order to answer this question, we need to look at the types of products RI sells. The list of products and services sold by RI include pipe, glass, sealants, coatings, cleaning equipment,…show more content…
I think that the new integration can be achieved as long as the RI is willing to spend a lot resources training the business managers and their subordinates. 3. Would it be a better idea to appoint Product Director Coordinators as a first step, or jump to the Business Manager product structure right away? Whenever a company decides to change the corporate structure, especially internationally, I don’t think it’s a good idea to just jump right into the process. I think Mr. Javier is very wise to think through all the potential problems before he pulls the trigger. The consultant RI hired has a great idea of establishing a new international department at their headquarters. By doing this, they can appoint a product director of each segment of their international businesses. The new international department would have authority to coordinate the new activities and innovations, and they would have a team to travel with them to each of the different regions. It’s important that the team be made of people who are familiar with business in those regions so that nothing is lost in translation. It’s also important for the Business Managers to trust the Product Directors are there for their best interest so that the Business Manager does not try to
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