Global Business, Essay Example

Abstract

This paper discusses global business in the context of economics.  Particular reference to international ethics using Japan as the example case study.  The paper is divided into four distinct parts: (i) Introduction to Japanese business ethics (ii) Cross cultural communication and marketing strategies (iii) Cross cultural ethics in Japanese business (iv) Conclusions

Introduction to Japanese Business Ethics

There are many differences in protocol, ethics, and behaviour and communication factors when talking to Japanese people in their native land.  Those doing business overseas have been trained to make allowances for western traits but people are greatly appreciated if they make some efforts to conform to Japanese protocols.  This is particularly important when doing business and may prove the difference in securing a contract and getting a more formal relationship translated to that of a more friendly one.  The Japanese are a very structured and orderly society of people and they like conformity to acceptable standards of behaviour.  Non conformists stand-out and become alienated so it is important to make the effort.  Such efforts are appreciated and treated with both warmth and hospitality.

Positive communication can be expressed with Japanese people without necessarily understanding the language.  Adherence to formal greetings, as described above, being respectful with bows and avoiding excessive hand movements and facial grimaces. Japanese are a very tolerant race of people and have become accustomed to dealing with many different races of people.  It is important to remember that they do not like to be shamed (loss of face), they are an orderly and structured society have established patters of communication and behaviour, they prefer conformity at all times and adherence to accepted communication protocols will be both appreciated and create greater acceptance of your own position.

Cross cultural communication

There are a number of important considerations when conducting business with the Japanese.

Formal Dress Code

Generally Japanese business people dress to impress.  As such suits are symbolic of status and casual clothes are not accepted in a business setting.  Women must dress conservative and not wear high heels (tends to make them tower above the male executives). Need to be careful with hand gestures and facial expressions; these should if possible be avoided. Certain words mean different things – the word OK means money and the number 14 sounds like the word death in Japanese.  Avoid invading people’s personal space and do not be disturbed with the concept of silence. Japanese like silence as thinking time and it is good to offer this in conversation.

Behavioural Aspects

There are certain things that are unacceptable. Don’t pour yourself a drink as this is the duty of your host.  The Japanese host always pays for the meal. If you are ever invited to a Japanese person’s home it is a great honour and appreciation should be shown. If you are eating noodles or soup it is OK to slurp as it indicates enjoyment of the food and is greatly appreciated. Gifts should always be provided at the end of a visit.

Business cards are very acceptable. It is important to avoid scribbling or writing on your guest’s business card as this is an act of disrespect.  If greeted with a bow it is important to return this with a bow of the same nature.  In introduction we use the surname followed by the word San (Mr) hence Hirohito San.  Remember that Japanese hate the word “No” and may respond with the word “Yes” when in actual fact this means “No”.  This has confused many western people so you need to frame important questions correctly.

People tend to be much more direct when asking personal questions, for example they will not be afraid to ask – how much money do you have?  How large is your house? It is more acceptable in Japanese culture to be open about these types of questions without the risk of offense or invasion of privacy, hence a difference to western values here.

Cross cultural ethics

When entering the Japanese business market it is important to have a sound grasp of Japanese business ethics. The Japanese are very concerned about loss of face and the ability to retain the respect of others.  They are concerned about the maintenance of stability and conformity, this derives from “Makoto (mah-koe-toe) means to properly discharge all of one’s obligations so that everything will flow smoothly and harmony will be maintained” (Mente, 2002).  So sincerity is somewhat different from the western interpretation that is more concerned with honesty, trust and lack of deceit.  Another taboo in Japanese society is to openly criticise another person in public. Americans tend to be very frank and forthright in their exchange of views in public.  This is unacceptable to the Japanese and looked upon as unprofessional behaviour “It is serious breach of etiquette in Japan to criticize someone directly in public, even when the relationship is superior-subordinate” (Mente B. L., 2002)

The Japanese have much of their strategic thinking tied up with Sun Tsu and as such this is aimed at gaining military style intelligence about their opponents and as such becoming more psychologically informed about their intensions “a warrior stands in the state of preparedness of defeat. In this sense companies such as Toyota and Panasonic have survived and prospered by following a “strategy without clear strategy”. (H.Matsuda, 2010).

Differences in Marketing Strategies

The Japanese approach to marketing strategy is different from that of the USA. The concept of marketing is not a high priority item for the Japanese, despite the fact that they do this very well.  Much of their thinking is more grounded in economics and offering quality products at affordable prices “marketing to the average Japanese firm is not a priority item. To succeed in Japan, they concentrate instead on production quality and low prices.” (Herbig, 1995). The meteoric rise of Japanese business has partly been attributed to its’ single mindedness approach to the fulfilment of its prime marketing objective “The Japanese aim was and still is to be world-class suppliers of the major high volume items in the largest international markets.” (Alain Genestre, 1983).

The Kanba system as originated by the Toyota Manufacturing Company was an important marketing strategy in that it linked quality to production.  They introduced high-quality customer service and placed the customer at the front of their strategic thought process.  The Japanese management team aim for competitive advantage in the marketplace, they look towards market differentiation in the areas of:

• advanced research;
• product design and innovation;
• cost reduction;
• large scale manufacturing.

The Japanese marketing departments are organized towards group efficiency.  They work toward consensus decision-making, harnessing the power of group dynamics and teambuilding.  They strive for long-term market share by increased volumes of production, positioning themselves in the market segments with high growth potential. The Japanese are also quick to use pricing as a tool in order to gain competitive advantage and entry to markets.  The government is also supported the development of business in Japan, and they have boosted private-sector efforts is highly supported government programs and subsidy systems.

US Marketing Strategy is more about a way of doing business and much of the theoretical discipline comes from the leading MBA business schools in the USA. The strategic approach is more analytical and aggressive in terms of winning market share and is often based upon a quick return on investment “The marketing concepts and applications are having a fast evolution in applications and focus, generating in its progress the marketing of high quality, first, second, third and fourth generation, the guerrilla marketing, the maxi-marketing, the marketing of services, the relationship marketing, viral marketing, the marketing of niches, and so on.” (Ferreira, 2008).

US Marketing Departments place a great emphasis on the use of business models and in particular the marketing mix that examines the relationships between Price, Place, Promotion and Product.

The offers that are made to customers can be carried by altering the mix. “for a high profile brand, increase the focus on promotion and desensitize the weight given to price. Another way to think about the marketing mix is to use the image of an artist’s palette. The marketer mixes the prime colors (mix elements) in different quantities to deliver a particular final color” (Marketing Teacher.com, 2010).

Conclusions

Intensity for market share and competition will increase between the USA and the Asian Market places.  As such bi-lateral co-operation, tolerance and mutual respect of international business practices will become paramount in developing successful trading relationships.

Works Cited

Alain Genestre. (1983). Marketing Intelligence & Planning. Journal of Marketing Practice, 36-46.

Ferreira, M. L. (2008, 12 18). Strategy, Marketing Concepts. Retrieved 8 14, 2010, from TRCB.com: http://www.trcb.com/business/business-startup-basics/strategy-marketing-concepts-3803.htm

H.Matsuda. (2010). Japanese Strategic Mind Set. Retrieved 8 14, 2010, from JMR: http://www.jmr-marketing.com/user/527/Matsuda_marketing_strategy%20_Sun_Tzu_Asia_japan/

Herbig, P. (1995). Marketing Japanese Style. In P. Herbig, Marketing Japanese Style (p. 312). London: Quorum.

Marketing Teacher.com. (2010). Marketing Mix. Retrieved 8 14, 2010, from Marketing Teacher.com: http://www.marketingteacher.com/lesson-store/lesson-marketing-mix.html

Mente, B. L. (2002, 9). Interpretive thinking not just words. Retrieved 9 14, 2010, from Asia Business Forum: http://www.apmforum.com/columns/boye55.htm

Mente, B. L. (2002, 2). Sincerity Japanese Style. Retrieved 8 14, 2010, from Asia Pacific Management Forum: http://www.apmforum.com/columns/boye49.htm