ccm project on japan
TRANSCRIPT
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AMITY UNIVERSITY, UTTAR
PRADESHAMITY BUSINESS SCHOOL, MBA (IB)
CROSS CULTURAL MANAGEMENT
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INDEX
S.NO TOPICS Page No.
1) Introduction to business in Japan 3
2) Japanese business structure 4
3) Japanese Management Style 5
4) Japanese Meetings 6
5) Japanese Teams 8
6) Communication style 9
7) Women in business in Japan 10
8) Dress code 11
9) Top Tips on Japanese Business culture 12
10) Successful Entertainment in Japan 15
11) Japanese facts and Figures 16
12) Japanese Government 17
13) Toyota Motors 18
14) Honda Motors Co. 19
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Introduction To Business in Japan
The Japanese approach to business is determined by history and as such is a reflection
of Japanese society as a whole. In order to work and interact successfully with your
contacts in Japan, a basic understanding of some of the underlying concepts
governing business life is essential.
Some of these underlying concepts are so fundamentally different from western models
that adjustment can be difficult and complete comprehension almost impossible. The
most important concept to grasp is that of theoverwhelming importance of personal
relationships within the business cycle. Of all the business cultures of the world, Japan
is one of those most strongly rooted in the concept that relationships should come
before business, rather than business being more important than personal
considerations.
This means that in order to achieve success in Japan, it is important to put the
maximum amount of time and resource into the early stages of relationship-building
even when eventual results may seem a long way off.
Business models in Japan are currently under enormous strain and there is massive
pressure (both internal and external) for reform. Yet change comes slowly to Japan
and old traditions and loyalties linger. Expectchanges to happen, but do not expect an
easy or quick transition.
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Japanese Business Structures
Up until World War Two, Japan was dominated by a small number of very large
companies, the zaibatsu, and these companies had massive influence on the
economy. However, in recent years the Japanese economy has become much
more varied in terms of the size and structure of its companies, producing a
complex web of inter-locking relationships between large and small firms.
Competition amongst these smaller firms is very strong which results in a greatnumber of bankruptcies in this sector therefore the concept of life-time
employment enjoyed by the total workforce is, and has been for some time, a
myth.
Japanese companies, like Japanese society, are hierarchically organized with
individuals knowing their position within a group and with regard to each other.
It is this sense of belonging to the group that gives Japanese companies their
strength and purpose. Group orientation and team working are not merelyconcepts and phrases in Japan but a way of life which permeates all aspects of
corporate life at all levels.
Japanese hierarchy is based on consensus and co-operationrather than the top-
down decision making process which often typifies western models of hierarchy.
This means that people feel actively involved and committed.
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Japanese Management Style
Japanese management emphasizes the need for information flow from the
bottom of the company to the top. This results in senior management having a
largely supervisory rather than hands-on approach. As a result, it has
been noted that policy is often originated at the middle-levels of a company
before being passed upwards for ratification. The strength of this approach is
obviously that those tasked with the implementation of decisions have been
actively involved in the shaping of policy.
The higher a Japanese manager rises within an organization, the more
important it is that he appears unassuming and unambitious. Individual
personality and forcefulness are not seen as the prerequisites for effective
leadership.
The key task for a Japanese manager is to provide the environment in which thegroup can flourish. In order to achieve this he must be accessible at all times
and willing to share knowledge within the group. In return for this open
approach, he expects team members to keep him fully informed of
developments. This reciprocity of relationship forms the basis of good
management and teamwork.
Instructions from managers can seem extremely vague to western ears and this
often causes confusion and frustration. This difficulty is caused, in no shortmeasure, by problems around styles of communication. As users of coded-
speech (where what one says does not necessarily correspond to what one
actually means), direct, clear instructions are not needed. The Japanese
subordinate will second-guess the boss wishes and react accordingly. It is,
therefore, often necessary to ask for clarification if tasks seem vague or unclear.
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It is better to seek clear understanding at the outset that to allow
misunderstandings to produce poor results or tensions in the relationship.
Japanese Meetings
Punctuality is important it shows respect for the attendees. However, due to
the consensus nature of decision making in Japan, it can very often be difficult
to determine a finish time. Always allow slightly more time than you think might
be necessary to achieve your goals.
Meetings are often preceded by long, non-business polite conversation which
could cover such topics as mutual contacts, the merits of your company,
Japanese food etc. Do not become exasperated by this use of your time, as it is
an essential element of the relationship-building process. Show your impatience
at your peril.
The concept of Wa, which is probably best described by the English word
harmony, lies at the heart of the Japanese approach to meetings. Although it isimportant to search for a solution, this must not be achieved at the expense of
disturbing the peace. No individual will wish to proffer a strong opinion, which
might cause some form of confrontation and therefore affect Wa.
Japanese decisions are reached through a process of consensus-building
meetings, each of which is concerned with the preservation of Wa. This means
that the decision-making process can seem very long and drawn out. Patience is
essential in these situations, as to show impatience could have an adverse effecton the all-important Wa.
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Business Cards
It is important, when doing business in Japan that you have a plentiful supply
of business cards with information printed on the back in Japanese.
Cards are presented at an early stage in a formal manner. Present and receive
the card with two hands. (Present your card Japanese side up.)
Treat your Japanese contacts card with respect the card is theman.Dont write on it or leave it behind, as this would show disrespect.
During the meeting, place the cards carefully on the table in front of you with
the senior persons card on the top.
Gift Giving
Gift giving is an endemic part of Japanese business life and should not be
confused with notions of bribery and corruption. Gifts should not be too lavishbut should always be of good quality. It is important to take a number of small
gifts to Japan to distribute to new and existing contacts.
Gifts should always be wrapped. Avoid giving gifts in quantities of four or nine
as these are unlucky numbers. Anything sharp could signify the desire to end a
relationship.
Alcohol, especially good single malt whiskey, is always an appreciated gift.
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Japanese Teams
The Japanese do not really undertake training sessions on teambuilding they are
naturally group-oriented which underlies the need for a truly consensus approach to
issues. The consensus-building process or Nemawashi (literally root binding)
determines that agreement is sought before a formal meeting in order to avoid any
direct confrontation. Thus arriving at a meeting expecting issues to be thrashed out in
a direct and forthright manner will almost always lead to disappointment.
It is also important that group members maintain 'face' in front of other group
members, which amongst other things means that people must be seen to be modest
and humble. Self-promotion in the western sense is seen as childish and embarrassing
behaviour.
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Japanese Communication Styles
Of all the aspects of dealing with the Japanese, the ones which probably cause the
biggest dilemmas concern communication difficulties. Japanese communications are
epitomised by subtlety and nuance, where how one appears and what one publicly
states (tatemae) and what one really thinks (honne) are often poles apart. There is
often a huge distance between the expressed tatemae and the felt honne they canoften even be contradictory.
The development of relationships in Japan is often dependent on peoples ability to
read the underlying truth which may underpin the spoken rhetoric. It can, of course,
be very difficult for the non-Japanese to navigate these very confusing paradoxes. It is
probably best to say that everything should be questioned in order to ensure that clear
understanding has been achieved. Check back several times for clarification of
anything that remains unclear.
Communication difficulties are further compounded by the fact that few foreigners
speak good Japanese and that levels of English in Japan are at best very patchy. Much
of what is said by English speaking businessmen in cross-national meetings is simply
not understood or more worryingly misunderstood. The need for the clear and
precise use of language is never greater than in such situations. The combination of
Japanese vagueness and lack of comprehension leads to enormous problems which
make problem-solving and decision-making very tortuous.
In addition, Japanese body language is very minimal, making it difficult for the
untrained observer to read. The Japanese seem to be very still in meetings, sitting in a
formal upright posture. It is rare for any reaction or emotion to be visible.
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Women in Business in Japan
The average annual income for women in Japan stands at around 50% of the male
level which is a powerful statistic. Although women have reached a largely equal
footing with men in terms of legal rights, there remains a strong unspoken
discrimination towards women in the workplace. Women are largely expected to
perform lower grade tasks and to leave employment upon marriage or the birth of
children. Although there has been a slight shift in this trend over recent years, the
changes are negligible.
Western women working in Japan will probably only encounter difficulties when
trying to manage Japanese male colleagues. Otherwise they will be accepted as an
honorary man
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Japanese dress code
Appearance is vitally important in Japan and people are often judged on the way they
are dressed.
The business convention of dark suit, shirt and tie is very much the norm in Japanese
mainstream business and although other colours are seen more often nowadays than
in the past, it is probably safest to maintain a conservative approach.
For women, business dress should be restrained and formal women do not commonly
wear trousers in business in Japan. Accessories should be upmarket but not
ostentatious.
Bear in mind that the climate in Japan is very varied through the seasons, so take
appropriate wear for the season overcoats/raincoats may be needed in the winter.
Top Tips on Japanese Business Culture
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Tip 1
Relationships drive business in Japan. Without the right depth of relationships with
the right people, it can be very difficult to achieve anything.
Tip 2
It is important to show respect appropriately. Age brings its own dignity and should be
respected. It is probable, therefore, that more will be achieved with a delegation that
contains some older members.
Tip 3
Try to be polite and diplomatic at all times. Avoid showing irritation, annoyance or
impatience. These negative emotions could put a strain on the development of the
relationship.
Tip 4
Avoid putting the Japanese in situations where they might be forced to lose 'face'. Do
not try to push for decisions or deadlines.
Tip 5
Decisions are arrived at through a lengthy consensus-building process. As it is almost
impossible to speed up this process, patience is needed.
Tip 6
Perform as many favours for people as possible. Favours must always be repaid.
Tip 7
Be humble and apologetic rather than arrogant and brash. Modesty is a characteristic
much admired whereas forwardness and being overly self-confident can be seen as
childish behaviour.
Tip 8
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As the Japanese are loath to say 'no' or disagree, it can be very difficult to be
completely confident that a decision or agreement has been reached.
Tip 9
Do not overestimate the levels of comprehension when speaking English in Japan.
There are many fluent speakers of English but many people do not understand even
when they indicate that they have.
Tip 10
Go over the same point several times from different angles to check the situation. Ask
lots of open questions to test for understanding.
Tip 11
Oral agreements carry as much weight as written contracts. In a relationship-driven
society, it is the quality of relationships which will determine events rather than legal
niceties.
Tip 12
Do not speak well of yourself but be very positive about your organization and the
department or team to which you belong. Never make disparaging comments about
your own company - even in jest.
Tip 13
Humour should be avoided during serious business meetings where it will be viewed as
out of place. Humour will, in any case, probably not be comprehensible.
Tip 14
Avoid strong eye contact which can be seen as threatening or hostile behaviour.
Tip 15
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Body language is minimal and it can be very difficult to gauge progress made or the
general sentiment of a meeting.
Tip 16
Show an interest in your contact as a person. An interest in family, hobbies, health etc.
can help to cement a relationship.
Tip 17
Always take gifts to give to key contacts. Gifts need not be too expensive but should
always be wrapped.
Tip 18
Dress well, but conservatively. Appearance is very important and you are likely to be
judged on how you look.
Tip 19If entertaining, entertain as well as possible. Remember that a good deal of the
relationship-building process takes place over meals.
Tip 20
If confused or in doubt when working in Japan, try not to react immediately. Try to
buy some time and reflect on the situation overnight or seek advice from colleagues or
other Japanese contacts.
Successful Entertaining in Japan
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Business meals form an integral part of commercial life in Japan and should be seen
as an important facet of the all-important relationship building process. Therefore, if
you are invited out for lunch or dinner (rarely breakfast), it is important to accept. The
person who invites will invariably pick up the bill. Do not offend by offering to pay if
you have been invited by them.
When using chop-sticks, never point them at anybody and do not leave them sticking
into your rice. When not in use, rest your chop-sticks on the holder which will be
provided on the table.
It is considered polite to leave some food on your plate (or in the bowl) at the end of the
meal to show that you have eaten a sufficiency.
When taken to a traditional Japanese restaurant, it is customary to remove your shoes
when entering. (This is not, however, the case in other types of restaurants.) A
Japanese host will take great delight in choosing the food and explaining to you the
different types of dishes on offer. Japan has a rich and varied cuisine it is not all
raw fish and pickles.
If you invite a Japanese guest for dinner, take them to a restaurant which reflects your
own culinary heritage and you can then explain your own culture and customs to
them.
Tipping is not customary in Japan, as this cost is usually included in the bill.
Japanese Facts and Figures
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Japan in Figures
Land Area 377,727 sq km
Population: 128m
Population density: 338 sq km
Life expectancy:Men 79 yrs
Women 86 yrs
Adult literacy: 99%
Average per household 2.6
Divorces per1,000 : 2.2
The Economy
Currency: YenGDP: US$ 4,623bn
GDP per heads: US$ 36,170
Employment (% of total): Agriculture 5%
Industry 29%
Services 66%
Unemployed 5%
Main Exports: Type: Transport equipment
Electrical machinery
Non-electrical machinery
ChemicalsMetals
Destinations: (% total) USA 22%
China 13%
South Korea 8%
Taiwan 7%
Hong Kong 6%
Main Imports: Type: Machinery & equipment
Mineral fuels
Food
ChemicalsRaw materials
Main countries of origin: China 20%
USA 13%
Japanese Government
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The government of Japan is a constitutional monarchy where the power of the
Emperor is very limited. As a ceremonial figurehead, he is defined by the constitution
as "the symbol of the state and of the unity of the people". Power is held chiefly by the
Prime Minister of Japan and other elected members of the Diet, while sovereignty is
vested in the Japanese people. The Emperor effectively acts as the head of state ondiplomatic occasions. Akihito is the current Emperor of Japan. Naruhito, Crown
Prince of Japan, stands as next in line to the throne.
Japan's legislative organ is the National Diet, a bicameral parliament. The Diet
consists of a House of Representatives, containing 480 seats, elected by popular vote
every four years or when dissolved and a House of Councillors of 242 seats, whose
popularly elected members serve six-year terms. There is universal suffrage for adults
over 20 years of age with a secret ballot for all elective offices. In 2009, the social
liberal Democratic Party of Japan took power after 54 years of the liberal conservative
Liberal Democratic Party's rule.
The Prime Minister of Japan is the head of government. The position is appointed by
the Emperor of Japan after being designated by the Diet from among its members and
must enjoy the confidence of the House of Representatives to remain in office. The
Prime Minister is the head of the Cabinet (the literal translation of his Japanese title is
"Prime Minister of the Cabinet") and appoints and dismisses the Ministers of State, a
majority of whom must be Diet members. Naoto Kan currently serves as the Prime
Minister of Japan.
Historically influenced by Chinese law, the Japanese legal system developed
independently during the Edo period through texts such as Kujikata Osadamegaki.
However, since the late nineteenth century, the judicial system has been largely based
on the civil law of Europe, notably France and Germany.. The current constitution
requires that the Emperor promulgates legislation passed by the Diet, without
specifically giving him the power to oppose the passing of the legislation. Japan's court
system is divided into four basic tiers: the Supreme Court and three levels of lower
courts. The main body of Japanese statutory law is a collection called the Six Codes.
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ORGANIZATIONS HAVING THEIR HEADQUARTERS IN JAPAN
Toyota MotorCorporationHistory
Toyota Motor Corporation (Japanese:, Toyota Jidsha
Kabushiki-gaisha?, TYO: 7203), LSE: TYT, NYSE: TM, commonly known simply as
Toyota and abbreviated as TMC, is a multinational automaker headquartered in
Toyota, Aichi, Japan. In 2009, Toyota Motor Corporation employed 71,116 people
worldwide (total Toyota 320,808) TMC is the world's largest automobile manufacturer
by sales and production
The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's
company Toyota Industries to create automobiles. Three years earlier, in 1934, while
still a department of Toyota Industries, it created its first product, the Type A engine,
and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group
companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors]
along with several "non-automotive" companies.TMC is part of the Toyota Group, one
of the largest conglomerates in the world.
Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo. In
addition to manufacturing automobiles, Toyota provides financial services through its
Toyota Financial Services division and also builds robots
Name
Vehicles were originally sold under the name "Toyoda", from the family name of the
company's founder, Kiichir Toyoda. Since "Toyoda" literally means "fertile rice
paddies", changing the name also helped to distance the company from associations
with old-fashioned farming. The newly formed word was trademarked and the
company was registered in August 1937 as the " helped to distance the company from
associations with old-fashioned farming. The newly formed word was trademarked and
the company was registered in August 1937 as the "Toyota Motor Company".
Honda-the power of dreams
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History
Honda Technology Research Institute Company, Limited is a Japanese multinational
corporation primarily known as a manufacturer of automobiles and motorcycles.
Honda has been the world's largest motorcycle manufacturer since 1959,as well as the
world's largest manufacturer of internal combustion engines measured by volume,
producing more than 14 million internal combustion engines each year Honda
surpassed Nissan in 2001 to become the second-largest Japanese automobile
manufacturers of August 2008[update], Honda surpassed Chrysler as the fourth
largest automobile manufacturer in the United States. Honda is the sixth largest
automobile manufacturer in the world.
Corporate profile and Divisions
Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo
Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka,
Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland.
The company has assembly plants around the globe. These plants are located at China,
United States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand,
Indonesia, India, Thailand, Turkey and Peru. As of July 2010, 89 percent of Honda
and Acura vehicles sold in the United States were built in North American plants, up
from 82.2 percent a year earlier. This shields profits from the yens advance to a 15-
year high against the dollar.
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