GARRARD

JAPAN
global or local?
MAY, 2021
 CONTENTS TEAM MEMBERS

I.

II.

III.

IV.

V.
I. ANTI-GLOBALIZATION STANCE
 Anti-Globalization
Stance
• Refers to the movement whose participants are
opposed to capitalism and globalization.
• Has caused a few disadvantages for multinational
enterprises.
 Anti-Globalization Stance

Bilateral trade
Protectionism was State capitalism
agreements were
on the rise. increased.
gaining ground
over multilateral
trade agreements.
 PREPARATION
Of an Multinational Enterprise
Launch a management program to strike a
balance between globalization and localization.

Three goals: unifying data management protocols, harmonizing business processes, and standardizing
information technology (IT) platforms.

Use a management tool that ensures all who are involved in planning for enterprise's future—
irrespective of their location—speak the same language.

Use local sourcing, local manufacture and local distribution for foreign factories of multinational
enterprises.
II. GLOBALIZATION STRATEGY
Constitution of Globalization in Food Industry

DEMOGRAPHICS NEW DISTRIBUTION CHANNELS

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Constitution of Globalization in Food Industry

PRODUCT PORTFOLIO GLOBAL MARKET SHARE

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III. GARRARD S.A
GARRARD S.A
European-based multinational enterprise (MNE)

One of the world's largest packaged foods companies by revenue

(nearly $100 billion in 2016)

Over a dozen brands in portfolio with sales of more than a

billion dollars each

Several hundred factories in most countries

250,000 employees
 Globalization
The spread of products, technology,
information, and jobs across nations
(Investopedia, 2020)
 3 DRIVING FORCES

GLOBAL MARKET SHARE TECHNOLOGICAL CHANGE CULTURAL EXCHANGE

  

 



 Localization
The process of adapting a product or service to
a specific locale (Gala Global, 2020)
 4 DRIVING FORCES

ANTI-GLOBALIZATION STANCE LOCAL TASTE PREFERENCE

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 4 DRIVING FORCES

SOCIAL CHANGE BUSINESS POSITIONING

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 
HARD ELEMENTS

STRATEGY

STRUCTURE

SYSTEMS
 STRATEGY o Distribution was disrupted and need a proper
management
 Relocating line managers with track
records
o Encourage local companies to be flexible and
adaptive

o New products before getting launched had to be

validated locally.

 They corporate’s strategy was also very flexible, adaptive, clearly defined and competitive pressure

 Well performance, guide actions, adaptable to market changes

STRUCTURE
o Garrard used a combination of hierarchical structure
and matrix structure
The hierarchical prevailed businesses that were
homogenous across market

The matrix prevailed in businesses require

decentralization.
o New products before getting launched had to be
validated locally.

Garrard
 Supports decentralization decision making
 Helps Garrard run things smoothly and improve coordination between departments
 SYSTEMS
o Launched IBA to help strike a balance between
globalization and localization

o System concludes to resolution for conflict disputation

> The company’s executive board met monthly

> All the country managers would meet at HQ every two

years
o New products before getting launched had to be
validated locally.

 The system organized by Garrard is defined and demarcated. This helps organizations to align
and work in harmony towards the greater business goals and targets.
SOFT ELEMENTS

STAFF

SKILLS

SHARED VALUE

STYLE
 STAFF
o All entry-level jobs at Garrard were local

o Garrard also recruited country managers to be the employees in the HQ

 The things that all entry level jobs were recruited with local people helps in operating global and locally tasks and
responsibilities.

 Using managers as managers at HQ helps the company succeed in producing products line and more operated
systems.
SKILLS
o All employees are given in house training to familiarize themselves with the company and its values.

o Garrard has defined tasks and job roles and hires and trains employees for skill levels accordingly with
respect to those.

 Garrard chose young employees because they fresh and high energy
 STYLE
o Garrard go with both decentralization and centralization style

 Garrard has a participative leadership style

 SHARED
VALUES
o 3 core values:
 Equality
 Diversity
 Sustainability

 This is to ensure a consistent, and reliable brand image, as well as an honest organizational culture

 Garrard enhanced the customer’s quality of life and contributed to a healthier future
IV. GARRARD JAPAN
GARRARD JAPAN

1930s: launched

2016: generated sales of $4 billion

20 manufacturing, sales, and distribution sites

60% of Garrard Japan’s finished products were imported from
30 of its subsidiaries
6,000 people employed in various roles and sourced
$1.4 billion worth of Japanese products and services annually.
Mr. Tanaka
A Japanese

1990 sales and marketing

2013 became the subsidiary’s president and CEO

11 employees reporting directly to him:

4 product heads
7 function heads.
GARRARD JAPAN,
GLOCAL SURVEY HIGHLIGHTS
AUGUST 2017

94% 67% 70%

possible for a global MNEs provided better, MNEs championed
company to act in higher quality products at research and
local interests. more competitive prices development
than smaller, local firms
 RATING ON GLOCAL SCALE

Acting in self- Acting in the best Striking a balance Average rating on

MNE # interest interests of the local between the two glocal scale
community

1 40% 42% 18% 4.0

2 40% 46% 14% 3.9
3 42% 42% 15% 3.8
4 43% 43% 14% 3.8
5 47% 38% 15% 3.6

*6 48% 39% 13% 3.5

7 49% 42% 9% 3.4
8 48% 43% 9% 3.4
9 49% 42% 9% 3.3
10 50% 42% 8% 3.3

median ranking among its peers in the

consumer packaged goods (CPG) industry
 RATING ON GLOCAL SCALE

48% 39% 13% 3.5

Acting in Acting in the best Striking a Average rating on
self- interest interests of the balance glocal scale
local community between the two
STRATEGIES
1

3
V. STRATEGY EXECUTION
promote the brand name:

GARRARD
SECONDLY,
FINALLY,
Advertise general products - company value
core and new products
=> cost-saving
GARRARD S.A SHOULD FINANCE THESE STRATEGIES
THANK YOU FOR YOUR ATTENTION.