Doing Business in Japan

Doing business in Japan | Japanese Social and

Business Culture

A Japanese Culture Overview

Fact file

o Official name - Japan

o Population - 127, 333, 002* (July 2004 est.)

o Official language - Japanese

o Currency - Yen

o Capital city - Tokyo

o GDP - purchasing power parity $3. 567

trillion* (2003 est.).

o GDP per capita - purchasing power parity

$28, 000* (2003 est.).

Overview

Japan is the land of peace and harmony that

continues to evolve in a positive unification of tradition and modernisation. With its elaborate

and colourful history and culture, Japan has formed a distinct model of hierarchy, honour

and etiquette that is still reflected in many social and business practices today.

If your organisation is planning to conduct business with Japan, potential success depends

upon an understanding of this culturally influenced protocol.

Japanese culture - Key concepts and values

Wa - The most valued principle still alive in Japanese society today is the concept of 'wa', or

'harmony'. The preservation of social harmony dates back to the first constitution in 604 AD

and the teamwork needed when living and working on collective farms. In business terms,

'wa' is reflected in the avoidance of self-assertion and individualism and the preservation of

good relationships despite differences in opinion. When doing business with the Japanese it is

also important to remember the affect of 'wa' on many patterns of Japanese behaviour, in

particular their indirect expression of 'no'.

Kao - One of the fundamental factors of the Japanese social system is the notion of 'face'. Face

is a mark of personal pride and forms the basis of an individual's reputation and social status.

Preservation of face comes through avoiding confrontations and direct criticism wherever

possible . In Japan, causing someone to loose face can be disastrous for business relationships.

Omoiyari - Closely linked to the concepts of 'wa' and 'kao', 'omoiyari' relates to the sense of

empathy and loyalty encouraged in Japanese society and practiced in Japanese business

culture. In literal terms it means "to imagine another's feelings", therefore building a strong

relationship based on trust and mutual feeling is vital for business success in Japan.

The late 19th and early 20th centuries saw Japan swiftly embrace the numerous influences of

western technology. Following the country's defeat in WWII, Japan experienced a remarkable

growth in its economy and fast became the world's most successful export. Since then, Japan's

business and economy has witnessed a wavering of strengths, however today, Japan is one of

© Communicaid Group Ltd. 2006 Doing Business in Japan

the world's leading industrial powers with a new, stable and

exciting business market open to foreign investment and trade.

Japan business Part 1 - Working in Japan (Pre-departure)

• Working practices in Japan

o Due to the strong contemporary business competition in Asia, the old concept of

the 'unhurried' Japanese negotiation process is no longer applicable. Decisions

are made swiftly and efficiently.

o