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Case Study Review: Language and Globalization: “Englishnization” at Rakuten

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1 Was “Englishnization” a good idea for Rakuten? What are the costs/benefits of such a policy?
Rakuten’s decision for “englishnization” of the company is 100% in line with the trend that “English is now the global Language of Business” Englishnization of global corporations: Strategy is Needed by Sebastian Reiche blog.iese.edu
It still doesn’t mean an easy transition. People naturally oppose any changes and that can lead to higher costs especially in the beginning stages.
The way Mikitani announced the “Englishnization” policy, without consulting with his management team did not prepare any employees for this change. The employers were immediately put under a lot of stress and experience a lot of pressure. Also linking the worker’s salaries to their English results and improvements increases the stress and uncertainty among employers. Higher stress levels normally have a negative impact on your efficiency and result in lower productivity. Poor communication (because of the immediate ban on any other language) also leads to lower productivity due to misunderstandings and waste of time.
Despite these original costs in the short term, this Englishnization policy will have a lot more benefits for the company in the long way. As mentioned above English is the Global language of Business and this policy will lead to better communication between all international business. Being English efficient, managers will understand their competitors strategies better and will also be able to communicate this better to their workers.
Workers who are really motivated will improve their English skills and those who are not will automatically been falling out the system and at the end lead to better and more efficient working force.
Another important benefit is that Rakuten brand image will increase in value. Rakuten will now be seen as a company who consider the

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