Case Study Analysis: Challenges of International Business Expansion

This case study analyzes the challenges faced by Michael Marchen, a German baker, during the international expansion of his business into Japan. The analysis explores the impact of cultural differences, based on ET Hall's high-context culture and Hofstede's cultural dimensions, particularly unc...Read More

Running head: CASE STUDY ANALYSIS
CASE STUDY ANALYSIS
Name of the Student
Name of the University
Author Note

1CASE STUDY ANALYSIS
Answer to Question 1
According to the rules which have been stated by ET Hall cultural factors, the culture
which is followed in the company is based on Japanese traditions which are taken for granted by
the employees and the management. The traditional cultures are thereby followed in a religious
manner by the people who are a part of the company. This culture can thereby be termed as high
context in nature. The monochromic timing based activities are also developed within the culture
of Michael Marchen which is German baker. The expansion of the company has been affected by
changes in culture in a huge manner (Marchen Kodila-Tedika & Asongu, 2015).
According to the Hofstede’s cultural dimensions, the differences in cultures between
Germany and Japan have affected by operations of the bakery. The level of uncertainty
avoidance in Japan is high with a score of 92, in comparison to Germany which holds the score
of 65. The company had been benefitted by this factor. The differences in governance based
structures of the countries have a major effect on the ways by which Marchen had developed its
position in the country. The importance which was given to the employees was however quite
similar between the two cultures which are followed by (Marchen Kodila-Tedika & Asongu,
2015).
Answer to Question 2
The major demographic changes which had taken place in Japan were based on the
consumption based patterns of the consumers. The choice of food and bakery based products of
the consumers had also started changing in the current business based environment of the
country. The rise in marginal confectionery products consumers had also proved to be a major
external factor which affected the operations and profitability levels of Marchen in the country.

2CASE STUDY ANALYSIS
The organization thereby needs to rethink the strategies which are to be implemented for future
operations of Marchen in the confectionery industry of Japan (Gestsson & Zoega, 2016).
Answer to Question 3
The major opportunities which are provided to Hinata are based on the international
expansion based activities of the company. The organization can further aim at expanding the
operations in Asia where the demographic trends are not able to affect the organization in a huge
manner. Hinata can also aim at gaining high levels of international experience and set up the
operations of the company in different areas or countries.
However, some constraints which can be faced by Hinata in the market are based on the
lack of focus on the core business operations of the organization. The time and focus which is
provided to the new business operations by Hinata is also a major concern as can affect the core
operations of the company in a completely negative manner (Tsang & Yamanoi, 2016).
Answer to Question 4
The major issue which was being faced by Kaito was based on the ways by which the
organization is able to manage the domestic and the international operations in an effective
manner. Kaito was not totally convinced about the ways by which his successor will be able to
maintain the operations in a profitable manner. The issue has mainly risen to the international
expansion based activities of the organization and the ways by which the company has tried to
maintain the operations. Kaito has also faced major issues based on changes which have place in
the external environment. The changes in demographic factors and external environmental
changes have been able to affect the decision making based process of Kaito. The main reason

3CASE STUDY ANALYSIS
behind this issue which has been faced by Kaito is related to the levels of expansion which were
going on within the organization (Jiang & Holburn, 2018).
Answer to Question 5
First option which can be chosen by Kaito is related to the trust which he can put on
Hinata regarding the operations of the company in the future. The responsibilities of the
organization can be provided to Hinata with respect to the culture which is followed.
On the other hand, an option which can be provided to Kaito is too provide effective
training to Hinata before he is given the responsibilities of the organization. This will be helpful
for Hinata to manage the business operations in a profitable manner (Hitt, Li & Xu, 2016).
Answer to Question 6
The management based structure of the company can be changed in order to increase the
levels of profitability. The major changes which can be made in the organizational structure is
based on the Japanese tradition. Kaito can change the ways by which the uncertainty avoidance
levels are faced by the company based on the Japanese culture (Gulanowski, Papadopoulos &
Plante, 2018).

4CASE STUDY ANALYSIS
References
Gestsson, M. H., & Zoega, G. (2016). Demographic Changes and Economic Growth.
In Stagnation Versus Growth in Europe (pp. 71-85). Springer, Cham.
Gulanowski, D., Papadopoulos, N., & Plante, L. (2018). The role of knowledge in international
expansion: Toward an integration of competing models of internationalization. Review of
International Business and Strategy, 28(1), 35-60.
Hitt, M. A., Li, D., & Xu, K. (2016). International strategy: From local to global and
beyond. Journal of World Business, 51(1), 58-73.
Jiang, G. F., & Holburn, G. L. (2018). Organizational performance feedback effects and
international expansion. Journal of Business Research, 90, 48-58.
Kodila-Tedika, O., & Asongu, S. A. (2015). The effect of intelligence on financial development:
a cross-country comparison. Intelligence, 51, 1-9.
Tsang, E. W., & Yamanoi, J. (2016). International expansion through start‐up or acquisition: A
replication. Strategic Management Journal, 37(11), 2291-2306.