3. Documents
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Dialogue between Tom Jameson, Kenji Taniguchi and Ruichi Tanaka
Exhibit 1 : Summary of Main Points in Jameson's Proposal to Tanaka
Komuten
Exhibit 2 : Status of Projects Undertaken by Tanaka Komuten
Exhibit 3 : Ten-Year Growth Summary of Tanaka Komuten's Gross Sales
Exhibit 4 : Contracts Awarded to Tanaka Directly and Through Negociation
Exhibit 5 : Breakdown of the Types of Construction Undertaken by Tanaka
Exhibit 6 : Financial and Statistical Summary of Atlas Engineering &
Construction
Exhibit 7 : Breakdown of the Types of Construction Undertaken by Atlas
Exhibit 8 : Projects in Which Atlas Was the Sole Contractor
4. Organization
Tanaka Komuten (Osaka, Japan)
Atlas Engineering & Construction (U.S.)
Kazuo Tanaka
(Chairman)
Ruichi Tanaka
(President)
Kenji Taniguchi
(Managing Director)
Try to convince
Tom Jameson
(President)
5. Current Situation
Communication
Strenghts
Weaknesses
Intercultural
The firm shows
A major part of
to its clients that
the direction is
it works in a
Japenese
single sector
If crisis appears,
the company is
more vulnerable
∅
Ethics
Management
∅
Tanaka Komuten
is a family-owned
company so it is
Tanaka family
who takes the
important
decisions
∅
Subjectivity of the
decisions and no
discussion
between
managers and
employees
6. Evolution of the company
Ten Year Growth of Gross Sales
Tanaka Komuten
1989
2,4
2,3
billions of US $
2,2
2,1
2
1,9
1,8
1,7
1,6
1,5
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
Year
1991
Offices
Stores
Hotels
Theaters
Factories
Housing
Schools
Hospitals
Gov’t buildings
Transport facilities
Other
% No
Negociation
%
Negociation
1989
75.7
24.3
1990
72.6
27.4
1990
22.7
13.1
4.8
0.5
12.2
13.4
9.6
5.6
1.6
2.3
14.2
20.3
6.4
7.5
0.6
14.1
14.6
10.6
3.6
1.4
2.2
18.7
7. What is the problem ?
Should Tanaka Komuten form a « joint venture »
with Atlas Engineering & Construction
even if it could sacrifice its reputation ?
8. Option 1 : Tanaka Komuten stays
independent and doesn’t change its
activities
• Advantages :
Tanaka’s family wish and choice
Success and reputation based on
the non-diversified character of the
company
• Drawbacks :
The firm may decline as it did
since the beginning of the 1990s
The company undergoes the
worldwide decline in building
construction without being able to
react
9. Option 2 : Tanaka Komuten stays
independent but develops its activities
• Advantages :
The firm stays independent as
the Tanaka family wants
The firm diversifies sectors and
can survive if there is a problem in
the building construction sector
• Drawbacks :
It would cost many resources
We can’t know if it will help the
firm or not
10. Option 3 : Tanaka Komuten forms a joint
venture with Atlas Engineering &
Construction
• Advantages :
Invest little money
• Drawbacks :
Tanaka Komuten loses a part of
its independence
Possibility of diversifying sectors
Immediate prospects
A lot of opportunity and revenue
internationally
This
may
confuse
some
customers who are not informed
This may affect the image of
Tanaka if Atlas does not have the
same quality of construction
11. Option 4 : Tanaka Komuten and Atlas
Engineering & Construction make a fusion
to form a bigger company
• Advantages :
• Drawbacks :
Become bigger, so more able to
avoid a crisis, an economic problem
Need to invest a lot of money and
time to create the new company
The Tanaka Family keeps some
control on the firm
This
may
confuse
some
customers who are not informed
12. Our recommendation
We recommend the option 3 :
Win-Win solution : Both firms will have advantages
Tanaka can have more contracts internationally
Atlas can use the good image of Tanaka
Low investment, reducing costs
To avoid problems, you just must :
Establish a common level of quality
Make some public relation work to inform
