Group Case Study II

Title: Dell Inc.: Changing the Business Model (Mini Case)

Name Matrices Number

Doris Daud MB 122 2023T

Table of Contents

Page

1.0 Case Summary 1-2

2.0 Problem Statements 2-4

3.0 ALTERNATIVE STRATEGIES 4-6

4.0 EVALUATION OF ALTERNATIVES STRATEGIES 5

5.0 THE BEST STRATEGY AND JUSTIFICATION 8

6.0 Implementation 9

7.0 Conclusion 10

1.0. CASE SUMMARY

Yamazaki pharmaceutical is one of a major producer of drugs and chemicals in

Japan that 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.

Higgins and Prescott both have different opinions toward implementing U.S.

policies in the Japanese operations. Higgins's attitude was seen more against the

U.S. policies and more toward the Japanese ways of doing things, considering he

had spent lots of time in Japan and adapting to Japanese culture while Prescott's

attitude are pro to U.S. way of implementing the policies in the Japanese

operations.

Higgins are too attached to Japanese cultures and it made Prescott believes that

Higgin’s attitude and thinking causes a considerable ineffectiveness of

administration for the company. Higgins, as many typical Japanese employers

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 and Prescott was unease about it. It cost more to the

company in term of profit and loss account. Higgins objected the new

implementation which he believed that Japanese culture must be preserved in

operating the business in Japan.

However, Prescott believes there are dynamic changes occurring in traditional

Japanese customs and culture and he also believes that Japanese subordinates

are more willing to try out new ideas. The conflict worsening when Higgins

interceded on behalf manager who was fired by Prescott, resulting in Yamazaki

Pharmaceutical’s to rehire the manager. The sacked manager was fired by

Prescott due to his lacked of initiative leadership, general competency and

become liability to the company even after two years in probation to improve his

capability. Higgins casually said that he had done what was expected of a

superior in any Japanese company. Prescott believed that these incidents

suggested a serious problem with Higgins’s judgment as effective manager to

represent Weaver’s interest in Japan operation.

Higgins had always been seen as an effective and efficient manager who was

admired by Prescott’s friend and he also received several excellent offers to join

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 as it may

jeopardize company’s interest in operating the business in Japanese.

2.0 PROBLEM STATEMENT

Mr. Prescott felt Mr. Higgins lost his U.S point of view but more to Japanese point

of view and had taken many characteristic of Japanese typical. Prescott became

concerned about the changes of Mr. Higgins's attitude and afraid if it would

effect to Mr. Higgins's ability in administrative effectiveness. Prescott felt Higgins

would be more effective if he did not too Pro-Japanese towards his works and

should be professional in his works profession because that would be impact the

Higgins's ability in administrative thus effected companies operational. This case

indicates the main problem is the concerned about Mr. Higgins working style

towards Japanese perspective leads to ineffectiveness of managing the

administration of the company.

2.1 Changing Japanese's work customs

Prescott and Higgins argued about the employee's dismissal, in Prescott's

opinion the employee who lacked of initiative, leadership and incompetence in

their work should be fired because it would not bring any improvement into

company, meanwhile in both Higgins and the personnel manager objected the

Prescott's action about employee dismissal because the company had never

fired anyone before and it out of Japanese's work customs what was applied

before with low employee turnover.

2.2 Emotional

Mr. Prescott felt Mr. Higgins lost his U.S point of view but more to Japanese point

of view and had taken many characteristic of Japanese typical. Prescott became

concerned about the changes of Mr. Higgins's attitude and afraid if it would

effect to Mr. Higgins's ability in administrative effectiveness.

Prescott felt Higgins would be more effective if he did not too emotional towards

changing old Japanese's management style into U.S new policy because if

Higgins cannot be professional toward his works profession it would be impact

the Higgins's ability in administrative thus effected company's operational.

2.3 Different understanding

Both of Mr. Higgins and Mr. Prescott have a different opinion toward

implementation of personnel policies in the company operations. Mr. Prescott

with his new policy (U.S policy) meanwhile Mr. Higgins is more influenced by

Japanese culture which wants to continue with the Japanese old policies system

and still implementing into company operation.

Mr. Prescott felt the company's real contribution to Japanese society was in

introducing new ideas and innovations with installing new U.S. policies system

into company, because Mr. Prescott believed that there were dynamic changes

occurring in traditional Japanese customs and culture and applicable more

suitable to apply in that organization.

Meanwhile Mr. Higgins did not like the way how Mr. Prescott handles the

situation with implementing the new personnel policies into company's operation

which mean changing the Japanese's tradition. Otherwise Mr. Higgins still wants

to apply Japanese old policies into the company with the same manner as

Japanese’s previous operations.

2.4 Employee's reaction

The new policy installation by Mr. Prescott makes many employees feel

unsatisfied with Mr. Prescott's action, they did not like how Mr. Prescott manage

the company and change the Japanese's worked styles, and because of that

many Japanese employees go to complaint about Mr. Prescott's action with his

new personnel policies to Mr. Higgins, because the employee still wants to apply

the old Japanese policies into operation system in their management. Other issue

with implementing new changes by Mr. Prescott into the company is that might

effects indirectly the Japanese work culture, momentum and their work

consistency thus Japanese tradition would be replaced by U.S. management

style, it is because the Japanese personnel policy has never changed before.

2.5 Developing new practice to fit condition

Mr. Prescott presume the new policy will bring more suitable conditional into

organization because Mr. Prescott felt many Japanese subordinates are willing to

try a new idea and Mr. Prescott also believe the new idea can bring more

profitable to company and more effective. Unfortunately the employee did not

want any changes in policy, with a new policy installed by Mr. Prescott,

Japanese's employee afraid if it might be a threat to their Japanese culture

because the company is originally apply the Japanese policies in this company.

3.0 ALTERNATIVE STRATEGIES

Transfer John Higgins to other country

Removing him from the company

Understanding the Company’s goals

Cultivate the Acceptance to changes manner

3.1 Transfer John Higgins to Other Country

John Higgins has been too attached to local culture which has leads him to forget

his true role in the company. This has created difficulties for Prescott to work

with him who continuously raise objections to changes that Prescott made to the

company. Higgins needs to compromise and find agreement through

communication with Leonard 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.

If John Higgins is transferred to other country, it will be good for him to

understand the difference culture in every international company in the world.

This will keep him busy to work and start over to understand the culture in the

country that he is in. This will give Prescott a chance to lead the company

without objections. It will be a good idea to send another new assistant for

Prescott so they can work out the best plans for the company.

3.2 Removing Him from The Company

Before the company would even do so, Mr. Prescott could organize a private

meeting with Mr. Higgins and make him realize that he is too 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. Higgins 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. Higgins 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. He needs to align their

mentality with company goals and objectives. If Higgins could not accept this,

then there’s no choice but to remove him.

3.3 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.

3.4 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.

4.0 EVALUATIONS OF ALTERNATIVE STRATEGIES

4.1 Transfer John Higgins to other country

Positive Outcome

If Higgins is being transferred to other country, he will have no choice but to live

in new culture. This would help him to focus realize how much he has deviate his

philosophy from the company’s original goal and objectives. Besides, this is a

great opportunity for him and wife to learn and understand the culture in the

new place they are in. 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.

Negative Outcome

After many years spent in Japan, Higgins may not like the idea of transferring

him back to other country. He will most probably end up resigning and joining

other company in Japanese. Removing him from the company is not a big deal as

he has already received several outstanding offers to go to other companies in

Japan. When this happens, Higgins being an influential person is able to

persuade other workers to join him in another company. This may cause high

employee turnover at later days.

4.2 Remove Higgins from the company

Positive Outcome

There will be no more emotional attachment to the Japanese and Prescott will be

able to plan ahead for the company’s growth according to company goal and

objectives. Besides, all employees will be focus on work rather than spending

their time complaining things to Higgins.

Negative Outcome

Company will lose a talented and an influential employee like Higgins. Prescott

will find it difficult to communicate with the Japanese as Higgins was the only

person who converse and attach well with the Japanese. Besides, removing

Higgins will piss him off and he might do whatever it takes to sue the company.

He has a lot of Japanese who like him; for sure he’ll be able to hire the best

lawyer to help him win the case.

4.3 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.

4.4 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.

5.0 BEST STRATEGY AND JUSTIFICATION

Of all the alternative strategies, we have concluded that transferring John

Higgins to other country would be the best strategy in handling the current

situation. Transferring him to other country will help Higgins to appreciate the

other culture rather than staying in Japan forever, which will just intensify his

love for Japanese culture. He needs to be reminded of his roots, that no matter

where he goes, he can never hide his origin. Moving to another country will give

him another chance to love another culture, in hope that he’ll not be too

attached to the new culture he’s about to experience. Because Higgins is still

new in the company, he will eventually lead the company based on company’s

goal and culture. He won’t have somebody close to him to influence him like the

Japanese did. Since Higgins is not yet familiar with the new company he is in, he

may not have strong objections towards the managers if they were to implement

new policy into the company. Higgins will most probably busy trying to adjust

comfortably in the new environment, new life, new experience and most

importantly, new culture together with his Japanese wife. This will also help

Higgins to prioritize his work rather than spending time listening to employee’s

complains and problems which defeated his efficiency and effectiveness in work

performance. Thus, we think transferring him to other country is the best way to

divert Higgins’s love for Japan to another country. We need to do what is right for

the sake of the company, not for individuals.

6.0 IMPLEMENTATION

Transfer John Higgins to other country

Removing him from the company

Understanding the Company’s goals

Cultivate the Acceptance to changes manner

6.1. Short-Term Plans

6.1.1 Understanding the Company’s goals

Understanding the company’s goal, both Mr. Prescott and Mr. Higgins are able to

appreciate and work together to reach the company’s goal. It would need an

immediate action for the management to provide the platform for both Prescott

and Higgins to literally understand the company goal which requires both of

them to work together as a team and achieve a better performance. The

immediate action would be beneficial to both Prescott and Higgins as it is the

fastest way to resolve the current problem arise from Higgins misunderstanding

or deviation of the whole understanding of the company’s goal.

6.1.2 Cultivate the Acceptance for change manner

Introducing the new policy in promotion would be effective through syndication

with the employees on the acceptance of the new promotion policy. The

employee must be communicated with regards to the new changes of the

current company policy which resulted in better benefits and improvement in the

company. This helps the company to produce ambitious and highly motivated

young employees who are eager to be the next leader.

6.2 Long-Term Plans

6.2.1 Transfer John Higgins to other country

Transferring Higgins to other country would be the last choice as company may

face two possibilities which positive and negative impact to the company. If

Higgins is being transferred to other country, he will be experiencing new culture

and is a great opportunity. But in the other hand, Higgins may see this as a

result of constructive dismissal and lead to his resignation and company would

lose valuable employee. Company is also exposed on potential law suit by

Higgins if he files constructive dismissal to the company. Company should

manage the issue wisely to avoid unnecessary action which may leads in

tarnishing the company image and reputation.

6.2.1 Remove Higgins from the company

As in the long term plan, company may choose to dismiss Higgins if his

performance is not as expected by the company. The organization would need to

carefully decide and provide signification time to Higgins to improve and improve

the performance of the company and gain back the trust of the employees which

was highly affected due to the recent announcement of the changes in

promotion guideline. The organizational must fairly appraise and evaluate

Higgins performance and if his performance is below the minimum requirement,

hence the best option would to dismiss Higgins from the organization and

Prescott will be able to plan ahead for the company’s growth according to

company goal and objectives.

7.0 Conclusion

As a conclusion, Yamazaki pharmaceutical reputation as one of the largest U.S

drug firms in Japan would lead to great impact on how best the organization

management its key personnel as well as providing the best policy and

procedure to achieve the organization goal and objectives.