PART-1-SUMITOMO BACKGROUND 4
2.THE MARKET STRUCTURE 4
a)Market value and volume 4
PART-2-JAPANESE CULTURE 7
1.THE GROUP 7
2.THE STATUS 7
3.HARMONY & RELATIONSHIPS 7
6.WORK SHEDULE 9
8.MAKING CONTACTS 10
PART-3-SUMITOMO CORPORATE CULTURE 11
1.RESPECT OF PEOPLE 11
2.ELIMINATION OF WASTE 12
3.THE KEIRETSU 13
4.OFFICE LAYOUT 14
5.THE WORKING STYLE 14
6.THE HOLIDAY TIME 15
PART-4-GEERT HOFSTEDE: CULTURAL DIMENSIONS 16
1.THE FRAMEWORK SUM-UP 16
2.THE FRAMEWORK APPLICATION 17
PART-5-COMPARISON BETWEEN THE TWO CORPORATE CULTURES 20
1.ACCORDING TO THEIR CORPORATE CULTURE VALUES 20
2.ACCORDING TO HOFSTEDE FRAMEWORK 23
PART-6-RECOMMENDATIONS & CONCLUSION 25
We are instructed by Continental to carry out a research witha cultural point of view about the possibilities of a merger with the Japanese firm “Sumitomo”.
The purpose of this report is to analyse the Japanese culture and the corporate culture so as to suggest some recommendations about the merger.
This report is organised into five parts:
← Sumitomo’s Background
← Japanese Culture
← Sumitomo’s Corporate Culture← Geert Hofstede: cultural dimensions
← Comparison between both corporate cultures
Sumitomo Rubber is the second largest tires manufacturer in Japan. Sumitomo headquarter is based in Hyogo (Japan), its activities are diversified. In fact, Sumitomo produces tire, sporting equipment and also rubber products.The company was created in 1909 and since then has extended itself and opened several factories (e.g. in Nagoya (1961) in Kakogawa (1972), Shirakawa (1974), in Malaysia (1981) and in Ichijima (1996))
In 2001 the company purchased OHTSU Tire and Rubber Company which represented an important acquisition as it allowed Sumitomo Rubber to considerable extent.
In 2003, a new factory wasopened in Australia.
2. THE MARKET STRUCTURE
Over the last couple of years, tires’ manufacturers have faced an increase in their costs. Besides, the market’s development was very slow.
Despite the weak sales’ rate of new cars-which announces a rise of tires’ sales-the market had some difficulties to develop.
a)Market value and volume
The tires’ market increased its size by 1,2%between 2000 and 2004 with a value of $27,2 billions.
In volume, there are 715 millions tires which were sold in 2004. Thus there was an increase of 1,4% in the numbers of tires sold between 2000 and 2004.
By the end of 2004, the company had accumulated an income bordering on the $4 197 millions. This income represents a rise of 4,5% compared to the previous year.
Europe is thelargest consumer of tires with 33,8% of purchases followed by:
← Asia-Pacific (30,5%)
← The United States (27,1%)
← The rest of the world (8,5%).
It is planned that the market size will increase over the coming years. Indeed, in 2009 its value should reach at $29,5 billions: a growth of 8,4%.
In volume, the number of tires sold should reach 784millions which represents a growth of 9,6% between 2004 and 2009.
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