Dr Zain Yusufzai Japan Chapter # 17 (page 478-510).

Profile of Japan

• Political and legal system

• Diet
The branch of the Japanese government in
which legislative power is vested: it consists
of a popularly elected House of
Representatives and house of councilors

• Population and social patterns

• Gaitojin
A japans person who leaves his or her
company to work for a foreign firm
• Gaijin
A Japanese word, which means “outsider”, it
is used to refer foreigners doing business in
Japan

• Business and the economy

• Ministry of international trade and industry

Ministry of international trade and industry (MLTI)

A Japanese ministry charged with providing
information about foreign markets and with
encouraging in vestries and, in the process,
helping to direct the economy

Keiretsus
A Japanese term for a business group
consisting of a host of companies and banks
linked together through ownership and/or
joint ventures

• Barriers to business

• Large retail store law

A Japanese law that limits the size of retail
stores and requires that local competing of
any facility that is more than 500 square
meters
Trade imbalances

Achieving success in Japan; seven basic steps

First; research the Japanese market

International business 1
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Japan Chapter # 17 (page 478-510).

Second; put the customer first

Third; maintain control of operations

Fourth; offer the right products

Fifth attack and counterattack

Sixth; stay the course

Seventh; use Japan as a jumping off point

Choosing a start-up strategy

• Exporting
• Japan external trade organization
(Jetro)
A non-profit, government-supported
organization dedicated to the promotion of
mutually between Japan and other nations
• Licensing agreements
An arrangement whereby one firm gives
another firm the right to use certain assets
such, or copyrights in exchange for a fee

• Joint ventures
1. Distribution channels and large customer
associations.
2. Recognized technical leadership in the
field.
3. Support and service capabilities.
4. Geographic coverage.
5. Market image and reputation.
6. Complementary/competitive product fit.
7. Industrial or banking group associations.
8. Long- term synergies.

• Acquisitions
• Creating a local subsidiary

Managing on-site operations

• Recruiting
• Choosing location and organization
• Making a location decision

International business 2
Alan M. Rugman, Richard M. Hodgetts
Dr Zain Yusufzai Japan Chapter # 17 (page 478-510).

• Organizing for operations

• Financing operations
• Banking relationships
o Development bank of Japan (DBJ)
A publicly funded financial institution with
a mandate to advance business projects
in accident’s social and economic policies
(previously known as the Japan
development bank)
Raising capital

Japan as a triad power

International business 3
Alan M. Rugman, Richard M. Hodgetts