Case
John Higgins
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 U.S. parent company because of an extraordinary identification with the Japanese culture. (Japan is shown in Map 2.5.)
The parent company, Weaver Pharmaceutical, had extensive international operations and was one of the largest U.S. drug firms. Its competitive position depended heavily on research and development (R&D). As an integral part of its growth strategy, Weaver actively entered the Japan market and subsequently captured a substantial market share.
To prepare for increasingly keen competition from Japanese producers, Weaver and
Yamazaki established a jointly owned and operated manufacturing subsidiary to produce part of Weaver's product line.
Through the combined effort of both parent companies, the subsidiary soon began manufacturing sufficiently broad lines of products to fill the general demands of the
Japanese market. Imports from the United States were limited to highly specialized items.
The company conducted substantial R&D on its own, coordinated through a joint committee representing both Weaver and Yamazaki to avoid unnecessary duplication of efforts. The subsidiary turned out many new products, some of which were marketed
successfully in the United States and elsewhere. Weaver's management considered the
Japanese operation to be one of its most successful international ventures and felt that the company's future prospects were promising, especially given the steady improvement in
Japan's standard of living.
The subsidiary was headed by Shozo Suzuki who, as executive vice president of
Yamazaki and president of several other subsidiaries, limited his participation in WeaverYamazaki to determining basic