1. How accurate is Adam Wainwright's analysis of the situation at Guitarras Dominguez? Do you think craftsmanship is incompatible with increasing productivity in this company? Why?
2. What social values are present in Guitarras Dominguez that seem different from U.S. social values (see Exhibit 4.7 and Exhibit 4.8)? Explain.
3. What do you recommend Adam do to increase production in a business setting that does not seem to value high production?
Adam Wainwright's early-morning phone call from Valencia, Spain, initially startled his boss, Vincent Fletcher. Adam, a true slave to the latest techno-gadgetry, never called. Yet here he was, at 8 a.m. Pacific time, on the phone to the CEO of Fletcher Guitars in Los Angeles.
"What did they do-lose your luggage with all of your toys inside?" Fletcher joked. "Did the plant burn down?"
"No, I just decided to call you on this one. I've been here for a week, looking over operations. Forget the idea of getting any substantial increase in productivity. I don't think these guys are capable of upping production by ten guitars per year," Adam complained.
"Isn't that an exaggeration?" Fletcher asked.
There was a momentary silence on the other end of the line. "Adam, did I lose you?" "No."
"Look, part of our reputation is based on the quality and craftsmanship of the acoustic guitars produced by Dominguez and his workers. This is all high-end stuff," Fletcher said in a voice that always reminded Adam of actor Jason Robards. "Now, with the tremendous rise in the popularity of Latin music, we want to encourage increased production. That's your task, Adam. I shouldn't have to tell you that your success with this assignment could lead to some great opportunities for you." "I know." Adam paused, carefully weighing his next words. "Salvador and his people do a fabulous job. Just walking through his operation, I have been blown away by the craftsmanship. But the slow pace of work is unbelievably frustrating. These guys act like they are birthing a baby. Everything is so precise, so touchy-feely with every guitar. I used my iPad to create some workflow specs for increased production. Salvador took one look, laughed, and said 'You Americans.'" Poor Adam, Fletcher thought. That had to be a major stab in his high-tech heart. Maybe I sent the wrong guy. Nope. He has great potential in management and he has to learn to work through this and deliver. Fletcher's thoughts were interrupted by Adam's voice, flustered and increasing in volume. "They go off to lunch and come wandering back in here hours later-hours, Fletcher."
"They're Spanish!" Fletcher replied. "So they take twohour lunches. They work their schedule. It's just not our schedule. You may be a lot younger than I am, Adam. But you need to lighten up. Listen, talk to Salvador and see what works for them. They've increased output before and they can do it again. Get this done, Adam. And e-mail me."
The international rise in Latin music over the past decade, punctuated by the clear sound and dazzling rhythms of the acoustic guitar, created a sense of urgency for guitar makers around the globe to increase the availability of these classical instruments. Wanting to ride the crest of this musical trend, increase his product offerings, and tap into high-end market sales, Fletcher discovered master craftsman Salvador Dominguez and his Spanish company, Guitarra Dominguez, while attending the prestigious Frankfurt International Fair in 1980.