A key issue of the JV is the differences in corporate cultures as well as a difference in American and Japanese cultures. Even though both companies had opportunities to learn from each other, neither company restructured its strategy and coordinating processes. As the text states, "Often the strategy, the coordinating processes, or both, need to be changed to reflect conditions in other countries" (Deresky, 2016). These differences can also be seen in their reporting system operations, "differences in reporting systems are attributed to the cultural variable of individualism in U.S. society, compared to collectivism in Japanese society" (Deresky, 2016). Japan's belief in collectivism is directly tied to the success of transforming GM's team, which had been suffering from low morale and poor production quality.