case study oec

7/30/2019 Case Study OEC

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Table of Contents

Page

1.0 Case Summary 1-2

2.0 Problem Statements 2-4

3.0 ALTERNATIVE STRATEGIES 4-6

4.0 EVALUATION OF ALTERNATIVES STRATEGIES 5

5.0 THE BEST STRATEGY AND JUSTIFICATION 8 6.0 Implementation 9 7.0 Conclusion 10



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1.0. CASE SUMMARY

Yamazaki pharmaceutical is one of a major producer of drugs and chemicals in Japan that

distribute Weaver’s products which is one of the largest U.S drug firms. Leonard Prescott,

vice president and general manager of Weaver Pharmaceutical believed that his executive

assistant; John Higgins has lost his touch to effectively representing the U.S parent company

and too attached to Japanese culture.

Higgins and Prescott both have different opinions toward implementing U.S. policies in the

Japanese operations. Higgins's attitude was seen more against the U.S. policies and more

toward the Japanese ways of doing things, considering he had spent lots of time in Japan

and adapting to Japanese culture while Prescott's attitude are pro to U.S. way of

implementing the policies in the Japanese operations.

Higgins are too attached to Japanese cultures and it made Prescott believes that Higgin’s

attitude and thinking causes a considerable ineffectiveness of administration for the

company. Higgins, as many typical Japanese employers always spending time listening to

subordinates who face personal problems and become a third-party of employees who have

dissatisfied with the new policy and fight for their rights and Prescott was unease about it. It

cost more to the company in term of profit and loss account. Higgins objected the new

implementation which he believed that Japanese culture must be preserved in operating the

business in Japan.

However, Prescott believes there are dynamic changes occurring in traditional Japanese

customs and culture and he also believes that Japanese subordinates are more willing to try

out new ideas. The conflict worsening when Higgins interceded on behalf manager who was

fired by Prescott, resulting in Yamazaki Pharmaceutical’ s to rehire the manager. The sacked

manager was fired by Prescott due to his lacked of initiative leadership, general competency

and become liability to the company even after two years in probation to improve his



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capability. Higgins casually said that he had done what was expected of a superior in any

Japanese company. Prescott believed that these incidents suggested a serious problem with

Higgins’s judgment as effective manager to represent Weaver’s interest in Japan operation.

Higgins had always been seen as an effective and efficient manager who was admired by

Prescott’s friend and he also received several excellent offers to join other companies in

Japan. However, Prescott believes the best international executive is someone who has a

strong belief in the principle of home point of view and understanding of foreign attitudes.

Plus, he also thinks that Higgins should not have strong emotional attachment to Japanese

culture as it may jeopardize company’s interest in operating the business in Japanese.

2.0 PROBLEM STATEMENT

Mr. Prescott felt Mr. Higgins lost his U.S point of view but more to Japanese point of view

and had taken many characteristic of Japanese typical. Prescott became concerned about

the changes of Mr. Higgins's attitude and afraid if it would effect to Mr. Higgins's ability in

administrative effectiveness. Prescott felt Higgins would be more effective if he did not too

Pro-Japanese towards his works and should be professional in his works profession because

that would be impact the Higgins's ability in administrative thus effected companies

operational. This case indicates the main problem is the concerned about Mr. Higgins

emotional attachment towards Japanese culture affecting his working style

which leads to ineffectiveness of managing the administration of the company.

2.1 Changing Japanese's work customs

Prescott and Higgins argued about the employee's dismissal, in Prescott's opinion the

employee who lacked of initiative, leadership and incompetence in their work should be fired

because it would not bring any improvement into company, meanwhile in both Higgins and

the personnel manager objected the Prescott's action about employee dismissal because the

company had never fired anyone before and it out of Japanese's work customs what was

applied before with low employee turnover.

2.2 Emotional

Mr. Prescott felt Mr. Higgins lost his U.S point of view but more to Japanese point of view

and had taken many characteristic of Japanese typical. Prescott became concerned about



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the changes of Mr. Higgins's attitude and afraid if it would effect to Mr. Higgins's ability in

administrative effectiveness.

Prescott felt Higgins would be more effective if he did not too emotional towards changing

old Japanese's management style into U.S new policy because if Higgins cannot be

professional toward his works profession it would be impact the Higgins's ability in

administrative thus effected company's operational.

2.3 Different understanding

Both of Mr. Higgins and Mr. Prescott have a different opinion toward implementation of

personnel policies in the company operations. Mr. Prescott with his new policy (U.S policy)

meanwhile Mr. Higgins is more influenced by Japanese culture which wants to continue with

the Japanese old policies system and still implementing into company operation.

Mr. Prescott felt the company's real contribution to Japanese society was in introducing new

ideas and innovations with installing new U.S. policies system into company, because Mr.

Prescott believed that there were dynamic changes occurring in traditional Japanese

customs and culture and applicable more suitable to apply in that organization.

Meanwhile Mr. Higgins did not like the way how Mr. Prescott handles the situation with

implementing the new personnel policies into company's operation which mean changing

the Japanese's tradition. Otherwise Mr. Higgins still wants to apply Japanese old policies into

the company with the same manner as Japanese’s previous operations.

2.4 Employee's reaction

The new policy installation by Mr. Prescott makes many employees feel unsatisfied with Mr.

Prescott's action, they did not like how Mr. Prescott manage the company and change the

Japanese's worked styles, and because of that many Japanese employees go to complaint

about Mr. Prescott's action with his new personnel policies to Mr. Higgins, because the

employee still wants to apply the old Japanese policies into operation system in their

management. Other issue with implementing new changes by Mr. Prescott into the company

is that might effects indirectly the Japanese work culture, momentum and their work

consistency thus Japanese tradition would be replaced by U.S. management style, it is

because the Japanese personnel policy has never changed before.



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2.5 Developing new practice to fit condition

Mr. Prescott presume the new policy will bring more suitable conditional into organization

because Mr. Prescott felt many Japanese subordinates are willing to try a new idea and Mr.

Prescott also believe the new idea can bring more profitable to company and more effective.

Unfortunately the employee did not want any changes in policy, with a new policy installed

by Mr. Prescott, Japanese's employee afraid if it might be a threat to their Japanese culture

because the company is originally apply the Japanese policies in this company.

3.0 ALTERNATIVE STRATEGIES Transfer John Higgins to other country

Removing him from the company

Understanding the Company’s goals

Cultivate the Acceptance to changes manner

3.1 Transfer John Higgins to Other Country John Higgins has been too attached to local culture which has leads him to forget his true ro

le in the company. This has created difficulties for Prescott to work with him who continuous

ly raise objections to changes that Prescott made to the company. Higgins needs to compro

mise and find agreement through communication with Leonard Prescott. Communication is s

ignificant for managers in the organizations so as to perform the basic functions of manage

ment, i.e., Planning, Organizing, Leading and Controlling. Communication is crucial to create

a common understanding of company’s goals and objectives. If John Higgins is transferred t

o other country, it will be good for him to understand the difference culture in every internat

ional company in the world. This will keep him busy to work and start over to understand the culture in the country that he is in. This will give Prescott a chance to lead the company wi

thout objections. It will be a good idea to send another new assistant for Prescott so they ca

n work out the best plans for the company.

3.2 Removing Him from The Company Before the company would even do so, Mr. Prescott could organize a private meeting with M

r. Higgins and make him realize that he is too emotionally implicated into Japanese culture a

nd that affects the efficiency of the company. Prescott could explain him that he would be fa



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r more effective if he takes a more emotionally detached attitude toward the Japanese peopl

e and culture. He could advise Mr. Higgins to try to introduce a little from their American val

ue systems and ideals upon the Japanese without affecting any relations with the Japanese

employees. It is important for Mr. Higgins to realize the best international executive was one

who retained a belief in the fundamentals of the home point of view while also understandin

g foreign attitudes. He needs to align their mentality with company goals and objectives. If

Higgins could not accept this, then there’s no choice but to remove him. 3.3 Understanding the Company’s goals Prescott and Higgins are to sit down with the general manager of Weaver and discuss how t

he parent company would like the firm to get run, rather than wanting to run the firm with t

heir different beliefs and values. This is a sign of differences in attitude and understanding.

One must know that business objectives give a company direction and allow every person in

the company the chance to work towards those specific goals.

If an employee could not understand the company’s goals and do not work hard to improve

themselves, there is no reason for company to retain the employee if the contribution is of n

o values to company’s goals. We need to look for the company’s best interest, not the indivi

duals. With this in mind, it is important to not get emotionally attached and close-minded so

much, so that it will keep individual from thinking in a way that will benefit the firm. Thus, di

fferences in managerial attitude and understanding could simply kill the company’s goal. It o

nly means that there’s no unity to achieve the goals. 3.4 Cultivate the Acceptance to changes manner In deciding whether to bring change to company or to develop new practices to fit condition

s, an international company should consider several factors, including how important the ch

ange is to each party, the possibility of participation in decision-making, the need to share th

e rewards of change and timing of adjusting to the change. In this case study, Japanese has always been having low employee turnover just because th

ey do not fired anyone in the company. Mr. Higgins argued that the dismissal of one of the

manager was a mistake due to fact that he was loyal and honest and that he has been worki

ng for the company for the last 10 years. This mentality should be changed because the ma

nager himself has refused to show interest in self-improvement and stayed stagnant through

out the years, this ultimately do not benefit the company. A leader shall always shows improvement as they are the major asset for the company.



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Another changes need to be made would be the advancement based primarily on longevity

with the company. The promotions should not always be given only to senior employees, th

e young employees who are motivated and believed to be more ambitious nowadays should

be given a chance to grow and lead in the top management. This can be achieved easily by

giving promotion based on superior’s evaluations of subordinates.

4.0 EVALUATIONS OF ALTERNATIVE STRATEGIES

4.1 Transfer John Higgins to other country Positive Outcome If Higgins is being transferred to other country, he will have no choice but to live in new cult

ure. This would help him to focus realize how much he has deviate his philosophy from the c

ompany’s original goal and objectives. Besides, this is a great opportunity for him and wife t

o learn and understand the culture in the new place they are in. It is important to not get e

motionally attached and close-minded so much, so that it will keep individual from thinking i

n a way that will benefit the firm.

Negative Outcome

After many years spent in Japan, Higgins may not like the idea of transferring him back to ot

her country. He will most probably end up resigning and joining other company in Japanese.

Removing him from the company is not a big deal as he has already received several outsta

nding offers to go to other companies in Japan. When this happens, Higgins being an influen

tial person is able to persuade other workers to join him in another company. This may caus

e high employee turnover at later days. 4.2 Remove Higgins from the company Positive Outcome

There will be no more emotional attachment to the Japanese and Prescott will be able to pla

n ahead for the company’s growth according to company goal and objectives. Besides, all e

mployees will be focus on work rather than spending their time complaining things to Higgin

s.

Negative Outcome

Company will lose a talented and an influential employee like Higgins. Prescott will find it diff



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icult to communicate with the Japanese as Higgins was the only person who converse and at

tach well with the Japanese. Besides, removing Higgins will piss him off and he might do wh

atever it takes to sue the company. He has a lot of Japanese who like him; for sure he’ll be

able to hire the best lawyer to help him win the case. 4.3 Understanding the Company’s goals Positive Outcome By understanding the company’s goal, both Mr. Prescott and Mr. Higgins are able to work cl

osely to achieve the company’s objectives. Mr. Higgins for instance do not need to merely c

opying the local customs. Top management needs to think of decision that best benefit the c

ompany rather than individuals. Negative Outcome Both employer and employee must be equipped with the knowledge of understanding comp

any’s mission as well as objectives. Without the understanding and unity in achieving the go

als, it results in employee turnover and conflicts. 4.4 Cultivate the Acceptance for change manner Positive Outcome Accepting the change in new personnel policy give chance to young employees to strive to b

ecome better and be promoted at the young age. This helps the company to produce ambiti

ous and highly motivated young employees who are eager to be the next leader. They must

of course first be equipped with all the necessary skills before becoming company assets.

Negative Outcome Due to the changes in the personnel policy whereby the promotion is based on superior’s ev

aluations of subordinates, the senior employee might feel betrayed, because the Japanese w

ork custom for promotions has always been based on the seniority. This will create an intens

e competition among the senior and junior staffs. Worst scenario is that the senior employee

s may not be pleased if they are led by a person who is younger than them, and the fact tha

t the working experience in company is less than them, and because this is contrary to the J

apanese norm, they will not be submissive towards the young leader.



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5.0 BEST STRATEGY AND JUSTIFICATION

Of all the alternative strategies, we have concluded that transferring John Higgins to ot

her country would be the best strategy in handling the current situation. Transferring him t

o other country will help Higgins to appreciate the other culture rather than staying in Japan

forever, which will just intensify his love for Japanese culture. He needs to be reminded of hi

s roots, that no matter where he goes, he can never hide his origin. Moving to another coun

try will give him another chance to love another culture, in hope that he ’ll not be too attach

ed to the new culture he’s about to experience. Because Higgins is still new in the company

, he will eventually lead the company based on company’s goal and culture. He won’t have

somebody close to him to influence him like the Japanese did. Since Higgins is not yet famili

ar with the new company he is in, he may not have strong objections towards the managers

if they were to implement new policy into the company. Higgins will most probably busy tryi

ng to adjust comfortably in the new environment, new life, new experience and most import

antly, new culture together with his Japanese wife. This will also help Higgins to prioritize his

work rather than spending time listening to employee’s complains and problems which defe

ated his efficiency and effectiveness in work performance. Thus, we think transferring him t

o other country is the best way to divert Higgins’s love for Japan to another country. We ne

ed to do what is right for the sake of the company, not for individuals.



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6.0 IMPLEMENTATION

Transfer John Higgins to other country

Removing him from the company

Understanding the Company’s goals

Cultivate the Acceptance to changes manner

6.1. Short-Term Plans

6.1.1 Understanding the Company’s goals

Understanding the company’s goal, both Mr. Prescott and Mr. Higgins are able to appreciate

and work together to reach the company’s goal. It would need an immediate action for the

management to provide the platform for both Prescott and Higgins to literally understand th

e company goal which requires both of them to work together as a team and achieve a bett

er performance. The immediate action would be beneficial to both Prescott and Higgins as it

is the fastest way to resolve the current problem arise from Higgins misunderstanding or de

viation of the whole understanding of the company’s goal.

6.1.2 Cultivate the Acceptance for change manner Introducing the new policy in promotion would be effective through syndication with the em

ployees on the acceptance of the new promotion policy. The employee must be communicat

ed with regards to the new changes of the current company policy which resulted in better b

enefits and improvement in the company. This helps the company to produce ambitious and

highly motivated young employees who are eager to be the next leader.

6.2 Long-Term Plans

6.2.1 Transfer John Higgins to other country Transferring Higgins to other country would be the last choice as company may face two po

ssibilities which positive and negative impact to the company. If Higgins is being transferred

to other country, he will be experiencing new culture and is a great opportunity. But in the o

ther hand, Higgins may see this as a result of constructive dismissal and lead to his resignati

on and company would lose valuable employee. Company is also exposed on potential law s

uit by Higgins if he files constructive dismissal to the company. Company should manage the



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issue wisely to avoid unnecessary action which may leads in tarnishing the company image a

nd reputation.

6.2.1 Remove Higgins from the company As in the long term plan, company may choose to dismiss Higgins if his performance is not a

s expected by the company. The organization would need to carefully decide and provide sig

nification time to Higgins to improve and improve the performance of the company and gain

back the trust of the employees which was highly affected due to the recent announcement

of the changes in promotion guideline. The organizational must fairly appraise and evaluate

Higgins performance and if his performance is below the minimum requirement, hence the b

est option would to dismiss Higgins from the organization and Prescott will be able to plan a

head for the company’s growth according to company goal and objectives.

7.0 Conclusion

As a conclusion, Yamazaki pharmaceutical reputation as one of the largest U.S drug firms in

Japan would lead to great impact on how best the organization management its key

personnel as well as providing the best policy and procedure to achieve the organization

goal and objectives.

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