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Ben and jerry's - Essay Example

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(Hagan, 1999, p.11). With this concern, it is evident that the management does not want to give complete control to its distributor in Japan because it can result in loss of control over important marketing and management decisions. The management wants collaboration and not to be fully controlled by the distributor or to fully control the latter. Furthermore, Ben & Jerry’s management orientation is geocentric because it wants to maintain its social mission as an important decision criterion in entering Japan. Cohen, in particular, is hesitant in doing business in Japan because it does not fit their social mission, specifically because social missions are not prevalent in Japanese businesses (Hagan, 1999, p.8). Ben & Jerry’s management approves the custom tailoring of their products, but they do not want to give up important principles and aspirations. Thus, the management has a geocentric management orientation because they want a dispersed and collaborative approach to management, not an ethnocentric or polycentric one. Important Environmental Factors The two most important environmental factors to consider in entering Japan are the economic environment and the competitive environment. The economic environment is important because a poor economy can directly affect the purchasing ability of ice cream consumers, particularly for highly-priced ice cream. The case noted that the economy of Japan continues to “languish” with no evident recovery in sight (Hagan, 1999, p.13). The financial

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crisis depreciates the yen, which can affect the bottom line of the company through higher transportation costs (Hagan, 1999, p.13). Despite these concerns, it seems that the ice cream industry in Japan continues to grow. The case shows Exhibit 5, Japan’s Ice Cream Market Size, where ice cream consumption increased, especially from 1993 to 1995, with no slowing down (Hagan, 1999, p.17). It is possible that the Japanese will continue to have high demand for ice cream, however intense its economic woes are, or perhaps even because, of economic difficulties. Ben & Jerry’s, nevertheless, has to consider the most optimal foreign market entry to maximize revenues, in case Japan’s economy slumps further. As for the competitive environment, Haagen-Dazs is a foremost competitor in Japan, as well as other established competitors. These competitors are threats to Ben & Jerry’s entry into Japan because they are even larger than Ben & Jerry’s. Ben & Jerry’s makes $150 million worldwide, while Haagen-Dazs earns $300 million in Japan alone (Hagan, 1999, p.8). Apart from this international competitor, Ben & Jerry’s has to contend with five large Japanese companies that are in the superpremium ice cream business, Glico, Morinaga, Meiji and Snow Brand. All of them have ice cream sales that are three to four times more than Ben & Jerry’s and ice cream is only one part of their portfolio (Hagan, 1999, p.8). This implies that they have the capital, distribution, and marketing resources and systems that can enhance competition in Japan’s ice cream industry. Japanese Market and Ben & Jerry's Social Mission The Japanese market and Ben & Jerry's Social Mission are not entirely consistent at the outset. The founders of Ben & Jerry's aim for
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Summary

Ben & Jerry’s Japan Entry: Management Orientation and Recommended Entry Name University 22 September 2013 Ben & Jerry's Management Orientation toward Global Expansion Ben & Jerry’s management orientation and view toward global expansion are geocentric because they do not believe that they should leave major decisions to their partners in Japan (polycentric management orientation), and they also do not think that they should be making all decisions in Japan (ethnocentric management orientation)…
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