Garrard Japan: Global or Local Case Study Analysis
This case study revolves around Garrard Japan, which is the subsidiary of Garrard S.A. It was considered to be the largest packaged food company in terms of revenue. Toshio Tanaka was the president as well as the CEO of the company. He realized the negative impacts of globalization after the most hyped and most covered agenda of Brexit; therefore, he suggested to conduct a survey to get enlightenment of public perception for Multi-national enterprises (MNEs), and a survey conducted in July 2017 showed that most of the Japanese were in favor of MNEs.
To eliminate the adverse effect; Tanaka planned to highlight the purpose to the Japanese market as well as its stakeholders, alignment of goals with employeesâ€™ behavior and integration of global action and local relevance. However, he was concerned over the efficiency of strategy to improve the companyâ€™s global rating, the sufficiency of resources for strategy implementation and the ability to ask for financial resources from outside.
Moreover,the business model for packaged food was not efficient because of three factors that are due to the global crisis and millennial population preference for fresh and ethical food, individual preference for home delivery rather than visiting supermarkets and health factors associated with packaged food, such as: obesity and other diseases as a result of obesity. Moreover, in Japan less population of the millennial and a high population of aged citizens were a red flag; therefore, the company focused on product valuation rather than salesâ€™ volume.
There are three major concerns for the company, which need to be solved and thoroughly discussed. The first major concern faced by Garrard Japan is the seriousness of the anti-globalization stance and its signals. The second major concern is how the company needs to deal with the flat world view and multi-domestic viewin order tomake sure that the company achievesits goals in the food industry. The third major concern is to evaluate the management approaches by Garrard S.A globally as well as locally, based on the outcome from the second concern.
How serious is the anti-globalization stance? Please identify the signals described in the case that globalization is caught in a storm.
An Anti-globalization stance was developed when there was an adverse effect of globalization overthe company and the countryâ€™ economy. Globalization seems to be increasing unemployment in the country, where MNEs are established, which is why there is a strong scrutiny from policymakers to prevent the adverse effects of globalization over the economy and create a monopoly.The major factor that hit the market in Japan was the launch of Amazonâ€™s website, called Amazon Fresh service,where more than 100 items were offered, including: seafood and packaged food and consumer were made able to receive the food at their doorstep. Furthermore, there were more MNEs which were leading the Japanese market that is, Godiva Chocolatier of Belgium, the Hershey Company, MondelÄ“z International Inc. and NestlÃ© S.A.
In response to the economic threat as well as decreasing revenues of Garrard Japan and other local companies; there was a major emphasis over anti-globalization; however, according to the survey of Japan; it was observed that 67% of the respondents were in favor of globalization in terms of quality and prices, 94% believe that MNEs can work in favor of local interests, 70% believe that MNEs are experts for research and development. Additionally, 64% of individuals think that MNE’s concern is only profit, 41% believe that they are bureaucratic, 50% believe that they are impersonal. These statistics show that Japanese opinions are positive for MNEs overall………………………………..
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