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Japan's Showa Foods II. Background A. The Joint Ven

Showa Foods is a leading manufacturer of foods in Japan. The company recently entered into a joint venture with Packard Foods, Inc., a manufacturer of foods based in the United States. Packard has successfully entered into international marketing in the past and chose a joint venture agreement with Showa rather than a licensing agreement. The venture is currently at a crisis point on the eve of a meeting between the head of Packard's international division, Richard Johnson, and executive vice-president of Showa, Toshio Honda. At issue is who should become president of the joint venture, the effectiveness of a key Packard participant, and the overall structure of the venture itself. While these are fundamentally international management issues, they cross over into the ethical arena because of their nature involving cultural assumptions and expectations.

Although both Showa and Packard are successful in their own countries, and Packard has a string of successful overseas ventures, neither company has worked specifically with another company from Japan (in Packard's case) or the United States (in Showa's case). The joint venture calls for the company to be located in Japan, with Japanese personnel and management, using Packard technology and techniques. Showa would nominate the president of the company, with Packard providing approval of the nomination. Packard would nominate the executive vice-president. In addition, Packard would provide a full-time technical director, and the overall board is composed of four members from each company.

At first, this arrangement was satisfactory and the venture was successful in its initial stages. However, problems arose when the first president died unexpectedly three months before the current meeting. The nominee that Showa put forth, Kenzo Tanaka, was unacceptable to Packard. Tanaka had been with Showa for 40 years, but had most recently served in staff functions. He was being m...

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Japan's Showa Foods II. Background A. The Joint Ven. (1969, December 31). In Retrieved 09:10, November 29, 2021, from