The Morioka Manufacturing Company is a fairly typical large Japanese corporation that makes abrasives for automobile and industrial clutches, grinding and sanding machines, and specialized polishing equipment. The political pressure on Japan to import more U.S. goods and to invest in the United States to provide more American jobs was strong. 2M could face limitations on its exports to the U.S. market at any time. The market now provided about 40 percent of the company’s worldwide sales, maintaining U.S. business was critical.
2. THE PROBLEM
The problem is 2M consider cost effectiveness of Bendix in a difficult political and cultural situation. (Hajima had seen an enormous productivity gap between output per workers in Japan and in the U.S.)
3. CAST OF CHARACTERS
* Yoshi Hajima is the director of 2M’s International Division * Hajima`s friend who works at Mitsui’s office in San Francisco
* The Morioka Manufacturing Company is a fairly typical large Japanese corporation that makes abrasives for automobile and industrial clutches, grinding and sanding machines, and specialized polishing equipment. * The Bendix Corporation is a company in California, which produced industrial clutches and sold a variety of companies for use in industrial machinery.
* 2M has been evaluating a proposal to acquire with the Bendix Corporation * 2M could face limitations on exports to the U.S. market * Mr. Hajima doubts and doesn't want to acquire the Bendix Corporation
External * The US market is a very extensive, 2M has a good perspective| External * Risk (a lot of other Japanese firms didn’t achieve good productivity levels)| Internal * the Americans employees happy to try many of the Japanese practices | Internal * huge productivity and cultural gap between the American and Japanese workers|