Analysis of Japan's Economy and Business Practices - Case Study Example

Kianna Fernandes 03/24 Business Communications JAPAN This report is good overall, Kianna, and it’s almost done. Of special concern is your Works Cited page (please see my notes there). Please see comments inside. Table of Contents Introduction ……………………………………………………….. 3 Economy …………………………………………………………… 3 The Japanese Government ……………………………………….. 4 Education …………………………………………………………..6 Culture and Value Systems ………………………………………..6 Business Practices …………………………………………………7 Conclusion and Recommendations ……………………………… 8 Works Cited ……………………………………………………… 10 Works Cited……….. Introduction In early times, China called the land Wa or Wakoku which was in reference to an ethnic group living on the land eventually named Nippon and Nihon or “the sun’s origin”. (Tucci & Rosenberg) Now, the country is known as Japan which means “Land of the Rising Sun.” It is a group of islands between the North Pacific Ocean and the Sea of Japan and lies on the east of Korea. The nation ranks 10th in the world population count with an estimated 127,368,088 people as of July 2012 (CIA) composed mostly of Japanese and some Koreans and Chinese. About 84% to 96% of the people believe in a mix of Shinto and Buddhism, primarily because it has been a practice that goes back to one’s ancestors. Christianity is practiced as well. This report will look at the nation’s economy, government, education, culture and value systems, class structure and business practices. The review will aid in making a recommendation regarding the expansion of business in the said country. Good section! Economy Its economy follows that of the United States and China, respectively, as among the largest in the world. (Adams, et.al.) After World War II, there was inflation, unemployment and shortages nationwide. With the help of the American and Japanese government, the nation’s economy was able to get back on its feet with inspiring diligence and amazing speed. The Ministry of International Trade and Industry (MITI) formalized cooperation between the government and private industry (Aftergood), separated technological imports from other imports, regulated all imports and put up the Japan Development Bank among others. (Holcombe) The manufacturing and processing industries are the country’s primary source of income. It exports mainly cars, electronic devices and computers. (World) The development of robotics is one of the promising ventures the country has done to boost its economy. (World) The fishing industry is also a progressive one because of the rich marine resources. China and the USA are its major trade partners plus South Korea, Taiwan, Hong Kong, Singapore, Thailand and Germany. (Economy) Other than rice and fish, there are not enough natural resources to feed the population. The land is not expansive enough to supply food for the growing population or provide raw materials such as oil and wood. Shouldn’t begin a sentence with a number: Including meat, 50% of the food requirement is imported. (Fuchs) Imports come from China, USA, Australia, Saudi Arabia, South Korea, Indonesia and the United Arab Emirates. According to the CIA World Factbook, the estimated Gross Domestic Product (GDP) per capita in 2011 was $34,300 USD. When a massive earthquake hit the country in March 2011, it brought huge economic damage. The GDP went down 0.6% in the last quarter of the year. (Adams, et.al.) However, this decline in economic growth is expected to be proceeded by a rebound in 2012, with a GDP growth of 2.3% in 2012. (Adams, et.al.) very helpful data here! According to Alan Luk, a big economic problem of the country is the GDP to debt ratio which is at 235% (WOW), higher than the U.S. and Greece. (CNC) Luk is the Head of Private Banking and Trust at Hang Seng Bank in Hong Kong. South Korea and China have also gained more momentum in the fields of electronics and car manufacturing, respectively. Increase in energy costs are a hindrance to economic growth as well. (Sato) Citation missing The CIA World Factbook the inflation rate (consumer prices) was estimated at 0.4% in 2011, -0.7% in 2010 and -1.3% in 2009. The unemployment rate slightly decreased from 5% in 2010 to 4.8% in 2011. Helpful! The Japanese Government The nation has a parliamentary government with a constitutional monarchy. This means that there is a king and a prime minister to rule the people. Where the government is run by the prime minister, the king acts as a unifying force of the people, the representative of the country and a ceremonial personality. (Hayes) Citation missing There are three branches in the government; namely, the executive, judicial and administrative. The judicial group is headed by the Supreme Court and does not practice the jury system. The executive group, also called the Diet, can be further divided into two houses: the House of Representatives and the House of Councilors. The cabinet is composed of the prime minister and elected members. Together with the Emperor, the Prime Minister, Minister of Foreign Affairs, Ambassador to the U.S. and the Permanent Representative to the U.N. complete the administrative body. (Hayes) The Prime Minister is appointed by the Emperor. In turn, he appoints and dismisses the Ministers of State. The position is presently occupied by Yoshihiko Noda who took the seat on September 2, 2011. The prime minister with the agreement of the cabinet has the power to dissolve the House of Representatives at any time (CIA) Emperor Akihito started his reign on January 7, 1989. In Japan, he is only referred to as His Imperial Majesty or, in writing, The Reigning Emperor according to custom and will be called Emperor Heisei after his death by order of the cabinet. (McCormick) Citation missing The fourteen (14) justices of the Supreme Court are appointed by the cabinet. The chief justice is only chosen by the cabinet but appointed by the Emperor. Hironobu Takesaki is the reigning chief justice. (Hayes) The Supreme Court has the power to interpret the Japanese constitution and conduct judicial review over the Diet and the administrative branch. The government has been very influential in the growth of the economy, from the early dynasties until the present time. “Its actions have helped initiate new industries, cushion the effects of economic depression, create a sound economic infrastructure, and protect the living standards of the citizenry. Indeed, so pervasive has government influence in the economy seemed that many foreign observers have popularized the term “Japan Inc.” to describe its alliance of business and government interests. (U.S. Library of Congress)” excellent quotation!! Education The nation has one of the highest literacy rates in the world where 99% of the population can read and write. (CIA) The educational system takes after the British, French and US systems. Children go through kindergarten, elementary school, lower and upper secondary schools and university. Students may also decide to go to part-time Senior High School, Specialized Training Colleges, Advanced Courses, Graduate Courses and Correspondence Schools. (OECD) Citation missing It used to be that the pressure was on the students to get into the right university in order to have a job that paid well. However, since the competition amongst schools has increased, the pressure is now about getting into the right junior high school. Because of this, there are cram schools called “Juku” where students even younger than 10 years old are pushed harder to excel or to catch up. (Duke) I’ve head of this pressure; it can cause a student to commit suicide. Culture and Value Systems The culture of the Japanese has developed continually, thanks to the contributions of the different dynasties in the country’s history. Throughout the country, one can see the evidence of how rich the Japanese culture is. (Prasol) Citation missing Although the country presents an image of being the source of highly technological advances, the Japanese people are still very traditional and put stock in long-standing concepts of personal pride (kao), empathy (omoiyari) and harmony (wa). These values are practiced in relationships with family, friends and businesses. (De Mente) Citation missing Maintaining harmony (wa) goes back to the time when the people lived and work in collective farms. Until today, people avoid being assertive and try to keep peace even with varying opinions. Avoiding confrontation by not pushing one’s stand leads to the next important value - personal pride or kao which is crucial to someone’s reputation or social status. It is not, therefore, common to embarrass another person in this country. Thinking of the feelings of another or omoiyari, the last value, explains how the three concepts sort of work together. (De Mente) Citation missing Nature is a big part of the country’s culture. Poets, painters, musicians, customs and festivals highlight the endless cycles of nature. (Kalman) Business Practices Bowing is still a significant part of the business etiquette in the country. With Westerners, however, a handshake sometimes takes the place of a bow. Exchanging business cards, bilingual ones are advised, is also an obligatory custom as well as exchanging gifts. Gifts that come in a set of four (4) items should be avoided because the Japanese sounds for this number sounds like death. (Japan Business) Looking directly into a colleague’s eyes or laughing at a meeting causes and means embarrassment, respectively. (Japan Business) Business hours are from 9:00 a.m. to 5:00 p.m. with a lunch break at 12:00 p.m., Mondays to Fridays. Government offices start an hour later but are open until lunch time on Saturdays. Banks close at 3:00 p.m. and are occasionally open on Saturday mornings. Department stores are open from 10:00 a.m. to 6:00 p.m. daily and close either on Wednesdays or Thursdays. (Frommer’s) Citation missing Unlike other workers worldwide, the Japanese do not care of leave incentives or personal vacation time. (I assume that this means vacation time.) In a survey, it has been found out that the “Japanese avail least leave benefits with 33% and like to work more than spending vacations. (Hodson & Sullivan)” A branch-office in this country must be registered with Japan’s Ministry of Justice, have a registered representative resident, have a registered business address and must file audited financial statements at the end of each financial year. (Setting up) This section is very helpful. Conclusion and Recommendation Conclusion There are pros and cons of expanding our business in Japan. The pros are: 1. The high literacy rate means acquiring intelligent employees that can be easily trained. 2. The Japanese business etiquette ensures a harmonious working relationship. 3. The Japanese workers’ penchant for working as opposed to taking vacations can favorably affect turn-around time for our business. 4. The government’s continued influence in the business sector has proven to be effective and productive for the businesses as well as the country. good points here… The cons primarily result from the aftermath of the 2011 earthquake. These are: 1. The decrease in spending of the people would mean less purchases of our product 2. The government’s debt to GDP ratio is very high and looks like it will need some time to be resolved. good points here, too… Recommendation It is recommended that our company observe the economy of Japan for continued signs of regaining stability and strength before embarking on any move for expansion. Good Works Cited Adams, F. Gerard, et. al. Accelerating Japan’s Economic Growth: Resolving Japan’s growth controversy. New York: Routledge, 2008. Print. “CIA World Factbook.” CIA.gov. n.d. Web. 13 March 2012. De Mente, Boyé Lafayette. Japan: Understanding & Dealing With the New Japanese Way Of Doing Business! The Foundations of Japanese Behavior! Seattle: CreateSpace, 2012. Print Duke, Benjamin. The History of Modern Japanese Education. New Jersey: Rutgers University Press, 2009. “Expert on Japan’s economic rebuilding.” CNCWorld.TV. 15 March 2012. Web. 20 March 2012. Frommer’s Japan. New Jersey: Wiley Publishing, Inc., 2010. Print. Fuchs, Steven J. “Feeding the Japanese.” Democracy in Occupied Japanese: The U.S. Occupation and Japanese politics and society. Ed. Mark E. Caprio and Yoneyuki Sugita. New York: Routledge, 2007. 36-47. Print. Hayes, Louis D. Introduction to Japanese Politics. New York: M.E. Sharpe, Inc, 2009: Print. Holcombe, Charles. A History of East Asia. New York: Cambridge University Press, 2011. 277-294. Print. “Japan Business Practice and Business Etiquette Tips”. Worldwide-tax.com. n.d. Web. 19 March 2012. Kalman, Bobbie. Japan the culture. Canada: Crabtree Publishing Company, 2009. Print. Hodson, Randy & Sullivan, Teresa A. The Social Organization of Work. California, Wadsworth Cengage Learning, 2012. McCormick, John. The Emperor. Boston: Cengage Learning, 2010. 163-164. Print. OECD. OECD Economic Surveys: Japan 2011. OECD Publishing. 99-140. Print. Prasol, Alexander. Modern Japan: Origins of the Mind. Japanese Mentality and Tradition in Contemporary Life. Singapore: World Scientific Publishing Co. Pte. Ltd., 2010. Print. Sato, Yasushi. “Japan”. UNESCO Science Report 2010. France: UNESCO, 2010. 400-413. Print. “Setting up with a Japanese branch-office.” Venturejapan.com. n.d. Web. 22 March 2012. Tucci, Paul A. & Rosenberg, Matthew T. Handy Georgraphy Answer Book. Michigan: Visible Ink Press, 2009. Print. U. S. Library of Congress. “The Role of Government and Business”. Countrystudies.us. n.d. Web. 22 March 2012. World and Its Peoples: Eastern and Southern Asia. New York: Marshall Cavendish Corporation, 2008. Read More