Empirical Findings In Business Research Methodology Commerce Essay Example

operates in more than 20 subsidiaries across eight countries, with headquarters based in Japan and diversified businesses spanning North America, Europe, and Asia.

In Thailand, Tokai Carbon formed a joint venture with Thai Oil Co., Ltd., a local partner, on October 19, 1989. This partnership led to the establishment of Thai Tokai Carbon Product Co., Ltd.(TCP). TCP is well-known for its activities in carbon black manufacturing and industrial production. The head office is situated in Sathorn, Bangkok, while the manufacturing plant is located in Sriracha, Chonburi. TCP operates six manufacturing units that have varying capabilities to produce different types of C black such as difficult class and soft class at different capacities.
The annual production capacity of TCP is 111,000 metric dozenss. TCP sells C black domestically and internationally to around 30 clients in 15 countries including Japan, Spain, France, New Zealand, Taiwan, Pakistan, India, and ASEAN countries. TCP's focus now is expanding its market in Asia Pacific and Europe. With ISO-9002 certification, TCP produces carbon black that meets global standards while maintaining responsible operations and commitment to the environment and society.

In China, Tokai Carbon Co., Ltd. has formed a joint venture with Sumitomo Corporation (China) Co., Ltd. called Tokai Carbon Tianjin Co., Ltd.(Tokai Tianjin), with Tokai Carbon owning 80% and Sumitomo owning the remaining 20%. This facility was established in April 2004 in Tianjin Economic and Technological Development Zone. It has an annual production and sales capacity of 40,000 metric tonnes for Carbon Black. China is a crucial market for TCP due to the growing demand for C black in the car industry. In fact, by 2001 China had surpassed Japan in C black consumption which

led to this Japanese company establishing operations there. Currently, China offers a wide range of C black products including over 10 varieties in both hard and soft series.Tokai Carbon Co., Ltd. offers a range of products for tire and automotive rubber part manufacturers, as well as non-rubber producers in need of high-quality carbon black. The company obtained ISO9001 certification for quality management in December 2006 and ISO14001 certification for environmental management in January 2008. These certifications ensure that Tokai Carbon Co., Ltd. maintains reliable product quality and environmental practices.

Utilizing advanced technology, Tokai Tianjin has been producing various types of C black for many years. They have expanded their energy usage to produce special C black for low-carbon tires and auto parts, non-conductive rubber for electrical insulation, and black pigment for the production of black ink.

Tokai Tianjin is committed to providing users with top-notch products and satisfactory service, while also making significant contributions to society and the environment. They strive to collaborate with the community in order to achieve mutual development goals, ultimately aiming to become the global leader in the C industry.

In its Annual Report of 2008, Tokai Carbon emphasized its dedication towards technological advancement, meeting stakeholder expectations, and addressing societal development needs. Key performance indicators include increasing net sales, operating margin, return on equity, and return on assets.To achieve its targets, Tokai Carbon prioritized human resources by regularly exchanging personnel between headquarters and foreign subsidiaries. The company also focused on developing employees' skills to support global expansion efforts. Collaborations with other companies were utilized to develop high-quality products, while partnerships with public institutions strengthened collaboration both within and outside the organization. Improving business processes

and developing innovative value-added products were also priorities for promoting growth.

In terms of management, Tokai Carbon measured the effectiveness of overseas operations and pursued cost competitiveness based on reliability principles and four guidelines. Internal controls were implemented through compliance with the Financial Instruments and Exchange Act (J-SOX) when reporting financial information. Environmental conservation, safety measures, corporate governance, and corporate social responsibilities were all recognized as important by the company.

Regarding corporate governance specifically, Tokai Carbon focused on establishing a corporation, improving management quality, and ensuring innovative corporate value. The Board of Directors consisted of nine members who designed management policies and strategies. Monthly meetings were held where decisions regarding important business matters were made in accordance with corporate laws.The Executive Officer system was implemented in 1999. Under this system, the Board of Directors appoints officers to oversee various departments' business operations and contribute to operational decisions and clear responsibilities. These officers, along with the president, manage and conduct meetings to address managerial issues.

In addition, there is a Board of Corporate Auditors composed of four individuals who serve as auditors. They attend meetings of the Board of Directors, Executive Meetings, and other crucial meetings to oversee decisions and business performance and share their insights. These meetings are held once a month or as needed.

Furthermore, the company has an internal auditing office consisting of four individuals responsible for improving the internal system. This office conducts studies on all areas of concern within the organization with the aim of making improvements. The results of these audits are communicated to executive managers.

Additionally, the Corporate Auditors attend Board meetings and important meetings according to policies set by the Board of Corporate

Auditors. They also review and make decisions on key documents. Importantly, they investigate asset management and business actions within the main office and subsidiaries while requesting reports from subordinate companies when necessary.
The internal auditing office communicates audit results and issues instructions by holding meetings with the Corporate Auditors. These meetings aim to initiate collaborative examination and exchange ideas and suggestions, ensuring that information is shared personally and maintaining effective communication channels. In addition, a quarterly board meeting called the corporate meeting takes place between Headquarters (HQ) and the Thai subsidiary. Managing directors and some Chief Executive Officers from Tokai Carbon attend this board meeting in Thailand. During this meeting, TCP's fiscal performance is presented to stockholders, progress is tracked, and the company's current situation is reported. Regular meetings are also conducted to share customer information and update section managers on sales volume. This way, everyone remains informed about TCP's status so they can develop efficient strategies for their respective departments (Ms.A & Mr.B, personal communication, April 26, 2010). According to interviews, most decision-making requires approval from Tokai Carbon; however subordinate managing directors have some authority over their own subsidiaries. Tokai Carbon controls TCP and Tokai Tianjin's marketing, strategic, and manufacturing operations while coordinating activities such as sales, stocks finance,and performance report summaries received from TCP and Tokai Tianjin.Stock counts are typically reported monthly to headquarters, while sales amounts are sent daily for financial performance updates. Prior to engaging in any related activities, it is necessary to seek approval from Tokai Carbon. Additionally, Tokai Carbon oversees TCP and Tokai Tianjin by examining their financial performance and comparing it against their objectives. Furthermore, the main C products

are initially designed by the parent company and developed through research and development in Japan to serve both local and international markets.

Tokai Carbon has a 60-year history of involvement in carbon black technology development and has collaborated with Toyohashi University of Technology and Japan Fine Ceramics Center in studying carbon products. As a center for product development and technology, Tokai Carbon conducts research and development for new carbon black classifications using the expertise of Japanese companies in advanced technology.

Regarding TCP's research and development efforts, the focus is on modifying the production process to maximize capacity through productivity improvements via debottlenecking. In the capital-intensive carbon black industry, reducing bottlenecks can enhance production processes in existing plants while increasing overall output.The key to success lies in excellent teamwork, which is crucial for implementing this system from the beginning (Tokai Carbon, 2010). Good communication and cooperation are essential for ensuring success. TCP's development includes expanding production by opening a new production unit instead of creating a new type of product.

With support from Tokai Carbon Co., Ltd.in Japan, TCP continuously develops new types of carbon black to meet the changing demands of the automotive industry. TCP aims to provide high-quality products with well-trained employees. With the support of Tokai Carbon, TCP has improved product quality and met the standards for ISO9002 certification. Additionally, TCP keeps its staff up-to-date with the latest developments as employees at all levels contribute through hard work. This achievement aligns with TCP's corporate philosophy, which is recognized as a state-of-the-art production system.

TCP also strives to continuously develop both technology and human resources to keep up with technological advancements in the tire and synthetic rubber industries.

The main marketing, product, and advertising strategies are designed and planned by Tokai Carbon and communicated to their subsidiaries in Thailand and China for implementation. However, the subsidiary managers must seek approval from headquarters before executing local competition strategies (Ms.A & Mr.B, personal communication, April 26th 2010).TCP and Tokai Tianjin, subsidiaries of the same company, have different approaches when it comes to production resources. They both purchase feedstock oil under the name of Tokai Carbon, but minor raw materials are bought separately by each subsidiary. TCP sources materials from local suppliers and imports from the United States, with prearranged agreements at current market prices and a one-month transit time for delivery.

While TCP aims to be the leading carbon black manufacturer in Thailand by prioritizing customer satisfaction through product quality and on-time delivery, Tokai Tianjin aims to establish a production base near the market in China to minimize high logistics and distribution costs associated with carbon black.

Having an abundance of natural resources in China allows for a manufacturing base that can meet all demands for running abroad. Therefore, Tokai Tianjin plans to supply high-quality carbon black not only to tire makers in Japan and Europe but also rubber component manufacturers in Japan. They will use a service structure similar to that in Japan and may even enter non-rubber markets like ink production depending on the local situation.

When it comes to resources such as know-how, human resources, and money, TCP and Tokai Tianjin primarily utilize know-how from headquarters. However, they hire local people from the host country for their human resources needs. Both subsidiaries also use their own capital for investments.Despite having lower production costs and cheaper

prices for carbon products, TCP and Tokai Tianjin have competitive advantages over other subsidiaries like Singapore. Initially, Tokai Carbon designs the management structure for both subsidiaries; however, they adjust it to fit the local context and needs. Additionally, Tokai Carbon has issued global policies that are modified by TCP and Tokai Tianjin to comply with international laws and regulations. The ordinances vary among each subordinate. Furthermore, rotation and training between the headquarters and subordinates are promoted by Tokai Carbon. This policy encourages directors and employees to rotate positions within the same country or among other subordinates in order to gain new knowledge and experiences in various aspects such as different cultures in Thailand and China. For instance, Japanese directors or management teams from the headquarters are sent to subordinates in Thailand to manage business operations, share technology knowledge or learn about inventory control in warehouses in China. Similarly, directors and employees from Thai subordinates also rotate to the headquarters for learning purposes including organizational management, cultures, working styles, and operational control.In addition, training serves as a way to enhance knowledge and foster stronger relationships between the headquarters and subordinates. Both Thai and Chinese subordinates place importance on occupational training and orientation for visiting workers, as well as technical staff training. This includes sending them to Tokai Japan for seminars to acquire new technological knowledge from the headquarters. Similarly, experienced technicians from Tokai Carbon are sent to TCP as consultants for clients in Thailand, providing expertise to TCP. For the China subordinate, Japanese trainers visit and educate employees about job responsibilities, goals, and regulations to ensure everyone understands how to achieve targets.

Moreover, both managing directors and

technical advisors undergo Thai language courses to improve communication and efficiency within the subordinate's environment. The behavior of Japanese managing directors further reinforces organizational culture. Additionally, a system has been implemented that connects all relevant departments for effective management and risk mitigation in business operations.In order to ensure this, managers in each department at the Thai and China subordinates send reports directly to the managing director, who then forwards them to headquarters. This information comes from Tokai Carbon's one-year study in 2008. TCP has divided work among different sections based on maps comprising nine sections named Production Operations, Marketing, Engineering, Maintenance, Technology Environment and Quality, Logistics, Finance & Accounting, Procurement and Corporate Affairs. The primary focus of TCP's activities is on sales and marketing (60%) as well as production (40%). The Marketing section is responsible for both existing and new clients, with a division between chief clients and minor clients. Additionally, TCP has the freedom to choose its own clients while headquarters find new ones for TCP to sell products to. Furthermore, the Marketing officer handles both import and export of products. In general, Tokai Carbon produces and distributes C products to its clients independently. However if there are no stocks available for these products , they are imported from other subsidiaries in China and Singapore. On the contrary , if other subsidiaries run out of stock , the Thai subsidiary supports with raw materials .According to Ms. A., the products at TCP are tested in the lab to ensure they meet client specifications before being delivered both domestically and overseas. The composition of TCP's gross revenues consists of 80% domestic gross revenues and 20%

export gross revenues. TCP has various types of clients, including major, minor, auto-parts, agent, and export clients. Prediction is emphasized as a critical component in production management at TCP. Accurate forecasting is necessary for effective improvement in production operations. Mistakes in prediction can negatively impact plans, while accurate forecasts can be rendered useless by poor planning. Sales forecasts are typically based on past sales data, performance analysis, and market conditions. Forecasting plays two key roles within an organization: reducing uncertainty for management and expanding options for directors. Each department at TCP relies on forecasts to guide their specific functional areas.
The finance and accounting department utilizes forecasts for cost control and budget planning, while the selling section provides sales forecasts to the production section. These forecasts are based on their expertise and analysis of customer demand. The production manager uses this information as a reference for making decisions regarding scheduling, production capacity, and inventory management on a monthly basis. This helps balance supply and demand and avoid opportunity costs associated with lost sales and inventory holding costs. These activities involve various departments such as management, sales and marketing, finance, and production in cross-functional planning. However, it is ultimately the management team that makes strategic decisions, setting the overall plan and goals for each department to implement. Approval from Tokai Carbon is required before executing sales forecasts and plans. Information from multiple departments including finance and marketing is collected and presented to managers for consideration. The Production section plays an essential role in directing the production study and control flowThe Managing Manager is responsible for making decisions regarding the expansion, but must first propose the project to

HQ and seek approval. Once approved, employees are either rotated from related departments or come from Tokai Carbon to expand the new production unit. The organization follows four guidelines under its corporate doctrine for its Administrative System. These include empowering everyone to create added value from existing resources, focusing on just management to sustain profits continuously, considering the environment as an important stakeholder and business resource, and recognizing internationalism with compliant guidelines for global response. The company has implemented fair business activities as part of its corporate policies that are endorsed by top management and all employees. Various internal regulations have also been put in place to clarify work allocation, responsibility, and authority within the organization.The company aims to establish a fair business practice system and ensure transparent financial reporting. Additionally, the company follows a policy of transparency in all its business activities. It is essential to disclose information without bias towards the company's advantages or drawbacks to clients, shareholders, employees, and other parties. The disclosure is done in accordance with relevant laws like the Tokyo Stock Exchange's Rules and Financial Instruments and Exchange Act. Moreover, this disclosed information includes predictions of operational performance based on available information.

TCP employees carry out their work according to job descriptions, company culture practices, and policies set by headquarters. Daily operations follow fundamental rules such as punctuality and adherence to company policies. In case of any issues, employees must report directly to their department manager. Headquarters decides annual vacations and social benefits.

The management team at headquarters evaluates each subordinate's fiscal performance and production capacity at the end of the year. To make this evaluation clearer for subordinates, Tokai Carbon

sets numerical percentage targets based on criteria like net income, return on assets (ROA), and return on equity (ROE).In 2010, TCP set targets for its operation profit, net profit, ROA, and ROE. These targets are adjusted annually based on business challenges. When these targets are achieved, subordinates receive incentives like bonuses and increased wages as rewards for their performance. Each department's assistant manager is responsible for evaluating employees' performance and determining rewards or penalties. The outcomes of these evaluations impact employees' pay, bonuses, and promotions (Ibid.).

The firm operates according to a core Corporate Philosophy called reliability. This philosophy highlights the significance of maintaining trust and dependability with stakeholders such as customers, shareholders, employees, and society as a whole (Tokai Carbon, 2010). Reliability is crucial for consistent functioning within the organization. Additionally, the company establishes other fundamental policies to govern activities like international cooperation, harmonious relationships,
and just corporate behavior (Tokai Carbon's annual study, 2008). Furthermore,
the company believes in immersing themselves in creative activity
and accepting all challenges to enhance competitiveness (Ibid.).The firm has released a Code of Ethics for all managers and employees to promote responsible business activities based on fundamental beliefs and practice guidelines. The Code of Ethics encompasses fair business practices, compliance, information disclosure, proper management of information, respect for human rights, dealing with antisocial elements, respecting foreign cultures and customs, as well as addressing violations of the TOKAI CARBON Code of Ethics (Ibid.).

Initially, the company must conduct its business affairs through fair competition while maintaining positive relationships with clients, suppliers, management organizations, and governments. Secondly, the company's operations should comply with laws and regulations including social norms. Thirdly, it is essential to disclose reliable

information to ensure transparency in business activities. Fourthly, internal and external information such as third-party intellectual property rights should be managed appropriately.

Regarding workplace culture, it is crucial for individuals to earn their colleagues' respect while prioritizing human rights and privacy. The company is committed to treating all employees fairly and adequately safeguarding their personal information. Additionally, the company refrains from engaging in any illegal or unethical activities.In addition, all business activities will be carried out in compliance with the laws and regulations of each country, as well as international laws and cultural customs. Any violations of the company's Code of Ethics will be thoroughly investigated by top management to protect the company's reputation.

Following TCP's philosophy, the company aims to maintain product quality through advanced technology and adherence to recognized standards like ISO9002. Furthermore, they strive to satisfy customers by delivering products on time at competitive prices.

On the other hand, Tokai Tianjin focuses on establishing a "trust bond" to contribute to society and promote environmental sustainability. This involves building trust with clients, employees, investors, and influential individuals through mutual support and collaboration. The text emphasizes that this "trust bond" is crucial for efficient business activities and fulfilling social responsibility towards the environment.

China plays a significant role in enterprise growth and expansion efforts (Tokai Carbon Tianjin, 2010). Additionally, there are other relevant subjects worth considering (5.5 Other subjects).