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Each country has its own way of carrying out business which is largely based on its cultural and behavioral traditions. Japanese way of doing business is much-talked about in the world for its uniqueness and quality results. And an emerging country like India has to surpass many hurdles before it starts doing constructive business projects. Japan’s Business Culture lists out some of the underlying concepts governing business life in order to work and interact successfully with contacts in Japan. Such basic understanding about the Japanese business culture might become useful to users for considering business investments in Japan.
1. Relationships are very important
2. Being on time for business appointments
3. Group of Japanese people negotiate
4. Decision-making
5. Business meetings
6. English language not widely used in communication
7. Exchange of gifts
8. Polite conversation very important
9. Quality is of utmost significance
10.Interdependence of suppliers and end-product producers
11.Long-time storage of products not preferred
1. Relationships are very important
The importance of long-term relationships is of far greater value than any specific business opportunity that one may be keen to push through. Of all the business cultures of the world, Japan is one of those most strongly rooted in the concept that relationships should come before business, rather than business being more important than personal considerations.
This means that in order to achieve success in Japan, it is important to put the maximum amount of time and resource into the early stages of relationship-building — even when eventual results may seem a long way off.
Personal connections are very important in Japanese business culture, so it is best to arrange initial introductions through personal contacts or a business or trade association. One needs to be patient, as it may take a long time and many visits to Japan to truly establish business relationships there.
2. Being on time for business appointments
Japanese value time and proper scheduling. Therefore, being on time for business appointments is very important to them. Surrounded by excellent public transportation, they expect no delays. A lack of punctuality is considered disrespectful.
3. Group of Japanese people negotiate
The Japanese usually participate in the meeting as a team, often with a senior person present, but with negotiations led by lower ranking people. The group is very important in Japanese society, and decision-making is carried out on a consensual basis. The Japanese culture has a group orientation: altruism, team-work, and group cohesiveness are all areas greatly stressed within Japanese society.
In most of the rest of the word, two-three people visit another country to meet and discuss business plans, whereas from Japan about four-seven people come together as a group for negotiations.
Generally at the international level of doing business, company’s decision making is quick. Superiors give some leeway to subordinates so that they can decide and make decisions quickly. Unfortunately there are some errors that can come because of that. Japanese company’s decision making is in stages along their corporate hierarchy. Their decisions are very cautious and conservative and sometimes slower. These stages are backed by plenty of meetings and documentation. This minimizes error and brings consistency at all levels.
In most parts of the world, companies aim that meetings are efficient as much as possible. The meetings are fewer and for less time. In Japan meetings are very common in large companies. They value the process to agree with everyone who is related to their project, so they have many meetings and spend a lot of time in meetings. A long process of negotiations is expected.
Contacting clients by email or on the phone seems to be more natural in conducting business relationships in rest of the world, whereas, Japanese respect meeting each other face to face. It is important to them for conducting business relationships.
6. English language not widely used in communication
Most of the Japanese businessmen are not fluent in English and they prefer their native language. Appointments should be arranged in advance in writing, and one should send as much information as possible about the company and business proposals, translated into Japanese. An interpreter is needed to be present at the meetings there.
Gifts taken for first meeting is widely practiced in Japan. Gift-giving is very important in Japanese business, and should always be reciprocated. Gifts should be of good quality, and nicely wrapped, although not necessarily expensive.
8. Polite conversation very important
Above all, the Japanese place utmost importance on good manners and respect for others. They are very polite and rarely raise their voice. Japanese pay great attention to detail, and may ask lots of questions. Lengthy silences for reflection are common, and are sometimes used as a negotiation tactic, but silence can also indicate disapproval or embarrassment. Patience is a virtue and the ability to remain calm and hide any frustrations is paramount.
Quality is of utmost significance
A Japanese product is assured of quality. A quality consciousness approach is part of every small manufacturing process in Japan and when formulating plans with them, they expect others also to follow the same.
10. Interdependence of suppliers and end-product producers
This is very exclusive to Japan business method. There is a great level of dependency of suppliers and the manufacturers on each other for the final products.
11.Long-time storage of products not preferred
Having a reliable and efficient logistics layout, the Japanese do not believe much in having huge inventories.
Old Japanese rules of business engagement are still the norm in all reasonably-sized Japanese organizations. Perhaps incorporating the best of each business culture and move forward with the plans is the best way to deal with differences in business methods.
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