Today's world corporations must deal with all kinds of restrictions concerning entering foreign countries. Marketers and finance managers play a key role when it comes to making decisions concerning entering a foreign country and managing worldwide money matters. It is extremely important for international marketers to possess insight into multinational finance and accounting functions, because traditions are heterogeneous from one country to another.
This case contains a problem concerning two companies who come from different cultures and want to do business with each other.
Was the chairman of the US company wrong for not having found out in advance about Japanese business practice?
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Yes it was wrong for not having found out in advance about Japanese business practice. The tomato market in US has not been exceeding its goals because it was not enough to absorb increasing imports. To enter the Japanese market was one of the potential bright spots for the Supreme Canning Company.
Japan has been decreasing their trade barriers and attempting to encourage imports. Since the US firm did not have well-known brand name/image of it own like the Japanese firm, which was much larger and handled a large number of products with great success, it was a good business opportunity for the US company to enter the Japanese market and act as a large-scale supplier of products made to customer's specifications. The US company should have considered that Japan's business practice is a lot different than is recognized in US with various cultures both in business and day to day life and they should have sought knowledge of how the Japanese carry out their business practice. If the US Company had done that there is a big possibility that they could have a long lasting successful collaboration in the tomato...