Japanese Economy Questions
Japanese markets are known for their tightly regulated industrial policies and tight links with governments. Moreover, it has been observed that Japanese markets are less accessible to international industries as strict rules control labor forces. Production system is extremely efficient with high-level quality control programs and efficient managerial practices. In spite of these factors, another set of factors adds up to international business entities not being able to access Japanese markets and these include maneuvered and monopolized exchange rates along with higher dumping practices. One of the main factors that have been seen in the case of Japanese markets is lowest innovation which is an important factor in market success.
Some changes have been seen in of Japanese markets. Global strategy has changed in Japanese manufacturing industries as it was previously observed that Japanese markets were instructed to stay local and respond in a local manner but these days an understanding has been achieved in Japanese markets that globalization can improve profits. In additions to this, globalization has also been applied to a number of Japanese industries in the sense that many Japanese products are seen to be sold in more than 20 countries. This makes Japanese industries face more competition in a relative manner thereby introducing the factor of innovation in each industry. In addition markets have changed as rules related to labor force have been changed thus ensuring greater entrance in Japanese markets (Voss, and Blackmon, 1998, p. 148).
Question 3 Briefly discuss the difference in the Japanese and Western business practices.
There are major differences in cultural practices between Japan and western countries. It is known for a fact that differences in cultural practices can lead to differences in managerial practices in businesses and multinational organizations. These cultural differences have lead to varied changes in managerial orientations being followed in Japan and western countries. In this case, many differences have been quoted. First difference relates to psychological orientation towards time. There is a great difference in attitudes towards time and this difference defines a countrys orientation towards long term and short-term goals and objectives in relation to business. Thereby these goals can indicate how important time is for these countries as differences are highlighted in strategic time calculation. This aspect has been studied and researched by Voss and Blackmon (1998) and this study has gathered manufacturing strategy data from 600 companies in 20 countries. In order to test differences in manufacturing strategy thinking orientation towards time, data collected related to manufacturing strategy adoption and important links between corporate and manufacturing strategy. Results of this study have been concluded and results show that there is a strong difference between Japan and western countries in terms of their manufacturing strategies and corporate strategies based on time orientation. Based on these studies, it has been seen that Japanese organizations have allocated resources in a timely manner and these have helped these organizations in making and generating more revenues. Success of Japanese corporations in business world has been because of customs followed with unique cultures not observed in western cultures. In addition language barriers play important roles but customs and traditions in Japanese corporations play more important roles in their success as compared to western corporations.
Question 4 What are the major characteristics of Japanese advertising
Only limited literature is available on Japanese advertising. However, respect for men and contempt for women is still being reinforced on Japanese advertising agencies. Japanese believe that media is a reflection of culture thereby reports indicate indigenous stereotyping in Japanese advertising magazines. Moreover, Japanese culture has been known to appreciate subtleties as well as image and this is highlighted in case of usage of strong reliance and emotional apparel in Japanese advertisements. In addition to these two factors, there is a strong use and belief of Japanese media in usage of impressions, ambiguities, and nuancesas compared to words thus verbal usage is lesser. This is particularly seen in case of commercial messages as these are aired for a limited time period and it is believed by Japanese advertisement agencies that viewers need to feel what is being shown in advertisement rather than listen and forget. It is thereby believed that ads more emotionally oriented are unforgettable as compared to verbal ads. Thereby an important feature in Japanese advertisement is centered on encompassing everything and every message in ambiguity and this forms the basis of Japanese advertisement in order to ensure that true essence of advertisement is maintained by not being too obvious and expressive. In addition it has been argued that Japanese advertisement magazines are more stereotypical. However a strong observation has been made that says that if Japanese magazines were completely stereotypical than women would be portrayed in a sexist manner rather than in egalitarian manner (Ford et al. 1998, p. 115).
Question number 5 It is often argued that Japan is a rich country with poor consumers. Why
Japan is considered as one of those countries that has resources and wealth but is poor in an intellect. It has been estimated that with total assets of 11 trillion yen, Japan is rated as one of the richest countries in the world. Superstores in smaller villages and smaller towns are crowded with villagers and various kinds of commodities. However it has been estimated that Japanese do not have the flare of using money. Japan being a richer country has no value for its customers that set its customers apart from its richness. For instance, a normal cup of coffee in Japan does not cost less than 1800 yen, this is too expensive, and lavish of a price to be given thereby customers are poorer as compared to country itself. After the World War Japan has become a rich country and the main reason behind this is dedication and hard work of Japanese manufacturing industries. Thereby Japanese economy has had a great influence on a global scale. Instead of success factors and having a great economical growth, Japanese still lacks confidence bestowed to it from international companies as it is observed that Japan lacks immensely in humanism. In order to produce richer consumers, there is a need that Japan starts to take into account the demands of the customers and drop the prices of products manufactured thus increasing sales thus increasing market values. More investments are needed on global problems as environmental issues, poverty and health care concerns, peace and welfare for all globally (Bird, 2001, p. 45).
Question number 7 Briefly discuss the fall of Abacus Banking and the banking crisis in Japan.
Bankers in Japan are known for their specialization in accounting rather than risk management. Risk management systems in banking culture are only seen in American banks and crisis in Japanese banks cannot be solved by using these American strategies. Banking crisis in Japan has been linked with tight banking regulations designed by the governments and high growth environments. As a result of these two factors, competition has been extremely limited in Japanese banking sector. In addition to this it was seen that management sector within these banks was under control in an extreme manner causing further weakness in incentives for Japanese banking systems making managers and higher authorities in banks hard to control traditional and nontraditional risk in banking. Abacus banking in Japan faced another issue related to rationed credit as it was clearly reflecting MOF and MITI priorities in Japan banking sector and these also included the monopolies of Chinese banking authorities. It is seen that Japanese bankers have been grown as experts to ancient banking, abacus, but they are not aware of current banking practices that especially include risk management and banking policies. Japanese banks are in a serious need to leaner how banks can behave in current situation and risk management being one of the most important factors to be learned. Japanese banks are still unaware of the fact that they can be profit making institutions. Japanese bank ,managers are never held accountable to stakeholders and higher authorities that has been an important cause of failure and this has been seen in accordance to banking regulations issued by governments (Arayama, and Mourdoukoutas, 2000, p. 23).