Sandra deMiranda EGT1 Task 4
When considering starting a business in Japan, there are several cultural differences which will have a great impact on the success of business. Communication – As Americans, male and female, we are used to freely express our opinion whether it be in a business setting or otherwise. In Japan, subtlety and body language is very much a way of life, and directness is considered rude. Americans are taught since childhood to make and maintain eye contact when in conversation. In Japan, prolonged eye contact makes the Japanese uncomfortable, and they will avert their eyes which might give Americans the impression that their Japanese counterpart is not being direct. The Japanese consider saying “no” rude and form of losing face for the other person, and they will avoid a direct negative response. They might nod, and say they will consider it when they mean “no”. Americans will not hesitate to say “No” if that is their intention. A business card is extremely important in first contact with Japanese business men. The business card is extended with both hands, while bowing and is to be treated by the American counterpart with great respect and reference. However, in American culture we tend to hardly look at the business card, and therefore this Japanese custom will take some getting used to. Collective Achievement vs Individual Achievement – Japan is a very collective society, and prides itself on the achievement of the group. Everyone will try to avoid causing the group shame and dishonor by not performing to the group standard. The Japanese tend to work their entire lives for one company, and get promoted by seniority and are extremely loyal to their workplace. The US is a much more individualistic society, and promotions and merit are based on personal achievement with less regard for the group. Americans tend to work for several different companies in their lifetimes. As a group the Japanese tend to adhere to rules far better than their American counterparts who mostly keep their own progress at the forefront. Gender Bias – In the US the process of gender equality has travelled a long and arduous road, and has improved greatly. Pay scales are not quite equal yet but the US has come a long way. In Japan however, gender bias is still very prevalent which is obvious from the lack of females present in upper management in the majority of companies. Women are still expected to marry, leave the workforce to become housewives. The gender inequality poses some difficulties when American business women have to interact with Japanese business men. Although this is slowly changing, the culture is deeply ingrained and creates a very big hurdle for American business women. Product – Products that do well in the US market might not be very successful in foreign markets for several different reasons such as the climate or other environmental aspects, society and the culture may be very different than the US. Also wages may be far below those in the US which will also influence the choice of product because buying power will determine what the consumers can afford. If a product is popular in the US, to do market research in Japan to determine whether the reasons why the product is successful in the US would also be the same in Japan. In the case that those reasons are also valid, very little or no changes will need to be made to the product to sell in Japan as well. For products that are unique to the US, and not being sold in Japan thorough market research is necessary to determine whether it will be successful there as well. For instance, in the US tattoo parlors are freely advertised in the US, and there are even reality shows about the work of the tattoo artists on television. In Japan this would never work, as tattoos are associated with the Yakuza or the criminal element, and tattoo parlors are taboo.

Price – The Japanese are very discriminate buyers and pride themselves on purchasing quality products. The price according to the Japanese reflects the quality. So paying a lot for a product signifies high quality in Japan. Sales are not necessarily seen in the same manner as they are in the US. When the price of a product is dropped, the product appears of inferior quality and cheap. In the US we are groomed to find a bargain, and pride ourselves on the fact when we do find one. Promotion - The name of your product needs to be carefully considered, as the catchy American name might not be so easy to pronounce in Japan or worse it might sound like something derogatory or improper in the Japanese language. The color of the packaging might have a significant impact on the success of the product. Certain colors are associated with events that will not promote business. The color white is associated with death, as are certain flowers like lilies. In the US the color white is considered pure, and chic. Labeling has to be in Japanese as most Japanese do not master the English language. Also size is a consideration, as portions are much smaller in Japan than they are in the US. If a personal snack bag in the US might be 12 ozs, in Japan a 6 ozs package might be much more appropriate. The Japanese are very far ahead in technology, and expect products that will reflect the latest technology. While in the US we get most of our advertisement from the television, radio or internet and we do not like to be inundated with flyers and other types of junk mail, in Japan brochures, detailed pamphlets etc. are welcomed. Product promotion at trade shows, on the streets etc. are common place in Japan and even welcomed. The Japanese customer likes to be well informed and will read extensively about the product they plan to buy. In the US we try to avoid people handing out flyers, and abhor long, detailed manuals which will require a lot of reading up on the product. Place – Product distribution in Japan is a part of the cost associated with selling the final product. Market Research, manufacturing, packaging, shipping, marketing, selling costs should all be considered before making the determination to sell a product in Japan. Is the product being manufactured locally or will it be shipped to Japan? In the case of shipping the product to Japan, a local distributor would be the best way to get the product on the market, as the distributor is familiar with the traditions, and local business practices. However, please keep in mind that the Japanese tend to be very bureaucratic, and require a lot of paperwork. The license and approval processes tend to be very slow. In the US, there are well established and fairly quick ways of getting the paperwork pushed thru. Also, in the US it is not necessary to have local offices all across the US, as the infrastructure is such that it lends itself to moving products fast and efficiently across the country. In Japan, it would be advisable to have local business offices with experienced local personnel who are familiar with the way business is conducted in that particular place, how to obtain licenses etc. and will be able to cut thru the red tape. Ethical Issues: Whistle Blowing – Due to rigid rules regarding hierarchy, and pressure of loyalty to the company as well as not bringing dishonor to the group, employees will not speak up or otherwise disagree with questionable actions and decisions of their bosses, contrary to the US where most companies and the US Government have policies in place to protect the “whistle blowers”. In the US Government there is even an Office of Waste and Mismanagement where federal employees can freely report any mismanagement encountered. Sourcing – In the US the Federal Government has created anti-trust laws that prevent companies from sourcing their product parts from a single source, to avoid monopolies and ensure fair customer pricing. Open bids are encouraged, and companies are presented with incentives for doing business with small or minority owned companies. In Japan it is a source of great pride to source from the same producer to

ensure loyalty, and outweighs a possible lower cost from a different producer. The concept of open bidding to find the producer who can deliver at the lowest cost is not entertained at all