Analysis of Management Strategies in APAC Multinationals (MN3215)

This report provides a comparative analysis of management strategies, core capabilities, government roles, and corporate organizations of several multinational corporations (MNCs) based in the Asia-Pacific (APAC) region. It examines Mitsubishi Corporation and Secom from Japan, and Toyota Motor Corporation, also from Japan, as well as Samsung Electronics from South Korea, focusing on their strategic approaches, organizational structures, and the influence of their respective governments. The analysis highlights how these companies have adapted to the post-financial crisis environment, leveraging factors such as export-oriented strategies, skilled labor, and efficient macroeconomic management to achieve economic development and global market expansion. The report offers insights into how these MNCs formulate integrated networks to enhance value and performance in the international market, contributing valuable information for students studying business and management, available on the Desklib platform.

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APAC Business
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Introduction
Countries such as Japan, China, among others that are in Asia Pacific region alter a
precious impact on the global multinationals. However, during post financial crisis in early 1997
there existed drawbacks that devastated, but rapid growth has been in place since the crisis year.
It is evident that Asia Pacific region has got a number of factors that increase economic
development in the region. These factors include but not limited to; export oriented strategies,
skilled labor, low wage utilization, and efficiency use of macroeconomic factors. In addition,
such factors leading to rapid economic development of Asian pacific Multinationals are based on
the roles brought up by foreign direct investments (Fitzgerald & Rowley, 2016). This paper will
not compare the factors that contribute the Japan and Korea’s growth and other Asian Pacific
countries, but comparing the management strategies, core capabilities, government role, and
corporate organizations of multinationals from their corresponding countries. This analysis helps
the multinationals to promote their services to other regions of the world. It is evident that the
management strategies, core capabilities, government role, and corporate organizations of
multinationals portray their performances in various countries. In addition, most of the
multinational strategies focus on increasing their performance on international scale (Fitzgerald
& Rowley, 2016). This helps the companies to formulate integrated networks by adding value on
the supply side and internal demand networks. The multinational companies from Asian Pacific
multinationals include;
Mitsubishi Corporation – Japan
Strategy

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Mitsubishi Corporation is located in Japan (Tokyo) and a conglomerate formed in 1950s.
The corporation employs about 68500 workers and currently it is one of the prominent
businesses in the market globally (Dee, 2010). It operates its activities in over 100 countries with
about 250 offices and almost 1500 subsidies. The mission is “To provide the best measures and
safety for potential customers and the society”. The vision however states “transforming the
model of the business from investing to controlling”. Mitsubishi Corporation engages in eight (8)
strategic business units (HERE Technologies, 2020). These units include world environment,
services in business, businesses in infrastructures, development and logistics, machinery,
businesses on industry, chemical products, metallic products, energy business and essential
living business (HERE Technologies, 2020). The major management strategies for financial year
2020 include;
 Innovation to achieve growth
 Developing a society that is recycle-oriented so as to produce value
 Widen the global market for the company’s products by increasing investment
 Persistent improvement to increase efficiency
Mitsubishi Corp employs the targeting strategy to choose segments where they would sell
particular products and services. The company therefore uses ‘differentiated targeted strategy’
(Bhasin, 2017).
Corporate organisation
As discussed earlier, the company deals in seven segments of business including
machinery, energy, food, finance and banking (Dee, 2010). The organisation of Mitsubishi

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Corporation is a hierarchy from the top management to the bottom. Mitsubishi Corporation uses
the framework of corporate governance in the structural organisation of the company (Bhasin,
2017). Currently, the company adopted a committee structure that has two committees that is; the
system of executive officers and the executive committee. In the company, the board of directors
have unconditional rights towards choosing the company managers and directors. The company
has a total of eleven boards of directors (Jankowiak, 2017). In addition, the system of executive
officers is meant to help in the process of decision making. There are other five members under
the Audit and supervisory body. The role of this group is to conduct and execute business audits
of the company. The company also has other ordinary employees who perform different tasks so
as to place it under a competitive market globally.
Core capabilities
Mitsubishi Corporation is a production company that has successfully cooperated with
numerous companies like HARES (Purnama, 2013). For the past years, the company has
succeeded too in marketing its products and services. Furthermore, the company is capable of
extending its branches to over 200 countries and this has brought fame to it. The financial system
is also managed by a well specialised team of auditors and financial managers so that losses are
minimised (Jankowiak, 2017). In addition, Mitsubishi has existed in the market for a longer
period and this shows that it is eligible to compete with other companies in the Asia-Pacific
Region.
Government role

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The government of Japan has played a great role in making Mitsubishi a successful
company. This has been done through providing tax holidays and subsidies so that it is able
compete with other multinational companies within Japan (Purnama, 2013).
Secom – Japan
Strategy
Secom Company is a Japanese company that specialises in security. The company is
established in over 10 countries around the world. It was propounded in 1962 and it operated
under Nippon Keibi Hosho. It first dealt in security services like static guarding and patrolling
services. The company provides different security products and services (Volker & Yeaple).
These included transport cash, security sensors, security guards, and other products in over 180-
subsidies. Secom provides security systems in homes such as fire monitors, servicing
malfunctioning equipments, monitoring gas leaks (Huang & Yang, 2011). Recently, the
company improved on its services through providing services of fire protection, insurance
services, services related to information and communication, health services, and ‘geographic
information services’(GIS).
Corporate Organisation
Secom has got a board of Audit and supervision. It also has board of directors including 3
members from outside. These are responsible for decision making on issues relating to execution
of businesses and other corporate concerns. A team of executive officers governed by the
director and president are concerned with the role of business execution. A new board system for
audit and supervision has been created (Volker & Yeaple). In this group, the audit and
supervisory board that has 3 persons from outside together with the board of directors work with

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the departments of internal audit to audit and supervise employees. This has helped the company
to enhance its management and better business execution. In addition, there has been a creation
of a committee of nomination and compensation (Huang & Yang, 2011). This is meant to
identify and presenting the reasonable members who fit in the board of directors and efficient
remuneration of these people. This committee has five directors.
Core capabilities
A fantastic system of enrolment has been developed by Secom Company. These have helped it to
employ high quality and better talented employees who are determined add on the company’s
development and competitive strategy in the world (Goldstein, 2014). Being a security company,
improvement within the tactics used from the trained personnel has been observed thus
minimizing the crime rates within Japan and other countries the company operates from
(Goldstein, 2014). In addition, the company has developed its employees’ health conditions
through its new health information systems.
Government role
Japan’s government has always protected Secom Company by providing it with several
contracts especially to offer security solutions. This has shown support from the government to
Secom Company and thus a great role towards the Company’s development and expansion
(Ahmad & Kitchen, 2010).

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Toyota Motor Corporation
Toyota is considered as a Japanese multinational company that is well known in
producing trucks, robots, buses, and cars, which is situated in the city of Toyota in Japan (Hines,
2011). Toyota Motor Corporation is the largest manufacturer of cars in Asia as well as second
car producers in the region. Toyota automobiles production has lasted since 1933 as it was acting
as Toyoda Automatic divisions, but later changed its name to the current one since 1937.
Strategy of Toyota
The strategy of Toyota is directly competing with all of its competitors in industry of
automobiles through improving on its marketing and innovation strategies. For instance, Toyota
applies strategies that are aggressive for the purpose of increasing their market shares. The
growing technological innovation of Toyota increases its competitive advantage over its rival
firms. The long-term of Toyota’s strategy is to develop both regional and global special models
with the purpose of competing worldwide with a variety of products (Hoffman & Kaplinsky,
2010). The managers and stakeholders of Toyota aim at achieving their goals through continuous
improvement and innovation in the radical manner.
Toyota’s Corporate Organization
As per 2017, the corporate organization of Toyota entailed a total of 364445 workers
across the world, which made it to 10th largest company in terms of revenue in the world
(Humphrey & Piore, 2017). However, in 2013 there was a reorganization of Toyota, which
strengthened its hierarchy around the global, but its centre of operation based in Japan. Besides,
the company has got 8 geographical divisions which include; Africa, Asia, East Asia, Europe,
North America, Middle East, Latin America, and Caribbean. All the divisions mostly report

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their operations to Japan as the Headquarter. Such system has helped the company to operate in
better way as well as improving functions of Japanese business and the entire world.
Core capabilities
The core capability of Toyota has been its ability of developing automobiles that are of
good quality. In addition, Toyota has got loyal customer base through the prices that are
competitive about the products of the company. Most significant is that the company has been
with strong innovative methods and processes of production (Humphrey & Piore, 2017). This
therefore summarizes the core capabilities of Toyota as being with trained human resources and
successful technological innovations.
The Role of the Government
The fundamental role of the government at Toyota is to protect the company out of
commercial and political development breast in order to maintain good reputation of the
company. The government through the ministry of industry and commerce officiated by
Automobile Industry to establish research committees. The research provided by the ministry
helps the decision makers to soften their operations in terms of sales around the globe.
Samsung Electronics
The Samsung Electronics Company Limited is situated in South Korea as a multinational
company in Suwon city. Because of the company’s ownership circle, the company with Samsung
flag is responsible to account for at least 70 percent of the revenue of the entire group since 2012
(Financial Times, 2014).
Strategy

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One of Samsung’s strategies is that it uses a basis of its success with a variety of online
adverts in order to target specified customers for its services and products. The products are
delivered in huge amounts for the purpose of addressing the needs of customers, thus promoting
the brand as well as increasing the level of profitability. The strategy of the company has been
successful in its latest versions of innovations of designing banks with advance technologies
about aesthetics (Financial Times, 2014). However, the strategies of the company include but
also not limited to; development and research through fostering competitive advantage over rival
companies. Moreover, the company has also been in position of launching several models that
have marketed its products across the world.
Corporate organization of Samsung Electronics
The corporate organization structure of Samsung is formulated for promoting
technological innovations being invented in its smart phones and other electronics. Samsung
company and its sister subsidiary companies formulate the organization structure of the entire
Samsung Group (Khanna et al, 2011). Most important to note is that Samsung recruits product
form of divisional structures of organization through categorization of its products in order to
ensure proper operations in different divisions. The company also shares its corporate assistance
on innovations especially to its consumer electronics, IT mobile markets, and device solutions. It
is also evident that the corporate organization of Samsung is characterized by the centralized
corporate hierarchy as the headquarters are situated in Seoul, Korea (Khanna et al, 2011). Its
global success in the business has been guided by central strategic command and planning since
it portrays various geographical divisions in the world.
Core capabilities of Samsung Electronics

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Through the Samsung’s training programs and improved systems of human resources, it
has attained its success through the creation of innovative operations throughout the production
year (Barney, 2016). The human resource system has helped the company to produce high and
cutting shape of innovations for its electronics. With this, the company has been ranked as one
with the best technology due to its electronic gadgets produced around the world.
The role of Government
Since Samsung is ranked as the best conglomerate in Korea due to its positive impacts on
the country’s economy, the government has supported it with leveraging taxes, financial
investments as well as with government contracts (Chang, 2015). The company also contributes
to the economy of government through its cash in and out flows, thus increasing government
foreign exchange.
Tata Group
Tata is a multinational group also an Indian conglomerate company and its headquarters
are found in Mumbai, India. Tata group has got different business sectors and these include;
engineering materials, ICT, chemical, consumer and energy products (Chang, 2015). Tata is
currently operating in over 85 countries in the entire six continents.
Strategy
Tata group has got one of the best strategies among the Asian Pacific multinational
companies. This is because the company has independent operating companies as well as
engaged in Initial Public Offering (Gulati ,2018). However, its advertising and promotional

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strategies is characterized as follows; the company does not promote directly itself, but however,
marketing is done under individual plans.
Corporate Organization of Tata Group
Tata is well known with its centralized way or organization as its headquarters are
situated in Mumbai India. In addition to Tata motors, it has got a number of over hundred (100)
operating companies categorized in many sectors and these include; engineering materials, ICT,
chemical, consumer and energy products (Hitt & Ireland, 2012). It is evident that each and every
well established company portfolios such as Tata power, consultancy services, Tata steel as well
as Tata motors are independently governed by board of directors and fully subscribed
shareholders.
Core capabilities
Tata Group of Companies has go five core values that have significantly enabled it to
develop. These values include excellence, integrity, unity, knowledge, and responsibility. Since
the period when India attained her independence, great change has evolved within the company
such as innovation and development of new machinery (Ahmad & Kitchen, 2010). Tata
industries have a philosophy that its intentions are to improve the standards of their customers
and employees and the entire society. The company is capable of achieving this philosophy since
the rate of development globally is higher each day. Initially, Tata Consultancy Services Limited
(TCS) is the best information technology consulting services in the world. This is a core
capability of widening its markets and over weighing its rivals like Mitsubitch within the region
of Asia- Pacific. Recently, the company won the world accolades that included supplying
businesses in communities, and the ‘Corporate Responsible Index’ (CRI) that are the prominent

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United Kingdom’s benchmark with the role of uplifting business activities (Nadkarni & Branzei,
2009).
Government role
Tata Group of Companies recently appointed Charkrabarty who was a former
government executive. This shows that the strength of relationship between the government and
Tata Group is strong. The intention of this opportunity was to support the company’s businesses,
increase its global opportunities, and further to reach out to other government stakeholders who
are willing to support the Company financially (Nadkarni & Branzei, 2009). In addition, the
Indian government has expanded the marketing strategies of the company through providing
subsidies and protecting it from out competitors.
Conclusion
In conclusion, it is evident that all the assessed Asia Pacific Multinational companies
especially for this case (Tata group, Secom Company, Mitsubishi Corporation, Toyota, and
Samsung) have got the intention of competitive advantage. Every company in this case provides
its strategies, targets, among other policies for the purpose of promoting their products in the
entire world. To achieve this, all of them have set marketing and advertising strategies through
their appointed corporate organizations to win the preferences of consumers over their products.
In summary, the targets of Asia pacific multinationals dealing in electronics or automobiles act
like oligopoly markets. This is because the action performed by one company affects the other
counterpart company producing similar products, thus opting similar strategies to increase
customer base.