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Japan country workshop_pp


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Japan country workshop including general information, Japan economy, management style, automotive industry, Toyota business case and culture of doing business. I hope you will find it useful.

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Japan country workshop_pp

  1. 1. JAPAN Country Workshop Ozan Can Koseley
  2. 2. JAPAN Country Workshop <ul><li>Japan: the Country </li></ul><ul><li>Economy of Japan </li></ul><ul><li>The Japanese Management Style </li></ul><ul><li>The Japanese Automotive Industry </li></ul><ul><li>A Japanese leading company </li></ul><ul><li>Business Case </li></ul>
  3. 3. Japan: the Country
  4. 4. Geography (1) <ul><li>Situated along the pacific coast of Asia (eastern coast) </li></ul><ul><li>Closest neighbours are Russia, Korea, and China </li></ul>Japan: the Country
  5. 5. Geography (2) <ul><li>Consists of many islands, among them the four main islands: Hokkaido, Honshu, Shikoku, and Kyushu </li></ul><ul><li>Total land area is comparable to Germany and California </li></ul>Japan: the Country
  6. 6. Geography (3) <ul><li>Largest part of Japan is mountainous </li></ul><ul><li>Highest mountain is the well known Mount Fuji (12,385 ft) </li></ul><ul><li>Japan is also situated in a volcanic zone </li></ul>Japan: the Country
  7. 7. Climate <ul><li>The climate of Japan varies strongly in the different regions </li></ul><ul><li>The climate in most of the major cities is sub tropic with four seasons </li></ul>Japan: the Country
  8. 8. Population (1) <ul><li>Population currently a little above 127 million people including 2 million of foreign people </li></ul><ul><li>Japan has one of the world highest life expectancy (81,25 years in 2006) </li></ul><ul><li>Growth rate is slowing down for the first time in 100 years, reason is the falling birth rate </li></ul>Japan: the Country
  9. 9. Population (2) <ul><li>In 2006, 20,8% of the population was over the age of 65 </li></ul>Japan: the Country
  10. 10. Population (3) <ul><li>Japanese society is mostly linguistically and culturally homogenous </li></ul><ul><li>99% of the population speak Japanese as their first language </li></ul><ul><li>The most dominant native ethnic group is the Yamato people </li></ul><ul><li>“ Nikkeijin” = Japanese people who either emigrated from Japan or are descendants of a person who emigrated from Japan </li></ul>Japan: the Country
  11. 11. Population (4) <ul><li>Top 4 of places where Japanese people immigrate to: </li></ul><ul><ul><li>Brazil (Sáo Paula and Parana) </li></ul></ul><ul><ul><li>Philippines </li></ul></ul><ul><ul><li>Peru </li></ul></ul><ul><ul><li>Hawaii </li></ul></ul>Japan: the Country
  12. 12. Religion <ul><li>84-96% believe in Shinto and Mahayana Buddhism </li></ul><ul><li>Japanese beliefs and methodology are influenced by: </li></ul><ul><ul><li>Buddhism </li></ul></ul><ul><ul><li>Taoism </li></ul></ul><ul><ul><li>Confucianism </li></ul></ul><ul><li>Japanese tends to be syncretic in nature </li></ul><ul><li>Resulting in variety of different practices </li></ul>Japan: the Country
  13. 13. Economy of Japan
  14. 14.  One of the largest economy in the world Why ? <ul><li>This strong economy is partly due to </li></ul><ul><li>The close government-industry cooperation </li></ul><ul><li>A strong work ethic </li></ul><ul><li>Mastery of high technology </li></ul><ul><li>A comparatively small defence allocation (1% of GDP) </li></ul>Economy Of Japan
  15. 15. Major industries Banking Insurance Real estate Retailing Transportation Telecommunication Economy of Japan
  16. 16. Two notable characteristics  Keiretsu  The guarantee of lifetime employment in big corporations Economy of Japan
  17. 17. Tokyo stock exchange <ul><li>The second largest stock exchange market in the world by monetary volume. </li></ul><ul><li>It Currently lists: </li></ul><ul><li>2,271 domestic companies </li></ul><ul><li>31 foreign companies </li></ul><ul><li>A total market capitalization of over $5 trillion </li></ul>Economy of Japan
  18. 18. The Asian Miracle and the Japanese economy From the 1960s to the 1980s A 10% average of overall real economic growth in the 1960s, A 5% average of overall real economic growth in the 1970s, A 4% average of overall real economic growth in the 1980s ASIAN CRISIS  July 1997 Fortunately, Japan’s growth was just slowed Economy of Japan
  19. 19.  Transport equipment,  Motor vehicles,  Electronics,  Electrical machinery  Chemicals. Japan’s main exports Economy of Japan
  20. 20.  Machinery and equipment,  Fossil fuels,  Foodstuffs (in particular beef),  Chemicals,  Textiles  raw materials for its industries. Japan’s main imports Economy of Japan
  22. 22. The characteristics of the Japanese management style <ul><li>A group consensus in decision making </li></ul><ul><li>A Career job security </li></ul><ul><li>A pay and promotion system heavily reliant upon senority </li></ul><ul><li>In-house unions enlisting all company employees </li></ul>The Japanese Management Style
  23. 23. The Western admiration for the Japanese management style <ul><li>Resulting from the higher labour productivity growth rate of Japan </li></ul><ul><li> 9.3% from 1960 to 1980 </li></ul><ul><li>The perceived devotion of Japanese employees to their companies and work </li></ul><ul><li>The competitiveness of the Japanese corporate system : a managerial autonomy </li></ul><ul><li>The relationship with the shareholders </li></ul>The Japanese Management Style
  24. 24. Leadership and decision-making <ul><li>The Japanese corporations are rigidly organized and extremely hierarchical </li></ul><ul><li>An independent power centre in each department of the organization </li></ul><ul><li>Decision making : a real group process </li></ul><ul><li>Careful attention being given to the preliminary stages of management by group consensus </li></ul><ul><li>The ‘ringisho’ </li></ul>The Japanese Management Style
  25. 25. The advantages to the Japanese form of decision-making <ul><li>It has some elements of democracy </li></ul><ul><li>A greater participation of decision-making in the company </li></ul><ul><li>The inclusion of many individuals in the decision-making process </li></ul><ul><li> An easier and more efficient implementation </li></ul>The Japanese Management Style
  26. 26. The flaws of the Japanese process <ul><li>Too many people and sections get involved </li></ul><ul><li>Too many meetings are held </li></ul><ul><li>The meetings are very long </li></ul><ul><li>The delay of business decision-making </li></ul><ul><li>The influence of the relationships between the participants in the final decision </li></ul>The Japanese Management Style
  27. 27. The Lifetime Employment : ‘shushinkoyo’ <ul><li>Employees are recruited directly from school rather than from an open job market </li></ul><ul><li>Employees are expected to stay with the company all their working life </li></ul><ul><li> they can expect lifelong job security </li></ul><ul><li>The importance of the recruitment </li></ul><ul><li>A real family-type social organization </li></ul>The Japanese Management Style
  28. 28. The seniority Promotion: ‘nenko joretsu’ <ul><li>‘ nenko’: the merit in the number of years an employee has provided his services </li></ul><ul><li>A major motivation for employees to stay long in one company </li></ul><ul><li>A system under pression (from mid-1980s) </li></ul>The Japanese Management Style
  29. 29. The enterprise trade unions: ‘kigyo-betsu kumiai’ <ul><li>Basic organization in Japan’s labour movement </li></ul><ul><li>A competitive advantage of the Japanese management system </li></ul><ul><li>No differentiation as to occupation and job status </li></ul><ul><li>A unique interdependent relationship between the enterprise union and the company </li></ul><ul><li>The same office space and facilities  provided by the company </li></ul><ul><li>The same future </li></ul>The Japanese Management Style
  30. 30. The Japanese Automotive Industry
  31. 31. The Japanese Industry <ul><li>Second largest industry in the world </li></ul><ul><li>GDP output of $4.883 Trillion </li></ul>The Japanese Automotive Industry
  32. 32. The Japanese Industry <ul><ul><li>Largest and most technologically advanced producers </li></ul></ul><ul><ul><ul><li>Motor Vehicles </li></ul></ul></ul><ul><ul><ul><li>Electronic Equipment </li></ul></ul></ul><ul><ul><ul><li>Machine Tools </li></ul></ul></ul><ul><ul><ul><li>Metals </li></ul></ul></ul><ul><ul><ul><li>Ships </li></ul></ul></ul><ul><ul><ul><li>Chemicals </li></ul></ul></ul><ul><ul><ul><li>Textiles </li></ul></ul></ul><ul><ul><ul><li>Processed Foods </li></ul></ul></ul><ul><ul><li>Major Industries </li></ul></ul><ul><ul><ul><li>Banking </li></ul></ul></ul><ul><ul><ul><li>Insurance </li></ul></ul></ul><ul><ul><ul><li>Real estate </li></ul></ul></ul><ul><ul><ul><li>Retailing </li></ul></ul></ul><ul><ul><ul><li>Transportation </li></ul></ul></ul><ul><ul><ul><li>Telecommunications </li></ul></ul></ul>The Japanese Automotive Industry
  33. 33. The Japanese Automotive Industry <ul><li>Most Successful Industry </li></ul><ul><li>World’s largest Automobile Manufacturer and Exporter </li></ul><ul><li>Home of six out of top 10 largest vehicle manufacturers in the world </li></ul><ul><ul><li>Toyota </li></ul></ul><ul><ul><li>Mitsubishi </li></ul></ul><ul><ul><li>Honda </li></ul></ul><ul><ul><li>Nissan </li></ul></ul><ul><ul><li>Suzuki </li></ul></ul><ul><ul><li>Mazda </li></ul></ul><ul><ul><li>Known for their: </li></ul></ul><ul><ul><ul><ul><ul><li>Quality </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Durability </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Fuel efficiency </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Competing prices compared to their competitors </li></ul></ul></ul></ul></ul>The Japanese Automotive Industry
  34. 34. <ul><li>Auto-related employment totals 7.8% of Japan’s working </li></ul><ul><li>Population </li></ul><ul><li>Integrated Industry </li></ul><ul><li>Core industrial sector </li></ul><ul><li>16.5% of the total value of Japan’s manufacturing shipments,3 </li></ul><ul><li>35% of the value of the machinery industries’ combined shipments </li></ul><ul><li>Automotive shipments value in total ¥49 trillion in 2005 </li></ul>The Japanese Automotive Industry The Japanese Automotive Industry
  35. 35. JAMA Japan Automobile Manufacturers Association <ul><li>Trade Association </li></ul><ul><li>Share technological developments and management practices </li></ul><ul><li>Offices in: </li></ul><ul><li>Tokyo, Japan </li></ul><ul><li>Beijing, China </li></ul><ul><li>Singapore, Singapore </li></ul><ul><li>Washington D.C., United States </li></ul><ul><li>Brussels, Belgium </li></ul>The Japanese Automotive Industry
  36. 36. JAMA Japan Automobile Manufacturers Association <ul><li>14 Members: </li></ul><ul><ul><li>Toyota Motor Corporation </li></ul></ul><ul><ul><li>Nissan Motors </li></ul></ul><ul><ul><li>Honda Motor Co., Ltd. </li></ul></ul><ul><ul><li>Mitsubishi Motors Corporation (Member of the Mitsubishi Group) </li></ul></ul><ul><ul><li>Suzuki Motor Corporation ) </li></ul></ul><ul><ul><li>Mazda Motor Corporation (Affiliate of Ford Motor Company –33.9% ownership) </li></ul></ul><ul><ul><li>Daihatsu Motor Co., Ltd. (Member of the Toyota Group) </li></ul></ul><ul><ul><li>Hindo Motors (Member of the Toyota Group) </li></ul></ul><ul><ul><li>Subaru (Member of the Toyota Group) </li></ul></ul><ul><ul><li>Isuzu Motor Co., Ltd. (Member of the Toyota Group) </li></ul></ul><ul><ul><li>Nissan Diesel Motor Company </li></ul></ul><ul><ul><li>Mitsubishi Fuso Truck and Bus Corporation (Member of the Daimler Chrysler and Mitsubishi Group) </li></ul></ul><ul><ul><li>Kawasaki Heavy Industry </li></ul></ul><ul><ul><li>Yamaha Motor Company </li></ul></ul>The Japanese Automotive Industry
  37. 37. Other Car manufacturers, Coachbuilders and Tuning Companies <ul><li>Mitsuoka </li></ul><ul><li>Spoon Sports </li></ul><ul><li>HKS </li></ul>The Japanese Automotive Industry
  38. 38. A Japanese leading company
  39. 39. The Toyota Group <ul><li>It is the biggest single firm in Japan </li></ul><ul><li>Its annual sales is approximately $72 billion </li></ul><ul><li>Overall 72 thousand employees </li></ul><ul><li>Toyota Industries Corporation and Toyota Motor Corporation </li></ul><ul><li>In contrast to the horizontal keiretsu the Toyota Group is not oriented around a bank </li></ul><ul><li>Also operates in many other fields such as: </li></ul><ul><ul><li>telecommunications </li></ul></ul><ul><ul><li>computer development (with IBM Japan) </li></ul></ul><ul><ul><li>nonlife insurance (automobile insurance) </li></ul></ul><ul><ul><li>real estate </li></ul></ul><ul><ul><li>finance </li></ul></ul><ul><ul><li>leasing </li></ul></ul><ul><ul><li>aircraft development </li></ul></ul><ul><ul><li>automobile marketing </li></ul></ul>A Japanese leading Company
  40. 40. The Toyota Group <ul><li>The Toyota Group comprises of 16 companies: </li></ul><ul><li>Toyota Industries Corporation (founded in 1926) </li></ul><ul><li>JTEKT Corporation (1935) </li></ul><ul><li>Toyota Motor Corporation (1937) </li></ul><ul><li>Toyota Motor Corporation (1937) </li></ul><ul><li>Toyota Auto Body, Co. Ltd. (1940) </li></ul><ul><li>Aichi Steel Corporation (1940) </li></ul><ul><li>Kanto Auto Works, Ltd. (1945) </li></ul><ul><li>Toyota Tsusho Corporation (1946) </li></ul><ul><li>Aisin Seiki Co., Ltd. (1949) </li></ul><ul><li>Toyoda Gosei Co., Ltd. (1949) </li></ul><ul><li>Denso Corporation (1949) </li></ul><ul><li>Toyota Boshoku Corporation (1950) </li></ul><ul><li>Towa Real Estate Co., Ltd. (1953) </li></ul><ul><li>Toyota Central R&D Labs., Inc. (1960) </li></ul><ul><li>Daihatsu Motor Co (1907; Toyota owns 51% of the company since 1999) </li></ul><ul><li>Hino Motors (diesel trucks and buses. Toyota owns 50.5% of the company since 2001)   </li></ul>A Japanese leading Company
  41. 41. The Toyota Group <ul><li>Affiliates or partially owned companies: </li></ul><ul><li>Kyoho kai group - Auto parts company - 211 companies </li></ul><ul><li>Kyouei kai group - Logistic/facility company - 123 companies </li></ul><ul><li>Fuji Heavy Industries, Ltd., manufacturer of Subaru automobiles (Toyota owns 8.7% of the company) </li></ul><ul><li>Isuzu Motors Ltd. (Toyota owns 5.9% of the company) </li></ul><ul><li>Misawa Homes Holdings, Inc. (Toyota owns 13.4% of the company) </li></ul>A Japanese leading Company
  42. 42. Toyota Motor Corporation <ul><li>The world’s second largest Automobile manufacturer </li></ul><ul><li>It ranks first in net worth, revenue and profit </li></ul><ul><li>Founded in 1937 by Kiichiro Toyoda </li></ul><ul><li>Headquarters in Toyota, Aichi and Bunkyo, Tokyo Japan </li></ul><ul><li>Toyota Financial Services and also creates robots </li></ul><ul><li>Toyota – Lexus – Scion </li></ul><ul><li>It plans to sell 10.4 million automobiles in 2008 worldwide </li></ul><ul><li>Toyota Corporation, 株式会社豊田 Kabushiki-gaisha Toyota </li></ul>A Japanese leading Company
  43. 43. <ul><li>Guiding Principles at Toyota </li></ul><ul><ul><li>Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world. </li></ul></ul><ul><ul><li>Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities. </li></ul></ul><ul><ul><li>Dedicate ourselves to providing clean and safe products and to enhance the quality of life everywhere through all our activities. </li></ul></ul><ul><ul><li>Create and develop advanced technologies and provide outstanding products and services that fulfil the needs of customers worldwide. </li></ul></ul><ul><ul><li>Foster a corporate culture that enhances individual creativity and teamwork value, while honouring mutual trust and respect between labour and management. </li></ul></ul><ul><ul><li>Pursue growth in harmony with the global community through innovative management. </li></ul></ul><ul><ul><li>Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships. </li></ul></ul>Toyota Motor Corporation A Japanese leading Company
  44. 44. <ul><li>Toyota Production System </li></ul><ul><li>Base your management decisions on a long-term philosophy, even at the expense of short-term goals  </li></ul><ul><li>Create continuous process flow to bring problems to surface </li></ul><ul><li>Use “pull” systems to avoid overproduction </li></ul><ul><li>Level out the workload </li></ul><ul><li>Build a culture of stopping to fix problems, to get quality right the first time </li></ul><ul><li>Standardize tasks are the foundation for continuous improvement and employee empowerment </li></ul><ul><li>Use Visual control so no problems are hidden </li></ul><ul><li>Use only reliable, thoroughly tested technology that serves your people and processes </li></ul><ul><li>Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others </li></ul><ul><li>Develop exceptional people and teams who follow your company’s philosophy </li></ul><ul><li>Respect your extended network of partners and suppliers by challenging them and helping them improve </li></ul><ul><li>Go and see for yourself to thoroughly understand the situation (genchi genbutsu) </li></ul><ul><li>Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly </li></ul><ul><li>Become a learning organization through relentless reflection and continuous improvement </li></ul>Toyota Motor Corporation A Japanese leading Company
  45. 45. <ul><li>Worldwide presence </li></ul><ul><li>8 th place in the Fortune Global 500 as world’s largest company </li></ul><ul><li>74 manufacturing companies in 27 countries/regions worldwide: </li></ul><ul><li>Japan, Australia, the United States, Canada, Mexico, United Kingdom, France, Portugal, Poland, Czech Republic, Turkey, Malaysia, Philippines, Taiwan, Thailand, China, Indonesia, Vietnam, India, Pakistan, Bangladesh, Argentina, Venezuela, Brazil, Colombia, Kenya and South Africa </li></ul><ul><li>It markets vehicles in more than 170 countries/regions globally </li></ul><ul><li>It employs approximately 299,400 people worldwide </li></ul><ul><li>Net sales revenue of ¥21.03 trillion in 2006 </li></ul>Toyota Motor Corporation A Japanese leading Company
  46. 46. <ul><li>Location of Toyota Facilities in Japan </li></ul>Toyota Motor Corporation A Japanese leading Company
  47. 47. <ul><li>Worldwide Operations </li></ul>Toyota Motor Corporation A Japanese leading Company
  48. 48. <ul><li>History of Production (Toyota and Lexus brand) (1=1000 units) </li></ul>Toyota Motor Corporation A Japanese leading Company
  49. 49. <ul><li>History of Sales (Toyota and Lexus brand) (1=1000 units) </li></ul>Toyota Motor Corporation A Japanese leading Company
  50. 50. <ul><li>Top 10 Markets in terms of Sales (1=1,000 units) </li></ul>Toyota Motor Corporation A Japanese leading Company
  51. 51. <ul><li>Breakdown of consolidated Net Revenues Of Toyota Motor Corporation (Million yen; amounts less than one million yen are omitted.) </li></ul>Toyota Motor Corporation A Japanese leading Company
  52. 52. <ul><li>Toyota in motorsports </li></ul><ul><li>  </li></ul><ul><li>World Rally Championship </li></ul><ul><li>Indy Racing league (formerly known as the Champ Car series) </li></ul><ul><li>Le Mans </li></ul><ul><li>NASCAR Series </li></ul><ul><li>Nextel Cup </li></ul><ul><li>Formula one Grand prix races </li></ul>Toyota Motor Corporation A Japanese leading Company
  53. 53. <ul><li>Toyota in the Future </li></ul><ul><li>To improve overall quality through consistently adopting a ‘customer first’ mindset and through achieving ‘built-in quality with ownership’ </li></ul><ul><li>To operate with full autonomy </li></ul><ul><li>Implementing sustainability within the frameworks of research and development, production, and social contribution </li></ul><ul><li>Toyota Global Vision 2020 : </li></ul><ul><li>Toyota wants to become ‘the most admired in the world’ </li></ul><ul><li>Through the combined efforts of all associates across the globe it will put </li></ul><ul><li>Toyota well on its way to realizing its dreams of sustainability for the </li></ul><ul><li>future. </li></ul>Toyota Motor Corporation A Japanese leading Company
  54. 54. Failed businesses in Japan
  55. 55. Question 1 <ul><li>Business in Japan. Why does it make sense? </li></ul>Failed Businesses in Japan
  56. 56. Answer <ul><li>Business in Japan. Why does it make sense? </li></ul><ul><li>Japan is the world's second largest market competitor </li></ul><ul><li>125 million people </li></ul><ul><li>Advanced tec hnolog y </li></ul><ul><ul><li>20 million internet users </li></ul></ul><ul><ul><li>50 million mo bile phone </li></ul></ul><ul><li>15% of the world's economy is in Japan </li></ul>Failed Businesses in Japan
  57. 57. Question 2 <ul><li>What are the common reasons that cause </li></ul><ul><li>international companies to fail in J apan? </li></ul>Failed Businesses in Japan
  58. 58. Answer <ul><li>What are the common reasons that cause </li></ul><ul><li>international companies to fail in J apan? </li></ul><ul><li>They have to take longer views </li></ul><ul><li>Lack of meeting local market needs </li></ul><ul><li>They need to focus on human resources </li></ul><ul><li>Insufficient investment </li></ul><ul><li>Trying to adopt their business models directly to Japan </li></ul>Failed Businesses in Japan
  59. 59. Japanese culture quiz <ul><li>In business meetings it is customary for the most senior person to enter the room last and sit closest to the door. </li></ul><ul><li>In Japanese the number 4 sounds like the word for 'death' and consequently is deemed unlucky. </li></ul><ul><li>As in many Western cultures, silence is seen as uncomfortable and avoided where possible. </li></ul><ul><li>In Japanese culture, laughter is often used to hide feelings such as nervousness, shock, embarrassment, confusion and disapproval. </li></ul><ul><li>It is not rude to slurp or make noise while eating noodles or drinking tea </li></ul>
  60. 60. Japanese culture quiz <ul><li>In business meetings it is customary for the most senior person to enter the room last and sit closest to the door. </li></ul><ul><li>False. The most senior member of the team generally enters the room first, followed by his subordinates in order of rank. The least senior member will sit closest to the door. </li></ul><ul><li>In Japanese the number 4 sounds like the word for 'death' and consequently is deemed unlucky. </li></ul><ul><li>True. </li></ul><ul><li>As in many Western cultures, silence is seen as uncomfortable and avoided where possible. </li></ul><ul><li>False. Silence is often used as part of the thought process and is never thought of as uncomfortable. </li></ul><ul><li>In Japanese culture, laughter is often used to hide feelings such as nervousness, shock, embarrassment, confusion and disapproval. </li></ul><ul><li>True. It is generally used when it is not known what feelings to express. </li></ul><ul><li>It is not rude to slurp or make noise while eating noodles or drinking tea </li></ul><ul><li>True. It is a positive sign that you are enjoying it! </li></ul>