IB 4020Student: Benedetta Piva   International Trade Management                                 Fall Semester 2011
Supreme Canning Company                        American company located in the state of Californian that produce:         ...
Heavy competition due to:                         competitors overseas   inadequate domestic demandInternational Trade Man...
US company’s annual processing capacity not absorbed by                         domestic demand: 100,000 tons of tomatoes ...
Japan was an interesting country for companies interested in                        exporting products:                   ...
After a first successful four days meeting at the Japanese                       company, the Americans invited the Japane...
Local businessman of Japanase extraction = intermediator                      Japanese food products producer and distribu...
Us company’s president to                                                             Family name of the Japanese         ...
Yes!                        Big differences in how to do business and day by day life                        No matter if ...
Whas the Japanese interest for mutual letter of cooperation good?                      Yes! Great first step in concluding...
Frank and direct letter, with a impolite tone, as a person talking to an equal                            (to first Japane...
Yes!                      Even if value system is deep-seated in Japan, understand and                         accept diff...
Apologize personally with the second Japanese company:                      • ask for an appointment through the go-betwee...
A company must to keep in mind:                        •    foreign companies, competitors and custommers                 ...
•    Albaum, G., Duerr, E., (2008). International marketing                         management and export management. New ...
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Supreme canning company.docx

  1. 1. IB 4020Student: Benedetta Piva International Trade Management Fall Semester 2011
  2. 2. Supreme Canning Company American company located in the state of Californian that produce: It produces cans with its own-brand label but much of its output is canned for other companiesInternational Trade Management Fall Semester 2011
  3. 3. Heavy competition due to: competitors overseas inadequate domestic demandInternational Trade Management Fall Semester 2011
  4. 4. US company’s annual processing capacity not absorbed by domestic demand: 100,000 tons of tomatoes Supreme Canning Company needed to find additional markets Inquiry from Japan: a well known Japanese food packer and distributor, handling a large number of products with great success. Much larger than the American company. Was it interesting?International Trade Management Fall Semester 2011
  5. 5. Japan was an interesting country for companies interested in exporting products: reduce trade barriers encourage imports Concerning tomato-canning industry, there was an increasing demand for specialty tomato products (due to the growing popularity of pizza and Italian-style foods and restaurants) and it could not support its economical domestic industry without imports because of the scarcity of land Great opportunity for the US company because it needed to saturate its production and that was a well-known Japanese firmInternational Trade Management Fall Semester 2011
  6. 6. After a first successful four days meeting at the Japanese company, the Americans invited the Japanese to visit their plant in California for four days. During first meeting: Japanese interested in mutual letter of cooperation, Americans wanted specific contract. Then, the Japanese communicated that their president wouldn’t be able to come and that the other senior executives would be able to stay just two days instead of four. Americans : why? [frank and direct letter, with a impolite tone, as a person talking to an equal] The Japanese decided to cancel the visit and not to have further contact with the US companyInternational Trade Management Fall Semester 2011
  7. 7. Local businessman of Japanase extraction = intermediator Japanese food products producer and distributor (larger than the first Japanese company) Visit at the US company’s plantInternational Trade Management Fall Semester 2011
  8. 8. Us company’s president to Family name of the Japanese local businessman: Business company’s president! with them? No, thanks! No official position in the company The semi-retired No english president’s father!!!International Trade Management Fall Semester 2011
  9. 9. Yes! Big differences in how to do business and day by day life No matter if managers have little knowledge of Japan and its usages A company must be aware and well prepared on business and culture in a country to enter it successfully CULTURAL AND SOCIO-CULTURAL ISSUEInternational Trade Management Fall Semester 2011
  10. 10. Whas the Japanese interest for mutual letter of cooperation good? Yes! Great first step in concluding a lonf-term business agreeement Why? Japanese prefer to get to know people before doing business It takes time to them to trust someone elseInternational Trade Management Fall Semester 2011
  11. 11. Frank and direct letter, with a impolite tone, as a person talking to an equal (to first Japanese company) Respect and status in Japan (little companies to big ones, buyer to seller) Semi-retired father of the second Japanese company: no ufficial position Americans: he hid facts Japanese: No! Status issueInternational Trade Management Fall Semester 2011
  12. 12. Yes! Even if value system is deep-seated in Japan, understand and accept different cultures Great examples:International Trade Management Fall Semester 2011
  13. 13. Apologize personally with the second Japanese company: • ask for an appointment through the go-between • Group of two or three company’s manager • Gifts The US company should prepare a structured plan focused on research and analysis of new international markets in order to systematically create new opportunities Not wait for inquiry from the market!International Trade Management Fall Semester 2011
  14. 14. A company must to keep in mind: • foreign companies, competitors and custommers • Different culture, competitors, economic, political, and legal forces Before approaching to international markets: • identify countries target; • deep knowledge of foreign usage and characteristics in order to avoid major misunderstandings and have successful business relationships!International Trade Management Fall Semester 2011
  15. 15. • Albaum, G., Duerr, E., (2008). International marketing management and export management. New York: Prentice Hall. • Parker, P. M., (2011). The world market for fresh and chilled tomatoes: A 2011 global trade perspective. Singapore & Fontainebleau: ISEAD. • Parker, P. M., (2011). The world market for tomato ketchup and tomato sauces: A 2011 global trade perspective. Singapore & Fontainebleau: ISEAD. • Varley, H. P., (2000). Japanese culture. Honolulu: University of Hawaii Press.International Trade Management Fall Semester 2011

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