Mabuchi Motor, Study Case
International Human Resources
Enterprise Background
Mabuchi Motor Company is the world 's number one manufacturer of small electric motors. The company holds 70% of the market for motors used with automotive, toys, computer, industry.
All started in 1946 when Kenichi Mabuchi (now the company 's honorary chairman) founded "Kansai Rika Kenkyusho," a scientific research institute. He created the world 's first high performance horseshoe-shaped magnetic motor in 1947.
On January 18, 1954, Kansai Rika Kenkyusho established Tokyo Science Industrial Co., Ltd. for the production of small electric motors for toys and scientific apparatus.
By the dawn of the 1970s, Mabuchi became one of the world 's leading producers of original equipment motors for consumer electronics, toys and model aircraft.
In the early 1980s Mabuchi entered both the VCR and battery-operated power tool market. The development of a heavy-duty printer motor in 1985 led to Mabuchi 's entry into the office equipment market. The Mabuchi Technology Center was created in 1992 for in-depth research and development of small electric motors. Operations in Europe and China began in 1993.
1. Multinational enterprises use expatriates as a control mechanism, to transfer skills and to develop managers. Why the decline in the numbers of Japanese expatriates?
The decline of Japanese expatriates became due to several reasons: a) To maximize its competitiveness by minimizing its cost the production was shift outside of Japan. The production capability had been shifted outside of Japan to take advantage of the low cost labor, like in Hong Kong in 1964, because the labor rates were low.
Furthermore the cost to maintain a Japanese expatriate (salary, accommodation ...) was 10 to 20 times that of local manager. Interfering with the strategies of cost minimization and continued aggressive expansion.
b) Several numbers of Japanese subsidiaries, to continue its strategy of production
Enterprise Background
Mabuchi Motor Company is the world 's number one manufacturer of small electric motors. The company holds 70% of the market for motors used with automotive, toys, computer, industry.
All started in 1946 when Kenichi Mabuchi (now the company 's honorary chairman) founded "Kansai Rika Kenkyusho," a scientific research institute. He created the world 's first high performance horseshoe-shaped magnetic motor in 1947.
On January 18, 1954, Kansai Rika Kenkyusho established Tokyo Science Industrial Co., Ltd. for the production of small electric motors for toys and scientific apparatus.
By the dawn of the 1970s, Mabuchi became one of the world 's leading producers of original equipment motors for consumer electronics, toys and model aircraft.
In the early 1980s Mabuchi entered both the VCR and battery-operated power tool market. The development of a heavy-duty printer motor in 1985 led to Mabuchi 's entry into the office equipment market. The Mabuchi Technology Center was created in 1992 for in-depth research and development of small electric motors. Operations in Europe and China began in 1993.
1. Multinational enterprises use expatriates as a control mechanism, to transfer skills and to develop managers. Why the decline in the numbers of Japanese expatriates?
The decline of Japanese expatriates became due to several reasons: a) To maximize its competitiveness by minimizing its cost the production was shift outside of Japan. The production capability had been shifted outside of Japan to take advantage of the low cost labor, like in Hong Kong in 1964, because the labor rates were low.
Furthermore the cost to maintain a Japanese expatriate (salary, accommodation ...) was 10 to 20 times that of local manager. Interfering with the strategies of cost minimization and continued aggressive expansion.
b) Several numbers of Japanese subsidiaries, to continue its strategy of production