Takenaka komuten Company Ltd.

Case Study in international management

Summary

I. Overview

II. Synopsis of exhibits

III. Overall situation

IV. Atlas Engineering & Construction

V. Existing Situation

VI. Statement of problem

VII.Options

Overview

• Japanese Company located in Osaka

• Architecture engineering and construction firm

• Family Business founded in 1930

• Considered as « Big Five » of the Japanese contractors

• Specialized in public work (i.e. : Tokyo Tower)

• Non diversified company

Overview

Synopsis of exhibits

• Exhibit I: Summary of Jameson’s proposal to

Takenaka Komuten

• Exhibit II: Status of projects undertaken by T.K.

• Exhibits III: Growth summary of T.K.’s gross

sales

• Exhibit IV: Contracts awarded to T.K.

Synopsis of exhibits

• Exhibits V: Types of construction undertaken by T.K.

• Exhibits VI: Financial & Statistical summary of Atlas

Eng&Constr

• Exhibits VII: Types of construction undertaken by

Atlas

• Exhibits VIII: Projects in which Atlas was the sole

Contractor

Overall situation

• 1990’s: Real estate market is decreasing

• Increase of market competition

• Increase of contracted projects

Overall situation

Overall Situation

Strengths Weaknesses

Reputation of excellence

Not enough notoriety

SpecializedCan’t compete

with big corporations

Well established in their domain

Not enough diversified

Company is in good shape

Atlas Engineering & Construction

• Civil engineering company from USA

• Already worked with Takenaka Komuten

• Interested in a joint venture company

• Most of their contracts are shared with other companies

Existing Situation

• Communication

• Intercultural differences

• Management

Communication

Strengths Weaknesses

Understand each other’s

problem

Communication is formal

Already worked

together

Opposition of owners and

employees

Both work in the same

sector

Intercultural differencesStrengths Weaknesses

Both are used to ask

results to their

employees

Japanese are loyal to their

company

Get the results by motivation

Long term relationship

Americans are friendly /

Japanese ate attached to

chair of command

Management

Strengths Weaknesses

In case of merger both companies would stay separate

TK’s president doesn’t seem to care about his director’s

viewpoint

Statement of problem

• Even if the company seems to be in good shape, the real estate market is decreasing

• Jameson’s proposal requires us to make a choice

• You might take a decision

Options

• Joint venture company

• Negotiate terms of contract

• Use of bribery

• Call the Yakuza

• Sell the company before bankrupt