2. Summary
• I. Overview
• II. Synopsis and exhibits
• III. Overall situation
• IV. Atlas ingenering and construction
• V. Existing situation
• VI. Statement of problem
• VII. Options
3. Overview
• Japanese company located in Osaka
• Architecture engineering and construction firm
• Family business created in 1930
• Considered as one of the « Big Five » of the Japanese contractors
• Non diversified company: Specialized in design and bulding construction
(less than 4% of its total sales dedicated to civil engineering)
4. Synopsis of Exhibits
• Exhibit 1: Summary of Jameson’s proposal to Takenaka Komuten
• Exhibit 2: Status of project undertaken by T.K.
• Exhibit 3: Growth summary Of T.K.’s gross sales
• Exhibit 4: Contracts awarded to T.K.
• Exhibit 5: Types of construction undertaken by T.K.
5. Synopsis of Exhibits
• Exhibit 7: Types of construction undertaken by Atlas
• Exhibit 8: Project in which Atlas was the sole contractor.
6. Overall
• 1990’s: Real estate market is stabilizing.
• Increase of market competition
• Increase of contracted projects
Exhibit 4
Exhibit 2
8. Overall
Strengthts Weaknesses
Reputation of excellence Not enough internationnal notoriety
Specialised Can’t compete with big corporation
Well established in their field Not enough diversified
9. Atlas Engineering and construction
• Civil engineering company based in San Francisco
• Already worked with Takaneka Komuten
• Interested in a Joint Venture Company
• Most of their contracts are shared with other companies
11. Overall
Proposal of a joint venture
between Takaneka Komuten
and Atlas construction and
Engineering.
The designing part would
remain T.K’s field and the
civil engineering part would
belong to Atlas’.
13. Statement of Problem
• Knowing that the real estate market is decreasing, should Takenaka
Komuten company form a joint venture with Atlas Construction and
Engineering even if it could sacrifice its reputation ?
14. Status Quo: T.K. doesn’t accept the joint
venture and doesn’t change its activities
Advantages Drawbacks
They keep their reputation of specialisation The company risks to slowly decline
They do not split their ressources
It is the solution that the takenaka’s family prefers
15. Option 2: T.K. refuses the joint venture but
develops other sectors
Advantages Drawbacks
The compnay remains independant They split their ressources
If the contructing sector keeps on declining, there
are some back up activities
The competition for other activities such as civil
engineering is fierce. T.K. might not have sufficient
ressources
16. Option 3: T.K. agrees the Joint Venture abroad
with Atlas
Advantages Drawbacks
Diversification of their sectors They become dependant on Atlas for the foreign
market
They already have prospects It can affect their good reputation if Atlas doesn’t
have the same standards of quality
Expanding their business abroad while conserving
their own market
They split their ressources
17. Option 4: T.K. mergers completly with Atlas.
Advantages Drawbacks
Diversification of their national and internationnal
activities
Total loss of independance
They expend their portofolio It might affect substantially their reputation of
excellence
Synergie effect Split gains and losses no matter the effort given by
each company
