iss semester manis gg

8/7/2019 iss semester manis gg

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Semester project

ISS Facility Management

Market analysis in Japanese Market

Semester projectpicture source: ISS home page:http://www.dk.issworld.com/produkter_and_services/integrerede_facility_services/Pages/Integreret

_Facility_Services.aspx

Subbmited to

First Semester

Bachelor in International Sales and Marketing Management

Zealand Business College

Nstved, Denmark

Submitted on10 january 2010

Prepared by:

Jeshan ShresthaNimesh ShresthaSarita NeupaneDambar Timsina
http://www.dk.issworld.com/produkter_and_services/integrerede_facility_services/Pages/Integreret_Facility_Services.aspxhttp://www.dk.issworld.com/produkter_and_services/integrerede_facility_services/Pages/Integreret_Facility_Services.aspxhttp://www.dk.issworld.com/produkter_and_services/integrerede_facility_services/Pages/Integreret_Facility_Services.aspxhttp://www.dk.issworld.com/produkter_and_services/integrerede_facility_services/Pages/Integreret_Facility_Services.aspx


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Table of Contents

Table of Contents..................................................................................................................................2

.............................................................................................................................................................3

Introduction and problem identification...............................................................................................3

Problem formulation.............................................................................................................................4

Method..................................................................................................................................................4

Data collection......................................................................................................................................5

Criticism of data collection method.....................................................................................................5

Delimitation of the project ...................................................................................................................5

Situation analysis..................................................................................................................................5

Macro-environment analysis.......................................................................................................6Political factors..................................................................................................................6Economic factors...............................................................................................................7Social factors.....................................................................................................................7Technological factors.........................................................................................................8Environmental factors........................................................................................................8Summary of macro environment.......................................................................................9

Micro environment and Industry analysis...................................................................................9Market area coverage.........................................................................................................9Generic Demand and potential..........................................................................................9Buying behaviour.............................................................................................................10Segmentation...................................................................................................................11Market trends and Competition within industry..............................................................11

Distribution......................................................................................................................12Summary of industry / market analysis...........................................................................12Resources and Competences of ISS .........................................................................................12

Summary of resources and competences.........................................................................17SWOT Analysis / Conclusion on situation analysis..................................................................17

Strength............................................................................................................................17Weeknesses.....................................................18

Opportunities...................................................................................................................18Threats ............................................................................................................................19

Possible Business Model and its impact.............................................................................................19

Innovation regarding Supply Chain Management..............................................................................21

Financial consideration.......................................................................................................................22

Legal consideration for Japanese market...........................................................................................22

Final conclusion and recommendation...............................................................................................23

Refrences............................................................................................................................................24

12. References....................................................................................................................................24

Appendix / Diary................................................................................................................................25

Working plan.............................................................................................................................25Job specification who has been done........................................................................................25


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Introduction and problem identification

japan is a favorable investment destiny for foreign capital and multinationals. Many European

companies are nowadays enjoying the opportunities of doing business in japan.

ISS is one of the world leader international company in its market areas. Facility management,

security services, cleaning services, support services, property services and catering services are the

business areas operating its business with core values honesty, responsibilities, entrepreneurship and

quality of the ISS.

Before entering a market, doing an analysis is essential action way to evaluate the opportunities of

the market in relation to one business. In this perspective, we have been asked to conduct a market

analysis of japan in order to assess the potentialities of the japanese market. In other words, the

purpose of our research is to increase the understanding of the business environment in japan by the

management of ISS.


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Problem formulation

In this research, we will analyze the business environment of japan, at the macro-level as well as at

the particular industry of facility management. Later on, we will discuss the possible consequences

of ISS entry on the japanese on the company actual business model, innovation measures on the

supply chain, the financial and legal considerations.

Issue 1: How is the general business environment in japan?

Issue 2: What are the characteristics of the facility management industry?

Issue 3: Resources and competences

Issue 4: What are the possible consequences of ISS entry on the japanese market, on the company

business model?

Issue 5: Which innovative measures could be taken in order to optimize the supply chain of ISS?

Issue 6: What kind of financial issues have to be into considerations, if entering the market?

Issue 7: What are the legal implications?

Method

This report is basically focused on market analysis of japanese market in facility management. We

will go through inductive approach under phenomenological philosophy. we will do the financial

benchmarking through deductive approach under positivism philosophy. To find if japanese facility

management industry is suitable for economic opportunities or not.

The environment analysis was based on the PEST model. PEST analysis stands for Political,

Economic, Social and Technological analysis. This model is used to describe the macro-

environmental factors of a given country. Another used model is the SWOT analysis. SWOT

analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities,

and Threats involved in a project or in a business venture1. David A. Aakers outline of market

analysis has been used to analyze the demand, discuss the segmentation of the market, analyses

customer behavior and others market issues.

And the next phase we will discuss about the consequences on business model by entering the

japanese market, measure taken to optimize supply chain and legal consideration on the basis of our

SWOT analysis.

1 http://en.wikipedia.org/wiki/SWOT_analysis( 04-12-2010) 10:20
http://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/SWOT_analysishttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Business


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Data collection

Most of the data we will collect are secondary. Our analysis will also base on the primary data like

ISS home page, annual report etc. We will look around trade report, industries association report,

especially CIA the fact book and the country commercial guide. In addition we will pass through

company and competitor annual report and home pages.

Our data are mainly from online based research. We have been on several of web site in order to

collect data and information. A list of visited web sites can be seen on the reference list. The

collected data are among others, annual reports, different press release, academic publications etc.

Criticism of data collection methodDue to the time limitation, we could only have access to online data. The problem is we cannot

verify the information we collect from the internet. So it is kind of risky for a company to base its

decision on these data analysis.

But the advantages with the internet research are the cost and the time. Indeed, internet based

research, content analysis is cheap and less time consuming. It would have been very useful to add

to these secondary data, some primary qualitative data like in dept interview. But as mentioned

earlier, the time was an issue here.

Delimitation of the project

The first limit is the time. We had only one week to conduct a complete market analysis. This, in

our eyes, was not enough. This issue had some consequences on the research methods, specially the

data collection.

Since we did not have enough time, we chose to take one company for the industry and the

competition analysis.

Situation analysis


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It is very important to know external environment to understand how the situation going on

concerning the target business and how the situation can affect the business which is going to be

played. Overall macro environment and then industry environment analysis could be the most

interesting factor to find actual environment assumption.

Macro-environment analysis

With its population of 126 million2, on a total area of 377,915 sq.km, japan is the worlds second

largest economy of the world.

This section is the place to analyze all the forces that affects industries in japan. In order to do so we

will use the PEST model.

Political factors

Japan is a political stable country. It has a parliamentary government with a constitutional

monarchy. Japan has adopted european civil law system with english-american influence 3. Business

groups and trade unions are the political pressure groups in this country. International organization

like: ADB, AFDB, APEC,ASEAN have active participation of Japan.

The new coalition government, led by the Democratic Party of Japan (DPJ) with Yukio Hatoyama

as Prime Minister, is the first government not led by the LDP in the 16 years. This has meant a

departure from the iron triangle politics of the LDP, business and bureaucrats, which created deep-

rooted and vested interests amongst those wielding power4.

2009was a politically exciting but economically depressing year for Japan. It was the first time in

16 years that the government had been led by a party other than the Liberal Democratic Party

(LDP), but also a year in which Japan suffered its largest decline in GDP in half a century. The year

2010 is to be another difficult and challenging year, with economic deflation necessitating the

adoption of a new growth strategy and a July upper-house election which could create a historical

watershed of Japans politics5.

2 https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html(04-12-2010) 11:003 https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html (04-12-2010) 11:024 http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/ 04-12-2010)

11:245 http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/ (04-12-

2010)11:05
https://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttp://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/https://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttp://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/


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Economic factors

japan's economy is the second largest economy of the world.

In 2009 est., the GDP was $4.149 trillion (purchasing power -based)6

fourth position oncountry comparison to the world.

GDP in real growth rate 3.7%.7

Per capita GDP (2009 est.): $ 32,600 (exchange rate-based)

unemployement rate is 5.2%

liberal fiscal and monetary policy

positive balance of payment which is 142.3 billion us dollor est. in 2009

low interest rate-based

decreasing currency rate

negative inflation rate

Japans financial markets have now stabilised from the after-shocks of the Lehman Brothers

collapse of September 2008, after the Japanese economy bottomed out sometime around March

2009, but economic recovery is still very slow and the level of economic activity, as shown in

various indices, is still below pre-crisis levels8.

In Purchasing Power Parity GDP, japan already has the biggest economy. Export growth continues

to be a major driver of japans rapid growth. Most of the economical factors are positive to enter the

japanese market but unemployement rate 5.2 percent make ISS difficult to find workforce as well as

decreasing currency rate in comparision of dollor and negative inflution rate and low GDP invite

challenges to the ISS.

Social factors

The population growth rate is negative . japan is very concerned about its population growth and

has attempted with mixed results to implement a strict birth limitation policy. With a life expectancy

about 82.17 in average, the women life is 85.66 years and for the men it is at 78.87 years 9.

6 https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html (04-12-2010) 12:007 Hands out source provided by morten ( economics teacher)8 http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/ 8:20 5-12-20109 https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html (05-12-2010) 08:25
https://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttp://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/http://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/https://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/ja.htmlhttp://www.eastasiaforum.org/2010/01/25/japans-political-watershed-and-its-economic-challenges/https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html


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The literacy rate is 99% and the main language japanese.

According to the 2009 estimates by japans National Bureau of Statistic, the total number of the

total unemployment rate stood at 4.0%.

Year Unemployment rate

2007 5.00%

2008 6.20%

2009 5.6.00%

2010 5.20%

Figure1: japans unemployment rate10

poverty elimination

exclusive income level and strong economy

are the attractive indicators of japan for ISS facility management.

Technological factors

the first productive force by one of the japanese Leaders, science and technology have always

preoccupied japans political leaders. japanese science strategists see japans greatest opportunities

in emerging fields such as biotechnology and computers, where there is still a chance for japan to

become significant player.

Japan has established some technology cooperative relationships with the USA, Korea and theEuropean Union.11

Environmental factors

One of the serious negative consequences of developed countries like japan, its industrial

development has been increased pollution and degradation of natural resources. Many analysts

estimate that japan, USA are the worlds largest emitter of carbon dioxide and other greenhouse

gases in 2009. Respiratory and heart diseases related to air pollution are the leading cause of death.

The country leaders are increasingly paying attention to the countrys severe environmental

problems.

10 http://www.economywatch.com/world_economy/japan/unemployment.html11 Published May 2009 by UK Trade & Investment


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The latest available statistics for 2008 indicate that Japan has approximately 60,000 hotels with 1.6

million rooms. While these numbers are not small, hotel properties remain a minor component of

real estate investment in Japan. J-REITs now manage only 41 hotels, which comprise 2.2 % of all J-

REIT properties by quantity12

.

From the above information we can see hotel industry is increasing. It means that scope of facility

management is also increasing.

Most of the largest companies, by revenue, are American or Japanese. In 1996, 162 of the 500

largest companies globally were from the United States, and 126 from Japan. Only a few of the

largest companies are from developing countries. An exception is China, which has three entries in

the top 500 list (Fortune Magazine, Top 500 and Biggest revenues and increases in revenues13

.

Measured by foreign assets, the distribution of the largest companies looks very much the same.

Most of the top 100 companies with largest foreign assets are from the United States, Japan, the

United Kingdom, France and Germany. In this list, Japanese companies are not as prominent.

world bank, it estimate between now and by 2020, roughly seventy percent of the world service

business will take place in Asia. It mean japan is the power house of Asia in every aspect so its role

will remains notable position. On the other side japan have policy to go for green environment and

they have policy to build green building. Foreign companies are not as much stronger then japanese

local company for this purpose.

Buying behaviour

How the customers buy and what the critical things they consider when making purchase could bestarting point to further consideration regarding segmentation, distribution and other strategy.

Regarding japanese industry, customers are big and they are working in close relation with their

supplier and customers. So it is very important to understand their procurement process. In this

contest of close relationship, company has to look their procurement process. What they focus on

for price, volume, cost or value or want to have close relationship. ISS may focus on much more

close relationship and collaboration, supply time and cost whereas other service supplier may focus

on volume and price.

On the other hand buying situation (new buy, straight rebuy and modified rebuy) is less important

12 Hotel association of japan report (2009)13 http://actrav.itcilo.org/actrav-english/telearn/global/ilo/multinat/multinat.htm (6-12-2010)12:40
http://actrav.itcilo.org/actrav-english/telearn/global/ilo/multinat/multinat.htmhttp://actrav.itcilo.org/actrav-english/telearn/global/ilo/multinat/multinat.htmhttp://actrav.itcilo.org/actrav-english/telearn/global/ilo/multinat/multinat.htm


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as we cannot categorize companies in any group.

Inside the industry, key players are already exist and new enter company/supplier have to adjust on

their network. To company only have to consider their way of buying and criteria that they look for

when choosing supplier.

Segmentation

japan is big market and it covers with geography. It will not possible to cover the entire country one

at a time. Most of the business also focused on geographical resigns basic. US commercial service

in japan also recommended focusing in geographical basic and they provide information as a region

basic as they have information center in most of the city.

So when entering the market it could better to choose some potential city in the beginning. As for

the example Tokyo is one of the big city in japan. It could be potential market for facility service

industry.

Inside the focused region/city company could categorized the customer as their procurement

process like focus on price and volume, focus on relationship and collaboration. Segmentation

based on buying behaviour will give access to the company use relevance strategy for separate

segment.so possible segmentation could be as following

Macro segment: Based on city

Micro segment: Based on buying behaviour (Procurement process) and key criteria are focus

on price and volume, focused on relationship and collaboration.

Market trends and Competition within industry

It is very important to understand the trend of market before look at the market. In japan there are

number of hotel, universities, offices of multinational companies. It means the flow of people and

level of service demand is in mature phase. It is essential to go with different focal point.

How the companies are making competition also important to analyses industry environment. In

some cases companies are able to decrease competition making upward and downward

collaboration with their supplier and distributor.


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As following model in evolution in market shows that if there are number of competitors are

competing for better market share and we can say that industry is in growth phase. In the growth

phase still potential for new entrance.

Distribution

Distribution pattern of industry is important consideration before enter market. Distribution in this

context means, simplifying, typing together in supply chain flow of material and service and

information between manufacturing company and consumer customer.

Summary of industry / market analysis

Service companies have enough market all over the world. World Bank report also estimates that

by 2020 seventy percent service market will take place in Asia.

As customers are working on close relation with their supplier and customer, they must look for

better quality, delivery time, and other factor of collaboration. Buying procurement process could be

critical factor to look customer behaviour. All the customers are exist with their activity so they

must have experience and knowledge of market.

Segment and competition within this segment is considerable. First of all company have to choose

potential city at the beginning and need to work in cooperation with customer and material supplier.

After the targeted city they are require to choose potential segmentation as like what they focus on

price and volume or relationship and collaboration.

After the segment, distribution also another concern for new entrance company in any market. For

the new entrance either company have to come with innovative idea for distribution or need to

adjust on existing system.

So in conclusion companies have high potential within the industry with potential key player. All

the key players could bring threats and creates the barriers for new entrance. Without consider the

entire key player it is hard to reach potential customer.

Resources and Competences of ISS

With a major pool of skilled employees, iss is able to develop , manage and deliver


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any type of support service 365 days a year . Iss recognise the importance of

competent, trustworthy and cross-trained employees as the focal point for delivering a

faultless service. 14

Iss is one of the largest cleaning company in the world . Iss is represented in more than

53 countries around the world including 36 countries in Europe , Asia , and Latin America.

It has more than 485000 employees. Iss is no. 2 largest company in Europe and no.3

worldwide. That means it can get lot of advantage in every aspects. In this project

specially we focus on those resource and competencies that really need to iss in south

japanese market.

Employees of ISS

As being the largest company iss provides better quality services through better

employees and workforce.

To run any kind of business or organization it requires creative, skilled and innovative

employees . Employees are the key responsible factors that directly or indirectly effects any

organisation.

As being the cleaning company iss should have those types of employess who has

the proper knowledge about the cleaning. Only those people who are expert in

cleaning and who are skilled in cleaning should be motivated for the job. Unskilledpeople cannot do the job properly so for the betterment of the organisation they

should not take the unskilled people for the related job.

Iss works closely with its employees to constantly develop new methods, tools and

materials to improve their cleaning service, enhance the working condition of their

employees .

Managing people e is therefore a core priority at iss as well-trained and higily

motivated employees are the primary source.

Ability to provide service

This is about developing performance , in terms of your skill. Employee of any

organization should be focused in a particular area of business support or should be

more general. Ability to provide detailed customers service , manage any kind of office

operation, train an educates the new hires. High technology is the major competencies

14 http://www.issworld.com/our_services/support_services/pages/technical_insight.aspx
http://www.issworld.com/our_services/support_services/pages/technical_insight.aspxhttp://www.issworld.com/our_services/support_services/pages/technical_insight.aspxhttp://www.issworld.com/our_services/support_services/pages/technical_insight.aspx


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of the company, to introduce the latest product and exclusive quality service. The main

activity of the company is facility management, security services, cleaning services,

support services, property services and the catering services. The techonologial source

can be used to provide better service.

According to the situation the company should be able to provide the better service. What the

individual or the targeted group give priority that should be notice by the company and according to

that they should provide the service. In cleaning sector its service includes

Single service

Multi service

Integrated facility service

Single service

It is that kind of service which is provided by a single person. For example daily office

cleaning.

Multi service

This is the service which cover two or more services where the clients ontains the samesatisfaction or benefits.

Integrated facility service

It includes the overall or most of the facilities provided by the iss.

Service design

For long term survival growth, company needs to constantly upgrade and improve their

service. Iss is working more than 70 years in the field of cleaning and they have set their own

cleaning standards where they operate. Iss offers efficient and flexible cleaning solution to meet

their customers, individual needs and demands. For the benefit and better service to the customer


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Iss provides customised cleaning solutions

Provides quality programmes for cleaning

Skilled and motivated employees

Ongoing quality control

Offers the latest in efficient and flexible cleaning solution

Organisational structure and culture

Organisational structure provides the system through which the essential tasks of enterprise are

subdivided and grouped to create the processes, decision centres and behavioural network that

carryout the enterprise strategies. Organisational design is the structural arrangement of

grouping essential tasks and providing a behavioural networking for making decisions and co-

ordinating work flow. Organisational design supports the strategies of an enterprise and helps focus

employee behaviour.

ISS should always take in concern that

How can we gain commitment for our workers to enable achievement of organizational

goals?

How can we ensure we have a trained and competent workforce who are able to

perform

productively?

How can we sustain in other words , ensure that our workers are compatible with

the

management style and will fit on with other employees?

Ability to finance

How is the financial situation of the iss? How is the existing revenue stream and operating

income of the company as well as cost? Answer of these questions provides the level of

finance confidence of the company.

In 2009 it has generated revenue of 9.3 billion with 54 percent from cleaning service.


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Goodwill

ISS is one of the world largest company which provides the services like

Facility management

security service

cleaning service

support service

property service

catering services

Providing the services in more than 53 countries of the world and several factors

like economic development , increased outsourcing, increased internationalization and

increased competitiveness are the powerful weapon for the South African market.

Goodwill and knowledge are reduce by money regular put a side straight line over

their estimated useful life, which is fixed based on the experience gained by the

management for each business area.In 2009 december iss was awarded The 2009 Frost & Sullivan Market Strategy Leadership Award

in the European market for integrated facility management(IFM).

Networking

Iss is among the worlds best service and was ranked 6 in the Global Outsourcing

100. Facility management, security service, cleaning service , support service, property

service and catering service are the main areas of the business. These all business

area and networking for supplying raw materials can be the channel for the

business.

Current financial situation

In 2009 it has generated revenue of 9.3 billion with 54 percent fromcleaning service.


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Summary of resources and competences

Every organization or company has different chain of activities in terms of creating value. And

almost all companies do not disclose its process and procedures due to the competitors threatens.

That makes little bit difficult to go through the actual point of value-chain analysis. But we have

mention the important point of ISS company that are significant to create the ultimate value for the

competitive advantage.

SWOT Analysis / Conclusion on situation analysis

Strength Quality product and service with advance technology

Focus on system family (all solution on its business area)

Brand name and strong world wide ISS networking

these are the strength symbols of business area

apart of the points mentioned above there are two points of ISS management which are admirable.

The core business strategies

the continued successful implementation of the ISS way strategy is the foundation for robust and

profitable growth in the year.

During the 2009, in line with the ISS way strategy, ISS enhanced its response to customer needs and

targeted customer segments that are most receptive to ISS's value proposition. ISS also focused on

securing service excellence in suitable services that are most relevant for integration and thereby

consistent with ISS's strategies.

Decentralized management style

All around the world management of ISS businesses are done locally. By doing so, the top

management of ISS want its different businesses to stay as closer as possible to their customers. The

business will therefore has a better understanding to its markets and its customers and then be able

to create solution which fit the customers needs.


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Weeknesses

.Downturn in traditional market

New coming in the japanese market

increase price

In Western Europe, which is the traditional markets of ISS is still very fruitful for the company. Butthe economic mood appears limit, and trends are expected to vary widely from one country toanother.

On the other hand the japanese market is very challenging. It is very important to understand thebusiness culture, the regulation, the business relationship in order to succeed in japan. For a newcomer, though competitions will be met. The process of implementing may require hugeinvestments.

Opportunities

Developing market

Stable country

Business environment improvement

High technology level

Removal of international barriers

Threat

Concerns about the rule of law

Environmental issue

Trade barriers remain

The competition

Strenghts

Quality service and with advance

technology

Focus on system family (all solution on its

business area)

Brand name and strong worldwide

networking

Weaknesses

Downturn in traditional market

New coming in the japanese market

Increased services prices

Opportunities

Theeconomy of japan is the second largest in the world, after the United States with a nominal

GDP ofUS$4.149 trillion when measured in exchange-rate terms. japan is one of the economy

power house in the world.

The economic reforms made in japan in the 70s and 80s had other far reaching effects as well. japan

tried to combine central planning with market-oriented reforms to increase productivity, living

standards, and technology without exacerbating inflation, unemployment, and deficit budget.

japan also opened its economy to the world for the purposes of trade and direct foreign investment.

The government efforts to promote rule of law are significant and ongoing.
http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Economy_of_the_United_Stateshttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Exchange-ratehttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Economy_of_the_United_Stateshttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Exchange-rate


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Reform policies brought great improvements in the standards of living of japanese. Especially for

urban workers and for farmers who took advantage of opportunities to diversify crops and establish

villages industries. This new social condition has increased social mobility, and expanded the scope

of personal freedom.

Analysis shows that, japanese facility service management industry is big and it is increasing. There

are number of supplier working closely with key player of this industry. Rapid urbanization rate,

number of construction companies, high volume of building material supply and government

policies toward the rapid development indicates that there are going to build new building.

Threats

As with a number of other markets in this region, japanese market attractiveness has suffered from

the effects of adverse economic conditions.

Human resources function increasingly have to work in international and cross cultural

environments now a days . In addition to the normal pressures of work, HR personnel including

sales forces and service providers are now required to deal with the challenges emanating from

cross cultural differences.

Possible Business Model and its impact

Business model is the guideline for companies to operate. Business model tell how the product has

been produced, what the product mean for customer, how and who the product has been distributed.

Finally for the company making money from business. Regarding ISS, possible business model

shows that they are making money on facility management.


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When ISS enter japanese market they may need to consider their present business model. Value

proposition in global market is totally different in japan. When ISS have to consider japanese

tradition of design. japan always take consider their tradition of in design. So companies have toreconsider about value proposition of their offer.


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Financial consideration

Nowadays, trade and ownership has become global. When entry a new market, the managementboard has to evaluate some financial issues: A good cash flow: it requires money to invest in a new market

fiscal and monetary policy of the country

currency stability and

liquidity position of company before entering the new market

Accounting terminology and methods vary from country to country. The rules of accounting injapan have to be understood in order to rely and avoid misinterpretation.

The currencies issues (exchange rate): the choice of currency to sale or buy. Choice of currencyfor the annual report and the exchange rate.

Credit sales issues

Insurance: in case of not being paid because one of the overseas customers goes out of business.

Limitations and repatriation of profit

Investment limitations and Taxation

Legal consideration for Japanese market

While going global is not as hard as it seems, there are very important legal issues to consider. The

first thing in general is the rule of law. Since we are talking business, the main concern is the

Business law in general. Some particular law, ruling the main aspects of the business relationship,

deserves some deep considerations. They are:

Contract formation

The intellectual property law (This is a major concern for westerners who do business in

japan)

public health and sanitation related issues ( japan is very conses on public health related

issue)

environmental protection related issues

The anti-corruption law(Since corruption is a serious issue in japan)

The distribution rights and licensing

The rule governing the supplier/distributor relationship

The marketing practice law


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anti-dumping act (under WTO)

Final conclusion and recommendation

Our report clearly shows that japan have average of market/ industry opportunities. japanssustained economic growth, role of service industries are increasing regularly generating moreopportunities that ISS can take advantage of if the company enters the japanese market.

Of course the japanese market is not free of threats. There are some socio cultural and law issues.Some trade barriers still remain.

We believe that, based on our analysis, ISS has the capacities and the necessary assets to enter thejapanese market and the predisposition to overcome threats and face the competition.

We would like to have further research regarding customer analysis and have depth study regardingstimulating demand. It involves end user analysis. Company may understand alternative strategy fortheir marketing mix.


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Refrences

12. References

CIA- the world factbook https://www.cia.gov/library/publications/the-world-

factbook/geos/sf.html

FAST FACTS, International trade www.exportvirginia.org

Doing Business in japan .Country commercial Guide 2009, prepared by U.S. Commercial

service and U.S: Embassy tokyo, February 2009

Investor guide- japan, How to to business

United Nation Conference on trade & Development

fourth 2009 http://quote.morningstar.com/stock-filing/Annual-Report/2009/12/31/t.aspx?t=XNYS%3aOC&ft=10-K&d=b24235905eb3cc964df8ece160bdbc62v

quarterly report 2010 http://quote.morningstar.com/stock-filing/Quarterly-Report/2010/3/31/t.aspx?t=XNYS%3aOC&ft=10-Q&d=14fe7f1794b4e133d5809b6d56b4c
http://www.exportvirginia.org/http://quote.morningstar.com/stock-filing/Annual-Report/2009/12/31/t.aspx?t=XNYS%3AOC&ft=10-K&d=b24235905eb3cc964df8ece160bdbc62vhttp://quote.morningstar.com/stock-filing/Annual-Report/2009/12/31/t.aspx?t=XNYS%3AOC&ft=10-K&d=b24235905eb3cc964df8ece160bdbc62vhttp://quote.morningstar.com/stock-filing/Quarterly-Report/2010/3/31/t.aspx?t=XNYS%3AOC&ft=10-Q&d=14fe7f1794b4e133d5809b6d56b4chttp://quote.morningstar.com/stock-filing/Quarterly-Report/2010/3/31/t.aspx?t=XNYS%3AOC&ft=10-Q&d=14fe7f1794b4e133d5809b6d56b4chttp://www.exportvirginia.org/http://quote.morningstar.com/stock-filing/Annual-Report/2009/12/31/t.aspx?t=XNYS%3AOC&ft=10-K&d=b24235905eb3cc964df8ece160bdbc62vhttp://quote.morningstar.com/stock-filing/Annual-Report/2009/12/31/t.aspx?t=XNYS%3AOC&ft=10-K&d=b24235905eb3cc964df8ece160bdbc62vhttp://quote.morningstar.com/stock-filing/Quarterly-Report/2010/3/31/t.aspx?t=XNYS%3AOC&ft=10-Q&d=14fe7f1794b4e133d5809b6d56b4chttp://quote.morningstar.com/stock-filing/Quarterly-Report/2010/3/31/t.aspx?t=XNYS%3AOC&ft=10-Q&d=14fe7f1794b4e133d5809b6d56b4c


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Appendix / Diary

We got project manual on 3 rd dec 2010. Then mean time we use brainstorm to generate preliminaryideas. Then we were able to figure the framework for project. After talking 2 hour we committed tomeet 4th dec 2010 with possible ideas regarding project.

Working plan

sn task responsible remark

1 Brainstorm on project topic Sarita and Dambar

Discussion on ideas finding Sarita and Dambar Distribute individual job

Writing the individual job Job specification* We write individual job

Writing final draft Sarita and Dambar write & finalize the draftPrint and submitting Dambar

Job specification who has been done

sn Job specification responsible remark

Project framework Dambar

methodology Sarita and Dambar

Macro environment analysis Dambar

Industry/ market environment Dambar

Resource and competences sarita

SWOT analysis Dambar and Sarita

Business Model Dambar and sarita

Supply Chain Dambar

Financial consideration Dambar

Legal consideration Sarita

Final conclusion

dairy

Thanking you!

iss semester manis gg

Documents

Transcript of iss semester manis gg