External Environmental Analysis Hofstede’s Dimensions of cultural values | | Japan | USA | Individualism Vs. Collectivism | Collectivism | Individualism | Power Distances | Large power distance | Small power distance | Uncertainty avoidance | Strong uncertainty avoidance | Weak uncertainty avoidance | Masculinity Vs. Femininity | Masculinity | Masculinity | Confucian work dynamism | Long-term oriented | Short-term oriented |

*Retrieved from: http://www.geert-hofstede.com
Individualism Vs Collectivism: * Japan: it is really important for people in Japan to be a part of a group and to behave as a part of a group. * USA: people in the USA are more concerned about themselves and not that group oriented. They honor more the individual achievement also when they work within a group.
Power Distance: * Japan: people in Japan are treated differently because of their different positions in an organization, but anyhow with dignity. Managers for example have to make decisions on their own. * USA: it is usual to treat people in a lower-level as equals. Decision making for example is not only a manager’s exercise.
Uncertainty avoidance: * Japan: Japan has more explicit rules and strict laws. People are working more correct and stay in the same company for a long time. * USA: people in the USA are more easy going and flexible, but anyhow competent.
Masculinity Vs Femininity: * Japan: is to be said the most masculine country in the world; men have more say than women because they are heads of the family. They tend to live in order to work and not to work in order to live, the focus is on generating high competition and collective success. Elements such as extreme masculinity, assertiveness, honor and absolute sex role separation stand out. * USA: they value success and money, experiencing a high degree of gender differentiation. Men dominate a significant portion of the society and power structure, therefore the female population becomes more assertive and competitive.
Confucian work dynamism: * Japan: it is future oriented; people are perseverant and show a tendency to save money or time. They state long term plans, because they believe in future benefits and acknowledge. Japanese also show respect for tradition, social obligations and protecting one’s face. * USA: they are short term oriented; although they respect tradition and social obligations, the most important concern is the present. American companies focus on high productivity to achieve short term profit and competitiveness.
The collectivist attitude in Japan, the concept of trust and maintaining harmony in a group is highly important because the success of a firm is by the effort of the group. Masculinity is a matter of pride and building a persistence character helps them to be more competitive and hard working. Short term benefits are discouraged because they believe in future rewards.

Hall’s High- and low- context cultural framework | | Japan | USA | High/low context culture | High- context culture | Low- context culture |

* Japan: people have close connections over a long period of time. In companies or families, behavior does not need to be explicit because most members know what to do and what to think from years of interaction with each other. Family gatherings, attending to restaurants with a regular client or hosting a friend overnight at home is common. * USA: people prefer to limit communication to smaller, more select groups of people, sharing only that information that is necessary. The appropriate choice of words is important and they also separate their lives into different aspects.
We can notice that in Japan it is more important to rely on things other than words to convey meaning. In the United States communication will pay more attention to the literal meanings of words than to the context surrounding them.
Economic Background*
Japan: In the years following World War II, government-industry cooperation, a strong work ethic and mastery of high technology helped Japan develop a technologically advanced economy. On a purchasing power parity basis, Japan is the third-largest economy in the world after the US and China; measured by official exchange rates, Japan is the second largest economy in the world behind the US. * GDP (oficial exchange rate): $5.068 trillion (2009 est.)

* GDP per capita: $32,700 (2009 est.) * GDP composition by sector: agriculture: 1.6% industry: 21.9% services: 76.5% (2009 est.)

* Labor force: agriculture: 4% industry: 28% services: 68% (2009 est.)

* Unemployment rate: 5.1% (2009 est.)
United States: the US has the largest and most technologically powerful economy in the world, with a per capita GDP of $46,400. In this market-oriented economy, private individuals and business firms make most of the decisions.. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. * GDP (oficial exchange rate): $14.26 trillion (2009 est.)

* GDP per capita: $46,000 (2009 est.)

* GDP composition by sector: agriculture: 1.2% industry: 21.9% services: 76.9% (2009 est.)

* Labor force: farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% other services: 17.6%

* Unemployment rate: 9.3% (2009 est.)

*Retrieved from: https://www.cia.gov

Social Background
Japan:
Language: 99% speaks Japanese as their first language but English is also an important language which is taught in every public and private school as the second language. Criticized is that they are aimed to pass the TOEIC-Test but the ability to communicate suffers.
Religion: The nature is very important for the religion in Japan which is shown in various practices. Since the 19th century various religion sects arise in Japan
Shintoism 83.9%, Buddhism 71.4%, Christianity 2%, other 7.8% note: total adherents exceeds 100% because many people belong to both Shintoism and Buddhism (2005)
Education: Compulsory for Japanese are the elementary school and the middle school. Most of the children than continues with the junior high school and University. Education is very important for Japanese and the they compete against each other especially to enter to institutions of higher education. Literacy: total population: 99%
Population: 127,078,679 (July 2010 est.) country comparison to the world: 10
USA:
Language: about 80% of the population speaks English as their first language, 12% Spanish. English is the national language whereas Spanish is the second most common language.
English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific island 2.7%, other 0.7% (2000 census)
Religion: The US is a secular nation and guarantees the free exercise of religion.
Protestant 51.3%, Roman Catholic 23.9%, Mormon 1.7%, other Christian 1.6%, Jewish 1.7%, Buddhist 0.7%, Muslim 0.6%, other or unspecified 2.5%, unaffiliated 12.1%, none 4% (2007 est.)
Education: In the US also the elementary school and high school is compulsory. They have to go to school from six or seven till eighteen, in some states only till sixteen or seventeen. They have public as well as private institutions of higher education and local community colleges. Literacy: total population: 99%
Population: 307,212,123 (July 2010 est.) country comparison to the world: 3