JAPAN

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JAPAN

• May Linn Bie
• Kristian Roeed
• Nina Christenson
• Steven Murray
• Greg Findlay
• Yngve Torvanger-Jordal

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Introduction

• Area Island chain covering 377,835 sq km
• Population 126,549,976 (July 2000)
• Ethnic groups Japanese 99.4, other 0.6
  (mostly Korean)
• Religions Shinto and Buddhist 84, other 16
  (including Christian 0.7)

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Introduction

• Languages Japanese
• Literacy High (99)
• Government type Constitutional monarchy
• Capital Tokyo
• Administrative Divisions 49 prefectures

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Introduction

• Legal System Modelled after European model
• Executive branch
• - Chief of state Emperor AKIHITO (since
  1989)
• - Head of govt. Prime Minister Yoshiro
  MORI

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Introduction

• - Cabinet appointed by the prime minister
• - Elections none

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Introduction

• Legislative branch Bicameral Diet
• Judicial branch Supreme Court
• GDP
• purchasing power parity 2.95 trillion
• real growth rate 0.3
• per capita 23,400

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Introduction

• GDP composition by sector
• agriculture 2
• industry 35
• services 63
• Labour force 67.76 million
• Education system High Quality - intensive
• Unemployment rate 4.7

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Introduction

• Inflation rate 0.8
• Industries Production of motor vehicles,
  electronic equipment, machine tools, steel and
  non-ferrous metals, ships, chemicals, textiles,
  processed foods

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Introduction

• Communications
• Excellent telephone system
• 357 ISPs
• Transportationhighly developed infra structure
• 171 airports
• Natural resources scarce

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Economy

• Second most technologically powerful economy in
  the world after the US and third largest economy
  in the world after the US and China.
• Reasons Government-industry co-operation, a
  strong work ethic, mastery of high technology,
  and a comparatively small defence allocation (1
  of GDP).
• The Keiretsu.
• Lifetime employment.

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Economy

• Industry Motor vehicles, electronic equipment,
  machine tools, steel and non ferrous metals,
  ships, chemicals textiles, processed foods.
• Exports 413 bn - commodities motor vehicles,
  semiconductors, office machinery, chemicals
• Export - partners US 31, Taiwan 7, China 5.5,
  South Korea 5.4, Hong Kong 5.2

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Economy

• Imports 306 bn - commodities fuels,
  foodstuffs, chemicals, textiles, office
  machinery.
• Imports - partners US 22, China 14, South
  Korea 5.1 , Australia 4.2, Taiwan 4.1
• Agriculture 2 of GDP, highly subsidised and
  protected. Products rice, sugar beets,
  vegetables, fruit pork, poultry, dairy products,
  eggs fish.
• Electricity - production by source fossil fuel
  56.68, hydro 8.99, nuclear 31.93

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Economy

• For three decades overall real economic growth
  had been spectacular a 10 average in the 1960s,
  5 1970s, and 4 1980s.
• Slowdown 1992-95 over investment speculative
  excesses.
• 1997-98 Japan experienced a wrenching recession,
  centred around financial difficulties in the
  banking system and real estate markets and
  exacerbated by rigidities in corporate structures
  and labour markets.

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Economy

• Crowding of habitable land area and the ageing of
  the population are two major long-run problems.
• Outlook Spiralling public debt, pensions bomb
  negative. Restructuring, liberalisation,
  innovation and industry leadership positive.

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Institutions

• GOVERNMENT
• Constitutional monarchy
• Democratic institutions
• Prime Minister Yoshiro Mori, leader of the LDP
• Decreasing political stability

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Institutions

• LABOUR INSTITUTIONS
• Drastic changes following economic boom and
  recession
• TRADE INSTITUTIONS
• Traditionally relied on multi-lateral
  organisations
• Increasingly strong regional presence

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Corporate Culture

• TQM
• PRODUCTION INNOVATION
• THREE PILLARS IN HRM
• LEARNING ORGANISATION
• TRANSFERABILITY?

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Corporate Culture

• CORPORATE GOVERNANCE
• INTERNAL PROMOTION AND
• LONG-TERM COMMITMENT
• US-THEM DIVISION IS AVOIDED
• EMPLOYEE INTERESTS ARE TAKEN SERIOUSLY
• STAKEHOLDER RATHER THAN SHAREHOLDER / AGENCY
  ORIENTATION

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Corporate Culture

• SMES
• ENTREPRENEURSHIP
• FAMILY OWNERSHIP
• WOMEN IN THE WORKFORCE
• RELATIVELY HIGH
• PART-TIME JOBS

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Corporate Culture

• COPING WITH CHANGE
• LONG-TERM EMPLOYMENT MODIFIED
• AGEING BOSSES
• GENERATIONAL CHANGES

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Corporate Culture

• POWER DISTANCE - HIGH, HIERARCHICAL
• UNCERTAINTY AVOIDANCE - HIGH, ALL ALTERNATIVES TO
  BE CONSIDERED
• INDIVIDUALISM - LOW, CORPORATE COLLECTIVISM
• MASCULANITY- STRONG

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Culture DifferencesValues of Hofstedes Four
Dimensions
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Corporate Culture
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Case Studies

• International corporations who have achieved
  success in Japan

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Success Stories

• COMPAQ
• FRUIT OF THE LOOM
• HEWLET-PACKARD
• RENAULT (INVESTMENT IN NISSAN)

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Key Factors To Success

• PREPARATION
• LOCAL PRESCENCE/KNOWLEDGE
• DIFFERENTIATE
• BRING NEW IDEAS

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Japan is a lucrative market. But do it right
from the beginning, because sometimes you dont
get a second chance. -Rob Abernathy President Fr
uit of The Loom Japan