Japan business culture

The information of Japanese business culture will be provided to Australian manufacturing woodworking tools Company. It is an overview of the geography, religion, economic and culture of Japan. Moreover, Japan is located in Eastern Asia which has Tokyo as the capital city. There are more than 127 million people living in this country. Japanese people are living with modern lifestyle and they are concern about health in order to reduce stress. Furthermore, they are late of getting married because they love freedom and also high in divorce rate. Therefore, there are only 1-2 people per house.

In addition, Japan’s second largest in world economy since the Second World War which expert in technological development. Therefore, we can see the Japan’s products everywhere in the world which perceived high technology and good performance. In dealing business with the Japanese people, they like to talk face to face in order to make relationship before doing the business as they are group oriented. Also the one of important factor is nonverbal communication that we have to concern in dealing business with Japanese because some actions may result different meaning which cause the conflict and unsuccessful in communication.

As the Australian firm would like to sell the product to Japan’s consumers, they have to understand their behaviors which they are mostly prefer high luxury goods with the cheapest price and they also like to purchase domestic product. Hence, Australian needs to make a plan briefly before launching the products in Japan.

JAPAN BUSINESS CULTURE REPORT

Introduction This report is about Japanese business culture that is designed to provide information to marketing manager of Australian manufacturing woodworking tools Company. As Japan’s second largest in world economy, doing business in Japan is relatively difficult. The report’s purpose that to know the traditional business of Japanese culture which is begins with an overview of the geography, religion, economic and culture of Japan. Moreover, this report has emphasized the strategy of doing business with Japanese that help to approach the overseas market.

The origin of Japan 2.1 About of Japan Japan is located in Eastern Asia between the North Pacific Ocean and the Sea of Japan. It consists of 3,900 islands. The capital of Japan is Tokyo, the populations of Japan are more than 127 million people including Japanese 98% and the rest 2% of the total population is a small groups of Koreans, Chinese, and other nationalities. Japanese language is the mostly used to communicate within the country. Japan has 2 major religions are Buddhism and Shintoism.

Japanese Behavior and Trend Nowadays, changing lifestyle of Japanese is to concern more on their health and try to reduce stress by live simplicity and modern lifestyle with natural friendly (user friend). Moreover, Asian consumer products become more popular because of 2 major reasons; firstly is handicrafts developed by combining art that are high value for Japanese. And another reason is using local nature materials that are easy to find in local country.

There is other aspect behavior of Japanese people is late (slow down) of getting married, enjoy the freedom alone and higher divorce rate. Mostly, residential household have just only 1-2 people per house. According to the above the Japanese usually like to send the gift to other to create a warm feeling. So, the woodworking products that made from natural materials will one choice in interesting for Japanese.

Political Economy of Japan “Since the Second World War, Japan’s second largest in world economy after the United States and the largest in Asia” Rice (1995). In 2000, the largest part economy of Japan is service by 67% of Japan’s GDP. Then the industry fields, Japan has expert in high technological development by 32%. The last part is agriculture by 1%. Although, Japan has a small agricultural sector but it is self-sufficient food to consumption within the country Rice (1995).

As Organization for Economic Cooperation and Development (OECD) had reported on April 2008-09, economic growth in Japan was 1.6 % and shrinking to 1.3 % in 2010.Moreover, Japanese economic, private investment and manufacturing industry had decline to 4.4, 12.1 and 83.9 respectively. International Monetary Fund (IMF) had expected that Japanese economy of business investment and private consumption for Japan will be slowdown.

For the problem of deflation, Japan had set up the policy of interest rate at 0.1% to economic development. From the Japan’s government policy has reduced interest rate that to motivated Japanese or foreign expand more on investment, especially in industry field (Office of Industrial Economic, 2010). 3. Japanese business Culture Nowadays, Japanese have dominated the global market because of everywhere can be see Japan product, many kinds of product whether they are basic electronics product or high technology products. However, it’s very difficult for foreign country to put on Japanese market and operate within Japan. So, the main factor that should to concern is culture. As Japanese culture influenced from European, Asian, Chinese and North American Culture, so it is unique and distinguishing from the other Maher & Macdonald (1995).

According to Bacarr (1994) had described that Japanese like to do business face to face not over the phone, especially if the caller never makes an effort to meet them in person and develop a relationship. The point is the Japanese rely more on human relationship than the law or legal rights and obligation. So, Japanese face is the most important because it is the image shows the action to others that Japanese business people to earn trust on face to face of potential partner and also true within company structure.

3.1.2 Nonverbal communication “The best product, the best research, and the best network in the world may all go for naught in the Japanese market if you are not really good in communicating with your Japanese contracts in the appropriate cultural context. And this is the area in which most Western businesspeople, particularly Americans, are the most likely to fall down” Mente (1993) and Kameda (2001).This means that the communicating is very important but between the Japanese and foreigners doing business in Japan the communication is the major problem.

“The beginning and the end of almost everything the language is result of misunderstanding and problems” said by Mente (1993). Also Moran, Harris & Moran (2007) quoted that Japanese language is complex, subtle and predictable. By the time, only a small percent of foreign business people can speak Japanese language while Japanese business people generally speak just fair English. It means that language (silent language) is the one culture that can use to communication among the parties to be more understand. Therefore, sometimes in communication nonverbal is more important than verbal. This nonverbal communication is based on facial expression, body movement to communicate with body language.