CASE STUDY SUMMARY

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

Prescott has noticed Higgin’s attitude and thinking causes a considerable ineffectiveness of
administration for the company. A typical Japanese employer 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 which Higgin adopted in his management style and Prescott
was uneased. It cost more to the company in term of profit and loss account.

Higgins objected the new implementation which he beleived that Japanese culture must be preserved
and should not be changed anymore. However, Prescott believes there are dynamic changes occurring
in traditional Japanese customs and culture. This opinion is facilitated because many Japanese
subordinates are more willing to try out new ideas.

Higgins has always been an effective and efficient manager who is adored by Prescott’s friend because
he has received several excellent offers to go with 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.
Problem Statement

1. Problem of Internal Integration

2. Awareness about other culture

3. Differences in attitude and understanding

4. Resistance to Change

Problem of internal integration

 Both of Higgin and Prescott have a different opinion toward implementation of personnel

policies in the company operations. Higgins did not like how Prescott implementing the

U.S. personnel policies into company's operation since Higgin did not like the way

Prescott handles the situation.

 Meanwhile in opposite side Higgin want to adapt the Japanese styles of operation with

same manner as Japanese’s operation. The differences between Higgin and Prescott

derive them to conflict with different idea of implementation operation and causing

ineffectiveness in administration because Higgins want adapt the Japanese operation

and implementing that system into company.

Awareness about other culture

 Difference culture of managing system in organization between Higgins and Prescott

might bring a huge conflict and misunderstanding between them. Higgins is more
 influenced by Japanese culture who wants to bring the Japanese culture and

implementing into company operation meanwhile Prescott with his U.S. policies and still

adapting old system.

 Prescott do not want to apply Japanese system or Japanese work styles into company's

operation and still implementing old system (U.S. policies) although has complain from

employee with his new personnel policy and management styles. Employee wants to

adapt Japanese styles in operation system in management because they did not like the

way Prescott manage the company.

Differences in attitude and understanding

 Differences in attitude and understanding between Higgins and Prescott causing a

problem to implementing the work pattern, Higgins with his Japanese understanding

and Prescott with U.S. point of view.

 Prescott a little rigid person and work with U.S. policies system but cannot adapt the

current situation into company and got complain with his management style, meanwhile

Higgins with his Japanese's management styles and work together with Prescott to

accomplish one goal but have a different pattern of the management and difference

thought.

 We can see the difference between Prescott and Higgins the way of they value system

and point of view and thus lead them into cultural conflict with the differences in

understanding culture.
Resistance to Change

 Implementation of new personnel policy in the operation received complains from many

employees. Some Japanese workers are unsatisfied with a new policy made by Prescott

and complaint this to Higgins. With the new personnel policy introduced by Prescott, it

might change the Japanese work culture, work momentum and their consistency in

working quality, because the Japanese personnel policy has never changes before.

 And the other problem is employee do not want to adapt this changes made by Prescott,

because by changing the company policy it may cause the Japanese employee to lose

they old Japanese traditional in management system and afraid the Japanese Tradition

would be replaced by U.S. management style.

Strategies

1. Improve communication between John Higgins and Leonard Prescott

2. Improve Cultural Awareness within the organization

3. Understanding the Company’s goals

4. Cultivate the Acceptance for change manner

ALTERNATIVE STRATEGIES

Improve communication between John Higgins and Prescott

Communication is significant for managers in the organizations so as to perform the basic

functions of management, i.e., Planning, Organizing, Leading and Controlling. Communication is

crucial to create a common understanding of company’s goals and objectives. This will help to

improve internal integration and build better cultural understanding or awareness for individuals

who are from different cultural background.

Mr. Prescott could organize a private meeting with Mr. Higgins and make him realize that he is

emotionally implicated into Japanese culture and that affects the efficiency of the company.

Prescott could explain him that he would be far more effective if he takes a more emotionally

detached attitude toward the Japanese people and culture. He could advise Mr. Huggins to try

to introduce a little from their American value systems and ideals upon the Japanese without

affecting any relations with the Japanese employees. It is important for Mr. Huggins to realize

the best international executive was one who retained a belief in the fundamentals of the home

point of view while also understanding foreign attitudes.

Improve Cultural Awareness within the organization

Although Prescott does not know how to speak Japanese and does not understand very much

about Japanese culture, he should learn to appreciate the local culture and hear their needs

before implementing new policy.

For example, After Mr. Prescott took over the Japanese operations, he was appalled with

Japanese promotion practices and decided to change these to a merit system. He consulted

Huggins and although Huggins objected the decision, he went ahead and announced the policy.

At the same time, he installed an annual review system, whereby every one of the management

personnel would be evaluated by his immediate superior and this would constitute an important

basis for promotion. This policy makes Japanese feels insecure.

It is very positive and beneficial to adapt to the environment in which Mr. Prescott is operating.

This way it presumably will be easier to cooperate with the domestic coworkers but also he will

better know what people expect from him.

Mr Prescott could organize a Team Building event for the company in order to improve the

relationship with the Japanese group. This activity will aid in understanding the need of the two

cultures and create a good rapport among subordinates and superior, rather than believing that

anything from the United States was universally right and applicable. Besides, employee welfare

can also be articulated during management meetings, company events or informal sessions with

employees in order to enhance the relationship with one another.

Understanding each culture in different countries is crucial because without mutual

understanding, it creates serious misunderstanding, conflicts and sometimes violence.

Understanding the Company’s goals

Prescott and Higgins are to sit down with the general manager of Weaver and discuss how the

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

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 no

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

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, differences in

managerial attitude and understanding could simply kill the company’s goal. It only means that

there’s no unity to achieve the goals.

Cultivate the Acceptance to changes manner

In deciding whether to bring change to company or to develop new practices to fit conditions,

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

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

rewards of change and timing of adjusting to the change.

In this case study, Japanese has always been having low employee turnover just because they

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 working

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

himself has refused to show interest in self-improvement and stayed stagnant throughout the

years, this ultimately do not benefit the company. A leader shall always shows improvement as

they are the major asset for the company.

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, the 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.

EVALUATIONS OF ALTERNATIVE STRATEIES

Improve communication between John Higgins and Prescott

Positive Outcome

Effective communication is important in an organization because it creates mutual

understanding environment between the management and employees. Besides, communication

helps each level of employees to understand each other’s need and accepting one another

opinion rationally. Both Mr. Higgins and Mr. Prescott have a lot of knowledge and potential to

run a successful business. Communication is essential so that their work relationship is

improved and would have been like an ally rather than an adversary. Plus, internal integration is

enhanced through this, and the environment for the employees can be understood by both

leaders.

Negative Outcome

Despite our effort to improve the communication between these two leaders, we might not be

able to succeed as Mr. Higgins had married a Japanese woman, who would be the perfect

person to influence Mr. Higgins in every decision that he made. Because of the love for the

Japanese culture, the decision making would also be influenced by Japanese neighborhood who

loved his presence, he will always intercede on behalf of the employee and objects invariably to

whatever Mr. Prescott suggest.

Improve Cultural Awareness within the organization

Positive Outcome

Cultural awareness becomes central when we have to interact with people from other cultures.

People see, interpret and evaluate things in a different ways. What is considered an appropriate

behavior in one culture is frequently inappropriate in another one. People working in a foreign

environment should be sensitive to the dangers of either excessive polycentrism or excessive

ethnocentrism. Instead they should try to become geocentric. By being culturally sensitive to

the Japanese culture, Mr. Prescott is able to avoid misunderstandings and conflicts.

Negative Outcome

As much as Leonard Prescott tries to understand the culture, he may have difficulty and may

think it is a waste of time and effort because he believes that the company’s real contribution to

Japanese society was in introducing new ideas and innovations.

“I know their way, but my way is better” I think, would best depict the probable negative

outcome. This situation explains that he may be aware of other ways of doing things, but still

considers his way as the best one. In this stage, cultural differences are perceived as source of

problems and people tend to ignore them or reduce their significance.

Understanding the Company’s goals

Positive Outcome

By understanding the company’s goal, both Mr. Prescott and Mr. Higgins are able to work

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

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

company rather than individuals.

Negative Outcome

Both employer and employee must be equipped with the knowledge of understanding

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

goals, it results in employee turnover and conflicts.

Cultivate the Acceptance for change manner

Positive Outcome

Accepting the change in new personnel policy give chance to young employees to strive to

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

ambitious 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

evaluations of subordinates, the senior employee might feel betrayed, because the Japanese

work custom for promotions has always been based on the seniority. This will create an intense

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

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

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

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

BEST STRATEGY AND JUSTIFICATION
Of all four alternative strategies, we have concluded that _________to be discussed.