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  • Essay / Business Case - 1593

    Leonard Prescott, vice president and general manager of Weaver-Yamazaki Pharmaceutical of Japan, believed that John Higgins, his executive assistant, was losing effectiveness in representing the American parent company due to of an extraordinary identification with Japanese culture. The parent company, Weaver Pharmaceutical, had extensive international operations and was one of the largest American pharmaceutical companies. Its competitive position depended heavily on research and development (R&D). Business activity in Japan began in the early 1930s when Yamazaki Pharmaceutical, a major drug and chemical producer in Japan, began distributing Weaver products. World War II disrupted sales, but Weaver resumed exports to Japan in 1948 and subsequently captured a substantial market share. To prepare for increasing competition from Japanese producers, Weaver and Yamazaki established a jointly owned and operated manufacturing subsidiary in 1954 to produce part of the Weaver product line. Through the combined efforts of the two parent companies, the subsidiary soon began manufacturing sufficiently wide product lines. to meet the general demands of the Japanese market. Imports from the United States were limited to highly specialized products. The company conducted significant research and development on its own, coordinated by a joint committee representing both Weaver and Yamazaki to avoid unnecessary duplication of effort. The subsidiary produced many new products, some of which were successfully marketed in the United States and elsewhere. Weaver's management considered the Japanese operation one of its most successful international ventures and believed the company's future prospects were promising, particularly given the steadily improving standard of living in Japan . The subsidiary was headed by Shozo Suzuki who, as executive vice president of Yamazaki and president of several other subsidiaries, limited his involvement in Weaver-Yamazaki to determining basic policies. Day-to-day operations were managed by Prescott, assisted by Higgins and several Japanese directors. Although several other Americans were assigned to the company, they handled R&D and had no overall management responsibility. Weaver Pharmaceutical had a policy of moving American personnel from one overseas post to another with occasional tours in the international division of the headquarters. Each of these missions generally lasted three to five years. As the number of expatriates was limited, the company's personnel policy was flexible enough to allow an employee to stay in a country for an indefinite period if they wished. Some expatriates had remained in a post abroad for more than ten years. Prescott replaced the previous general manager, who had been in Japan for six years..