This document discusses cross-cultural impediments between Japan and the West and provides strategies to overcome them. It includes three case studies: 1) Resolving traffic issues at Universal Studios Japan by partnering with Japanese rail companies to promote public transportation. 2) The merger of Bandai Namco, focusing on long-term investor relations strategies over short-term gains. 3) Turnaround of Namco's US subsidiary by closing locations, training employees, and importing Japanese prizes/games. The document advocates for patience, endurance, planning, and balancing long-term initiatives with short-term results when navigating cultural differences between Japan and the West.

1. Innovative Design Thinking with Brittany Arthur
Cross-cultural Impediments
Existing Between Japan & the West and
How to Overcome Them
TUESDAY, JUNE 9, 2020
AKIO FUJII

2. Introducing
Akio Fujii
• Independent Management Consultant specialized in
strategic corporate transformations such as M&A, post-
merger integration, turnaround, and new business
development.
• Was born in Kobe and raised in Japan, the US, and
Australia.
• Has 15 years of experience in finance, 12 years in
entertainment, and 3 years in consulting.
• Spares no effort to become a polished bilingual &
bicultural individual.
2

3. Based On
My Experience…
AMERICANS SEE JAPANESE
TO BE:
1. Honest (Shojiki)
2. Obedient (Sunao)
3. Humble (Kenkyo)
4. Reticent (Kamoku)
5. Reliable (Seijitsu)
JAPANESE SEE AMERICANS
TO BE:
1. Honest
2. Self-esteem (Jisonshin)
3. Self-assert (Jiko-shucho)
4. Instantaneous (Soku-taio)
5. Reliable
HOW CAN THEY
BE SO SELFISH?
DON’T THEY
HAVE THEIR
OWN OPINION?
3

4. • Patience
• Endurance
• Pace distribution
• Explosive
• Instantaneous
• Essential detail
Plan before you run.
Run and think at the
same time.
Based On
My Experience…
4

5. Based On
My Experience…
5

6. Marathon vs Sprint
Case 1: Resolving USJ’s Traffic Problem
• Located at the tip of
Sakurajima Pier in Osaka.
• The most reasonable access
road was Hanshin Wangan
Highway.
• The City’s environmental
assessment projected a
peak of 7,500 cars during
Golden Week.
• USJ’s official parking has capacity of
only 2,945 cars.
• Does the repayment schedule of
USJ’s non-recourse syndicate loan
require revision?
Can the banks support this JPY170 billion project
without any collateral?
6

7. Redesigning the whole marketing strategies to
let the guests visit USJ by public transportations.
PEAK MARKETING
PARTNER (LOW INCENTIVES)
OFF-PEAK MARKETING
PARTNER (HIGH INCENTIVES)
RIVAL
SUPPORTIVE
SHAREHOLDER
• Managerial accounting was
applied based on the length
of railroad ownerships.
• USJ was a potentially
feasible destination for
JR East and JR Tokai.
• Travel agencies
primarily sold
school excursions,
on-site events, and
group sales
involving long-
distant travels and
accommodations.
Marathon vs Sprint
Case 1: Resolving USJ’s Traffic Problem
7
THE KEY STRATEGY WAS TO USE THE JR GROUP’S
“GREEN WINDOW” SYSTEM CALLED “MARS”.
THESE TRAVEL AGENCIES WERE ALSO EQUIPPED
WITH THIS MARS SYSTEM TO ISSUE JR ‘S EXPRESS
TRAIN TICKETS.

8. Basic Ticketing System Structure
Advanced ticket sales (A reservation for future date) Manage the
number of
attendees for
future dates.
Tickets for today
TICKET BOOTHS
Manage the
number of
attendees for today
(Fire Service Act in
Japan restricted
USJ’s maximum
capacity to be
55,000 attendees).
Marketing Objectives
JR: Sell long-distant travels.
Travel Agencies: Sell off-peak
season passports.
Marathon vs Sprint
Case 1: Resolving USJ’s Traffic Problem
8

9. • The system also enabled impulsive day-trip visitors to
secure their entries to the park.
I’d like to visit on
Sun 6/14.
Passports for 2
adults and 2 children.
Inquire
Inventories.
Issuance
granted.
Calendar marked.
JR’s “Green Windows” functioned
as USJ’s ticketing satellites.
Marathon vs Sprint
Case 1: Resolving USJ’s Traffic Problem
9

10. “Seamless Ticketing Experience” was possible with JR’s magnetic tickets.
When using travel agencies:
When using JR’s Green Windows:
TICKET BOOTHS TURN-STYLE GATES
TURN-STYLE GATES
Marathon vs Sprint
Case 1: Resolving USJ’s Traffic Problem
10

11. “Universal Experience” started from the point guests
boarded JR’s Osaka Loop Line.
JR LOOP LINE
UNIVERSAL-CITY
STATION DESIGNED BY
TADAO ANDO
UNIVERSAL CITY WALK OSAKA
DEVELOPED BY SUMITOMO
CORPORATION CONSORTIUM
Marathon vs Sprint
Case 1: Resolving USJ’s Traffic Problem
11
KOBE
KYOTO
OSAKA
NARA
WAKAYAMA
UNIVERSAL
CITY
ITAMI AIRPORT
KANSAI AIRPORT

12. • T&C negotiations with JR and travel agencies
• Kept JR’s system vendor in the loop
• Kept turn-style developer in the loop
• Redoing environmental assessment
• Redoing feasibility studies for the project finance
• Negotiations with the banks
• Support from the City of Osaka
• Universal City Walk Osaka development
• Universal City Station development
• Marketing partnership with JR
Marathon vs Sprint
Case 1: Resolving USJ’s Traffic Problem
12

13. Mid-to-Long Term Initiatives vs Immediate Results
Case 2: Merger of Bandai and Namco
A form of Democratic Capitalism was Evolving.
Back in Early 2000’s…
Statements of
Large-Volume
Holdings
Statements of
Large-Volume
Holdings
Statements of
Large-Volume
Holdings
KANTO
FINANCE
BUREAU
SHARES PURCHASED
MANAGEMENT
PROPOSALS
MADE TO ENHANCE
MARKET CAP
Management members were
equipped with a common sense
of crisis. How can we cope with
the rapidly advancing
technologies of console games…
Merged in April
2003
Merged in
October 2004
Acquired in April
2005
13

14. Post-merger
Market Cap of
400 billion
yen.
Silchester
was dealing
with a
company
whose
Market Cap
was 250
billion yen.
Mid-to-Long Term Initiatives vs Immediate Results
Case 2: Merger of Bandai and Namco
14

15. Looking at the current Capital Markets.
Nothing much has changed…
CEO:
Daniel Loeb
CEO:
Kenichiro Yoshida
CFA:
Hassan Elmasry
CEO:
Yoshinori Isozaki
Sell non-core businesses, enrich internal reserves,
then execute stock buybacks…
Mid-to-Long Term Initiatives vs Immediate Results
Case 2: Merger of Bandai and Namco
15

16. • Refine the strategies for Investor Relations to address mid-to-long term
initiatives.
- Develop mid-to-long term strategies.
- Explain why those strategies are necessary.
- Invite potential investors that are willing to hold mid-to-long term.
- Explain the progress every quarter and develop transparent relations.
• The usage of Internal Reserves will need to be duly planned.
- Digital transformation.
- Employee management trainings.
- Enhance cross-functional communications.
- Recovery transformations & business turnarounds.
Mid-to-Long Term Initiatives vs Immediate Results
Case 2: Merger of Bandai and Namco
16

17. Group Harmony vs Self-Esteem
Case 3: Turnaround of Namco’s US Subsidiary
Back in 2008-2010, I was appointed to turnaround Namco’s amusement
coin-operations in the US.
• In April 2008, there were nearly 1,300 unmanned locations and 70+ manned locations.
• There were 920 employees, a half of which were full-time employments.
• There were 30 District Managers, 150 Route Managers, and 70+ Store Managers.
• There were 24,000 game machines most of which were video games.
• There were more than a dozen warehouses.
• Annual revenues were constantly in the range of US$80-100 million.
• But the Earnings Before Interests were chronically deficits.
And the Japanese parent company was micro-managing without any solutions.
• The employees were impoverished.
• They mentioned all the excuses on the book.
• The field employees were sweating while the head office members worked in an air-
conditioned environment.
17

18. 1. Recovery Transformations
• Close unprofitable locations.
• Cut overheads.
• Reduce game machines.
• Plan nationwide auctions.
• Enhance game machine portfolio.
2. Enhance Efficiencies
• Redraw district & route maps.
• Eliminate warehouses.
• Increase corporate accounts.
• Focus biz dev on destinations.
3. Employee Trainings
• Crane machine maintenance.
• Prize displays inside crane machines.
• Application of generic prizes vs licensed
prizes.
• Depreciation simulations.
4. New Attempts
• Import crane prizes from a sister company
in Japan.
• Converting Japanese pachinko machines
into redemption machines.
Group Harmony vs Self-Esteem
Case 3: Turnaround of Namco’s US Subsidiary
18

19. 1. Recovery Transformations
30
40
50
60
70
80
800
900
1000
1100
1200
1300
1400
1500
Apr
08
Jun
08
Aug
08
Oct
08
Dec
08
Feb
09
Apr
09
Jun
09
Aug
09
Oct
09
Dec
09
Feb
10
Unprofitable location closures Overall headcounts
200
300
400
500
600
700
800
900
1000
Apr
08
Jun
08
Aug
08
Oct
08
Dec
08
Feb
09
Apr
09
Jun
09
Aug
09
Oct
09
Dec
09
Feb
10
0
20
40
60
80
100
120
140
Jul
08
Sep
08
Nov
08
Jan
09
Mar
09
May
09
Jul
09
Sep
09
Nov
09
Jan
10
Mar
10
RM
DM
Field employee headcounts
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0
5000
10000
15000
20000
25000
30000
Apr
08
Jun
08
Aug
08
Oct
08
Dec
08
Feb
09
Apr
09
Jun
09
Aug
09
Oct
09
Dec
09
Feb
10
Total game machines
Mall Arcades
Unmanned Locations
Total Employees
Full-time Employees
Total Game Machines
Total Warehouse
Game Machines
Group Harmony vs Self-Esteem
Case 3: Turnaround of Namco’s US Subsidiary
19

20. 2. Enhance Efficiencies
Redrawing of District & Route Maps
April
2008
April
2010
Integrating Warehouses
• As a result, the district & route managers
were able to visit more locations in a day.
• Warehouses were strictly used for repairs
that we hardly say any game machines
idling.
Group Harmony vs Self-Esteem
Case 3: Turnaround of Namco’s US Subsidiary
20

21. 3. Employee Trainings
Weekly Benchmark Revenue:
$284
Group Harmony vs Self-Esteem
Case 3: Turnaround of Namco’s US Subsidiary
21

22. 4. New Attempts
Group Harmony vs Self-Esteem
Case 3: Turnaround of Namco’s US Subsidiary
Converting a Pachinko to a Redemption Game
Applying Japanese crane prizes
22

23. Hopes for the Future
Transition (“Kaizen”) vs Change
• Japanese are basically ALERGIC to change.
• Japan’s history dates back to at least 660 B.C. That’s 2,680 years ago.
• Out of 200+ years old 5,586 companies spanning over 41 countries, 56% were in Japan.
• In 2019, there were over 33,000 businesses in Japan over a century old.
• “Not to change” was the key to Japan’s sustainability.
• “Kobiki-cho Benmatsu” decides to liquidate the business after 152 years.
• “Maruhachi Yatarazuke” decides to liquidate the business after 135 years.
• Digital transformation will be required from SMEs to public companies.
- Generally, evaluate ALL hanko-chopping situations.
- Digital verifications of jitsuin and ginkoin: Legal Affairs Bureau.
- Digital agreement cloud.
- Revolving promissory notes.
- Bank withdrawing slips.
Pre-COVID19
Post-COVID19
23