• Profitable JV Model of Suji-INS
• Market expansion in Japan
• Stable Management team in Suji- Ins
• Good control strategy with Suji-INS.
• Build good relationship with senior management team of the Japanese firm.
• HR issues ' need to appoint a new president of the JV, however, the two parties do not reach agreement due to lack of mutual understanding
• No cooperation culture & no shared vision.
• Poor communication/reporting system.
How did this happen? (Causes)
• Lack mutual understanding of two companies’ country and company culture.
• No clear picture of JV ' JV is a more heterarchy network. A company shares ownership with others, such as a JV, there is usually a heterarchy relationship. Which is superior and which is subordinate is not clear. When that happens, communication handicaps come along.
• Suji owns two thirds of the company while INS takes one third. It’s obvious who has the upper hand. And according to the agreement, Suji contributes facilities and network equipment while INS provides network technology.
• INS does not support the new candidate according to their strategic moves. What they would have expected, would have been an “Aggressive market expansion”.
• INS‘s local representative, Jack Rose, Exe. VP of JV, does not serve as an instrumental communicator.
What does INS want?
• Actively involve in Suji-INS cooperate culture, marketing strategy and HR system.
• Aggressive expansion of company’s business instead of the local ways.
• INS becomes a major shareholder of Suji-INS.
(Impossible as Japan market regulation prohibited this solution)
• Force Suji-INS to accept Toray
(No, as this will hurt mutual relationship and also future of Toray!)
• Accept Suji’s proposal and accept Kenzo as the new president. However, try to put Toray at an important position...