Blue Ridge Spain

In: Business and Management

Submitted By SUM1BYX7
Words 574
Pages 3
Blue Ridge Spain is a joint venture between an American fast food chain and a Spanish agricultural company, Terralumen. Terralumen contributed to most of Delta’s success in foreign markets. After many years of a successful JV, the European managing director of Blue Ridge, Yannis Costas, found out that Delta wanted to end the partnership. Cultural value orientation conflicts between parent companies of different nationalities led the way for the dissolution of the JV. In an American-Spanish JV board meeting, the Spanish representative pushed to dissolve the JV to show his dissapproval of the way the meeting was being conducted. He had more of a problem with relationships rather that contractual related issues. The Delta/Tellalumen relationship deteriorated because Delta wanted to grow through acquisitions, instead of JV’s, while Terralumen felt their goals were too agressive. Delta pushed the issue, Terralumen agreed to half and shattered the relationship. They fail to devote attention to critical international business cultural issues. Costas, is of Greek nationality. According to Hofstede, Greece is high on power distance and uncertainty avoidance. In Greece, people respect and prefer senior managers over younger inexperienced managers. Costas has put a lot of effort into the JV, identifies with his work and genuinily wants to help Blue Ridge. He has a good relationship with the Spaniards who value his ability to establish interpersonal relationships. Decisions are made on subjective feelings and with consensus. Costas values solid interpersonal relationships and trust which he and Francisco Alvarez built over the years in trying to foster a successful JV. Costas was often employed to solve conflicts and mend damaged relationships. He also questioned the ethics of his company’s strategy to secretly achieve the upper hand in buyout negotiations. Alvarez,…...

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Blue Ridge

Activities SG&A
Costs Administration Selling TOTAL Actitives
P.O Commissions Shipping
Activities Invoicing Cost
Calls Checking
Credit Samples,
Info Special
Charges Distribution
Management Marketing
Type Advertising/Promotion Marketing Administrative
Support Licenses,
Fees TOTAL Total
 Shipping Sales Marketing
 Other Assigned Note 





 130,900 From














‐ 55.00% 


92,210 Percentage
Function 10.00% 


‐ 10.00% 




‐ 65.00% 




31,400 15.00% 






13,700 20.00% 


‐ 30.00% 


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Blue Ridge

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