Historically, many large Japanese companies used a centralized hub configuration

Question

Historically, many large Japanese companies used a centralized hub configuration. The 2011 earthquake in Japan resulted in a significant cost to Canon by inhibiting its production process. In response, the CEO of Canon announced in the 2011 annual report that they will have three headquarters, instead of one. These will be based in each of the US, Europe, and Japan. What are the challenges that the company will face during this transition?

Need answer by 12:00 today, plse. subj: Global International

Explanation / Answer

Above case is example of strategic decision making. In case its clearly mentioned that before 2011 Japanese companies were having a policy of  centralized hub configuration. But because of this many companies faced a problem during the earthquake .

Canon is one of them. After that Canon planned their head quarters at three location .

Following are the challenges during the transition stage.

1) Difficult to manage : Its difficult to manage for the Canon at three different locations , this may be resources handling , may be communication management . may be integration of activities.

2) Cost during transition : This is very costlier from Canon companies financial point of view.Drastic shipment from one place to another place causes huge cost.

3) Integration of Work : Integration of work becomes very difficult as three headquarters at different locations.

4) Regulations & Governance : Regulations & governance becomes very difficult as headquarter is operated in different countries.

5) Resources Management : At starting being different countries , because of different culture , traditions etc companies needs to face challenges

6) Product Quality : Product quality may hampered because manufacturing starts at different locations

Etc

These are major challenges.

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