Leonard Prescott, vice president and general manager of Weaver-Yamazaki Pharmaceutical of Japan, believed that John Higgins, his executive assistant, was losing effectiveness in representing the U.S. parent company because of an extraordinary identification with the Japanese culture, (Japan is shown in Map 2.5.)
The parent company, Weaver Pharmaceutical, had extensive international operations and was one of the largest U.S. drug firms. Its competitive position depended heavily on research and development (R&D). Sales activity in Japan started in the early 1930s when Yamazaki Pharmaceutical, a major producer of drugs and chemicals in Japan, began distributing Weaver's products. World War II disrupted sales, but Weaver resumed exporting to Japan in 1948 and subsequently captured a substantial market share. To prepare for increasingly keen competition from Japanese producers, Weaver and Yamazaki established in 1954 a jointly owned and operated manufacturing subsidiary to produce part of Weaver's product line.
Through the combined effort of both parent companies, the subsidiary soon began manufacturing sufficiently broad lines of products to fill the general demands of the Japanese market. Imports from the United States were limited to highly specialized items. The company conducted substantial R&D on its own, coordinated through a joint committee representing both Weaver and Yamazaki to avoid unnecessary duplication of efforts. The subsidiary turned out many new products, some of which were marketed successfully in the United States and elsewhere. Weaver's management considered the Japanese operation to be one of its most successful international ventures and felt that the company's future prospects were promising, especially given the steady improvem ...