Takenaka Komuten Company Ltd

DELAFONT ArnaudLE Thien AnMONTHE Laëtitia

Overview of the situation

ParticipantsTakenaka Komuten

(Osaka, Japan)Atlas Engineering & Construction

(US)

Ruichi Takenaka(President)

Kenji Taniguchi(Managing Director)

Tom Jameson(President)

Kazuo Takenaka(chairmain)

Try to convince

Communication

Intercultural Management

Strengths They already have a good communication

The direction is Japanese.

The Takana family takes the important decisions

Weaknesses If crisis appears, the company will be more vulnerable.

Culture is different, they could have conflicts.

Subjectivity of the decisions and no discussion between managers and employees

Current situation

Dialogue between Tom Jameson, Kenji Taniuchi and Ruichi Takenaka

Exhibit 1: Summary of Main Points in Jameson’s Proposal to Takenaka Komuten

Exhibit 2: Status of Projects Undertaken by Takenaka Komuten Exhibit 3: Ten-year growth summary of Takenaka Komuten’s gross sales Exhibit 4: Contracts Awarded to Takenaka directly and through negotiation

Exhibit 5: Breakdown of the types of construction undertaken by Takenaka Exhibit 6: Financial and Staistical Summar of Atlas Engineering & Construction Exhibit 7: Breakdown of te types of construction undertaken by Atlas Exhibit 8: Projects in which Atlas was the sole contractor

Documents

Dialogue between Tom Jameson, Kenji Taniuchi and Ruichi Takenaka

Jameson: I think it should be fairly clear that a joint venture for the purpose of obtaining worldwide contracts involving both civil and building engineering is a definite advantage for both of us.

Tanaka: The problem is simply this: Takenaka Komuten has built a reputation on its commitment to design and building construction. We pride ourselves on this. It's what makes us different from our competitors.

Exhibit 1: Summary of Main Points in Jameson’s Proposal to Takenaka Komuten

Main Activities of the Joint Venture Company: To procure contracts internationally for projects involving both civil engineering and building construction.

The advantages of the joint venture:• Elimination of separate bid submission• Assurance to the client of integrated design, engineering, construction, and

quality control• Reduction in overall costs to the client. • Placement of Takenaka Komuten and Atlas Engineering in a competitive

position in relation to other consolidated engineering and construction firms .

Evolution of the Takenaka Komuten Company

(Exhibit 2,3,4&5)

Ten-year growth summary of takenana komuten's gross sales

Contracts awarded to Takenaka directly and through negotiation

Status of projects undertaken by Takenaka Komuten (in billion of US$)

Breakdown of the types of construction undertaken

Evolution of the Atlas Company(Exhibit 6,7&8)

Projects in which Atlas was the sole contractor (percentages)

Breakdown of the types of construction undertaken by Atlas

Financial and statistical summary of Atlas engineering & construction 

What is the problem?

Should Takenaka Komuten form a joint venture with Atlas even if it could sacrifice its

reputation?

Option1:Takenaka Komuten refuses the Joint venture and doesn’t change its activities.

Advantages Drawbacks

•They keep their reputation of specialization

•They do not split their resources

•It is the solution than Tanaka's family prefer

•The company risk to slowly decline

Option2:Takenaka Komuten refuses the Joint venture but develops others sectors.

Advantages Drawbacks

•The company stays independent

•In case where the building constructor sector continue to decline they have a back up sector

•They split their resources

•The competition for the others sector is hard

Option3:Takenaka Komuten agrees the Joint venture with Atlas Engineering & Construction abroad.

Advantages Drawbacks

•Diversification of their sector

•They already have prospects

•Opening abroad

•They are not completely independent anymore

•It can affect their reputation of quality if Atlas has not the same.

•They split their resources

Option4:Takenaka Komuten agrees the Joint venture with Atlas Engineering & Construction abroad and in their country.

Advantages Drawbacks

•Diversification of their national and international sector

•They already have prospect

•If the joint venture works, they will gain a lot of money

•They are not completely independent anymore

•It can affect their reputation of quality and specialization

•They split their resources

Option5:Takenaka Komuten and Atlas Engineering & Construction make a merger to form a bigger company.

Advantages Drawbacks

• They can gain a lot of money

• Opening abroad should be easier

• Both companies will completely lose their independence

• If one of the company fails, both of the companies will decline

• The companies are in two different countries, they might have communication problems

Option3:Takenaka Komuten agrees the Joint venture with Atlas Engineering & Construction abroad.

Our recommandation

Option 1: Takenaka Komuten refuses the Joint venture and doesn’t change its activities.

Option 2: Takenaka Komuten refuses the Joint venture but develops others sectors.

Option 3: Takenaka Komuten agrees the Joint venture with Atlas Engineering & Construction abroad.

Option 4: Takenaka Komuten agrees the Joint venture with Atlas Engineering & Construction abroad and in their country.

Option 5: Takenaka Komuten and Atlas Engineering & Construction make a merger to form a bigger company.

Options

Questions