Can anyone answers these 3 questions based on case study above? Case study 3.1 S

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Can anyone answers these 3 questions based on case study above?

Case study 3.1 Supreme Canning Company (This case study has been wrtten by Mitsuko Saito Duer, San Francisco State University.) The Supreme Canning Company (the true name of the company is disguised) is an independent US packer of tomato paste and other tomato products (whole peeled tomatoes, chopped tomatoes, tomatoes and zucchini, ketchup. tomato paste, and pizza and other sauces). The company is located in the state of California. Although it produces some cans with its own-brand label, much of its output is canned for others and their brand names and labels are put on the cans. It produces shelf-size cans for eventual sale at retail, and gallon-size cans for use by restaurants and industrial users. It also packs tomato paste in 55-gallon drums, and in plastic containers holding approxi- mately 0.7 cubic meters (with the flexible plastic container held inside a heavy shipping container). Supreme Canning Comp season of approximately three months) characteristics s annual processing capac- ity is in excess of 100,000 tons of tomatoes (processed during an operating The market for tomatoes is divided into three segments with distinct 1. Fresh tomatoes are produced in many countries, with much cross-border trade and frequent trade disputes. Canadian and US farmers have had a series of trade disputes with each country claiming dumping by compa nies in the other of fresh tomatoes of different varieties at different times In 2004 the year-round supply of fresh tomatoes from Mexico was depress prices for US farmers (www.dailydemocrat.com/2 European countries and overseas. market size required to support economically sized factories in varieties of hothouse tomatoes from The Netherlands are sold in o 004). Special 2. Canning of tomatoes is carried out in fewer countries because of the

Explanation / Answer

1. Yes, the Chairman of the US Company was wrong for not having found out in advance about Japanese business practice. This is because business practices in Japan are significantly different from business practices being followed in USA. The Chairman of the US Company should have made effort to understand the cultural and socio-cultural nuances of the Japanese and how this affects their business practice. This understanding would have made the Chairman of the US Company better prepared to handle the business dealings with the Japanese company.

2. Yes, the Japanese were also wrong for not having found out about US business practice before initiating contacts. Japanese people and Japanese business establishments have a deep rooted and deep seated value system. They consider the buyers to be a in a superior position than sellers. But the Japanese should also understand and accept the nuances of different culture and should not conduct business only as per their value system. This might lead to a clash as it happened in this case.

3. The President of the U.S. Company should now send a personal apology to the Japanese company and it’s President. The President of the U.S. Company should offer his respect to his Japanese counterpart as is expected of him as per the Japanese value system. Future communications should be polite and a new appointment should be sought.

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