Ferodo (Thailand) Ltd. (B) (Condensed Version)

Published 01 Jan 2001
Reference 4911
Topic Strategy
Region Asia
Summary

Case A: describes the creation and development of a joint venture (Ferodo Thailand Ltd) between the UK-based auto components firm T&N Plc, its long-time associate the Japanese brake manufacturer; Japanese Brake International (JBI), and the Thai Boonpong Group. It follows the problems encountered during the first year of the jv in particular the friction between the partners caused by different management styles and cultural differences. Problems of low morale among the workforce and low production arise. The Thai Managing Director, under pressure from both the UK and Thai partner, finally, with almost no notice, resigns.

Teaching objectives

It illustrates how objectives and methods are sources of conflict in partnerships when the human resources dimension is not accounted for. It raises questions about strategic choices for the future and explores the difficulties of managing cross-cultural relationships. Case A and B can be used as separate cases. A condensed version of case B is available to be used uniquely as a follow on case to case A.