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Matsushita and Japan’s Changing Culture

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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?
During the 1990s a prolonged economic slump forced quite a number of Japanese companies to change their ways of doing business, like abandon the “Confucian values”. Younger people, who saw this, begun to question themselves if it’s meaningful to be tied to a company for life. Furthermore they saw that the western ideas of doing business seemed to have greater possibilities and more freedom to move around. These are the reasons why western values become more and more important in the Japanese life and bit by bit affected the traditional Japanese values.

2. How might Japan’s changing culture influence the way Japanese businesses operate in the future? What are the potential implications of such changes for the Japanese economy?
The generation born after 1964 has other new views how to act with a company. Nowadays the employees feel more important for themselves, for example for their career, than for the company. The new generation will make individual effort and won’t work for a greater good of their company for all employees. Therefore companies has to change their programs of benefits. They have to support individual performance stronger and don’t base it in a seniority pay system and reconsider about the sense of the rest of the benefits given to every employee as a part of the Confucian values.

3. How did traditional Japanese culture benefit Matsushita during the 1950s - 1980s? Did traditional values become more of a liability during the 1990s and early 2000s? How so?
The traditional Japanese culture was one of the main reasons of Matsushita’s success during the 1950s – 1980s. Thereby Matsushita took care of employees from the cradle to the grave and they offered their company life-long loyalty and hard work, known as the Confucian values. These values became a liability during the 1990s and the early 2000s.

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