Case Study

GAIJIN AT THE HELM

I. BACKGROUND OF THE STUDY

The first non-Japanese president of Mazda, the fifth-largest Japanese automaker

with headquarters in the ancient city of Hiroshima, Nobotushi Kohara, the executive
assistant to recently appointed firm President Henry Wallace, paces the expensively
carpeted office of his boss. Wallace urges Kohara to set up a meeting with Takeshi
Morikawa, the president of Mazda's company union, on his first day in office. This
would have been stunning if the president had been Japanese. Furthermore,
Wallace urges Kohara to compile documents with secret strategic information
regarding the company's goals that Wallace wishes to discuss with Morikawa.
Kohara worries about the new president's expected tenure in office because he is
aware that his job has only recently been significantly more challenging.

II. TIME CONTEXT

In 1920, Mazda was founded as Toyo Cork Kogyo Co. Ltd., which makes cork for a
variety of uses. It then utilized its technical expertise to produce machine tools, rock
drills, and eventually compact vehicles in 1931. When Ford purchased Mazda trucks
in 1971, Mazda and Ford entered into their first agreement. Henry Ford II, who was
reportedly impressed, offered to purchase an interest in the business but ultimately
declined.

III. VIEWPOINT

Nobotushi Kohara, Executive Assistant of newly appointed company President

Henry Wallace.

IV. STATEMENT OF THE PROBLEM

In the 1980s, Mazda began an expansion that, in retrospect, turned out to be

imprudent. The financial performance of Mazda declined in the first half of the
1990s. Mazda saw a sharp decline in sales by 1996 because of the protracted
Japanese economic recession. The firm only sold 770,000 cars in 1995, down from
record sales of 1.4 million units in 1990. Mazda suffered losses of roughly $710
million in 1993 and 1994. As a result, Sumitomo requested that Ford raise its stakes
to control interest. And having different cultures will have difficulty understanding
each other and making a solution to the problem.
V. AREAS OF CONSIDERATION

SWOT Analysis

Strengths
 With a wide variety of suppliers, many of whom were based in Hiroshima, Mazda
maintained "familial" ties. Mazda was frequently credited with up to 40% of
Hiroshima's direct and indirect employment.
 Mazda operated traditionally, much like the majority of established Japanese
businesses. The rules were full-time work and promotion based on seniority.

Weaknesses
 The head of a car firm in Hiroshima who is not Japanese, concerned is about his
lack of understanding, especially when it comes to language and communication.

Opportunities
 Wallace would break long-standing connections with suppliers and buy more
parts from less expensive overseas sources, he would replace lifelong jobs with
American-style layoffs.

Threats
 Lack of comprehension when communicating with influential individuals.

VI. ALTERNATIVE COURSES OF ACTION

1. As managing a business it’s a must to have the time and space to continuously
expand their knowledge and gain new skills in organizations with learning
cultures. The learning is designed to assist and enhance employee progress on
both a personal and professional level. An alignment between corporate strategy
and professional growth through learning is one of the essential components of a
learning culture.

2. The ability to communicate in various languages will become increasingly useful

as new technologies open opportunities for doing business internationally. The
ability of your global enterprise to operate successfully can be significantly
impacted by linguistic disparities and learning new languages can help your
business expand into new areas.
3. Extend the product line to strengthen an existing brand, appeal to new
customers, boost sales and profitability, and establish the business as a leader in
the industry.

VII. RECOMMENDATION

As Kohara has a difficult time doing his job because of the new non-Japanese
President, they can’t understand each other clearly. It is crucial in business
communication that they can have a solution whenever there’s a problem, and they
can also have a misunderstanding. Any organization must have effective
communication if it is to achieve its goals and have positive working relationships
with both internal stakeholders and external clients. To communicate across
cultures, language is crucial. Every part of a multinational corporation is affected by
it, and business owners can take advantage of a wide range of new prospects.

VIII. MANAGEMENT LESSONS LEARNED

 Offering a tie-up with another organization has a good outcome. Both your
website and the website of your rival are loaded with helpful information and
resources. By providing links to outside resources that are pertinent to and
helpful to your customers, you demonstrate your concern for their interests.

 Communication is important in business. So, learning a different language is

crucial, for the organization can meet its objectives, and build strong relationships
through clear communication.

 Improving and expanding your product line. To increase your profit or sales.