Running head: FUJI & XEROX CASE STUDY

Fuji & Xerox case study

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Question 1

Critically evaluate the motives for establishing the joint venture between Fuji &

Xerox?

In respect of the joining of Xerox with FujiFilm Ltd, the main motives behind

it was the continual quarterly loss of Xerox and the demand in the management of the

Japanese company Fujifilm to enter the market of USA. In this respect, both of the

purposes was perceived due to the mutual consent regarding providing a better

business to the company and thus, both of the companies were agreed to come to an

agreement where the Xerox will get to explore the strategic development whereas the

Fujifilm will be obtained to a new and vast market in the USA (Wen & Meng, 2015).

The deal was signed to combine both of these companies to a single

organization with a deal of $ 6.1 billion in this respect which magnify the main need

of this agreement. In the first place, as it is being said, this deal will lessen up to $1.7

billion of both of the companies in terms of their operating procedure in different

regions. Beside this, the companies are also expecting the increase their operating

profit by 3.4 percent due to the merging of them. Xerox Corporation had transferred

their operations in China to Fuji Xerox in the year 2000. On the other hand, Fuji

Photo Film Company had raised their stake in the venture to 75% by the year 2001.

By the year 2007, there was consolidation done between Fuji Xerox as well as Fuji

Printing Systems Company Limited so that they can strengthen their integrated

manufacturing systems that covers all the processes starting from technological

development to product development (Takeda & Kosaka, 2016). By this Merger, it

helped both the companies in enhancing the level of competitiveness of the office

printing systems business as well as expanding the business in and across the world.

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Regarding the fact that Xerox was incurring a continual lose during their

operation, the shareholders of the company is expected to gain a profit of $2.5 billion

in this respect which will also add additional value to the business of the companies in

this respect (Song et al., 2016). Therefore, by making use of Xerography technology,

Fuji Xerox can easily develop their color/ Monochrome laser printing business.

Especially in the Japanese market, this particular business is making proactive efforts

for solving management issues of customers and this was done by offering network-

compatible color scanners and software. This software will further help in enabling IC

Card authentication.

Question 2

Discussing the factors that influenced the negotiation and implementation phases

of the joint venture between Fuji & Xerox, and eventually had impact on its

overall success?

There are certain factors which are required to be analyzed in this given

respect of the segment. First of all, the continual lose incurred by Xerox is one of the

key reason for this merge. Due to the higher cost and lower demand in the market, the

company was facing certain critical problems regarding the operations of the

company (Shibata, Kodama & Suzuki, 2017). Apart from this, such operation will

also help the companies to reduce their operating cost. As it is being calculated by the

management of both of these companies, a total of $1.7 billion will be reduced due to

this merging of both of these companies which will be helpful for the upcoming

operations of the company in this respect.

Apart from this, by merging with one of the leading company in the world,

innovative strategies and more investment will enable the Xerox Company to

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establish their business more fluently and thus, certain development to the operations

of the company can be done in this given respect (Sachamanorom & Senoo, 2016).

Beside this, it is expected that such action will also enable the company to earn more

profits for the shareholders of the company. In accordance with the preliminary

calculations presented by both of the companies, it is expected that the operating

profit of Xerox will increase up to $ 2.5 billion which will add additional value to the

shareholders of the company. Apart from this, the merging of these two companies

will also help to gain more market and customer base which will be helpful for the

benefits of both Xerox and Fujifilm. In this respect, such improvement will help to

gain more revenue for the joint venture company. This merging of companies had

helped in developing their production services business in and across the globe as it

mainly focuses on demand printing systems as well as workflow support services

especially in the digital printing market.

Addition to that, Fuji Xerox had opened Executive Print Innovation Centers in

several countries such as Tokyo, Singapore, Sydney so that they can work closely

with the customers for creating new business models as well as applications for digital

printing.

Question 3

Presenting a critical discussion on the national culture distances between Fuji &

Xerox according to Hofstede model.

In this regard, six main dimensions regarding the complexity of the agreement

between these two companies. The first issue was regarding the Individualism. Being

a pioneer in the photocopying industry, after the merger, the company will not act or

take decision without any influences due to the fact that the Fujifilm will obtain 75%

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of the shares of the company (Lewis et al., 2017). Apart from this, due to the improper

distribution of the shares between two companies, an issue related to the power

distance. In this respect, due to the fact that there is a significant distance among the

two companies regarding the percentage of share owned, such issues can also be

incurred in this due respect. Beside this, the concept of uncertainty avoidance can also

be added in this respect due to the fact that the company may have to face certain

issues regarding the uncertainty and ambiguity in this given respect. In this respect,

the less independence in the management causes this particular issue. Beside this, the

changes incurred in the long term orientation are also another key fact that should be

considered in this given factor (Kodama & Shibata, 2016). First of all, the key issues

and the counter decisions are not in the hand of the company after signing the project

in this respect. Beside this, the adhering to the newer concept of development is also

another concern to be taken care of. In the last segment of the model, the process of

indulgence has been discussed. In accordance with this, by signing this agreement, the

Xerox Company will be transferred from an indulgent culture to a restrained culture

where their activities will be limited regarding the operations of the company in this

respect.

Question 4

Suggesting concrete steps for bridging the gaps between the partners, and

successful implementation of the joint venture's goals.

In order to crease certain recommendations in terms of filling the gap between

the two partners regarding the successful implementation of this joint venture, certain

considerations have been taken in this respect (Kamigaki, Matsumoto & Fatimah,

2017). In terms of the individualism, the newer approach to the strategic changes in

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the company is being made in a way by which the Xerox Company will obtain certain

capability to influence the decisions made due to the operations of the company.

Beside this, the power distance of the company can be compensated by providing

enough resources regarding the revenue of the company in this respect. In order to

compete in this recent marketplace, it is important to position the documents correctly

as it is treated as one of the essential managerial resource. Business can be developed

in an effective way if series of documentation are managed that include creation,

output, storage as well as usage of documents (Gottschalk, 2019). It is recommended

to the company that they should provide a comprehensive services where they can

manage all the document and engage in their operations that starts with consulting.

This will help the customers to get genuine benefits out of it that include reduction in

operational costs and getting access to higher productivity. This will overall contribute

to the growth in their business and there will be smooth functioning of business

enterprises.

Apart from this, the company will also have to go through the uncertainty

avoidance by which the company will have the issues regarding the anxiety and

distrust in this respect (Chen et al., 2017). In this regard, this factor can be dealt with

the help of the gaining of more investment in the business of the company. Beside

this, the company will also be enabled to inherit the newer orientation that is going to

occur with the changes in the long term procedure. In this respect, it is expected that

the policies of the company will be the decider in this manner and as oppose to the

short time oriented culture, the unavailability of the moral culture will widen the room

for improvement in this respect. In the last segment, the issues related with the

indulgence can be substituted with the cooperation and improved strategies of both of

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the companies where these strategies can be worked as beneficial for the performance

of the company in this given respect.

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Reference List

Chen, Q., Lv, M., Wang, D., Tang, Z., Wei, W., & Sun, Y. (2017). Eco-efficiency

assessment for global warming potential of ethylene production processes: A

case study of China. Journal of cleaner production, 142, 3109-3116.

Gottschalk, P. (2019). Evaluation of Fraud Examinations: The Case of Inappropriate

Accounting Practices at Fuji Xerox. Deviant Behavior, 1-7.

Kamigaki, K., Matsumoto, M., & Fatimah, Y. A. (2017). Remanufacturing and

refurbishing in developed and developing countries in Asia–a case study in

photocopiers. Procedia CIRP, 61, 645-650.

Kodama, M., & Shibata, T. (2016). Developing knowledge convergence through a

boundaries vision—a case study of fujifilm in Japan. Knowledge and Process

Management, 23(4), 274-292.

Lewis, H., Gertsakis, J., Grant, T., Morelli, N., & Sweatman, A. (2017). Design+

environment: a global guide to designing greener goods. Routledge.

Sachamanorom, W., & Senoo, D. (2016, June). Voice of the Customer through

Customer Cocreation: the Case of Fuji Xerox Japan. In PACIS (p. 147).

Shibata, T., Kodama, M., & Suzuki, J. (2017). Managing Ambidextrous Organizations

for corporate transformation: A case study of Fujifilm's transformation

process, Japan (No. 65). Graduate School of Economics and Management,

Tohoku University.

Song, Q., Li, J., Liu, L., Dong, Q., Yang, J., Liang, Y., & Zhang, C. (2016). Measuring

the generation and management status of waste office equipment in China: a

case study of waste printers. Journal of Cleaner Production, 112, 4461-4468.

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Takeda, M., & Kosaka, M. (2016). Fuji Xerox—Manufacturer Managed Equipment

Service. In Manufacturing Servitization in the Asia-Pacific (pp. 137-154).

Springer, Singapore.

Wen, Z., & Meng, X. (2015). Quantitative assessment of industrial symbiosis for the

promotion of circular economy: a case study of the printed circuit boards

industry in China's Suzhou New District. Journal of Cleaner Production, 90,

211-219.

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