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John Higgins Case Study

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CONTENTS

Synopsis

Questions

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SYNOPSIS

Company :1. Weaver-Yamazaki Pharmaceutical was established in Japan

in 1954

2. Jointly owned and manufactured subsidiary of Weaver

Pharmaceutical and Yamazaki Pharmaceutical

3. One of the largest U.S. drug firms

4. Yamazaki Pharmaceutical was a major producer of drugs

and chemicals in Japan

5. In early 1930s, Yamazaki started distributing Weavers

products in Japan6. Subsidiary was established in anticipation of increase in

competition from Japanese producers

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SYNOPSIS

7. Started manufacturing sufficiently broad lines of products

8. Subsidiary was headed by Mr. Shozo Suzuki, who woulddetermine the companys basic policies

9. Daily operations of the company were managed by Mr.Prescott, who was assisted by Mr. Higgins and severalJapanese directors

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

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SYNOPSIS

Mr. Leonard Prescott :1. Vice President and General Manager of Weaver-Yamazaki

Pharmaceutical

2. A very experienced international businessman with a career

spanning over 25 years

3. Had served in India, the Philippines, Mexico and also severalyears in the Weaver home office international division

4. His initial challenge was to expand Japanese operations

5. After 2 years in charge, he was pleased with the companysprogress under him

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SYNOPSIS

Mr. John Higgins :1. Executive assistant to Mr. Prescott

2. Had joined the army midway through college

3. Had attended the Army Language School for intensive trainingin Japanese

4. Was assigned as an interpreter and translator in Tokyo, wherehe took more courses in Japanese language, literature andhistory

5. During his time in Japan, he made a lot of Japanese friendsand fell in love with Japan

6. After 5 years in the army, he returned to college and finishedhis college work in management and eventually joined Weaver

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SYNOPSIS

7. After 1 year in the company training program, he wasassigned to Japan

8. He arrived in Japan a year before Mr. Prescott

9. Was pleased to have an opportunity to improve the uglyAmerican image held abroad

10. His major responsibilities included troubleshooting withmajor Japanese customers, attending trade meetings,

negotiating with government officials, conducting marketingresearch and helping with day-to-day administration

11. Mr. Prescott and the previous general manager both soughthis advice on many difficult and complex administrative

problems and found him capable

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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 monthshome 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

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SYNOPSIS

Problems :1. Mr. Prescott was concerned with the notable changes in Mr. Higginss

attitude

2. Mr. Prescott felt that Mr. Higgins had lost the U.S. point of view andhad gonenative

3. Mr. Prescott believed all this has resulted in a substantial loss ofadministrative effectiveness

4. Mr. Prescott also believed that Mr. Higgins had complete emotionalinvolvement with Japanese culture

5. Because Mr. Higgins maintained close social ties with many of the menin the company, the employees started to register their complaints anddemands with him

6. Mr. Higgins interceded on the employeesbehalf to complain against anew personnel policy which was installed by Mr. Prescott

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SYNOPSIS

7. Mr. Prescott became hesitant to ask Mr. Higgins opinionbecause Mr. Higgins invariably raised objections to changesthat were contrary to the Japanese norm

8. Mr. Prescott felt that there was no point in merely coping the

Japanese customs and that the companys real contributionwas in introducing new ideas and innovations

9. Mr. Prescott started doubting the soundness of Mr. Higginsjudgment as he had opposed the firing of a manager, who Mr.Prescott thought lacked initiative, leadership and general

competency

10. Mr. Prescott believed there was a serious problem when heaccidently learned that Mr. Higgins had interceded on the firedemployees behalf, which resulted in the appointment of theemployee at Yamazaki Pharmaceutical

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QUESTIONS

What is the difference between Japanese andAmerican 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

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What can be done to resolve differences betweenHiggins's and Prescott? Organize a private meeting with Mr. Higgins

Mr. Prescott should try to consider the advice of his executiveassistant

Mr. Prescott can make use of his higher hierarchical position toimpose his point of view

Prescott could present his observations to Higgins and ask for hiscooperation in implementing the American strategy in a Japanese-like manner.

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Should emotional and cultural factors affect thecorporate decisions?

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