Ccm Project on Japan

8/6/2019 Ccm Project on Japan

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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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Ccm Project on Japan

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