At first, this arrangement was satisfactory and the venture was successful in its very first stages. However, problems arose once the very first president died unexpectedly 3 months ahead of the current meeting. The nominee that Showa put forth, Kenzo Tanaka, was unacceptable to Packard. Tanaka had been with Showa for 40 years, but had most recently served in staff functions. He was becoming moved into the presidency on the joint venture due to his long standing from the company and due to the fact the Showa management needed to generate room for other junior executives moving up the corporate ladder.
Packard proposed an selection candidate, Shigeru Abe, marketing manager on the joint venture. Packard, and Johnson in particular, was impressed with Abe's performance to date, and had established an acceptable (although minimal) working relationship with him. His experience and accomplishments produced him an ideal candidate so far as Packard was concerned, definitely a lot more so than Tanaka, who lacked the background to efficiently run the fledgling organization.
The second trouble that faces Johnson and Honda at the meeting is that from the role on the executive vice-president from the joint venture, Mr. Harper. Each Johnson and Honda are questioning the man's effectiveness, but for several reasons. Harper had expressed frustration at getting accepted by the Japanese management team.
Ethical Means to Resolving the Conflicts
In order to maintain what's currently a positive, albeit tense, relationship, Packard and Showa should seriously consider changing the nature of their arrangement from a joint venture to a licensing agreement. Absolutely the Showa personnel have learned much about Packard at this point, and much more training could possibly be conducted in the United States so that you can supply key personnel with additional details needed to forming a successful alliance.
Ethical relativism holds that there is also some commonality that will surmount these differences. If a single accepts that there is some commonality, that members of the group have some responsibility for the well-being of all members of that group, then there is the basis for commonality and for comparing ethical systems. One method to consider this really is to evaluate whether the moral standards that benefit society in 1 system are much better than the moral standards that benefit society in another system. This is considerably various from simply judging whether 1 set of standards is better than one more set of standards, but is often a complex issue, nonetheless (Hosmer 105).
The ethical problems faced by Packard and Showa include how employees are being promoted (Tanaka), how employees are to be judged on their performance (Harper), and how joint ventures are to be run. They may be ethical difficulties that any business have to overcome whether they're operating in a foreign environment or merely domestically. As such, ethical issues are definitely managerial difficulties simply because there is a conflict in between an organization's financial standing and its social obligations (Hosmer 3). Generally, organizations favor rewarding long-term employees, maintaining strong competitive markets and providing safe and exciting products. Definitely these are the goals that each Showa and Packard face.
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