ENTREPRENEURSHIP: ASSIGNMENT 2

SUBMITTED BY: REEJA BAIG

REG.NO: SP19-BBA-247

DATE OF SUBMISSION: 7 APRIL 2022

SUBMITTED TO : SIR SHER AKBAR

QUESTION :

Choose a country. Research and be prepared to report on that country’s (a) stage of economic
development (b) political-legal environment (c) cultural environment (d) technological
environment. If you were advising an entrepreneur who was considering entering this country to
sell his or her products, what would you say were the major strategies issues ( Be specific to the
country chosen )

Answer

The country chosen for research purposes in Japan and the analysis of the above-given points is as
follows :

 Stage of Economic Development :

Japan has the world's third-largest nominal GDP and fourth-largest purchasing power parity
economy (PPP). It has $1.4 trillion in foreign-exchange reserves, the second largest in the
world. The Bank of Japan's quarterly Tankan survey of business confidence is used to
forecast the Japanese economy. As of 2020, Japan has the world's third-largest financial
assets, valued at $12 trillion, or 8.6% of global GDP. Japan is home to 51 Fortune Global 500
firms, down from 62 in 2013. An elderly and shrinking population is posing significant
problems to Japan's economy.

 Political- legal environment:

Legal Environment:
The legal system of Japan stretches back to the Meiji Restoration in 1868 when imperial
sovereignty was reestablished. It is a cross between continental and American law, including
characteristics of both. After Japan's defeat in WWII, the modern judicial system was formed.
In general, Japanese business legislation encourages inbound investment. As a result, they
are more inclined to approve FDI that involves mergers or acquisitions of established
Japanese businesses rather than a greenfield strategy.

Japan requires several steps before allowing foreign nationals to enter Japan for business.
Unless working in a specific field, the most likely direct route for a manager would be to
apply for a visa holding the title of "investor/business manager". There are significant
financial requirements necessary to obtain such a visa. Documents include business plans,
estimates of profits and losses, blueprints of offices spaces, and documentation of the
amount invested (15-18). The Japanese tax system is also known to be lengthy and
bureaucratic.

Japan is considered a very advanced country, but there are some concerning issues for
expatriates. For example, Japan holds an above 99% conviction rate compared to Canada's
 60.9%. The Japanese legal system is also based on civil law; the accused is innocent until
proven guilty.

Political Environment :
For several years, the Liberal Democratic Party (LDP), led by Shinzo Abe, has maintained its
dominance in Japan's legislature. However, less than 54% of eligible voters cast ballots
because they were dissatisfied with the LDP's policies.

The Japanese government is made up of three branches: legislative, executive, and judiciary,
and it is built on popular sovereignty. The Emperor is the Head of State of a unitary state with
forty-seven administrative divisions. The people, who are the source of sovereignty, elect its
members directly. The Judicial branch consists of the Supreme Court and various lesser
courts, which have complete judicial authority in the state.

Japan is a member of the Organization for Economic Co-operation and Development (OECD)
- an organization that aims to promote free trade and regional economic integration. They
help ensure that goods, services, investments, and people move easily across borders,
creating a more favorable business climate. They also aim to create greater prosperity for the
people of the region by promoting balanced, inclusive, sustainable, innovative, and secure
growth.

Formal contracts in Japan, such as rental agreements, are often authorized with an Inkan
rather than a signature. A seal with the owner's last name printed in Japanese is known as an
Inkan. On contracts, even foreigners will be expected to use Inkans.

 Cultural Environment :
Japan's unique culture has been shaped by trends and forces from within and outside the
country. An understanding of these and how they have shaped Japanese society will help
you in your dealings with Japanese people, businesses, and society in general. Modern
Japanese culture can be seen as the mutual reinforcing of ancient Shinto, Buddhist, and
Confucian traditions overlaid with modern institutions.

When it comes to doing business, Japan has a country that values relationships more than
anything else. Relationships are formed via casual social events that typically include a lot of
eating and drinking. Before doing business with someone, the Japanese want to get to know
them and trust them.

Japanese culture values modesty and humility. Appearance is very important, and Japanese
people tend to dress more formally. Men should wear dark-colored business suits with ties
and white shirts. Women should also dress conservatively and in subdued colors. Speaking in
 a quiet tone and not gesticulating too much will go some way towards giving a modest, calm,
and humble impression.

 Technological development :
Japan's rapid commercial, industrial, and economic growth has been aided by science and
technology. Japan's strong commitment to research and development has resulted in
breakthroughs in car engines, television display technology, videogames, optical clocks, and
a variety of other industries. The World Intellectual Property Organisation (IPO) placed Japan
13th in the Global Innovation Index in 2021, up from 16th in 2020.

Advice for an entrepreneur who is considering entering Japan to sell his or her products
includes careful analysis of the major strategic issues. These include structure, governmental,
and cultural constraints all contribute to Japan's low and falling rate of new firm
entrepreneurship. A severe, long-term labor scarcity, expensive financial start-up expenses
due in large part to high land prices, and a lack of venture capital funding are all structural
hurdles. The entrepreneur must come up with various strategies and contingency plans to
deal with such issues.