...Master in Business Management, C1 Doing Business in Japan 2013 Introduction Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. The characters that make up Japan's name mean "sun-origin", which is why Japan is sometimes referred to as the "Land of the Rising Sun". Japan is an archipelago of 6,852 islands. The four largest islands are Honshu, Hokkaido, Kyushu and Shikoku. Together, these four islands hold about 97 percent of Japan's land area. Japan has the world's tenth-largest population, with more than 126 million people. Honshū's Greater Tokyo Area, includes the de facto capital city of Tokyo and several surrounding prefectures. It is the largest metropolitan area in the world, with more than 30 million residents. Japanese culture has evolved greatly from its origins. Contemporary culture combines influences from Asia, Europe and North America. Traditional Japanese arts include crafts such as ceramics, textiles, lacquerware, swords and dolls; performances of bunraku, kabuki, noh, dance, and rakugo; and other practices, the tea.ceremony, ikebana, martial.arts, calligraphy, origami, onsen, Geisha and games. Japan has a developed...
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...Doing Business in Japan The U.S. Commercial Service provides guidance on doing business in Japan and offers valuable assistance to help U.S. businesses exporting to Japan. Why doing business in Japan? As the world’s fourth-largest buyer of American products, Japan is a market that American companies should not overlook, but approach with a thoughtful strategy. Japan is a technology powerhouse, a “proving ground” for consumer requirements, and stands in the vanguard with respect to the sweeping changes recently seen in developed market demographics. Most U.S. state economic development agencies are also well aware of the important foreign direct investment coming into their communities from Japan. While the reasons U.S. firms engage with Japan are diverse, savvy firms recognize that underestimating the strategic and tactical importance of the Japanese market may disadvantage them not only in Japan, but in the United States and third-country markets as well. Japan is back in the business news headlines in 2013, owing in part to a rising stock market, a sharply lower yen, and stirrings of domestic demand for both personal consumption and capital investment. The new economic policy linked to these developments is known as “Abenomics”-- a three pronged strategy of bold monetary loosening, fiscal stimulus centered on infrastructure spending, and growth-oriented structural reform. While the implications and ultimate success of this strategy in reigniting growth in Japan are far...
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...Doing Business in Japan In researching the Nemawashi consulting system I found that Nemawashi is the Japanese consensus building approach. The literal translation into English is “wrapping around the roots”. I discovered that Nemawashi is about working together to create clear and implementable goals by agreement of all involved parties. Some advantages of this system are: it allows everyone to be accountable instead of 1 person, or a select few. It allows a clear understanding amongst all parties. Everyone knows what is to be done and why. An individual is bound to support an initiative in which they helped to develop. Makes everyone accountable and builds a sense of ownership. Another advantage is that all parties are in consensus from the start, as to what the goal is; which in turn, reduces time which would have been spent in meetings. That time can instead be spent on designing/implementing the product or idea. Implementing Nemawashi practices in American business could be difficult due to the differences in the American business culture. The Nemawashi process often happens in a casual setting such as dinner or a sporting event. Unlike us Americans, this is the time in which the Japanese use to discuss business ideas and strategies. Research states, this is the time in which the Japanese feel more comfortable in which to speak freely on difficult topics. By time the actual meeting takes place 80% of the decision making process is complete. Now this can pose a problem...
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...Doing Business in Japan xxxxxxxxxxx Harvord University Doing Business in Japan Nemawashi is a concept in Japanese culture wherein important decisions are derived from a consensus. The original meaning of Nemawashi is “it smooth around roots before planting” (Nemawashi, 04/12/2010, http://japanese.about.com/library/weekly/aa080597.htm). The Japanese use the term in their business culture to mean that there must be an agreement with all prior to making an important decision regarding the business. One advantage of this type of business structure is that it gives everyone involved with the business an opportunity to evaluate all agreements and decisions that are to made. This is similar to an agenda in US business culture in that, all information pertaining to what decision is to be made is is set before everyone and as a business they work together to develop a strategy that works for all. Another advantage is that with the consent of everyone involved it will allow the company to do away with most if not all disputes. With US Corporations the decision making is usually done by head executives. They make a decision and order the decision to be followed from top to bottom. This can be considered a disadvantage, being that a lot of times the top is unaware of the consequences either positive or negative the decision that was made has on the company as a whole until something bad or good has happened within the company. A disadvantage of nemawashi can be the time it may...
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...Doing Business in Japan Japanese Leading Brands Vs. US Winning Japan Market MBA Iris 2012 Business with Japan January 26, 2013 Overview The Case Study Only a half decade ago the portable computer-laptops industry had thrive with the variable sizes, multifunctions, different weight, thickness and colors, manufactured by different vendors. (DELL, HP, Sony, Samsung, LG, Asus ...) Early 2007 when Apple introduced the first iPhone to the US market, there were already many kind of Smartphones in the market (HTC, Palm, Samsung..) but non of them created such a customer experience as the iPhone did. The iPhone became the ultimate portable office in the pocket of its owner. Sending and receiving emails and instant messages became easier, browsing content at the internet and navigation as well plenty application and capabilities. Everyone realized that the man with the iPhone will win – the iPhone became a big advantage for any business man. In addition, the leisure culture starts changing. The ease of browsing internet content with the iPhone anywhere, accessing Facebook and reading emails was significant. Playing gaming at you free time with the iPhone became an addiction to everyone. Apple with great precision has read the map and introduces the first iPad on 2010 which became a game change in the portable PC industry. With a larger screen size, the iPad was the ultimate entertainment...
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...Open Journal of Social Sciences, 2014, 2, 11-18 Published Online March 2014 in SciRes. http://www.scirp.org/journal/jss http://dx.doi.org/10.4236/jss.2014.23003 Exploring Competitive Strategies of China Ceramic Tile Industrial Cluster in Global Economy Mei-Hor Lo, Dechang Han Business School, Nankai University, Tianjin, China Email: matthew@gearex.com.tw Received November 2013 Abstract In this paper, we discuss the competitive paradigm between globalization and local development in the ceramic tile industrial cluster, based on the Porter’s theory in exploring the factors of the global competitiveness. We analysis the theory of cluster and competitive theory to compare two ceramic tile clusters in different contexts for tracing the mechanism and path constructed ceramic industry international competitiveness and strategy formation. In the study, we discuss what changes come into play addressing the radical changes in world markets, both for ceramic tiles and for surrounding ceramic tile supportive industries. These issues will be discussed with amount of literature reviews through the various perspectives to explore more comprehensive insight to China ceramic tile industry. Keywords Ceramic Tile; Industry Cluster; Agglomeration; Competitive Strategy; Resource Based View 1. Introduction As the world’s largest producer, consumer and exporter of ceramic tiles, the sheer scale of China’s volumes has been driving world growth in production, consumption and exports for...
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...Cost of Doing Business in America and Japan A manager or company has many factors to consider when deciding to conduct business internationally. Besides being sensitive and respectful to the foreign country’s culture, one must also be cognizant of how the culture influences the cost of doing business. To illustrate this point, consider the following scenario of countries A and B: Both countries [A and B] are characterized by low labor costs and good access to world markets. Both countries are of roughly the same size (in terms of population) and both are at a similar stage of economic development. In country A, the education system is undeveloped, the society is characterized by a marked stratification between the upper and lower classes, the dominant religion stresses the importance of reincarnation, and there are three major linguistic groups. In country B, the education system is well developed, there is a lack of social stratification, group identification is valued by the culture, the dominant religion stresses the virtue of hard work, and there is only one linguistic group. Which country makes the best investment site? Country B does. The culture of country B is supportive of the capitalist mode of production and social harmony, whereas the culture of country A is not. In country A, conflict between management and labor, and between different language groups, can be expected to lead to social and industrial disruption, thereby raising the costs of doing business. The...
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...Running head: BUSINESS IN JAPAN The Cultural Aspects of Doing Business in Japan Jane Doe Saint Leo University TABLE OF CONTENTS Abstract………………………………………………………………………………………3 Introduction……………………………………………………….………………………….4 Why do businesses globalize?.....……………………………………………………………4 Doing Business in Japan……………………………………………………………………..5 Understanding Japan’s business culture……………………………..………………………5 Setting up in Japan…………………………………………………………………………..6 Meeting and Greeting……………………………………………………………………….7 Religious Considerations……………………………………………………………………8 Customs and Courtesies……………………………………………………………………..8 Conclusion…………………………………………………………………………………...9 References………………………………………………………………………………….10 Abstract Many business owners today have been making their way abroad in hopes to expand their production and keeping up with recent trends of globalization. The differed cultural aspects of a foreign country should be greatly considered when trying to build a strong professional relationship with business associates from the host country. Doing extensive research and understanding their different business cultures are the first step a company should take before taking a major leap in a foreign soil. Japan has recently been the country of choice for Western entrepreneurs to invest and expand their business ventures. The Japanese economy has become more diverse because of their size and structure of companies, producing a complex web of inter-locking relationships...
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...employees overcome verbal and nonverbal barriers as they travel to another country on short employment assignments. My employees will be traveling to Japan. The native Language for most people in the destination country, which is Japan, is much different from the business language English. Japan is located on Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan east of the Korean peninsula. Muslim Ummah of North America (n.d.) Japan landmarks have some of the large amount densely populated areas of the world. In addition, there is a great deal of Japan’s 125 million people live in multitude of cities along the coast. Most of Japan consists of mountains and hills. Japan has become a familiar leader in high technology electronics. Japan is an important producer of computers televisions, cameras, and audio equipment. Cultural dissimilarity effective communication has need of translating the basic values, motives, ambition, and supposition that operates across geographic lines. The Importance of Effective Communication (n.d) Therefore gave some theatrical differences across cultures in moving toward to such as time, space and privacy, the chance for mis-communication in cross-cultural situations that are abundant. ( The Importance of Effective Communication) The last visit that I made to Japan occurred while I worked for a Japanese company in the United States. I noticed that the Japanese staff gives details and only the conclusion to...
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...Researchers for JKL Trading, LLC have analyzed Japan as a possible country to export products in order to support JKL’s goal of spreading the company overseas as part of its globalization plan. Our team discovered Japan’s political environment is stable. Most business disputes settle out of court avoiding legal fees. Expropriation is not a problem in Japan. Japan does have regulations restricting the establishment of business facilities. Indirect regulations do influences prices on certain products. The majority of regulations in Japan protect Japanese companies from outside competition. The United States and Japan entered into an agreement in 1971 for businesses conducting trade between both countries that allow companies to avoid double taxation. Last year, Japan was devastated by a large earthquake and tsunami. The Fukushima Daiichi nuclear power plant sustained significant damage leaking radiation into the atmosphere. Fixed-income and emerging markets face the most repatriation risk. The combination of all three disasters cost Japanese insurers 30 billion dollars. Insurance firms may sell domestic assets, overseas equities, and overseas bonds to cover the cost of claims. In the event insurance company’s sell the United States treasuries, fixed-income markets are at risk. The disaster delivered strong support for the yen, considered a safe-haven currency. Repatriation of funds risk is high now but should recover as Japan recovers from the disaster (The Wall...
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...Different Social and Taboo Cultures and Business Etiquettes and How it Influences the Workplace When going to your workplace, DO NOT eat while on the streets or in public transportations. Breakfast and dinner is normally consumed at the person’s respective house or apartment. Men wear conservative business suits and women are encouraged to keep jewelry to a minimum. Women should not wear high heels if the result is towering over their male counterpart. Bow when meeting, thanking, apologizing or saying goodbye. The 45-Degree Saikeirei Bow is used for moments for sincere apology or to show the highest of respect. The 30-Degree Keirei Bow is used to show respect to superiors. The 15-Degree Eshaku Bow is used for Semi-formal and used for greetings when meeting with people for the first time Call people especially your co-employees with their last name especially when in the workplace and for formality purposes. Add “-san” as a suffix to their last name as a sign of respect. When meeting someone for the first time, especially in the workplace or in a gathering, it is important to give a business card using two hands (Avramova, 2015). It is also important to bring a business exchange gift (especially during a large gathering or informal meeting). It is improper to give flowers as they used in funeral services. Buying any in a set of four is deemed unlucky as well as the number 9. When in a meeting or large gathering, DO NOT introduce yourself. Wait for your superior or co-employee...
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...what makes up the population of every country in the world. It is one of the many things that makes us all different. When doing business with other countries it is a real gullible state of mind to think that all people in all places all have the same behaviors and ways of doing things. People should not be confused or taken for granted because they wear the same designer jeans, name brand shoes, or even speak the same language as they do. Same scenario when doing business, even more so if that business is to be done in another country or with someone with a different cultural background. Things such as higher levels of sensitivity, being more detail oriented or simple differences like their patterns of behavior can make a huge difference in some other culture (Drew, 2013). If you want to succeed in the cross-cultural business world of negotiations you must completely understand others, and using that knowledge to your advantage to recognize the desires of all parties involved; and then develop a situation that becomes a win-win setting for everyone involved. It is wise to keep in mind, that when doing cross-cultural business, the methods or approaches of the domestic could be different and may not apply if they are not culturally accepted by the other party (Drew, 2013). Some of the most common things you should know before negotiating business with another culture are as follows:...
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...Environment and Risk The political environment is vital to monitor for any company planning to do business, especially in a foreign country. Political risks are associated with government actions which deny or restrict the right of an investor or owner. These actions include war, insurrection and political violence. They are also able to devalue the firm by creating legislation that can increase taxes and tariffs, seize their property or restrict use of his/her assets which would then reduce the value of the firm (Howell, 2014). 3.1 Political Environment and Risk in Japan Japans political environment is among the most stable in the world based upon the fact that the World Bank has ranked Japan in the top quartile in all areas of governance as can be seen in figure *INSERT FIGURE NUMBER*. Graph retrieved from Finance for Australian Exporters Graph retrieved from Finance for Australian Exporters Figure 1- Governance Indicators in Japan Sourced from Finance for Australian Exporters, 2015 Additionally, the World Bank has also rated Japan 29th out of 189 economies in ease of doing business. Australia has a major foreign trade incentive with Japan as the free trade agreement between Australia and Japan which came into effect in January 2015 allows 97% of Australian exports preferential treatment or duty free access into Japanese markets (Export Credit Agency, 2015). Japans stable political environment and Australia’s positive relationship positions the country’s political...
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...head: COUNTRY RISK AND STRATEGIC PLANNING Country Risk and Strategic Planning University of Phoenix Global Business Strategies MGT 448 Jun 18, 2007 Country Risk and Strategic Planning Taking a new business concept overseas and installing facilities in a foreign country involves a great deal of preparation and forethought. Introducing a fitness/entertainment hub such as City Beach to the Japanese people, despite positive preliminary evidence, could end up being a catastrophic failure. With any overseas business venture, there are inherent risks that one must take into account. Doing business in Japan begins by appointing a representative in Japan. This representative may be a person chosen from the headquarter office or a Japanese national. According to (Jetro 2007) The representative must have the decision-making powers to make sure that the initial venture happens without any setbacks. The major regulations of doing business in Japan include laws and regulations that apply to any business startup. Foreign companies can begin by establishing their business presence as representative office, branch office, subsidiary company, or limited liability partnership. Since the setup procedure for establishing a business can be very complicated, it is advisable to procure outside help from a professional service firm in Japan. Human resource management pertaining to Japan’s laws on labor and protection of workers include the Labor Standard...
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... 1. What were the triggers of cultural change in Japan during the 1990s? How is cultural change starting to affect traditional values in Japan? The triggers to Japan changing culture came by way of the “new kids on the block” thinking and becoming more focused on individualism than collectivism. Those participating in the new Japan no longer believe in the Japan is moving towards more individualism than collectivism after the economic bubble. Nonetheless, this is a good opportunity for Japan to adapt to the globalization world and be more competitive. The cultural change will lead to greater mobility of employees, which means people will move around jobs more than before 1.What were triggers of culture change in Japan during the 1990s? how is cultural change starting to affect traditional values in Japan? Cultural change in Japan was triggered by the economic recession in the 1990’s. Traditional Confucian values focused on loyalty, high moral and ethical values and set the pathway for relationships with others in traditional Japanese businesses. When the generation born after 1964 lacked the same commitment to traditional Japanese value as their parents but they grew up in a world that was richer, where western ideas were beginning to make themselves felt, and where the possibilities seemed greater. They did not want to be tied to a company for life, they become a salary man. Traditional ways of doing business and perceptions of the loyal, hard-working salary-man...
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