PARIS GRADUATE SCHOOL OF MANAGEMENT

INTERNATIONAL EXECUTIVE MBA

MBA IN BUSINESS ADMINISTRATION

COURSE: INTERNATION BUSINESS MANAGEMENT

MEMBERS: NAANA YEBOABA APPIAH TAKYI

STUDENT NUMBER: GH18001

ASSIGNMENT 3

23RD AUGUST, 2018

The company had a unique image or signature look that made it very identical and nearly
impossible for a customer to differentiate their experiences, whether they were being served
in a different country. This homogeneity, allowed for the customers to build long term
relationships with the company, they could reliably fall on the company to provide services
they had become accustomed to even when they found themselves overseas.

Also was their ability to comprehend and use the influence of culture to their advantage.
When faced with resistance in the Japanese environment, they enlisted Fujita as a strategic
partner to lead the company over there. This quickly overcame potential hindrances that
would have drastically affected sales.

They also had a very strong consumer-oriented marketing focus. Toys R Us studied customer
preference in every country and adjusted to their taste in other to satisfy them. They knew for
example that Europeans mostly focused on shopping for food and clothing for their kids
instead of toys. Hence, they strategically furnished their shop with other items like diapers to
attract consumers to their toys cart when they came to shop.

Most of all is their persistence in negotiation. Most companies would leave at the least
resistance and focus on countries where they are already doing very well. Toys R Us seemed
to have a tenacity to pursue their ambition till the resistance waned. This was evidently seen
when their request for a location was challenged the German authorities. They persevered till
almost 50 branches were opened in Germany.

2. Can you explain the culture and political barriers that Toys "R" Us are facing
when entering overseas markets?

Toys R Us despite their success in most international markets faced a lot of setbacks.
Amongst the prominent ones included:

Foreign Behaviour and Belief System: Cultural differences causes behaviour and
personality differences like body language, thinking, communication, manners,
 norms, etc. which leads to miscommunication. In Japan, their style of a self-serving
system was seen as alien and wrong. Notwithstanding their intention to ensure a fast
and independent system by using the self-service tool, people Japan preferred an
attendant who would interact and answer questions as you walk through the cart
shopping. This intent was wrongly communicated to the Japanese as a company who
wasn’t interested in interacting with customers but only focused on profit making.

Secondly is Government induced system for every commodity. One resistance that
Toys R Us suffered when they wanted to locate outside Cologne was the fact that
companies that deal in toys cannot site their office on the outskirt of the town. They
have developed an acceptance of where each type of business should be located and
any foreign company that may come with a unique strategy tailored with a location
different from theirs would face a fierce resistance.

Again is Stereotyping and Prejudice. Stereotyping is the process of creating a

3. Why was Toys “R” Us more successful in Japan than in Germany? 

By 2003, Toys R Us had 146 stores in Japan comparable to 48 in Germany. This high
success rate in Japan is attributed to these tools used;

Glocalization. In Japan, when they perceived the potential threat of foreign resistance
to their market that would be effected through cultural and political barriers, they
quickly appointed an influential and experienced Japanese , Den Fujita to spearhead
the business. This adoption of Fujita and empowering him as a local partner ensured
penetration to the authorities to readjust some regulations to favour Toys R Us.
 Cross Culture Communication Capacity. Fujita was not the only successful Japanese
business man in America but was carefully selected because he had a trademark of
successfully running McDonald in Japan. This experience of relating with both
cultures made him a suitable candidate for the job.

Also the absence of numerous intermediaries that characterised the Japanese market
also encouraged more people to patronize from the Toys ‘‘R’’ stores. This is because
products of Toys ‘‘R’’ were devoid of the multiple commissions hitherto
intermediaries would have charged hence making Toys ‘‘R’’ less costly to deal with.

4. Could Toys "R"Us be successful in your country? 

In Ghana, the cultural environment is very conducive for Toys R Us. Ghanaians have a high
taste for foreign goods and have a fast growing middle class who like to shop from such large
stores modelled like Toys R Us.

The political environment is also very favourable and welcoming of such large multinational
companies seeking to establish in the country. Toys R Us will face very little opposition
because there is currently no major competitor in the space Toys R Us seeks to occupy.

The only challenge Toys ‘‘R’’ is likely to encounter sterns from the low income levels in the
country. People are likely to tag the patronage of Toys R Us products as a luxury even when
it’s not. This makes people patronise second hand or slightly used items imported from
abroad.

Even if Toys R Us should set up in Ghana successfully, it may not enjoy the rapid growth and
establishments of many outlets across the country like it enjoyed in other jurisdictions.