1. Doing Business in Japan
Doing Business in Japan
3/17/15
Global Business Strategy
Country Analysis Presentation
Group 6
Nikki Cessna, Kris Holland, Ken Ideker
Matt Johnson, Arturo Morales, Jordan Walker

2. 日本へようこそ Welcome to Japan! Home to nearly 127 million people
Extremely homogenous population
98.5% Japanese
Currency: Yen ¥ 円
Exchange Rate: 121¥ per dollar
4 years since the Tohoku earthquake/tsunami
Thriving auto industry
Well known abroad for anime and comics
2 major video console companies.

3. “Being fluent isn’t necessary at all.”紹介
Introduction　　　　　
“Most Japanese people would have a very good impression of a foreigner who tries to use basic Japanese greetings...”
“Being fluent isn’t necessary at all.”
Atsuko Konishi,
Director of Wordrobe
Japanese
Pronunciation
Meaning
おはよう　ございます
Ohio Gozaimasu
Good Morning.
今日は　「こんにちは」
Konnichiwa
Good Afternoon.
今晩は　「こんばんは」
Konbanwa
Good Evening.
初めまして
Hajimemashite
Pleasure to meet you.
～と申します。
[Name]～to moushimasu
I’m [Name].
よろしくお願いいたします。
Yoroshiku o.negai itashimasu
Let’s work well together.

4. 名前 Japanese Names 社長 部長 課長 先生 様 さん くん
Japanese names are reversed from Western order.
Last name, First name.
Expect to be called by your last name.
It’s extremely rude to call someone by their first name.
It’s extremely rude to call someone by their last name alone. 社長
shachou
President 部長
buchou
Dept. Head 課長
kakarichou
Section Head 先生
sensei
Politician, etc 様
sama
Most formal さん
san
Mr./Mrs./Ms. くん
kun
subordinate

6. Cultural Environment 文化
Post-WWII Relationship
Respect for elders and those higher than you
Language effects
English in Japan
Religion mainly a mix of Shinto and Buddhism

7. すし Sushi Before eating: After eating: Ita.daki.masu
I will partake. (humble)
Noodles? Soup?
Slurping = polite
After eating:
Gochi.sou.sama deshita
Thanks for the meal.

8. 名刺 Business Cards Create business cards before you leave for Japan.
One side in Japanese, One side in English.
Treat any business cards you may receive with the utmost care.
Invest in a carrying case.
Do not write on them
Do not sit on them/fold/etc.
Handle business cards with both hands
Bow

9. 40s

10. Power Move: Sliding Grovel スライディング土下座
Beelzebub Anime
Power Move: Sliding Grovel スライディング土下座

11. Bowing お辞儀 Deeply ingrained in their culture.
Deeper the bow, the more respectful.
Men, hands to the side.
Women, hands in front.
Measured in degrees.

12. Don’t… do an Obama...
In 2009, Obama met with the Japanese Emperor, Akihito.
Obama received heat from the public for bowing to a foreign leader.
The act of bowing and following another country's customs while visiting should be commended, if done correctly...
Can you find what Obama did wrong in this picture?

14. 社会 Social Environment Homogeneous Japanese Population
Attitudes towards foreigners
Gender issues
Aging Population
Low Birth Rate
Credit
Home environment

15. Aging Population 少子高齢化

16. 貿易 Trade Balance of Trade
Reported a Trade Deficit since the Fukushima nuclear disaster
Top 4 Export Destinations
China (19%), U.S. (18%), South Korea (7.8%), Thailand (5.4%)
Top 4 Import Origins
China (22%), U.S. (8.5%), Australia (6.2%), Saudi Arabia (6.0%)
Trade Barriers
Tariff-rate quotas for rice, wheat, and milk products
Trade Agreements
The Trans-Pacific Partnerships- comprehensive free trade deal

17. 合法
Legal System　　　　　
Legal system is primarily based on “German system of civil laws” (since the 19th century)
exists currently modified continental european law with “slight American influence”
unitary judicial system ending in Supreme Court
non-binding, precedent based
Current framework was “instituted” with restoration of the Japanese constitution in 1947
6 codes of statutory law:
civil code (1896),
commercial code (1899)
criminal code (1907)
constitution of Japan (1946)
code of criminal procedure (1948)
code of civil procedure (1996)
“Japanese commercial law is also characterised by a relationship with the bureaucracy that is important in determining how those engaged in commerce conduct business.” Taylor (ed) Asian Laws Through Australian Eyes, 1997, LBC Information Services, Sydney at 38.
“ It is relatively difficult to set up and run a business in Japan, as at present there are a large number of regulations; indeed, it takes more procedures and time to get a business up and running in the country than in its OECD counterparts”
“ The judicial process is quick, and judges are well educated and expected to make judicious decisions in the interest of the common people”
“Kawashima writes that Civil Code theory requires the contractor to "complete the work" of construction a
t the agreed price, and that until then the contractor bears the risk of all expenses”
lack of humanism and its poor protection of fundamental human rights.
“The standard corporation tax rate is 25.5%, applicable to corporations whose share capital exceeds JPY100 million ($970,817). A 10% surtax is also applicable until the end of FY2014, during which the corporate tax rate will total 28.05%. For SMEs, a reduced tax rate are applicable. “
extensive labor laws
“The legal climate for foreign investors in Japan is fair, without any discrimination. However, businesses suffer from a high total tax rate and compliance cost, although tax wedges are lower than the OECD average. Product market regulations are high, which inhibits competition and drives up prices. The government is expected to implement structural reforms, which can infuse competition. A lot of tariffs and trade barriers will be removed in the medium term as Japan continues its negotiations with its TPP partners.”

18. 合法 Legal System Not a litigious culture 95% of lawyers are men
Labor laws (extensive but not excessive)
Interest rates (progressive)
Japanese corporate law is based on a corporation code implemented in 2006
exceedingly similar to US corporate code
“Japanese commercial law is also characterised by a relationship with the bureaucracy that is important in determining how those engaged in commerce conduct business.” Taylor (ed) Asian Laws Through Australian Eyes, 1997, LBC Information Services, Sydney at 38.

19. 政治
Political　　　　　　　
Constitutional Monarchy, similar to UK but influenced by other countries as well
Emperor Akihito - Ceremonial Head of State
Prime Minister Shinzo Abe - Head of State and Executive branch
National Diet - Name of two house Legislative branch
Supreme Court - Highest court in Judicial branch
Differences from US system
Prime Minister selected by vote of Diet
Lower house of the Diet may be dissolved by P.M.
Supreme Court justices reviewed by Diet every 10 years.

20. 経済
Economic 　　
Abenomics
Quantitative easing
Purchasing of Government Bonds
Deregulation of Business
Cutting corporate taxes
revised labor standards
Makes the industry more competitive to outside markets.
Germany and China are opposed
Government spending makes up nearly half of the GDP
Twice as much as the US
Economy is similar to US,
Services 70%
Industry 30%
Agriculture 3%
Main import and export partners include US and China.

21. 貨幣 Monetary Current exchange rate for Japanese Yen ~121円 per USD
An equal trading value would be 100円 per dollar.
Yen is more easily compared to the American Penny.
Not currently any denominations of currency less than 1 yen.

24. 東日本大震災
Fukushima　　
ひがし に ほん だい しん さい
As of last week, National Police Agency of Japan reported:
15,891 deaths
6,152 injured
2,584 missing
over 225,000 displaced
Nuclear power shut down, standards tightened
High trade deficit growing with China
Natural gas importation

25. 乾杯! Kanpai! 結論 Conclusions
Despite massive cultural differences, Japan is an important place to do business.
Yen is weak // dollar is strong right now
Birth rate is declining
Growing elderly population
Could spark a need to be more accepting towards foreigners
In our next presentation,
we will be presenting a business plan to exploit these opportunities.
乾杯!
Kanpai!

26. EnD 以 上

27. References http://cyborlink.com/besite/japan.htm
Taylor (ed) Asian Laws Through Australian Eyes, 1997, LBC Information Services, Sydney at 38.

28. Useful Words 便利な言葉 乾杯 失礼します 申し訳ありません すみません さようなら ありがとうございます はい / いいえ
Kanpai!
Cheers!
失礼します
Shitsurei shimasu
Excuse me. (enter/leave)
申し訳ありません
Moshi wa.ke arimasen
I’m sorry, there’s no excuse
すみません
sumimasen
Apologies
さようなら
sayounara
(Yes, this is Japanese)
ありがとうございます
Arigatou gozaimasu
Thank you very much.
はい / いいえ
Hai / iie
Yes/no
ちょっと...
chotto...
That’s a little... (no)