Tommosi motorcycle casestudy

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Tommosi motorcycle casestudy

  1. 1. Cross Cultural Management II International business: The challenges of globalization “Selling European high performance motorcycles in JAPAN” 1
  2. 2. AGENDA What was going wrong inside and outside of Tommasi Motorcycles Japan? How are these issues related or connected? 2
  3. 3. AGENDA What was going wrong inside and outside of Tommasi Motorcycles Japan? How are these issues related or connected? 3
  4. 4. What was going wrong inside and outside of Tommasi Motorcycles Japan? Inside Communication Management Operation - Non Transparency communication (did not share all the details) - There are huge gap between JNO’s expectation and dealers need - JNO doesn’t have a clear understanding of the Japan market. - Maintenance and parts availability issues were common. - The application and the support IT system doesn’t match - Lack of safety matters - Katoh’s management style 4
  5. 5. What was going wrong inside and outside of Tommasi Motorcycles Japan? Outside 1. Tommasi Japan vs Tommasi HQ Communication Management Operation - Exists language barrier - There exists a big communication gap as transparent reporting process was not seen in the hierarchy - JNO being local in Japan failed in reporting the HQ about needs and problems of Japan Motorcycle Market - HQ Allocated Mr.Bonardi on temporary basis to be President of JNO, who does not speak Japanese - No concerns from EU side 5
  6. 6. What was going wrong inside and outside of Tommasi Motorcycles Japan? Outside 1. Hofstede Comparison Italy & Japan Huge Gap here! PDI: power distance IDV: Individualism MAS: Masculinity UAI: Uncertainty avoidance LTO: Long term orientation Source: http://geert-hofstede.com/italy.html 6
  7. 7. What was going wrong inside and outside of Tommasi Motorcycles Japan? Outside 2. Tommasi Japan vs Dealers in Japan Communication Management - No information sharing - Not enough research on Japans’ market - Lack of trust relationship with its dealers - Lack of face to face communication. - Market miss-direction Operation - HQ never asked the JNO to report on Delaers opinion or feedback about the market - Mismatch of selling model for the larger models - Did not care special condition of Japanese dealer network - Did not build Relationshipbased business in Japanese dealers - Dealers are pressured by JNO to sell more of the larger models. - Had some accessories inventory which they cannot sell 7
  8. 8. AGENDA What was going wrong inside and outside of Tommasi Motorcycles Japan? How are these issues related or connected? 8
  9. 9. How are these issues related or connected? Cultural differences Communication gaps Strategy thinking Management thinking etc... Communication issues Management issues Operation issues All these issues are connected cultural differences! 9
  10. 10. Thank you! 10
  11. 11. APPENDIX Mr. Katoh - Fluent English - Good understanding of European culture - Has MBA from London business school Why he was not included in the dealer interview process? May be the differences of Task oriented or Relationship oriented? 11

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