In this paper, we consider the development of overseas production bases of parts supplier. If finished product manufacturers change the International production division of labor, parts supplier will be affected by finished product manufacturers change and must respond to that change. Through analyzing the development process of motorcycle supplier A’s Thailand production base and Indonesian production base, we reveal that it is difficult for parts supplier to design own International production division of labor according to it after the finished car manufacturer made it.
In recent years, early involvement in advanced engineering has become increasingly important for automotive suppliers. A supplier engaged in advanced engineering affects development competition and has a higher probability of being selected as the mass production supplier. Therefore, global suppliers are encouraged to engage in the advanced engineering phase. However, suppliers have their own individual strategic methods of approaching automotive OEMs.
The Korean market is a strategic target for global suppliers. The Korean OEM, Hyundai Motor Company （HMC） is widely regarded as a late starter. It has grown rapidly and it recently achieved the fifth position in the global vehicle sales world ranking for Global OEMs. The HMC headquarters are the centralized authority for R&D as well as for mass production. Thus, in obtaining business with HMC, approaching the headquarters is particularly crucial. On the other hand, HMC needs global suppliers’ development capability to improve quality and reduce cost. However, the supplier’s attitude determines whether the know-how can be transferred to HMC. This study uses the transaction between Denso and HMC as a case study, and observes how Denso engages in HMC’s advanced engineering phase and influences the mass production supplier selection processes later. Using transaction governance theory, this study discusses the effects of raising quality, reducing production cost, and controlling opportunism through early supplier involvement in advanced engineering. This research model would be a useful reference for observing the level of development and prospecting in developing countries’ OEMs.
This research discusses the competition and development of basic technology industry. Basic technology industry refers to basic industry which has core elements for demand industry to make its own in-house products. The fastening method is widely utilized for various types of assembling processes in engineering, architecture and other fields. In other words, the screw is related to a wide range of industries and is one of the most significant basic technology industries, supporting safety and precision of the final products. In this paper, we discuss the screw industry in Taiwan. The purpose of this research is to clarify the characteristics of Taiwanese screw industry. In particular, we analyze the factors of sustainable development of Taiwanese screw industry.
In this paper, we describe a key strategy of local procurement for Japanese auto parts suppliers and discuss future story of that. The conclusions are below. Firstly, nowadays the key strategy of J-suppliers is given by themselves, not by their customers. They are going to construct competitiveness, mainly focused on COST, for their own subsidiaries. The figure of local content just indicates consequent of pursuing its strategy. Secondary, the concept of local content has changed recently. The more significant index is intraregional procurement compared to traditional local content. Moreover, we proposed that J-suppliers should increase business with regional enterprises than present days if they maintain a prosperity.
This paper discovers a social business model for BOP business by examining the successful experience of AMUL. AMUL is a dairy cooperative in western India. In 1946, it gathered marginal milk producers, most of whom were BOP people, and founded as a cooperative society. Now it became the top runner of dairy industry and was recognized as one of the most successful nonprofit organizations. Three characteristics different from multinational enterprises’ BOP business are found in AMUL model. Firstly, AMUL model is based on the voluntary cooperation of dairy farmers and democratic member control to increase their income. Secondly, AMUL builds a relationship of trust with producers. Finally, it offers Cooperative Development Programme（CD Programme）to members by providing education, training and human resources development.
This study analyzed the store opening strategy of Japanese convenience store chains in China, including 7-Eleven, FamilyMart, Lawson, and Ministop, from the perspective of the franchise system. In a master franchise agreement, there is a trade-off between strong control of master franchisees and rapid store opening. As a result, it is important to utilize local business partners’resources. On the other hand, in sub- franchise agreements, relatively high franchising thresholds and low profitability have negative effects on business expansion. However, in the case of Japanese convenience store chains’business development in China, apart from the need to avert a trade-off, innovation in achieving both rapid store opening and a high operational level is also desired.
This essay shows Teece’s theory on Dynamic Capabilities can be utilized to analyze recent PPP failures cases in Asia and to make a checklist to avoid possible failures in a PPP project. PPP failure case means PPP bidding is in failure and/or PPP project operation plan is big changed. In Philippines people say jokingly PPP is an abbreviation of Power Point Presentation. It means proposed PPP are no realistic. Laguna Express PPP bidding which the Philippine Government proposed in March 2016 was in failure as of no bidding applicants. Manila LRT Line 1 South Bound PPP was suspended as of the injunction order of its connected station engineering. Philippine FDI equity restriction up limit 40% in public infrastructure project may make those failures. Thai FDI equity restriction up limit 49% in service including public infrastructure project makes a foreign investor to take no initiative in PPP management, capital or knowhow. It may deteriorate common wealth of the society. Another type of failures is hold up effect, which bid winner renegotiates contract terms or contract amount with PPP promoting Government, after exclusion of bidding rivals.
Teece’s theory on Dynamic Capabilities can be understood as follows. Organization shall have operational routines and management capabilities. Under turbulent circumstances or thin market, dynamic capabilities in management capabilities is requested with assets orchestration. A PPP market is a thin market so Dynamic capabilities are requested both in PPP promoter and PPP bidders/operators. High operational routines are also requested both for civil servants in charge of PPP projects and for companies as bidders and/or operators. I propose a model of checklist to avoid possible PPP failures in Asia, with using factors of Dynamic capabilities. It consists of analysis on PPP promoter Government including PPP regulations and possible PPP bidding rivals especially Chinese or Korean rivals.
The development of the software and IT enabled services （ITES） industry in Dalian has certain peculiar characteristics owing to its deep relationship with Japan. However, recently, the proportion of export to Japan has decreased substantially. Hence, it is obvious that Dalian must change from being an offshore base to Japan. Therefore, this study discusses the changes in the domestic and international environment, and analyzes their causes to explain the development of this industry in Dalian.
In recent years, Dalian software and ITES companies are upgrading offshoring services to Japan and expanding their businesses for the domestic market. During this development, the positive effect of the lockin to Japan is effective in advancing to upstream processes or high-value processes in the software industry through long-term business relationships with Japanese partners. Further, because of the use of the human resources and technology accumulated in offshore development in Japan, there is a spillover effect on China’s domestic business. On the other hand, there are negative effects of the lock-in to Japan. For example, some companies cannot avoid dependence on offshore contractors, because their range of business skills and knowledge is limited. Other companies are familiar with working in the mature Japanese market, making it difficult for them to function efficiently in the highly volatile Chinese market.
With populations increasing and economic development taking place in emerging countries, water shortages are now being observed on a global scale, and a solution to this is considered as a very important challenge for the entire world. For the survival of living things on earth, water is an essential. It used to be said in Japan that,“ Water and safety are free,” and that Japanese people did not have to be aware of water issues in their everyday life, but since the 2000’s, water issues have become a regular topic of conversation. In particular, since the METI established the Water Industry and Infrastructure Systems Promotion Office, the water business has become very active in both public and private sectors, which can be considered as a shift of value for water from a public good to an economic good. Based on all of this, to understand the current situation of global water resources I will report my thoughts on （1） marketability of water as a business, （2） business strategies of global companies, and （3） further consideration on business strategies of Japanese companies
Toyota Motor Corporation is a big company, and Toyota produces and sells large volume vehicles over the world. But in the BRICs market, especially China market, Toyota’s market share is very low. In China market, Toyota share is only 4.6% （2015）. In the 2000s, volume zone was Small-Low Segment. But Toyota introduced only two models, such as Vios and Yaris. Afterwards, volume zone has shifted to SUV Segment, But Toyota does not have enough model to introduce SUV segment. This is aim to analyze why Toyota failed business in China Automobile volume zone, against china motorization from the beginning of 2000s up to today. I focus on the Leadership and Organization Structure, compared with companies, which have excellent result and good industrial paradigm shift （Professor Mishina calls “TENCHI”） in Japan.
As my analysis, the two key points to succeed in new developing countries, as BRICs, are, firstly to assign young leader to top management in BRIC`s volume zone market for more than ten years, and secondly to establish new organizational structure and national staffs, in order to produce much fit products and service. I found that Toyota did not do it, therefore Toyota failed in the past time.
Top management from Toyota headquarter worked for average 2.8 years in joint-venture. They were all over 50 years old, when they were assigned. Toyota China Regional Headquarter （RHQ） and their Production, Sales and R&D companies are very complicated order and capital relationship. There are not enough functions in RHQ. The general managers are occupied by both mother companies, which have capital to joint venture. Sometimes order and decision were confused inside joint venture. National staffs have very small chance to promote their career. This is reason to do bad performance in China automobile volume zone, in leadership and organizational structure, by Toyota.
This article aims to study the reformation and renovation of department store after the reform and
opening-up policy in China by comparing those in cities with different levels. Since the introduction of
the reform and opening-up policy, Chinese market changed rapidly. Meanwhile, the market and system
reformation presents differences in cities with different levels. With these backgrounds, this paper explores
the phases of department store’s reformation by using the examples of Shanghai, Jinan and Zibo in the
viewpoint of business history. And this article also examines whether the reformations are different in these
three cities, and what differences they have. The department stores in three cities all reformed in three
phases which were phase of marketization, phase of conversion into department store and phase of transition.
However, the reformation and renovation of department stores in three cities differ in operators and their
role. Furthermore, the reformation of department store in local cities, Jinan and Zibo, exhibited higher
mobility than that in Shanghai.
The operations in Asia by Japanese manufacturing companies have been expanding, especially after the Yen appreciation since 2008. In recent years, these companies focus on the relocation of factories from China and Thailand to Cambodia, Laos and Myanmar, because of the wage growth and the occurrence of business risks. Under this background, some companies set up their new factories at the border area of Cambodia. This paper describes 1） the outline of border areas of Cambodia, 2） the situation of foreign direct investments by Japanese manufacturing companies in border economic area of Cambodia, and 3） the features of management strategy of these companies in the aspect of factory relocation in the East Asia. The analytical method is positive analysis by using the concepts of 1） fragmentation, 2） agglomeration, and 3） firm-specific assets. As the survey of three economic border areas in Cambodia, companies in Koh Kong adopt the fragmentation strategy. They transfer the labor-intensive process for the purpose of the cost reduction from their factory in Thailand to Cambodia. In Poi Pet, companies also adopt the fragmentation, and some companies try to establish the agglomeration of the automotive parts industries. On the other hand, in Bavet, most of companies have been operating their factories in China. Their merits of establishing new factories in Cambodia are labor cost reduction, and some companies enjoy the tax incentives by exporting their products through Ho Chi Ming port to Japan.
In recent years, India has a big inflection point for the next growth due to reasons of expansion of personal consumption by improving income level, increase in young people in India and consumption behavior and reasons such as business opportunities in rural market. In this paper, I have taken up the India consumer electronics market, which has achieved rapid growth, and theoretically and empirically examined the competitive strategies of multinational corporations, which have advanced into said market from the point of view of multinational corporation theory. I have expounded upon various strategic activities centrally including the market entry strategy conducted by LG Electronics India Pvt. Ltd., Samsung India Electronics Pvt. Ltd. and other consumer electronics makers. The localization strategies of multinational corporations include many multidimensional factors. Companies that are considering business in India or companies that want to expand their positioning maps from now on are most important to determine the positioning of the company in the long term after understanding the multidimensional concept of the Indian market