Persuasion in Japanese Business Culture

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.

The cultural behaviors of the “American” or “Japanese” in the video do not accurately reflect business behaviors in these countries so please do not generalize based on the video. The video is meant as a classroom exercise to analyze a specific cultural encounter. Total 20 points.

The main challenge about trade is the long-term condition of Japan. Although Japan performs well now, it is a receding market. There is a significant challenge for Japan in the future. It is facing a dwindling work population, as the average populace gets older. This provides a serious risk as if the workforce reduces in size so does the production. And production is one of the main factors that make Japan wealthy. In addition, even though it is the second largest economy in the world it will face high expenditure. This is a serious issue if not properly taken care of. However, a country with one of the highest GDP’s in the world is unlikely to mistreat

There are significant cultural differences between Japan and the United Kingdom that need to be taken into account when doing international business. There are also a number of methods and systems by which these differences have been described. These include the Geert Hofstede cultural dimensions, Trompenaars seven dimensions of culture and the Globe Project's cultural dimensions. This paper will discuss these differences and similarities, and shed light as to the best approach to international business in these countries.

Over the years, Japan has been working on advancing their economy since post-World War II. They now have a very strong work ethic, high resolution technology and a very comparatively small defense allocation, one percent of the gross domestic product. Two key characteristics are the interlocking structures of manufactures, suppliers, and distributors, and guarantee of employment for a substantial portion of the urban labor force (CIA,2017). With natural resources of Japan becoming inadequate, they reliant on imported raw materials and resources especially since the complete shutdown of nuclear reactors

Hierarchy and status are considered highly important in both Japan and Mexico in addition to a strong separation between the work and home life. Both Mexico and Japan rely on strong work relationships and loyalty in addition to having top down style of commination and information flow. Both countries have a belief in collectivism over individualism, according to Hofstede’s Value Dimensions, with Japan slightly higher on the index, similarly for the masculinity index. The implications of these characteristics can be viewed in each countries’ management approach. These societal values and characteristics influence each countries’ business behavior and methodologies. (Deresky, 2014)

The first important custom to understand when conducting business with Japan is bowing. In Japan bowing represents respect and can be very instrumental in making a positive initial impression (Nevison, 2009). There are many incidents when bowing should be conducted and they are, introducing oneself, as a welcome, as a form of gratitude, and to express remorse (Custom of Bowing, n.d.). Japan’s business culture is very inclusive. According to Japanese Business Customs (2011, para.3) “group decision-making is important in Japan and has been generally described as a “bottom up” exercise rather than “top down.” The fact that Japan conducts business with this approach can make the process time consuming. It is important to be aware that developing connections with Japan will/do not happen overnight. Another custom of Japan is gift giving. According to Japanese Business Customs (2011, para.4) “gift giving is expected on many business occasions in Japan.” It is imperative to note that the value of the gift is not as important as the essence of the gift. Exchanging business cards are another very important aspect of conducting business with Japan. According to Nevison (2009, para.5), “business cards should be printed on both sides, with your first language on one side and the other party’s language on the other." Physical contact like hand shaking, hugging and even

During the first session it is important to be polite and greet the Client appropriately,

Given the close ranking, work relationships between a US company and Japan company should fare well with regard to Power Distance. Some clarity and upfront discussion of who is responsible for decision making would allow this relationship to be effective.

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.

Like any other expected requirement when it comes to conducting a business meeting, it is always important for an individual to be on time. Business meetings may not always start on time, however, in Vietnam it is still expected that everyone arrive on time (as it is in America). In Vietnam seniority is very important. Therefore, when in a business meeting, one should always postpone their conversation/ interaction with the person in charge. Also, patience plays a big role during business meetings. What American’s may think are awkward moments of silence are totally normal and expected in Vietnam. It is very important that one does not interrupt the moments of silence. Interruptions are not limited to just speaking out. Making certain impatient gestures or faces can also be a type of interruption as well.

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,

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.

Business Meetings. Business protocol has more ritual with government officials than it does within the private sector. When you meet with government officials, a local person will accompany you to make your introduction. Shake hands with everyone present in the room. Expect a soft handshake. Avoid any other touching, such as, slapping people on the back or grabbing their arms. Loud behavior, laughing, and talking should also be avoided. Immediately after the introduction it is appropriate to exchange business cards. Vietnamese prefer to exchange cards with both hands. You will then be invited to sit down. In a government office, your hosts will show you where to sit. Most meetings take place in a conference room rather than in someone's office. The higher the rank of the person you meet, the more likely that you will meet in a conference room. When you are offered tea, you should accept it. Even if you are not a tea drinker, you should at least sip it.

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.