Case Study

Presentation
 When I think about
1. Evolution of Rakuten 6.
Table of Englishnization, I feel…

Contents 2. Overview (Rakuten)

7. Initial Reactions
3. Why Englishnization? 8. Implementation Steps
Alternatives and
4. TOWS Analysis 9. Improvements

Barriers to
5. Englishnization 10. Recommendations
 Evolution of Rakuten

2011

Company raised IPO

2010
with worth of JPY50
billion ($496 million) Company operated
through nine
Hiroshi Mikitani business units like E-
launched Rakuten Company employed commerce, Travel,
Ichiba 7100 people, having Banking etc.
raised an additional
JPY230 billion ($2
2000 billion)

1997
 Overview (Rakuten)

E-commerce

Tele-communications Banking

Travel Securities
 Why Englishnization?

Mikitani’s determination to To initiate fast and direct

change Japan. communication.

To catch up to the global Greater integration across subsidiaries in

market. Why knowledge & personnel.
Englishnization
To deconstruct / dismantle cultural Change organizational structure
and linguistic barrier. through cross border communication.

To increase transparency and To meet the Rakuten’s most critical

meritocracy. principles , “Speed!! Speed!! Speed!!”
 TOWS Analysis

To make the company set its Global footprint,

WO
SO
CEO – Hiroshi Mikitani was inclined towards Motivating Employees to learn English on their own
adopting Englishnization. cost, which could help overcome conventional
thinking to use Japanese.

Willingness of Majority of the employees to adopt Positive TOIC score of majority of the

WT
Englishinization. employees (80%).

ST
Barriers to “Englishnization” implementation

01 Time Constraints
The regular work of the employees keep them busy and they don’t find
time to study English

02
No individual guidance
Initially Rakuten didn’t provide any individual guidance to its employees.
They did not know where to start.

03
Relevance
The employees who dealt only with Japanese domestic customers were
questioning the relevance of Englishnization for themselves

04
Decreased Productivity
Projects were delayed due to Englishnization. What took only 30 minutes
in Japanese now takes 4 hours in English.

Communication Gap

05 Employees feel anxious as they don’t know if others understand what

they write in English
 When I think about Englishnization, I generally feel..
Inspired 50%

Oppressed 31%
Feelings towards Englishnization

Nervous 52%

Excited 52%

Interested 71%

Frustrated 43%

Afraid
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audience and add a unique zing
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designed.
Percentage of Employees
Native Japanese Speakers
 Initial Reactions
Negative
Many Rakuten employees
were averse to learning
English and worried what they
are to do.
Shock and Speculation
Most employees were shocked over the
fact that their salary would be linked to
their TOEIC score, because their
English ability will affect them directly.
The Media
News organizations around the globe
picked up the Englishnization story
instantly. Corporate Japan reacted with
both fascination and disdain.
Positive
Rakuten’s foreign operations
felt embraced by their
corporate parent.
Global Synergy
Top executives universally lauded
Englishnization as allowing greater
integration across subsidiaries, while
expanding their reach into global
markets.
Native English Speakers
Native English-speaking managers at three
U.S.-based e-commerce Rakuten
companies overwhelmingly approved of
the move.
 Implementation Steps
English was rolled out in three phases

Assessment Education

A two-hour, 200 question Rolled out events to

TOEIC to assess engage staff in English
employees’ reading and language education, like
listening comprehension inviting guest lecturers to
for Business English. discuss English.

Proficiency

Aimed at encouraging
staff to use English to
communicate their
ideas, present the logic
of their argument and
defend an argument.
 Change in perception Adaption in Thinking

Employees assumed Standardization of

speaking English as Company from poor to
humiliation later appreciated standard English.
Mikitani`s decision.

Mikitani`s Motivation Need of Guidance

Senior members hesitant Mikitani funded for at-work

to learn English make a language classes to increase
turnover to learn for English proficiency rate.
company`s global growth.

Alternatives and Your Success

Story goes Online

Improvements
Motivation and Inspiration
are implemented by
sharing success stories of
employees.
 Recommendations

English should not be mandatory Complete implementation

for every Rakuten employee. should not be done as it is
hampering the productivity.

Important meetings should be Strictly deal and monitor

done in Japanese for time managers who are not
being. interested in English.

Test should not be the only Ease out the plan to decrease
criteria to check proficiency. stress among employees.
THANK YOU