BUS 710 WIL-MOR TECHNOLOGIES
BIBIN BASTIAN
11/04/2014

Introduction
The Wil-More Technologies case presents the advantages and complexities of international collaborations in business where a lot of synergies like cultural differences, profit expectations play a crucial role. WIL-MOR JV was formed in the year 1992 by a 50/50 partnership between Detroit base Wilson industries and Japan based Morota Manufacturing company to cater the transformations happening in North American automobile manufacturing segment. Four years after the inception of the JV, company is not performing financially well as expected and this creates tension between both the partners and they plan to re evaluate the strategy.
In depth-Problem Analysis.
The major issues that lead to the re-evaluation of the relationship between the two companies can be summarized as * Failure to achieve forecasted returns
When the JV was signed both companies aimed to leverage the maximum efficiency and gain a market leader position. They expected the company to break even within three years of operation. But even in the fifth year company is losing about $100,000 a month. With company running at close to full capacity, having client mix of transplants and Big 3 and still not able to make money made Wilson managers sceptical about the capability of JV.

* Different Perspective about profit.
Wilson focussed on making quick money out of the deal and they are profit centric, whereas Morota had a quality centric long term vision emphasizing on strong customer relationships. They articulated the philosophy of reducing cost and increasing quality to match with the Japanese standard. And once they establish that reputation, the reputation will bring in business. This contradictory view doesn’t come along well in forming strategic decisions. * Cultural unfit.
There is a huge disparity in the