1. J A PA N
C r o s s - C u l t u r a l M a n a g e m e n t S m a l l G r o u p P r o j e c t 1
2. A G E N D A
• CULTURE AND GLOBALIZATION
• COMPANY PROFILE OF AFLAC
• COUNTRY PROFILE OF JAPAN
• JAPANESE VS. AMERICAN VIEWS OF RISK
• OVERCOMING CULTURAL RISKS
• CULTURAL EXAMPLE
4. CULTURE &
GLOBALIZATION
Culture: The combination of signs, beliefs,
artifacts, social institutions and customs
conceived by mankind.
*Paraphrased from Don Adams and Arlene
Goldbard. (2002). “Community, Culture, and
Globalization”.
Globalization: The evolution that led to the
world getting smaller through the removal of
numerous barriers and the new abilities to
overcome long distances in a condensed
period of time. Furthermore, this process has
led to the interconnectedness of people
across the entire world through the sharing of
communication, culture, technology,
transportation, etc.
*Paraphrased from Thomas Larsson. (2001).
The Race to the Top: The Real Story of
Globalization
5. CULTURE
GLOBALIZATION
The process of cultures sharing more
similarities and common experiences as
a result of diminishing international
barriers and the exportation of various
beliefs, practices, customs, etc.
*Paraphrased from James L. Watson,
Encyclopedia Britannica
Influences:
• Wireless Communication
• Electronic Commerce
• Popular Culture
• International Travel
6. Globalization proliferates the number of similarities shared
between cultures:
• Fashion
• Food
• Entertainment
Culture-defining barriers (geographic distance, different
languages, etc.) are curtailed, leading to accelerated rates of:
• Exportation of Culture
• Westernization
While certain idiosyncrasies between cultures may be
dwindling, major differences still persist and must be carefully
taken into consideration.
STANDARDIZATION
OF CULTURES
7. YOUR
TITLE HERE
CULTURAL
CONSIDERATION
• Cultural barriers have the potential to create misunderstandings that
stunt international profit growth
• Hofstede’ Cultural Dimensions Theory
• Power Distance, Masculinity vs. Femininity, Long-term vs. Short-
term, Individualism vs. Collectivism, Uncertainty Avoidance
• For international companies, culture must be strategically applied every
part of the organization
• Idiosyncrasies in culture can lead to differences in consumer
preferences
• International companies should depend on research instead of making
assumptions
http://vandijktrack.com/hofstedes-cultural-dimensions/
9. 9 out of 10
People know the Aflac brand. Aflac is the No. 1 life
insurance company in terms of the number of individual
insurance policies in force in Japan.
AFLAC
JAPAN
10. AFLAC COMPANY
PROFILE
• “Incorporated since 1973
• Columbus, GA, USA based holding company that offers
supplemental health and life insurance plans
• CEO: Daniel Amos
• Two different business entities: AFLAC Japan, Aflac US
• Plans sold include: accident/disability, ICU, short-term and
long-term care disability, dental, vision, and life
• End of 2014 there were 70k+ licensed sales agents and
brokers
• Revenues of $22,728M during the financial year ending in
December 2014
11. Niche market in supplemental
and indemnity plans,
relationships with banks and
local markets, strong financial
performance
STRENGTHS
Market penetration in Japan
increases risks, losses on
perpetual debentures likely to
continue
WEAKNESSES
New products, new initiatives,
Japan’s insurance market
OPPORTUNITIES
Competition, natural disasters
THREATS
14. JAPANESE
CULTURE
The culture of japan is unique in many
ways but there are three very important
features that must not be overlooked
• Tradition
• Fads or Trends
• Religion
15. TRADITION
Japanese culture has one of the deepest cultures on the world
What is respected most of all is Family
• Ex. Your best effort at work or school is for the family
• Ex. You must try you best in extracurricular for the family
• What is meant is how the family is portrayed based on your performance
Also, multiple religions and people exist within Japan
+
16. “EVER-CHANGING”
Trends can last a year, month, week, or day. They key here
is that trends within Japan tend to change more rapidly than
other countries.
One of the more notable trends worldwide is the how
popular Anime :
• Anime conventions
• Anime specific Twitter Account
• Anime specific YouTube Accounts
FADS
OR TRENDS
17. Religion in Japan is different from religion in the west more
than anywhere else.
It’s a mix between Shinto and Buddhism
Religion is rarely preached because it’s how a person lives
(Moral Code)
JAPANESE
RELIGION
18. JAPANESE
CULTURE
• “The Cherry Blossom is the most revered flower in Japan”
• There are parties every year during the two weeks or less
that they bloom called “花見 (Hanami)”
• “Japanese people are more relaxed during this time of year”
• Viewing of the blossoms are usually parks, gardens or castle
grounds
• The blossoms in ancient Japan announced the rice-planting
season
桜
19. YOUR
TITLE HERE
COMBINING
KNOWLEDGE
WITH AFLAC
• Since there is a difference from east in west in terms of
religion, fads, and culture; there is a different customer
approach as well to each market.
• In the U.S. the AFLAC duck is not really notice whereas
in Japan the actors talk and interact with the duck as a
means and visual of the Japanese culture :To help and
protect one’s family, you become family.
• In the U.S. the duck has always been a duck and
nothing more whereas in Japan it has been portrayed
as an “招き猫(Maneki neko) duck”
22. AMERICAN
RISK
More likely to do things
without preparation
Positive reinforcement is common
in child rearing
If something goes wrong, keep moving
forward and try not to let it happen again
OVERALL CULTURE
JAPANESE
RISK
Take time to plan and discuss before
making a decision
High use of negative reinforcement
in raising children
If something goes wrong, take a step back
and analyze situation and make sure to not
make same mistake
23. AMERICAN
RISK
Americans are typically rewarded by career
advancement or higher pay for
taking risks that pay off.
For negative outcomes, Americans are usually
given second chances and can
move past failures.
BUSINESS CULTURE
JAPANESE
RISK
Will not typically advance in career due to a
successful event, but instead
advances with time.
Negative outcomes are viewed as
failures and can be the end of
a persons career.
27. YOUR
TITLE HERE
BUSINESS
CULTURE
• Appear “colder”
• Last names + titles used
• Keep a distance
• No small talk, no physical contact
EXTREMELY POLITE
• Patriotic, love their culture and
history
• Not politically inclined
NATIONALISTIC,
NOT POLITICAL
PUNCTUALITY
PROMBLEMS & CHALLENGES
• Use last names and get titles down
correctly
• Keep a personal “bubble”
• No touching past a firm handshake
REMAIN POLITE
• Do appreciate the history and
habits
AVOID POLITICAL
DISCUSSIONS & OPINIONS
NEVER BE LATE
SOLUTIONS & SUGGESTIONS
28. YOUR
TITLE HERE
OVERALL
CULTURE
• America vs Japan – “melting
pot” vs a “united nation”
ETHNICITY
• Common in Asian countries,
“extreme” in Japan
• Business
• Apologizing
• Thanking
• Handshakes are OK
BOWING
PROMBLEMS & CHALLENGES
• Understand the “United
Nation”
ETHNICITY
• Bowing where necessary or
expected
BOWING
SOLUTIONS & SUGGESTIONS
29. YOUR
TITLE HERE
BUSINESS
CULTURE
• Strict, few female politicians/CEOs
• Rank 101st, first place Iceland
GENDER ROLES
• Very important
• Senior vs junior
SOCIAL HIERARCHY
COLLECTIVE CULTURE
PROMBLEMS & CHALLENGES
• Company Loyalty
• Group accomplishments
• Respect the roles, expect dealing
with men mostly
GENDER ROLES
• Respect everyone, especially
Elders/seniors in a company
SOCIAL HIERARCHY
COLLECTIVE CULTURE
SOLUTIONS & SUGGESTIONS
• Understand company loyalty,
treat people as a part of a group
30. YOUR
TITLE HERE
OVERALL
CULTURE
PROMBLEMS & CHALLENGES
• Can insult
TIPPING CULTURE
• Island size of California
SPACE RARE &
APPRECIATED
SUBTELTY
• Directness
• Eye Contact
SOLUTIONS & SUGGESTIONS
• Do not tip – seen as rude/attack
on waiter’s salary
TIPPING CULTURE
• Appreciate space (even if there is
a lack thereof)
SPACE RARE &
APPRECIATED
SUBTELTY
• Be less direct, avoid prolonged
eye contact
In order to have a greater understanding of how cultures and globalization are connected, it is important to have a working definition of both concepts. There are numerous definitions for both culture and globalization, but they all essentially have the same meaning. Both concepts have a tremendous impact on all of our lives—we are likely a product of both.
For many, culture is easy to identify and recognize but difficult to articulate. It is essentially the practices and beliefs of each society. Cultures certainly exist at a macro level—countries tend to have a unique culture. They also exist in much smaller communities and regions.
Globalization has occurred as certain barriers, such as communication and geographic distances, have been reduced. Through globalization, countries are able to influence and more intimately interact with each other. Technology is one of the main drivers of globalization, which means that the rate of globalization increases with the advancement of technology.
These two concepts are combined into what is known as “cultural globalization”. As cultures are exposed to other cultures through globalization, they begin to develop similarities. While cultural distinctions still exist, there is almost a standardization of practices. For instance, many American chain restaurants are available in other countries. While still being distinctly American, these countries almost adopt this food as being part of their cuisine. Fashion, such as a man’s business suit, can also be shared throughout the world.
As previously stated, similar practices have become standardized across many cultures. Cultural Globalization leads to this standardization. For instance, Hollywood movies have become a common form of entertainment throughout the world—it is not unique to American culture.
As barriers are eliminated, the rate of standardization increases.
Despite cultures growing in their shared similarities, there are distinctions that still exist and must be respected by both individuals and companies.
As companies expand internationally, they must still recognize the differences in cultures. What might be a common practice in their home culture may be unacceptable in another culture. This recognition of cultural distinctions might be the difference between succeeding and failing.
Cultural differences should be taken into consideration throughout an entire company. It should affect the strategies that companies employ, the people they hire, the content of their marketing, etc.
Culture also drives consumer preferences, which means that research should be an integral part of an international expansion. Making incorrect assumptions about a country could potentially lead to failure in that country.
Aflac Incorporated (2015. Aflac Incorporated MarketLine Company Profile, 1-28
Shintoism is a spirituality that exist within japan. It’s basically the belief that every living thing and nature contains a god or Kami. “Consequently Shinto principles can be seen throughout Japanese culture, where nature and the turning of the seasons are cherished. This is reflected in arts such as ikebana (flower arranging) and bonsai, Japanese garden design and the annual celebration of sakura - or cherry blossom. “
There was only one other flower cherished before and as much as the cherry blossom. The plum blossom.
“Though the term hanami has been used almost exclusively to refer to cherry blossom-viewing parties since the Heian Period (794-1185), historically the Japanese held hanami parties beneath wisteria and plum blossom too. Some older Japanese still gather to view the plum blossom (ume) today, as a more sedate alternative to the sometimes raucous hanami gatherings.”
All quotes were taken from the following website
https://www.insidejapantours.com/japanese-culture/religion/#sthash.NKPM4cQc.dpuf
“招き猫(Manekineko) duck” Property of ALFAC. This is an advertising instrument used to appeal to AFLAC’s Japanese market customers as well as potential customers within that market.
Americans are more likely to do actions that in which they are unprepared or familiar with, whereas in Japanese culture it is more customary to plan things out and take the time and discuss.
When bringing up children, Japanese culture has a high use of negative reinforcement. The culture will discipline children by telling them that what they are doing is wrong and/or dangerous. Whereas in American culture, positive reinforcement is the norm. Americans tend to see mistakes as stepping stones, or something to look past and keep trying.
Americans are typically rewarded by career advancement or higher pay for taking risks that pay off, however in Japanese culture they will not typically advance in career due to a successful event, but instead advances with time.
For negative outcomes, Americans are usually given second chances and can move past failures. For the Japanese negative outcomes are viewed as failures and can be the end of a persons career.
Both political systems are considered low risk as the economies of both are stable and rising.
Japan, however could be considered a higher risk being that it has a lower debt to GDP ratio, meaning that it doesn’t produce enough domestic goods to pay off their debts.
Polite
In Japan, people are viewed as “colder” in terms of interacting with other people. For example, a customer representative in the US will attempt to relate and empathize, while the one in Japan will remain objective and “uninvolved” in terms of their feelings. Similarly, waiters in Japan will most likely not stop at a patron’s table to ask how their meal is.
Small talk during travelling on the public transportation is much less common in Japan than it can be seen in the United States.
Punctuality
- Tardiness is nearly non-existent, if a meeting is to start at 7:05am, you better be there before then.
(SOURCE: https://tokyo5.wordpress.com/2012/10/11/culture-differences/)
Nationalistic
- Japanese are patriotic much like Americans are. They love their country and embrace their history and culture (culture is very important in Japan), however, are not politically inclined. Politicians have low approval rates and turnouts for elections are low as well.
Solutions/Suggestions
Remain polite and nearly “reserved” – leave personal feelings and subjectivity out of the meetings/discussions
Much like in the US, keep a personal “bubble” and avoid hugs and contacts – a good, firm handshake is the only contact that is expected/allowed
No reason to small talk. Although getting “straight down to business” is not recommended, talking about unrelated things is redundant.
Do not bring up politics like you could in the US. It is not an appropriate topic of discussion. However, you can talk about culture and appreciate history, just keep politics out of it.
Ethnicity
America is known as the world’s “melting pot,” with different ethnicities and nationalities, while Japan is made up of 98% of ethnic Japanese. Foreigners (visitors for business, tourism or both) stand out in the crowd.
Bowing
Bowing is very common in most of Asian countries, however, it is a lot more “extreme” in Japan. In the business setting, a deep/big bow is usually used, the smaller bows can be used in an apologetic sense or as a thanking gesture.
Solutions/Suggestions
While different ethnicities and national origins are common in the US, it is not that way in Japan, therefore be aware of the fact that you will “stand out” and possibly be under a microscope, just because you stand out that way.
When it comes to bowing, “feel” the situation. Many Japanese people are used to greeting foreigners with a handshake. When you stand out, they may substitute their bow for a handshake, therefore watch for their hand. If the situation demands it, use the “business” bow. It is a deep bow at nearly 45 degrees, it shows respect and politeness, which is (as mentioned earlier) extremely important, especially in the business setting.
As a thanking or apologetic gesture, a smaller bow is acceptable.
Gender roles
Very traditional and very strict in Japanese culture, with the number of female politicians and females in high positions in a company are very low. Women are expected to leave work after marriage to be housewives.
Japan ranked 101st in Global Gender Gap Report, which is nearly atrocious for a first-world country. Top 3 are Iceland, Finland and Norway, with US taking 22nd place.
Thy rank highest of their ranks in survival and healthcare, but the worst in political empowerment.
(SOURCE: http://www3.weforum.org/docs/WEF_GenderGap_Report_2012.pdf)
Social hierarchy
Very important in Japan, there is an obvious respect for elders and higher-ups in an organization, the senior vs junior employee relationship is important as well.
Collectivistic culture
- Japan focuses more on communities and groups, as well as their accomplishments, rather than accomplishments of an individual. With the family being at the core of most of what Japanese people do, interdependence on family is common as well.
(SOURCE: https://www.quora.com/What-are-the-main-cultural-differences-between-Japan-and-the-USA)
Solutions
Expect dealing with men most of the time no matter what business you are in, women as higher-ups are very rare
Respect is extremely important, especially the senior vs junior relationship, be aware of the roles – senior is a mentor, junior is a help to the senior for benefiting the group.
Most people are very loyal and tend to work for one company their entire life (unlike in the US, where people not change only jobs multiple times, but also careers). Expect less individualism and more collectivism, be aware of the groupthink and the fact that it may be more prevalent than sharing one’s opinions.
Tipping
- Tipping is extremely uncommon in Japan. It is very rare and not used in majority of normal occasions, it can be considered insulting (as if you’re taking a stab at the waiter’s salary).
Space
- Very limited and previous. The island is the size of California and majority of it is mountains, open spaces are not common.
Subtlety
- Japanese people are not direct. Small talk is not common, but neither is “getting straight to business.”
- Eye contact (especially prolonged) can be slightly uncomfortable for Japanese.
Solutions
Tipping is extremely uncommon in Japan and can even be considered rude. The waiter may see it as an attack on their livelihood.
Space is rare in Japan as it is an island. Furthermore, a lot of the regions are in the mountains, therefore open space is very rare and should not be expected/desired.
Japanese people don’t “get down to business” right away, there is less directness. In terms of eye contact, extended one should be avoided.
Aflac commercials are known for the fun loving, always wacky Aflac duck. The Aflac duck launched in January of 2000 and has been a brand icon ever since. The Aflac duck has 94% brand recognition and is recognized by millions, everyone loves to hear the “Afffflllllaccccc”. Aflac US commercials are known for the crazy antics of the Aflac duck whereas in the Aflac Japan the Aflac duck shares the stage with a companion in Maneki Neko.
In Japan they have a traditional icon that is believed to bring business, wealth and prosperity to companies called the Maneki Neko. In the Aflac Japan commercials these two beloved icons have come together and share their love of Aflac and Japanese culture to the country.
Situation 1 – The Don’t of a Japanese Business Meeting:
I walk in the room and shake someone’s hand and pat them on the shoulder, while calling them by their first name. Then I would walk around a table (if applicable) and throw my business cards in front of everyone. Then I would start with “Well I think it’s best for each and everyone in here…”
Situation 2:
I walk in the room and see if a bow/handshake is appropriate and see that I will need to bow and bow to every person in the room. I address everyone with respect by their last name and title. When I hand over my business card, I do it carefully. I begin with “Thank you all for meeting us, we have a couple of things on the agenda today in an effort of advancing our company’s goals forward.”
