Blue Ridge Spain
Blue Ridge Spain is a joint venture established between an American fast food chain and a Spanish agricultural firm, Terralumen. Terralumen contributed the most to Delta’s success in foreign markets. After 15 years of a successful joint venture, Costas was shocked to find out that new owner, Delta, wanted to end the partnership despite of the joint venture’s profitability.
Issues and Analysis
Cultural differences, as related to doing business, come into play here. Significant cross cultural conflicts between parents of different nationalities paved the way for the dissolution of the joint venture between Delta and Terralumen. In a Board of Director’s meeting, the American-Spanish joint venture …show more content…
In high context cultures, he needs to concentrate on building relationships and not separating himself. His lack of understanding of the Spanish culture was surprising given that he spent three years in Greece, which has a similar culture. He needs more extensive International Business training to obtain a better understanding of different markets and cultures. His actions will hurt Delta’s chances in some international markets unless changes are made.
For Yannis Costas the decision to be made was related to determining the best way to end what was once an amicable partnership. He had developed relationships over many years with the management at Terralumen, and desired working toward a peaceful conclusion. Costas has extensive international experience and a great understanding of foreign cultures. Based on his knowledge and experience, he has a hard time agreeing with Delta’s philosophy against joint ventures and also their reliance on external consultant’s opinions over experienced managers that work in the markets. Delta’s limited international experience and need for short term gains are not a good fit for a person like Costas, who prefers to cultivate relationships and work toward long term goals. Costas may need to seek other employment opportunities and find a company with an international plan better suited to his personal ideology and experience.
The Spanish Marketplace
Delta had become a dominant force in the United States in the snack foods