Why Do Japanese Companies Go for Joint Ventures in India

In a Keiretsu network the manufacture will combine the best features of all three methods, it is part collaboration, using fewer suppliers and some vertical integration. An example of this style of Keiretsu network would be that the tool company can work closely with one supplier, such as a parts maker but not by buying out the company. Here the commitment to a long term business relationship promises continued mutual growth. They collaborate with each other and share

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

India has become a global conduit for business as they have liberalized their economic policies over the past 20 years. Companies are flocking to India because of many factors, including, less expensive labor costs, increasing growth rate, and an abundance of a highly skilled workforce. These factors in addition to other advantages have substantially increased the number of United States businesses looking to grow beyond the U. S borders into the county of India. Dunlop Software Consultant’s goal is to also expand its operations internationally and believes that India has the business environment to meet our goal of expansion globally.

References Btrax. (2010). 10 Cultural contrasts between US & Japanese Companies. Retrieved from http://blog.btrax.com/en/2010/12/15/10-cultural-contrasts-between-us-and-japanese-companies-a-personal-view/ Friedman, S. (2014). 6 Things you need to know about doing business in Japan. Business Insider.

A foreign investor may enter into a joint venture by combining with a national of a host country to create a new entity or by acquiring a portion of an existing local entity.

Wipro technologies are a company focused on the software and information technology service division as a part of the Wipro group whose header quarter located in Bangalore, India (Wipro Technologies Europe A, 2015). Nandy as the director of Sales and Marketing in Europe started the European operation in London as the headerquarter for Western Eurpoe and he was an Indian with the Indian and American working experiences (Wipro Technologies Europe A, 2015). As a global company, Wipro’s European sales, marketing and project management staff were exclusively Indian expatriates with a short time in Europe (Wipro Technologies Europe A, 2015). These staffs couldn’t build good relationships with the

In addition, developing in the current market fits to the family constraints. Indeed, no more mobility is implied relatively to the current situation. Therefore, the company can focus on improving its managerial competencies and notably strengthen its overseas relationships.

Our way of conducting business in the United States works for us, but when doing business in other countries it may not. I decided to look at the way business is done in Japan and how it differs from United States. When doing business in different countries, we would need to do our homework and research Japan. Japan is a country with a rich history and culture. The lack of knowledge about their culture can make doing business very different. We will look at the Japanese culture and how it differs from U.S. culture and the proper way to communicate in a business meeting in Japan.

Business cultures between USA and Japan vary immensely the American’s are quick to make decisions and allow many juniors to make decisions of their own accord, although many errors can be caused because of the leeway given. In comparison to Japan where business decisions are a lot slower and given a lot of thought. Japan will avoid all risks possible and all business decisions are made following a corporate hierarchy. This entails many meetings and numerous records to minimise any errors so they can deliver consistency at all levels.

Japanese firms function by consistently showing high levels of informal communication, with group consensus seen as an emphatic component of corporate success. Nemawashi, which indicates an informal process of quietly laying down the foundation for a particular proposed project by talking to the concerned people, is widely practiced in the modern Japanese firms. Japanese management theory tracks these tendencies to Japanese culture that values collectivism over individualism, and the desire to limit individual responsibility. The organizational practices of democratic decision-making, combined with collective responsibility and minimal status differentiation are mentioned frequently in the literature (Hatvany & Pucik, 1981;

|Answer : The Indian IT industry has been the great success story of India's liberalisation. Starting with an export of around $100 million and |

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.

Honda. But due to government rules and regulations the joint venture was not setup and hence failed.

International business is much more complex than operating within the domestic market because countries are extremely different in many ways. The

A popular method when internationalising is to use an alliance or joint venture. Critically evaluate the opportunities and challenges facing small and medium sized enterprises