The Situation M. Abel has recently suffered from two heart attacks and the PGD believed that it would be wise to replace him with a younger manager. Abel is close to retirement age and, with the additional pension benefit entitlement due to him through his membership of the cadre. his standard of living would not be significantly affected by this decision. Abel accepted the decision and the company began the search for a replacement. However. when the idea was proposed to the German parent company the head office felt that this would be an appropriate time to become more closely lnvolved in the affairs of the subsidiary. They decided to initiate a management exchange between the two countries and to make M. Abel's replacement the first of these appointments. The person chosen as the new production director of the French subsidiary was Dr Bernard. He is 35 years old, an engineer by training. with a Masters degree in engineering and a PhD in business studies obtained at the technical university of Munich. His thesis dealt with the topic of \"Profit sharing a comparison of American and German views and ethics\". His educational career has placed a premium on the acquisition of intellectual capability and the ability to solve problems systematically. During several of his vacations from college he undertook work placements in France and on his own initiative he took an intensive French language course in