Japanese Multinationals in Europe

Book excerpt: 'Ando's well-researched comparison of Japanese automobile and pharmaceutical investment in Europe not only provides a compelling demonstration of the strategic and organizational diversity of contemporary Japanese multinationals, but illustrates the challenges faced by all multinationals by the complex and multi-faceted process of European integration.' - Geoffrey Jones, Harvard Business School, US This book explores the regional strategy and management of Japanese MNEs in Europe. Ken-ichi Ando investigates, using case studies of the auto and pharmaceutical industries, how these companies can, and do, overcome the inherent difficulties and opportunities of trading in Europe, including the problems posed by cultural differences and geography, alongside the opportunities of expanding markets. While these companies are global players, they must increasingly be aware of, and evolve in response to, European economic integration. The strategy setting and management are influenced by company- and industry-specific factors, and some common features can be found. The locational and entry strategies are based both on the multinationals' own resources and capability, and on the changing locational conditions, while pan-European management is conducted to achieve the benefits of 'multinationality' at the regional level. The mutual relationships between the location of subsidiaries, the entry mode, and the pan-European operation are clearly shown from the detailed analysis at the company level. The impacts and limits of the EU on multinationals are also confirmed in the book, and the importance of national characteristics is suggested. Scholars and graduate students studying international business and economics, as well as European integration will find this book of great interest.