PPQ Auto Parts Case Study

A company’s strategic plan is basically a road map to how the company will achieve growth and financial prosperity. To achieve financial growth over the next four years PPQ Auto Parts must expand its operations globally. When a company decides to expand globally a lot of things must be considered. The upper-management of PPQ Auto parts decided that this would be the best thing that the company could do. As told by (Graves, 2012) when companies decide to take their operations internationally the must also consider local laws, customs and traditions. They also must consider; sustainability of their product, customer purchasing power, accessibility of the raw materials to manufacture their product, size of market and customer demand. These
One big difference is that in the Japanese culture the worker’s relationship within the group is very physiological. Americans usually think more individualistic. Americans think more about self when it comes to career advancement and the Japanese thinks about the whole group. PPQ’s Auto parts rely on the accessibility of the steel industry. According to (Japan’s Steel Works Ltd SWOT Analysis, 2014) the demand for steel and machinery is interconnected with economic activity. Therefore when the economy is good the industry will be great. PPQ must keep this in mind, because if the Japanese economy begins to fail, their business may fail as well. One of PPQ’s short term goals will be to make every business meeting productive. This means not to waste time discussing menial things. They also decided to be good corporate partners in Japan. They will donate and participate in community projects and initiatives. The last short term goal will be to be just as customer service oriented and focused as local Japanese business. They want to not only serve their customers but go above and beyond for each and every one. Their long-term goal is to stay in business in the Japanese market, open several storefronts and become a fortune 500 company who the Japanese employees are proud to work
The company stores will gain respect from their competitors and others from being international. Another benefit of expanding is the potential for more profit. A downside of expansion in the Japanese market could be unexpected currency fluctuation. The biggest disadvantage is the tha huge financial risk. PPQ must strategically plan their expansion and not just rush into it. They must have upper management that are local to Japan. They would help them to gain insight and get educated on the culture and local rituals. They should have a local legal team so that they could understand the legalities on a local