John Higgins Case Study

CONTENTS
Synopsis

Questions

SYNOPSIS
Company :
1. 2. 3.

4.
5.

6.

Weaver-Yamazaki Pharmaceutical was established in Japan in 1954 Jointly owned and manufactured subsidiary of Weaver Pharmaceutical and Yamazaki Pharmaceutical One of the largest U.S. drug firms Yamazaki Pharmaceutical was a major producer of drugs and chemicals in Japan In early 1930s, Yamazaki started distributing Weavers products in Japan Subsidiary was established in anticipation of increase in competition from Japanese producers

SYNOPSIS
7. 8.

Started manufacturing sufficiently broad lines of products Subsidiary was headed by Mr. Shozo Suzuki, who would determine the companys basic policies Daily operations of the company were managed by Mr. Prescott, who was assisted by Mr. Higgins and several Japanese directors

9.

10. Mr. Prescott and Mr. Higgins were the only two Americans,

who held management responsibilities in the company

11. Other Americans were concerned with only R&D

SYNOPSIS
Mr. Leonard Prescott :
1.

Vice President and General Manager of Weaver-Yamazaki Pharmaceutical A very experienced international businessman with a career spanning over 25 years Had served in India, the Philippines, Mexico and also several years in the Weaver home office international division His initial challenge was to expand Japanese operations After 2 years in charge, he was pleased with the companys progress under him

2.

3.

4. 5.

SYNOPSIS
Mr. John Higgins :
1. 2. 3.

Executive assistant to Mr. Prescott Had joined the army midway through college Had attended the Army Language School for intensive training in Japanese Was assigned as an interpreter and translator in Tokyo, where he took more courses in Japanese language, literature and history During his time in Japan, he made a lot of Japanese friends and fell in love with Japan After 5 years in the army, he returned to college and finished his college work in management and eventually joined Weaver

4.

5.

6.

SYNOPSIS
7.

After 1 year in the company training program, he was assigned to Japan He arrived in Japan a year before Mr. Prescott Was pleased to have an opportunity to improve the ugly American image held abroad

8. 9.

10. His major responsibilities included troubleshooting with

major Japanese customers, attending trade meetings, negotiating with government officials, conducting marketing research and helping with day-to-day administration

11. Mr. Prescott and the previous general manager both sought

his advice on many difficult and complex administrative problems and found him capable

SYNOPSIS
13. He married a Japanese woman, then asked for and received

permission to extend his stay in Japan indefinitely

14. He then moved to a strictly Japanese neighborhood, relaxed in

a kimono at home, used the public bath and was invited to weddings, neighborhood parties and even Buddhist funerals
15. He declined the option of 2 months home leave which Weaver

would grant after every 2 years and instead visited remote parts of Japan with his wife
16. He had taken on many characteristics of a typical Japanese

executive

SYNOPSIS
Problems :
1.

Mr. Prescott was concerned with the notable changes in Mr. Higginss attitude Mr. Prescott felt that Mr. Higgins had lost the U.S. point of view and had gone native Mr. Prescott believed all this has resulted in a substantial loss of administrative effectiveness Mr. Prescott also believed that Mr. Higgins had complete emotional involvement with Japanese culture Because Mr. Higgins maintained close social ties with many of the men in the company, the employees started to register their complaints and demands with him Mr. Higgins interceded on the employees behalf to complain against a new personnel policy which was installed by Mr. Prescott

2.

3.

4.

5.

6.

SYNOPSIS
7.

Mr. Prescott became hesitant to ask Mr. Higgins opinion because Mr. Higgins invariably raised objections to changes that were contrary to the Japanese norm Mr. Prescott felt that there was no point in merely coping the Japanese customs and that the companys real contribution was in introducing new ideas and innovations Mr. Prescott started doubting the soundness of Mr. Higgins judgment as he had opposed the firing of a manager, who Mr. Prescott thought lacked initiative, leadership and general competency

8.

9.

10. Mr. Prescott believed there was a serious problem when he

accidently learned that Mr. Higgins had interceded on the fired employees behalf, which resulted in the appointment of the employee at Yamazaki Pharmaceutical

QUESTIONS
What is the difference between Japanese and

American work culture?

Speed vs. Consistency Roles & Responsibilities for Individual vs. Group ROI of Revenues vs. ROI of Relationships Risk Takers vs. Risk Adverse Heterogeneous vs. Homogeneous Time Spent Collaborating vs. Collaborating Time Spent Remote vs. Face-to-Face communications Loose vs Structured Working Styles

 What can be done to resolve differences between

Higgins's and Prescott?

Organize a private meeting with Mr. Higgins Mr. Prescott should try to consider the advice of his executive assistant Mr. Prescott can make use of his higher hierarchical position to impose his point of view Prescott could present his observations to Higgins and ask for his cooperation in implementing the American strategy in a Japaneselike manner.

 Should emotional and cultural factors affect the

corporate decisions?