Case Study on Innovative MCI Units Finds Culture Shock in Colorado Springs
III. Areas of Consideration
Based on the case of Innovative MCI Units the
... [Show More] relocation to Colorado Springs brought some
problems to their company. There are things that Mr. Richard Liebhaber (chief technology officer) didn’t
analyze enough before making the big decision of transferring. First, Mr. Liebhaber didn’t take into
consideration that the new location he settled on is not the right site for their business because based on
given fact, Colorado Springs is “isolated and politically conservative” which means that there is a low
possibility of making business income. He hasn’t made other location alternatives and it is very
important to consider making different location alternatives because from there the company can
evaluate and choose the right location that will suit for their business. Mr. Liebhaber ignored the advises
from senior executives and believed that their company will do well despite of how many important
employees are against. Second, Mr. Liebhaber forgot to consider the culture differences of the previous
and new location. Their company is originally from Washington, DC which is the capital city of the United
States. It means that the Washington, D.C. has diverse and growing economy and Colorado Springs has
different culture. Based on the given facts, “there is no culture, diversity, no vitality to the job market”
which hindered the engineers from their colleagues at the headquarters. Third, Mr. Liebhaber didn’t
think the availability of the resources will be at disadvantage since Colorado Springs is located on the
eastern foot of Rocky Mountains and transportation of raw materials is more costly. Fourth, Mr.
Liebhaber didn’t consider the economic stability. The move in Colorado Springs can affect the
profitability of their business since the new location is isolated. Fifth, Mr. Liebhaber thought that the
relocation would help their company to save money by cutting down some expenses but when the move
happened, he didn’t foresee that the cost would be higher. A large amount of money was spent due to
the move and was wasted because a lot of his employees took advantage from the incentives that they
will be getting. He didn’t consider that moving into a new location that has low benefit on their business
will be more costly than staying in Washington D.C. [Show Less]