Prepare a 2–3-page case analysis on the following case study on global HRM strategic management and why it is critical to the success of an organization in meeting its goals and mission. In your analysis, respond to the following question: What is strategic management and why is it critical to the success of an organization in meeting its goals and mission globally?
Your analysis of this case and your written submission should reflect an understanding of the critical issues of the case, integrating the material covered in the text, and present concise and well-reasoned justifications for the stance that you take.
Tesco® – Entry and Exit from Japan
In September 2011, Tesco, the British supermarket group and the world’s third-biggest retailer announced its exit from Japan after 8 years in the country. In the event, Tesco became the latest in a long list of foreign retailers to exit from Japan. This case study highlights why many International supermarket chains like Tesco have been unsuccessful so far in a difficult Japanese market.
“Let’s be honest, Japan was a short, expensive adventure for us,” Jose Luis Duran, Chief Executive of Carrefour in March 2005 on its exit from Japan “These retailers brought into Japan their business formats without adjusting for Japan. It’s not as if a wholesale-club-type concept will not take off here, but there has to be some modification.” – Masayoshi Saotome, research director at Mitsubishi® Research Institute Inc.
Japan, the world’s third-biggest grocery market, remains a difficult country to make money from as international retailers Walmart® and Carrefour have found out. Walmart has not done great in Japan with its presence since 2002 through Seiyu. When Carrefour had entered Japan in 2000, it had made huge claims on revolutionizing retailing in the country. However, in 2005, Carrefour swapped its Japanese assets for Tesco’s assets in Taiwan. In September 2011, Tesco, the British supermarket group and the world’s third-biggest retailer announced its exit from Japan after 8 years in the country. In the event, Tesco became the latest in a long list of foreign retailers to exit from Japan.
Seven & I Holdings® and Aeon® dominate Japan. Even British drugstore chain Boots pulled out of Japan owing to increased competition and deflation. Additionally, Japan’s Byzantine distribution system of closely-knit web of suppliers and consumers’ fickle taste is the reason behind many retailers struggling. Many analysts attribute the failure to misreading Japanese consumers’ mindset. However, the competitive Japanese retail market is a tough arena, not just for foreign retailers but also for local Japanese department stores. Local stores also have been struggling with price deflation and ever-increasing specialty stores.
Case Study Questions:
1. Why are the Japanese retail markets so difficult to compete in?
2. Why are Japanese customers reluctant to shop at foreign retailers versus local retailers?
Case analysis criteria: Your case analysis should consist of:
● A brief analysis of the situation and pending decision problem, as presented in the case, and as relevant to your answer. This should be exceptionally brief and you should assume the person reading the Assignment is familiar with the details of the case.
● Identification of the major issues surrounding the organization or individuals involved with the organization.
● Identification of alternate courses of action to address the issues identified.
● The decision or recommendation for action, with the appropriate supporting arguments.
● The case question is designed to guide the direction of your analysis in the case. Your analysis should address and ultimately answer the question.