Executive Summary This report examines provides a comprehensive summary of the threats and opportunities for Fonterra to expand its operations into a new market within Japan. Japan has a relatively stable political and legal environment which reduces the risks associated with entering the foreign market. The political system is a democratic system, with a Westminster form of government similar to Australia, which is favourable for western cultures when conducting international business. The legal environment on the other hand, is built on the foundations of the European Civil Law system with an English-American influence. Therefore Australian businesses must understand the differences when conducting business to ensure the …show more content…
Japan is located in the Pacific Ocean in East Asia close to the Asian market. It is 378,000 square kilometres with a total population in 2010 of 127.5 million people (Globaledge, 2011a). 98% of Japan’s population is Japanese. This can be beneficial when looking to enter the new market as a majority of the country holds the same culture and beliefs. It is an attractive market for Australian producers due to their relatively high average income and significant population (Austrade, 2011a). Over the past decades Japan has seen a shift towards less traditional foods to international cuisine (Austrade, 2011a). As a result there is increased competition on the global food market and an increasing consumer demand for healthy foods (Austrade, 2011a). This is due to a rapid increase in health consciousness and the ageing population within Japan (Austrade, 2011a). Therefore providing Fonterra with the opportunity to enter a new market. This report has been prepared for Fonterra which recommends the most appropriate entry mode, international strategy and human resources approach to enter the Japanese market, with an assessment of ethical issues they should be aware of. Macro Issues International business is much more complex than operating within the domestic market because countries are extremely different in many ways. The
International business meshes across multiple domains most notably market entry strategies and sociocultural variances. Factoring in those two critical aspects and giving them the right amount of attention is the separating line between success and failure. Terralumen, Blue Ridge, and Delta are all successful companies; However, by not observing the basic requirements of
The first barrier that comes to mind is Language. Either the Company employs someone who is well versed in Japanese and from that Country or it forces the Japanese to speak English. As English is a more common language in the business world, it would seem as if that forces the Japanese to speak English.
This paper provided an opportunity to take a deeper look into the country of Japan by conducting a Global Cultural Analysis. Throughout this paper the following four research areas were explored: 1.What is the major elements and dimensions of culture in Japan? 2. How are these elements and dimensions integrated by locals conducting business in Japan? 3. How does U.S. culture and business compare with the elements and dimensions of culture integrated by the locals conducting business in Japan? 4. What are the implications for U.S. businesses that wish to conduct business with Japan?
It also requires more of an investment and commitment by the international company which creates a higher risk. There is also the down side of having difficulty managing local resources.
Faced with major losses from operations, Sharp Corporation’s president, Mikio Katayama, questioned the whether it was necessary to reform the current business operating model. Sharp’s current operating model contained several flaws. It placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. Faced with threats such as intense industry competition, currency risks, very high transportation and utility costs, and extremely high infrastructure costs and high corporate tax rates, Sharp Corporation needs resources in the forms of new methods, technology, and approaches to doing business in the modern world. It is recommended that the company
Conversely, Gillespie and Hennessey (2015) strongly claim that the complexity of the international marketplace, the significant differences that exist from country
This essay aims to provide more information in regards to the differences between the Australian and Japanese cultures, as well as fundamental insights into Japanese business etiquette and highlight important steps for effective communication when making business in a foreign country. As the Australian entrepreneur and owner of ‘The Aromatic Condiment Shop’ Emily is looking to expand her business deals in Japan it is paramount to make a favourable first impression and understand key points to better navigate cultural differences and grow her business.
One of the most important facets for a successful business in the twenty-first century is how it communicates with their customers, partners, suppliers and governments from different countries and cultures from around the world. For a business to operate with any modicum of success in Japan, you must possess a basic understand of how their society functions. As a result of learning about the geography, climate, history, religion, cultural rituals, politics, education system, and the role of the family; it will allow a business or business person the insight needed to understand how society functions and the method in which business is conducted.
Japan is a country with high uncertainty avoidance which means that they try to minimise the risk in their business transactions or as person. It means that Jell-O will need to make them sure that it will be able to attract the customers towards its products and it will increase the sales of its store.
Japan has been the second largest power in the world for several decades, now. As a quite remote island in Asia, its history and development shaped a country with its own way of thinking and behaving, and as far as we are concerned, with a great economy and a technological lead over its Asian neighbours.
There are many challenges for small companies when doing business internationally for example JL Racing had a hard time understanding the buying habits in Europe. In addition to entering into markets to who the customers have already established relationships with other vendors or when a few individuals makes the decision for the whole rowing club in which and sales representative would need to know the bidding process. Furthermore, the difficulty of the owners of a small business entering into business internationally wearing all
Culture is a very important value that is often misconstrued with a foreign country. You have to understand the local law and its role in their society. Americans often think that because Japan has very little litigation, Japanese companies are not concerned about contracts and legal rights. That is an enormous cultural misunderstanding that can lead to major business mistakes. Japanese businesses are very legalistic and concerned with preserving their rights - though they are not litigious, in part because the Japanese court system is slow, expensive and cumbersome.
Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.
Japans history dates back almost 53,000 years and is filled with interesting and fascinating events. Most of Japans actions have left the major world powers in the world stunned. The base of this amazing country is astonishing just by itself. The base is a bunch of active and large under water volcanoes. Japans uniqueness from the rest of the world ranges from its culture to its very interesting history to the change in government every few hundred years and their trading dilemma with petroleum and their assortment of fish that they export. Japan as a country is so very appealing and kind compared to the rest of the world its no wonder that it’s geographically separate from the rest of the world.
Both societies, moreover, have developed the art of business and commerce, of buying and selling, of advertising and mass producing, to the highest levels. Few sights are more reassuring to people from the United States than the tens of thousands of busy stores in Japan,