PROJECT MANAGEMENT REPORT PEST ANALYSIS OF JAPAN

INTRODUCTION: Japan is a major economic power. Japan has the world's third-largest economy by nominal GDP and fourth-largest economy by purchasing power parity. It is also the world's fourth-largest exporter and fourth-largest importer. Upper estimates suggest that 84–96 percent of the Japanese population subscribe to Buddhism or Shinto, including a large number of followers of a syncretism of both religions. However, these estimates are based on people affiliated with a temple, rather than the number of true believers. More than 99 percent of the

population speaks Japanese as their first language. Japan is known for its Culture which includes Arts, Music, Literature, Cuisine and Sports.

PEST Analysis of Japan: Political analysis: • Political System

(Constitutional Monarchy (Limited Monarchy) is a form of government in which a monarch acts as head of state within the parameters of a constitution .). As a ceremonial figurehead, he is defines by the constitution as ―the symbol of the state and of the unity of the people. Power is held by the prime Minister of Japan while sovereignty is vested in the Japanese people. . Akihito is the current Emperor of Japan: Naruhito, Crown Prince of Japan, stands as next in line to the throne: Naoto Kan is the 94th Prime Minister of Japan, appointed June 8, 2010 and resigned August 26, 2011; Yoshiniko Noda is the 95th Prime Minister of Japan, appointed September 2, 2011, Japan‘s 6th Prime Minister in 5 years. • Political Parties

The Liberal Democratic Party (LDP) is the only stable party of the last 4 decades. It has been in power since its foundation in 1958, keeping an undisrupted majority in parliament. At the moment, the second most popular party is the newly founded Democratic Party of Japan (DPJ). It defeated the LDP by a single seat at the last Upper House election in 2004.
 The Diet

Japan is a parliamentary kingdom governed by a Prime Minister and his cabinet. The parliament is called the Diet and is composed of the upper House of Councilors and the lower House of Representatives. The House of Representatives can be dissolved anytime by the Prime Minister. The lower house holds most of the

}  The Trade Union Law (TUL) {The TUL guarantees the worker's right to organize and to bargain collectively}  The Labor Relations Adjustment Law (LRAL) {labor management adjustments and means of dispute settlement are specified in the LRAL. • Justice Tenure Every 10 years. The party which achieves a majority in the lower house can nominate the Prime Minister (usually the party president). All judges are granted complete independence in decision making. the justices are almost always reselected and are allowed to serve until the age of 70. Court decisions are made in accordance with the legal statues. . Japanese courts do not use a jury system.decision power. The Supreme Court has the rule making power and is considered court of last resort that determines the constitutionality of any law. There are three major labor laws. and there are no administrative courts or claims courts. . In practice. • Judicial System The Supreme Court (Saiko Saibansho) and a number of inferior courts are vested with the judicial power. a justice's tenure has to be confirmed by referendum. Only Supreme Court decisions have any direct effect on later interpretation of the law. It is made up of 14 judges who are designated by the Cabinet and a Chief Judge. namely:  The Labor Standards Law (LSL) {The LSL regulates firstly working conditions and secondly the workplace safety and hygiene.} . order and regulation. The Supreme Court is the highest court in the land.

and Masatruzzi's Governance Indicators for the year 2008. Kraay. As a result. compiled for the World Bank.• Election System The legal age for voting is 20. while the minimum age to stand for election is 25 for the lower house and 30 for the upper house. There are 242 Councillors elected for 6 years. The governance estimates are normally distributed with a mean of zero. Rule of Law. politicians have to resort to shouting in loudspeakers in little vans while driving around their electoral constituencies. Japan has a vigorous and free media and boasts the second highest daily newspaper circulation per capita in the world (after (Norway). and a higher score signifies a less violent and politically more stable society. 480 Representatives elected for 4 years and 47 Administrative Prefectures elected for 4 years. Companies need licenses and people need to pass tests for doing all kinds of things.which means that also Internet campaigns are not allowed. • Government Stability Japan receives a score of +0. government agencies and ordinary citizens have to abide by.94 for the factor "Political Stability and Absence of Violence/ Terrorism" in the Kaufmann. There are over one million civil servants in the Japanese government and the economic ministries (administration staff). Japanese laws prohibit candidates to make written propaganda during the electoral periods . and Corruption Press freedom is constitutionally guaranteed and generally respected in practice. There are thousands of rules and regulations overseen by the bureaucracy that businesses. Bureaucracy. Japan is arguably controlled more by the country's strong central bureaucracy than it is by its elected officials. The independent court system has particularly emerges in the recent years as a bulwark against political pressure on journalist. • Freedom of Press/Media. Many national dailies have circulations topping one million .

and often produce afternoon and evening editions as well. some people argue that the low consumption rate began to bear on the economy. Japan‘s economy has temporarily taken a turn for the worse. loans and credit became easier to obtain. which reduced the price of Japanese-made goods and widened the trade surplus further. As Japanese products became less competitive overseas. More than half of the national newspaper market share is controlled by ―the big three‖: the Yomiuri Shimbun. Also. With more money in banks. and the gaming market in Japan is extremely biggest due to its popularity. Japan is the 3rd biggest economy in the world. this crash hit particularly hard. And. Economic Analysis In the decades following World War II. the yen appreciated against foreign currencies. This allowed local companies to invest in capital resources much more easily than their competitors overseas. However. It may be a while before Japan returns to it‘s original state and has a demand for video games again. and the Mainichi Shimbun. With Japan's economy driven by its high rates of reinvestment. due to the recent earthquake. with the yen appreciating. Investments were increasingly directed out of the country. and Japanese manufacturing firms lost some degree of their technological edge. and with Japan running large trade surpluses. financial assets became very profitable. . Japan implemented stringent tariffs and policies to encourage the people to save their income. expenditure on entertainment has decreased while expenditure on essential supplies such as food has increased. the Asahi Shimbun.

Despite having interest rates down near zero for a long period of time. When global financial crisis broke out in 2008 in United States of America because of downturn of subprime mortgage market Japan had not been affected as such because of its comparative lack of exposure but afterwards global financial crunch caught up with it when exports scenario became well nigh redundant. In 2008. the zero-rate policy was ended. and some Japanese politicians spoke of deliberately causing (or at least creating the fear of) inflation. some economists. the Bank of Japan and the Japanese government tried to eliminate deflation in the economy by reducing interest rates (part of their 'quantitative easing' policy). On March 19. There was a large price bubble in both equities and real estate in Japan in the 1980s (peaking in late 1989). Once the near-zero interest rates failed to stop deflation. the Japanese Central Bank still has the lowest interest rates in the economy. Systemic reasons for deflation in Japan can be said to include:  Fallen asset prices. such as Paul Krugman. Deflation from the 1990s to present Deflation in Japan started in the early 1990s. this strategy did not succeed. 2001.Closer economic analysis of Japan reveals that there are certain significant areas such as social services and education that have not been accorded much importance when allotting financial aid in times of monetary crisis. Japan economic analysis reveals that this country is in throes of recession as a result of decrease of its exports. In July 2006. .

A tiny agricultural sector is highly subsidized and protected. but due to reduced real estate values. Sun spent after the 1987 report by the Japanese Ministry of Labour. government-industry cooperation. a strong work ethic. average of 1949 hours over. In the years following World War II. Insolvent companies: Banks lent to companies and individuals that invested in real estate. In October 2009 the Japanese government announced plans to increase tobacco and green taxes while reducing rates for small and medium sized companies. Japan's industrial sector is heavily dependent on imported raw materials and fuels. with crop yields among the highest in the world. People also save by owning real estate. The willingness to work hard and extra hours has helped set the high performance. When real estate values dropped. this would not pay off the loan. mastery of high technology. land transfer law. On this they surpass even Americans are traditionally assumed to be the world‘s most industrious nations. an average worker in a Japanese work 2168 hours per year at work than the U. a fact that has contributed to economic growth. and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. and tax laws will aid Japan's economy.S. The Japanese are also hard workers. many loans went unpaid.  Fear of insolvent banks: Japanese people are afraid that banks will collapse so they prefer to buy gold or (United States or Japanese) Treasury bonds instead of saving their money in a bank account. The banks could try to collect on the collateral (land). The Economist has suggested that improvements to bankruptcy law. Usually self sufficient in rice. Japan imports .

.395 trillion (2011) $ 4. but a sharp downturn in business investment and global demand for Japan‘s exports in late 2008 pushed Japan further into recession. Measured on purchasing power parity (PPP) basis that adjusts for price differences.310 trillion (2010 ) $ 4. largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt. Japan in 2010 stood as the third-largest economy in the world after China.about 60% of its food on a caloric basis. which surpassed Japan in 2001. The exact figures are shown below which highlight the purchasing power of the Japanese people over the 4 years time period: GDP: Purchasing Power Parity $ 4. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. capital. and labor.a 10% average in the 1960s. averaging just 1. For three decades.7%. but debate continues on restructuring the economy and funding new stimulus programs in the face of a tight fiscal situation. Prime Minister Kan‘s government has proposed opening the agriculture and services sectors to greater foreign competition and boosting exports through free trade agreements. a 5% average in the1970s. overall real economic growth had been spectacular . and a 4% average in the 1980s.424 trillion (2008 ) The Japanese financial sector was not heavily exposed to sub-prime mortgages or their derivative instruments and weathered the initial effect of the recent global credit crunch. Government stimulus spending helped the economy recover in late 2009 and 2010.146 trillion (2009) $ 4. Growth slowed markedly in the 1990s.

reliance on exports to drive growth. fish.0 magnitude earthquake and an ensuing tsunami devastated the northeast coast of Honshu Island on 11 March 2011. killing thousands. at levels that make these foods unfit for consumption and create uncertainly regarding possible long-term contamination of the area. Major Challenges faced by the Japanese Government:  A 9. and certain vegetables. Radioactive iodine-131 has been found as far as 100 miles from the plant in samples of water. which exceeds 200% of GDP.5 miles of the plant but later expanded to 19 miles.000 people. severely damaging several nuclear power plants. The majors sectors that are operational in Japan are as follows  Agriculture  Industry . beef. and leaving a million household without running water. who previously had anticipated slower growth for Japan in 2011. However Some economic forecasters. milk.  Radiation leaks at the Fukushima Daiichai nuclear plant prompted mass evacuation and the declaration of a no-fly zone.  In order to stabilize financial markets and retard appreciation of the yen. washing away buildings and infrastructure as much as 6 miles inland. displacing and leaving homeless more than 320. now believe GDP may decline as much as 1% for the year. the Bank of Japan injected more than $325 billion in yen into the economy. dropping as much as 10% in a single day. Estimates of the direct costs of the damage -rebuilding homes and factories range from $235 billion to $310 billion.  Energy-cutting efforts by electric companies and train lines slowed the pace of business throughout Honshu Island. persistent deflation. and the stock market gyrated.Japan's huge government debt.initially for people and planes within 12. and an aging and shrinking population are major long-term challenges for the economy.

8% $ 62. Official Exchange Rate $ 5.9% 73.) . The estimates are as follows: Composition by sector (2010) Agriculture: 1.3% (2009) -1.2% (2008) Per Capita $ 34. that is 1.300 (2011 ) $ 34.8% and the lowest composition is for the agriculture.97 million (2010) Here it is noted that the majors contribution is done by the services sector of japan which Is 73. Services  Labor force The contribution of all the sectors differs in various percentages.5% (2011) 3.000 (2010) $ 32.600 (2009.4% Industry: Services: Labor force 24.9% (2010 ) -6.4%.459 trillion (2010) Real Growth Rate -0.

fruit. dairy products.8 % of the people are employed in service sectors jobs which contribute to the GDP of japan . poultry.$ 34. steel and nonferrous metals. Unemployment Rate 4.7% (April 2011) 5. machine tools. sugar beets. fish Industry: 26. They need to lower their expenditure so as to increase their revenues.800 (2008 ) Agriculture: 3. chemicals.8% (2010) 68.776 trillion (2010) Expenditures: $ 2. eggs.0 % (2009 & 2010. . pork. processed foods Services: 68. Budget Revenues: $ 1.221 trillion (2010) Form the figures it is clear that their revenues are less than their expenditures. textiles.2% (2010) Japan is considered as among world's largest and technologically advanced producers of motor vehicles. vegetables. electronic equipment.) Initially it can be seen that in year 2009 and 2010 the unemployment rates were about 5 % but with the passage of time the economy improved and there was a rise in GDP of the country as well thereby reducing the unemployment rate in April 2011 creating lot of jobs for the public.9% (2010 ) -rice. ships.

7% (2010) 1.) $ 1.7 billion (31 December 2010 ) $ 738.57 (2009) .3% (April 2011) -0.) Stock of Direct Foreign Investment At Home: $ 199.Some of the other estimates that indicate the current situation of the economy of Japan are as follows: Inflation Rate 0.154 trillion (April 2011.) Exchange Rate (Yen (JPY) per US Dollar) 87.9 billion (31 December 2009) Abroad $ 795.063 trillion (31 December 2010 .) $ 1.3% (2009) Foreign Exchange Reserves $ 1.78 (2010) 93.4 billion (31 December 2010) $ 199.024 trillion (31 December 2009 .5 billion (31 December 2009 .

The gaps between rich and poor are not as glaring in Japan as they are in many countries. and a remarkable 90 percent or more of Japanese people consider themselves middle class . population growth rate. staff attitudes – Education." The income tax rate can rise to nearly 50% when local taxes are considered. and estate tax. and class divisions that characterize many countries. occupations. attitudes to work. publicity – Demographics: age. religious. ethnic/religious factors – Media views. family size • People and Society.Also Japan has a high income tax rate of 40%. advertisements. age distribution. management style. gender. – Organizational culture. trends. health consciousness. Social (or Socio-Cultural) Analysis • In Japan Sociological structure depends upon following:-: – Cultural aspects. race. living standards – Ethical issues. law changes affecting social factors. Japan does not exhibit the deep ethnic. Social Structure in Japan • A largely homogeneous society. tax on interest. earning capacity. but its corporate tax rate of 30% is described as "moderate. immigration/emigration. diversity. Japan also imposes a value-added tax. Local corporate taxes added to the national rate can yield a total rate of about 41%.

the individual is taught to be dedicated to the group. economic status. • Despite the shift toward individual empowerment.475. • Most groups are structured hierarchically.• However. upon entering adulthood. education. and. • Demographics The demographic features of the population of Japan include population density. religious affiliations and other aspects of the population. the workplace. Burakumin are identical from Japanese racially or culturally. and marriage faced by the country‘s Korean minority and by its brakeman. Seniority has traditionally been the main qualification for higher rank. Burakumin means ―hamlet people.664 (July 2011 ) . the basic group of society. All along. as evidenced by the discrimination in employment. Japanese society remains significantly group-oriented compared to societies in the West. and socialization of young people in Japan emphasizes respect and deference to one‘s seniors. Individual members have a designated rank within the group and responsibilities based on their position. ethnicity and education level. The estimates are as follows: Population 126. some significant social differences do exist in Japan. extra curricular clubs during senior high school and college.‖ a name that refers to the segregated villages these people lived in during Japan‘s feudal era. Japanese children learn group awareness at an early age within the family. neighborhood. and today they generally interact with the rest of the population. Membership in groups expands with age to include the individual‘s class in school. health of the population.

02 Male (s)/Female 0.95 Male (s)/Female .076.) 1.8 years 43.8.8.1% (Male.16.016) Medium Age (2011 est.40.7 years Population Growth Rate Birth Rate Death Rate Total Fertility Rate -0.521.2 years 46.) 10.275.09 deaths/1000 population (July 2011 est.278% (2011 ) 7.21 children born/woman (2011 est.056 Male (s)/Female 1.31 births/1000 population (2011 est.40.) Sex Ratio (2011) At birth: Under 15 years: 15-64 years: 65 and over years: 1.829/ Female.Age Structure (2011 ) 0-14 years: 15-64 years: 13.658.571/ Female.12.) Total: Male: Female: 44.815.173) 64% (Male.128.06 Male (s)/Female 1.235) 65 years and over: 22.9% (Male.840/ Female.74 Male (s)/Female Total Population: 0.

189 million 1.78 deaths/1000 live births 2.848 million .) Net Migration Rate 0 migrants/1000 population (2011 est.98 deaths/1000 live births 2.368 million 1.58 deaths/1000 live births Life Expectancy at birth (2011 ) Total Population 82.25 years Male: Female: 78.) Major Cities – Population Tokyo (Capital).KobeNagoyaFukuokaSapporo11.96 years 85.72 years Urbanization Urban Population: 67% of the total population (2010 est.) Rate of Urbanization: 0.35.Infant Mortality Rate (2011 ) Total Male: Female: 2.327 million Osaka.286 million 2.2% annual rate of change (2010-15 est.

basketball. Japanese is written with a combination of three scripts: hiragana. Baseball is the most popular sport in Japan. For example. especially for company names and logos. and when inputting Japanese into a computer. but traditional SinoJapanese numerals are also common. and kanji. derived from the Chinese cursive script. • Cuisine . katakana. rugby union. The motorsport of drifting was also invented in Japan. The Hindu-Arabic numerals are generally used for numbers. and so on. In addition. Football is becoming more popular after J league (Japan professional soccer league) was established in 1991. Baseball. rōmaji. table tennis. there are many semi-professional organizations which are sponsored by private companies. and other popular western Sports were imported to Japan in the Meiji period. imported from China. volleyball. The Latin alphabet. Sumo still remains popular in Japan today where the top sumo wrestlers are well paid. These sports are commonly practiced in schools along with traditional martial arts. advertising.5% of GDP is spent on education • Japanese language The Japanese language is spoken mainly in Japan but also in some Japanese emigrant communities around the world. derived as a shorthand from Chinese characters. • Sports Sumo or Sumo wrestling is a traditional Japanese contact sport. football. is also often used in modern Japanese.Literacy Rate Definition: age 15 and over can read and write Total Population: 99% Male: Female: 99% 99% -3.

Sushi. Special holiday foods. however. Miso soup and pickles are always served as well. or matcha. and carnival games to keep people entertained. is ceremonially prepared by a skilled practitioner and served to a small group of guests in a tranquil setting. cartoon. It also has a . • Art Japanese art covers a wide range of art styles and media. The main ingredient in all three. seafood. such as an egg or grilled fish. ink painting on silk and paper and more recently manga. Beef Sukiyaki and Chicken Teriyaki. along with a myriad of other types of works of art. The most important holiday in Japan is the New Year (Shogatsu). Miso Soup. Japanese Food favorite foods are Rice foods. The Japanese eat three main meals a day. miso soup. squid and soured plums. entertainment. with food stalls. are prepared in beautifully decorated stackable boxes called jubako. Japanese cuisine is known for its emphasis on seasonality of food. Meals eaten early in the day tend to be the simplest. and a side dish. Some festivals have their roots in Chinese festival but have undergone dramatic changes as they mixed with local customs. New Year foods are also eaten because they are believed to represent good furtune or long life. Festivals are often based around one or two main events. Onigiri (Rice Ball). curries. Japanese cuisine offers a vast array of regional specialties that use traditional recipes and local ingredients.The primary staple is Japanese rice. quality of ingredients and presentation. children are especially fond of hot rice cakes dipped in sweet soybean powder. and still others around contest where participants sport loin clothes. sculpture in wood and bronze. At New Year‘s. or sado) is a traditional ritual influenced by Zen Buddhism in which powdered green tea. others hanabi (Fireworks). A typical breakfast consit of rice. Some are based around temples or shrines. chado. called osechi. • Festival and Holidays Japanese festivals are traditional occasions. The Japanese tea ceremony (cha-no-yu. including ancient pottery. is rice (or sometimes noodles). green tea and ‗sweets‘ such as dried octopus. In the early modern era ingredients such as red meats that had previously not been widely used in Japan were introduced.

wide sleeves. and is calm. straight-lined robes worn so that the hem falls to the ankle. A happi (or happy coat) is a straight sleeved coat that is typically imprinted with the family crest. an ankle high sock. Painting has been an art in Japan for a very long time: the brush is a traditional writing tool. always with the left side over the right (except when dressing the dead for burial) and secured by a sash called an obi. ranging from the beginnings of human habitation in Japan. to the present. combining the kanji (―on‖ sound) with the kanji (―gaku‖ fun. • Dresses The kimono is a Japanese traditional garment worn by women. Kimonos are generally worn with traditional footwear (especially zōri or geta) and split-toe socks (tabi). Kimonos are T-shaped. Geta are sandals mounted on wooden blocks held to the foot by a piece of fabric that slides between the toes. which is tied at the back.long history. Traditional Japanese music has no specific beat. men and children. Japanese word kimono means "something one wears". The word for music in Japanese is ―ongaku‖. and the extension of that to its use as an artist's tool was probably natural. and was a common coat for firefighters to wear. • Music The music of Japan includes a wide array of performers in distinct styles both traditional and modern. comfort). is often worn with the kimono. Kimono are wrapped around the body. Technological Analysis Japan is well known for its automotive and electronics industries throughout the world. which is on lease from the record labels. Local music often appears karaoke venues. Happi is another type of traditional clothing. Geta are worn both by men and women with the kimono. Tabi are designed to be worn with geta a type of thonged footwear. and Japanese electronic products account for a large share in the world . with attached collars and long. but it is not famous worldwide like the kimono. Tabi. sometime in the 10th millennium BC.

Fujitsu. It also produced QRIO.market. Sharp. and over 677. Mazda. digital cameras and DVDs. machinery and medical research with the world‘s third largest budget for research and development at $ 130 billion USD. NEC. technology. Some of Japan's more important technological contributions are found in the fields. the introduction of advanced research and advanced technologies from Japan one of the leading manufacturers of Hi-tech products and consumer products including all kinds of electronic devices and electronic components such as semiconductors. possessing more than half (402.731 researchers. Nissan. machinery. compared to a majority of other countries. FUJIC. cell phones. Japan is also home to six of the world's fifteen largest automobile manufacturers and seven of the world's twenty largest semiconductor sales leaders. chemicals. Mitsubishi. and Aibo. in 1956) and Sony. Panasonic. Nintendo. Hitachi. Sony and Subaru are also very well known companies in the world. Japanese goods. Sony. Canon. robotics. electronics. despite . optics.200 of 742. Epson and Toshiba are among the most well-known electronics companies in the world. semiconductors and metals. ASIMO. Japan has large international corporate conglomerates such as Fuji (which developed the nation's first electronic computer. Japan has received the most science Nobel Prizes in Asia. Japan is one of the leading nations in the fields of scientific research. Toyota.‖ Japan leads the world in robotics. Honda.500) of the world's industrial robots used for manufacturing. In particular. Recently Japan has been a pioneer in the production of digital products and today‘s best sellers like ―Flat-panel TVs. which are based on advanced technologies to the nation on high added value included in their products and to sell goods in a variety of markets.

By September 2007. Broadband service in Japan is eight to 30 times as fast as in the United States-. delivering more data at a lower cost than anywhere else. Shikoku. H-IIA/B rockets which have the capability of carrying 8-ton payload to the GTO at maximum are now managed by the private-own company Mitsubishi Heavy Industry. after the opening of 7 brand new nuclear reactors in Japan (3 on Honsho. making the third largest broadband country in the world after the USA and China (China surpassed Japan earlier in 2004). and 1 each on Hokkaido. but the Japanese are running away with it. In 2008. Japan had 27. and Tanegashima) Japan became the third largest nuclear power user in the world with 55 nuclear reactors. Much of the success of broadband in Japan is owed to the stunning growth in 2003 of ADSL as a broadband technology. Japan is also considered to have one of the most advanced trains.high labor costs become another reason why Japan is one of the leading companies in the industrialized world was the traditionally high savings rate in the nation. Since 1973. with fuel imports accounting for 61% of energy production. and development of rockets and satellites. nuclear energy has been a national strategic priority in Japan. the latest and the most powerful of which is H-IIB. as the nation is heavily dependent on imported fuel. It has developed a series of rockets.5% of Japan‘s electricity. The Japan Aerospace Exploration Agency (JAXA) conducts space and planetary research.and considerably cheaper. Internet Usage and Population Statistics Year Source Users Population % Population . aviation research. notably the Shinkansen and Maglev trains. Japan has also made headway into aerospace research and space exploration. which was launched and added to the International Space Station during Space Shuttle assembly flights in 2007 and 2008. These provide 34. Americans invented the Internet. Japan has the world's fastest Internet connections.7 million broadband lines in place. It also built the Japanese Experiment Module.

broadband Internet and voice telephony as packaged services from a single provider.843 128.9% 68.143.000 94. noteworthy uptake of FttH and strides in digital and mobile broadcasting. The fixed-line network in Japan is undergoing a major transformation as the traditional telephony voice services move into decline.679 126.000 87.000 95. E-commerce. Online Shoppers as a % of Internet Population Global China 33% 86% . which provide TV. Into 2005.000 127.389.050. particularly with respect to monetary savings yielded on the cost of conducting and initiating business. The copper cable of the fixed network.000 78. a subset of the Internet.433 37.804.078. Japan is an early adopter of triple play models.485 128.8% 73.979. The potential for E-commerce in Japan is believed to be huge.000. This market has witnessed the growth of VoIP and triple play services continued 3G competitions among mobile operators.1% 60. nevertheless. remains significant in Japan as it must support the millions of ADSL broadband subscribers.540.419 127.288.137.2% Japan‘s telecommunications sector is one of the most active markets in the world. the growing popularity of IP telephony in particular is dealing a blow to fixed-line giant NTT.700 126.925.000 99. has considerably influenced Japan's business outlook and marketing.0% 73.080.8% 78.2000 2005 2007 2008 2009 2010 47.

chemicals.20% . Private savings creates a flow of funds to finance start-ups.) Main Import Partners (2011) China USA Australia Saudi Arabia 22. the Japanese savings rate of 15. although government support to universities and laboratories aid industry greatly.S.) $ 501. However in 1987 according to data from the Bank of Japan internationally comparative statistics. and transportation equipment.6%.) $ 639.7 billion (2011 est.10% 9. which was especially in the late 1980‘s in electrical machinery. the Japanese capitalists were able to transform business projects.1% compared to the U.US UK Japan South Korea 94% 97% 97% 99% Most research and development is private.‖ Imports of japan: Imports $ 794.6 billion (2009 est.1 billion (2010 est.50% 5.90% 6. Most analysts would agree with ―private savings. 1989. the banks and other financial institutions to lend again expanding companies. precision instrument. are extremely important for economic growth. by only 6. In 1986 private industry provided 76 percent of the funding for research and development.

) China USA 19.10% Main Export Partners (2010 est.70% 8.20% 4. joint ventures between firms of two different nationalities have increased dramatically. a significant departure from the previous trend. particularly between horizontally-related firms (Hergert and Morris.1 billion (2010) $ 545. American and European multinational enterprises (MNEs) have begun to link up with Japanese firms for joint ventures in the non-Japanese partner's home country.United Arab Emirates South Korea Indonesia Exports of japan: Exports $ 800.3 billion (2009 ) - - 4. 1988).10% 4. in which most transnational cooperative ventures with a .48% 15.50% 4. Harrigan.40% South Korea Hongkong Taiwan Joint ventures of japan Since the 1960s. 1988.10% 5.8 billion (2011) $ 730.

low-cost products and components. companies are licensing their new inventions to the Japanese. Japanese companies are setting up plants in the United States.-Japanese coalitions in high-technology industries.Japanese partner were based in Japan. Japanese firms are now seeking information about circumvention of protectionist measures. either as joint ventures or on their own.S.) .S. this is the situation: to avert rising U. and the access to distribution channels Each of these businessmen is commenting on aspects of a trend that is reshaping America‘s trade relations with Japan and creating a new context for international competition. At the same time. knowledge of the local culture. U. U. (The Exhibit lists recent U.S. protectionist sentiment. to obtain high-quality. companies are making joint venture agreements with Japanese companies. Very simply.S.

shows these deals for what they really are—part of a continuing. A closer examination. . the arrangements seem fair and well balanced. indicative of an evolving international economic equilibrium.On the surface. implicit Japanese strategy to keep the higher paying. higher value-added jobs in Japan and to gain the project engineering and production process skills that underlie competitive success. however.

In contrast. and others in the future. Many research studies have been done to explain the reasons for the tensions and failures observed in joint ventures between Japanese and Western multinational enterprises. The union primarily consists of franchise is of a major convenience store and its aim is to improve working conditions for workers in the convenience store industry and promote such workers‘ political. low-cost products. Franchises in Japan: In Japan the most typical franchisors are organized in the form of a joint stock company which is governed by the Companies Act (Act No. Japan's lack of natural resources and usable land mass and its inability to impose its will militarily during World War II seem to have had a deep psychological effect. We have observed a general trend of franchisees becoming more and more active in protecting their status. consumer electronics. the difference between Japanese and Western cultures has become a popular catch-all explanation for such difficulties. Among other activities. and semiconductors today. 2005) and administered by the Ministry of Justice.S. strategy appears dangerously shortsighted. 86. we are apparently prepared to sacrifice our competitiveness in a host of industries—autos. machine tools. lower paying jobs and easy access to our competitors‘ highquality. One such example is the formation of a labor union called Kombini Kameiten Unionin 4 August 2009. The franchisor refused to conduct collective bargaining. which was admitted to join one of the local branches of the Japanese Trade Union Confederation in 10 September 2010. the union requested the major convenience store‘s franchisor to conduct collective bargaining pursuant to the Labor Union Act in Japan.  Japanese simultaneously feel superior to other races and insecure about their future. In exchange for a few lower skilled. the U. and have created a feeling that security for the future will be found only through economic power. social and economic status. The union alleged that this was an unfairlabour . The majors reason for this are:  The incompatibility of societal values: In contrast to the recent development of economics-based thinking about Western-Japanese joint venture failure.

Its has a high literacy rate and it is continuously accelerating in the fields of education and technology.practice and applied for relief to the local Committee on Labor Affairs. the union should be recognised as a labour union under the Labor Union Act. it can be said that franchisors should be more careful to determine the terms and conditions of franchise agreements in order to avoid the risk of franchisees being considered employees of the franchisor. The economic growth indicators also indicate a sound growth and there are numbers of opportunities and investments that can be made which will be profitable in future. However. Conclusion The conclusion is that Japan is one of the growing major super powers. considering the independent nature of franchisees. . The logic of this argument is questionable. Unions are arguing that as convenience stores‘ franchisees have a status similar to ‗workers‘ under labor law.

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