1Executive Summary3 2Issues and Evaluation5 2.1Cultural Differences5 2.1.1Ethnocentrism5 2.1.2Ignorance of sub cultures5 2.1.3Inability to adjust5 2.1.4Individualism6 2.2.1Paralanguage7 2.2.2High vs Low Context7 2.2.3 Lack of communication between 2.3 Leadership and Motivation8 3Alternative Solutions9 3.1Solutions to problems with Donaldson9 3.1.1International management studies9 3.1.2Send Donaldson home9 3.1.3Use Waterhouse to train Donaldson10 3.1.4Increase reliance on Personal Assistants10 3.1.5Local mentor and support groups10 3.2Solutions to problems with Waterhouse11 3.2.1Seminars to teach Waterhouse11 3.2.2Send Waterhouse back to US11 3.3Solutions to problems with Loun12 3.3.1Accompany Waterhouse to seminars12 3.3.2Schedule meetings between the US 4Recommendations13 Table 1: Implementation Matrix15 The purpose of this report is to identify, evaluate, and recommend solutions to the problems identified at Argos Diesel Europe. There are three major issues at the heart of the problems of the organisation. These are culture, communication and leadership and motivation. The cultural issues have come to a fore since the arrival of Donaldson who has struggled to come to terms with European culture. He is unable to adjust and as such he has not been as successful in transforming the European subsidiary like he had in Detroit. Communication is also an issue which is looked at in greater detail in the body of the report. There are communication problems at many levels which shows the severity of the problem. Leadership and motivation is the final issue evaluated in this report. Donaldson was an effective leader in the US where his reform was successful. However his approach has been far from successful in Europe and he has not been able to motivate the European workers at all. After evaluating the above issues and looking at many different alternative solutions four recommendations have been made in order to solve the problems t...