1.

How might Japan’s changing culture influence the way Japanese businesses operate in
the future? What are the potential implications of such changes for the Japanese
economy?

Japan businesses need to apply cultural and organizational change in their future operations.
With the move toward greater individualism, the new generation of workforce are more inclined
to move from one company to another. This is seen to be contrary from their parent’s generation
who work for a company from “cradle to the grave”. Hence, this shift proposes risks to companies
who are attached to their traditional values. With this, businesses should take into consideration
changing some of their practices when it comes to the function of human resources. For instance,
modifying their compensation, benefits, and rewards such as introducing multiple payment
structures to the new employees in which they can choose, and not necessarily offering long-term
benefits. This way, firms would be able to maintain attractiveness despite changing culture.
The potential implications of such changes in the Japanese economy may perhaps be
beneficial or detrimental. With the rise of workforce who is more individualistic, entrepreneurial
activity may increase which opens possibilities in industries where entrepreneurship and
innovation are highly valued. In other words, the workers are more likely attempt at new products
or new ways of doing business where economic growth can be achieved. On the other hand, the
individual mindset may also be harmful in which employees experience greater economic freedom
hence higher turnover rate may be possible. Thus, the influence of cultural change can either be
positive or negative for Japan’s economy.