Supporting the Management of Foreign-Affiliated Companies and Japanese Manufacturing SMEs
Service Concept
Hands-on management support for global and Japanese companies
Hello, I’m Tanaka with Metric Japan.
Throughout my career, I’ve supported foreign-affiliated companies operating in Japan, as well as Japanese manufacturing SMEs working to expand overseas or strengthen their management.
For foreign-affiliated companies, I want to clearly share what is really happening on the ground in Japan.
For Japanese SMEs, I aim to provide practical global perspectives and frameworks that can genuinely help their business.
Since I understand both sides, I work between management and the frontline, supporting clients all the way through to execution.
Rather than offering advice from a distance, I step into the field, work hands-on, and help turn plans into reality. That is the style of support that I value.
Company Overview
• Company:
Metric Japan Inc.
• Capital:
JPY 3 million
• Established:
February 9, 2026
• Location:
Higashiura, Chita District, Aichi, Japan
• President & CEO:
Shigenori Tanaka
• Services:
PMI (Post-Merger Integration) Execution Support, Business Turnaround Support, Factory Digital Integration, Succession & Inheritance Tax Support, Executive Advisory Services, and English Negotiation Support
Case Study
Note: This case study is based on the CEO's past experience. Specific company names and figures are withheld to maintain confidentiality.
Case 01_
PMI Support for a Mid-Sized Manufacturing Company
■ Challenge (Before)
The manufacturer (the acquired company) and the contract manufacturer (the acquirer) had significantly different ways of working and different value systems, which caused daily friction.
Because the contract manufacturer (the acquirer) was also a shareholder of the acquired company, their positions and expectations did not align, making the relationship even more complicated.
The acquirer had also dispatched technical staff to the acquired company, further complicating the relationship.
The acquired company wanted the freedom to operate independently, while the acquirer insisted on applying its own methods, resulting in ongoing conflict.
Due to these circumstances, post-acquisition operations did not progress as intended, placing a heavy burden on the frontline organization.
■ Approach (How)
① Reorganization of group capital structure and redesign of governance
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Reorganized the group’s capital relationships
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Established a new holding company (HD)
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Made the core businesses wholly owned subsidiaries
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Positioned the acquired company and the acquirer as “parallel entities”
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Created a structure that allowed the acquired company to make decisions without excessive influence
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Officially transferred the acquirer’s dispatched engineers to the acquired company to eliminate ambiguity
② Sharing the acquired company’s role and importance
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Explained to the entire group that the acquired company was the only entity responsible for product development
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Communicated the risks inherent in research and development
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Promoted understanding of the need to respect the acquired company’s decisions
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Expanded the acquired company’s decision-making authority in R&D, capital investment, and marketing activities
③ Review of accounting and information systems
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Separated accounting processes specific to the acquired company (R&D expenses, cost accounting, etc.) from those of the acquirer
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Utilized the HD’s information systems and accounting departments to implement operations suited to the acquired company
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Created an environment that allowed the acquired company to focus on its core business
④ Hands-on support for frontline management
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Continued dialogue with managers
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Helped organize daily decision-making and operational processes
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Supported improvements in communication across the group
■ Outcome (After)
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The acquired company regained autonomy and was able to fully leverage its strengths
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Achieved record-high profits after the acquisition
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The relationship between the group and the acquired company stabilized
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Successfully overcame the post-acquisition confusion and achieved smooth integration
Related article:
Executive Management_Leadership_Ver03. _ “The Real Challenges of Post-Merger Integration (PMI)”
Case 02_
Strengthening Management Systems for a Foreign-Affiliated Japanese Subsidiary
■ Challenge (Before)
In the foreign-owned Japanese subsidiary, a gap had emerged between the headquarters’ expectations and the management structure in Japan, resulting in the following issues:
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The European headquarters required “numbers that support management decisions,” while the Japan side was occupied with financial accounting, tax compliance, and regulatory tasks.
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The finance & administration department (FAD) remained merely a “watchdog” that produced numbers, and lacked the cross-functional data (especially product-level cost accounting) necessary for management decision-making.
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In product-level cost accounting, classifications of direct costs (EX-WORKS purchase price, transportation/insurance/customs costs to warehouse arrival, packaging material costs in the warehouse, inventory impairment provisions) were not organized, causing persistent discrepancies with financial accounting.
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Errors in project-based accrual processing (e.g., accruals for low-probability cost items, double-accrual of the same cost item) inflated project costs, causing the president to hesitate on necessary additional work and damaging trust with customers.
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Internal information sharing was siloed, and there was no mechanism for the management division to understand the business.
As a result, trust from headquarters declined, incorrect decision-making became routine across the organization, and coordination with the field as well as customer credibility reached a critical state.
■ Approach (How)
① Accelerating monthly closing (streamlining financial accounting)
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Shifted from line‑item journal entries to a single consolidated entry per invoice
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Shifted the expense reimbursement process from month-end batch submissions to per-trip, real-time processing
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Smoothed daily operations and significantly reduced monthly closing workload
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Shifted freed-up resources toward management accounting and business control
② Improving the accuracy of monthly product cost accounting
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Built a mechanism ensuring that the total of product-level marginal profit and contribution profit matches the company’s period profit
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Established a system to appropriately allocate purchasing and warehouse fixed costs to business units
③ Rebuilding the project management framework
Introduced a project progress management tool and clarified the following three categories:
A. Budgeted but not yet ordered costs
B. Budgeted and ordered costs (invoice not yet received)
C. Budgeted and invoiced costs
Operational policy:
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Do not accrue A or B until revenue recognition
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At revenue recognition, determine the amount of A based on field forecasts × financial conservatism, and incorporate it into cost
Additionally:
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Integrated “vertical numbers (period P&L)” and “horizontal numbers (product/project profitability)”
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Built a structure enabling the management division to maintain continuous communication with the field
④ Improving the accuracy of rolling forecasts
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Built a sales forecasting system incorporating order backlog and order trends
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Improved cost ratio forecasting accuracy by product and project
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Allocated fixed costs expected to occur within the fiscal year on a monthly basis
⑤ Promoting information sharing
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Introduced the Western-style principle that “Finance must understand the business”
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Built mechanisms for the FAD to actively communicate with sales and field teams
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Established a transparent decision-making process among the president, headquarters, and field operations
■ Outcome (After)
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The FAD shifted its role from a “watchdog that produces numbers” to a “partner in management”
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Stabilized communication with headquarters and built a management structure that reliably fulfills their requirements
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Accuracy in cost accounting and risk management improved significantly
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Decision-making processes became transparent, eliminating incorrect decisions → restoring trust with customers
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Achieved a budget attainment rate of over 90% every year and recorded the highest profit in company history
All of this was the result of the FAD beginning to function as the core of corporate management.
Related articles:
Accounting Ver09. “How to Use Accruals to Stabilize Fixed Cost Management”
Case 03_
Turnaround Support for an Unprofitable Business Unit
■ Challenge (Before)
Within a manufacturing group company, although sales volume existed, operating profit margins continued to stagnate. The profit margin of the core business was particularly low, and the following structural issues were present:
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A gap between the actual hourly rate (JPY 5,000) and the internal rate (JPY3,000)
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Cost calculation, quotations, and order decisions were all based on the incorrect internal rate
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Projects appeared profitable on a project-by-project basis, but in reality, “silent losses” were accumulating
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The sales division mistakenly believed the business was profitable and lacked a sense of urgency
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Labor-hour entries were inconsistent in timing, causing large fluctuations in monthly profit
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The distinction between work-in-process costs and cost of goods sold was unclear, distorting period profit
As a result, the company fell into a typical unprofitable structure where “it looked profitable, yet no profit remained at the company level.”
■ Approach (How)
① Standardizing quotations using the actual hourly rate (JPY5,000 )
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Explained company-wide that “it is natural that previous quotations did not generate profit”
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Fundamentally corrected the sales division’s decision-making criteria
② Conducting labor cost unit price negotiations with customers
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When price increases were difficult, shifted to a method of increasing estimated labor hours to cover actual costs
③ Redesigning the ERP system from scratch to visualize project costs
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Rebuilt the system so labor hours, material costs, and outsourcing costs accumulate correctly
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Enabled sales, engineering, and accounting to view the same numbers — achieving “One Truth”
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Spent more than three years on the redesign and completed structural reform
④ Upward revision of salaries and bonuses (taking risk through human capital investment)
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To prevent the turnover of engineers, made upfront investments based on expected profit improvement
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Resulted in higher motivation → improved productivity
■ Outcome (After)
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Profit margins improved significantly, eliminating the unprofitable structure
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Quotation accuracy increased, and sales decisions became based on “correct cost”
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Project costs became clear, enabling faster management decisions
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Engineer motivation improved, reducing turnover risk
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The entire organization began communicating based on “correct cost,” stabilizing decision-making
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As a result, the company transformed into a sustainably profitable organization
Related articles:
Case 04_
Launching a Business with an Overseas Partner
■ Challenge (Before)
The industrial handheld terminal jointly developed by the Japan side and a Korean partner was based on a contract that granted the Japan side exclusive sales rights in the Japanese market (under its own brand).
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Development cost burden: Korea 2/3, Japan 1/3
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The Japan side obtained the right to sell under its own brand
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The business launched smoothly, securing stable sales from the first year
However, in the second year, the situation changed dramatically.
The Korean partner suddenly notified the Japan side that “a US company is claiming sales rights in Japan.” The Japan side’s exclusive sales rights began to shake.
What made the situation even more serious:
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The US company was not a party to the joint development
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It had not borne any development costs
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Nevertheless, it insisted that “no exceptions can be made for Japan”
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The Korean partner became ambiguous due to the shift in power balance
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An abnormal situation emerged in the Japanese market where the same product appeared under two different brands
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One of the Japan side’s distributors was actually the Japanese subsidiary of the US company
As a result, the Japan side’s sales dropped sharply, making business continuity difficult.
■ Approach (How)
① Three-way meeting with the Korean partner and the US company
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Asserted the legitimacy of the Japan side’s exclusive sales rights
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Presented evidence of the development cost burden
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However, the US company refused to compromise, citing “global brand consistency”
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The Korean partner leaned toward the US company due to the power imbalance
② Review of contract terms and consideration of legal action
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Re-examined the exclusivity clause in the contract
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However, litigation against both the Korean company and a large US corporation was realistically difficult
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Considering cost, time, and likelihood of success, legal action was abandoned
③ Decision to close the business
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Negotiated successfully for the Korean partner to buy out all remaining inventory
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Minimized losses on the Japan side
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Decided to withdraw from the business
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Took managerial responsibility and resigned as the representative
■ Outcome (After)
This case was not a “success,” but it provided significant value by making visible the risks inherent in international joint development.
Key learnings included:
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Contract interpretation differs greatly by country
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When the power balance shifts, even the interpretation of the contract changes
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Korean companies prioritize speed and opportunity
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US companies prioritize brand consistency and global standards
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Japanese companies prioritize contracts and trust
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These differences in values can shake the foundation of joint development
From this experience, the Japan side accumulated practical knowledge to thoroughly clarify—at the earliest stage— exclusivity, exception conditions, brand handling, and rules for dealing with large global companies.
Related article:
CEO Profile｜Shigenori Tanaka
“People and companies are all different "— I provide support tailored to each unique situation.
MBA (University of Birmingham, UK) / CIMA (Chartered Institute of Management Accountants, UK).
Over 20 years of executive leadership in owner-managed and foreign-affiliated companies in the industrial equipment and B2B sectors.
Trippled EBITA and achieved record-high profitability over a 10-year tenure at the Japanese subsidiary of a Danish industrial equipment manufacturer.
Strong execution track record in PMI, business turnaround, management system design, cost accounting, KPI design, factory data visualization/AI, and joint venture launches.
Execution First
We execute, not just plan. We stay until results are delivered.
Transparency
We surface hidden issues and speak directly.
Global Standard
We apply Global-level Governance and Management practices.
Owner's Mindset
We support decisions with the perspective of someone who has run companies.
Value Proposition
Contact
Even if your management issues are not clearly defined, feel free to describe your current situation. Please fill out the form on the right (or below on mobile) and click the submit button. If you prefer to contact us by email, feel free to reach out to the address below.
Free 60-minute initial consultation available
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