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May 31

Top Tips for Doing Business in Japan

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

Japan has evolved over the last half century to become one of the world’s richest and most technologically advanced economies, well known for its exports of cars and electronic goods. In addition, a well educated population with an incredibly strong work ethic means that Japan offers a wealth of investment and market opportunities to international organisations.

Made up of over 3,000 islands, Japan has some of the most crowded urban areas in the world since the majority of people live on only a few of the islands. It is not surprising then that personal space is highly valued in Japan and gestures and facial expressions tend to be modest when doing business in Japan.

Japan Chris Pritchard i Top Tips for Doing Business in Japan

As an island country, Japan’s population has remained extremely homogenous and you will find a strong sense of group identity when doing business in Japan. The distinction between private and public life is blurred where teamwork and ‘fitting in’ are much more important than individualism in Japan. That being said, the younger generation of Japanese starting to enter the business world are increasingly making efforts to stand out from the crowd in the way they dress, communicate and act.

During the tragic events that occurred in March 2011, the world also witnessed another Japanese value: the importance of maintaining face and dignity at all times. Most foreigners living and working in Japan at the time were struck by the calm nature and self-control displayed by the local population during and after the earthquake and the tsunami that led to a nuclear situation. The importance of face and dignity are values that can be found in almost every aspect of Japanese social and business cultures so you will often find that your Japanese counterparts will seldom display their emotions or feelings in order to keep face.

The following tips will help you improve your success when doing business in Japan.

Avoid causing loss of face at all costs. Don’t be confrontational or openly criticise or embarrass Japanese colleagues as they will lose ‘kao’, or face.

Be aware that Japanese business culture is hierarchical. Be sure you always greet the most senior people in the room before anyone more junior.

Don’t be afraid of silence as it causes less anxiety than in the West and is often used as a negotiating tactic.

Be aware of your body language and try to maintain a formal posture during meetings. Avoid slumping or crossing your legs as this could give a negative impression.

Make sure you take plenty of business cards with you and have your details printed in Japanese on the reverse when doing business in Japan.

Japan is a country with a high usage of technology which most of the population has access to. You can expect your Japanese colleagues to be comfortable with virtual communication, however as they are relationship focused you should always try to find time for face-to-face meetings.

Avoid physical contact or expansive gestures and facial expressions when doing business in Japan. Most Japanese are modest and reserved in their behaviour and value the space around them.

Address your business partners by their surname. To show even more respect, add ‘san’ after their surname. For example, Akira Kurosawa could be addressed as Mr Akira Kurosawa or Kurosawa San.

Offer your Japanese counterparts a small gift when meeting or visiting them. Your gift should be well wrapped but modest and not too personal. Don’t expect them to open it in front of you as this may cause loss of face to one of the parties.

Relationships and networks are a key part of Japanese business culture. Many international companies doing business in Japan find more success when they rely on a third party to help introduce them and build their reputation in the market.

Considering and respecting the top tips for doing business in Japan above is the first step towards building effective relationships with your Japanese counterparts. Participating in a cross cultural awareness training course such as Doing Business in Japan will give you a comprehensive understanding of this dynamic and fast-changing culture so that you can anticipate and manage cultural differences more effectively and build better business relationships.

© Communicaid Group Ltd. 2011

Tagged with: Doing Business in Japan • Japan • Japanese business etiquette • top tips for doing business in Japan • Working with Japanese

Feb 28

Doing Business in Japan: What’s in a Name?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

Most people associate Japanese culture with a traditional etiquette and formality that people adhere to strictly in both professional and social spheres. When doing business in Japan it’s important to understand that etiquette is an important instrument that can convey hierarchical structures and respect. Understanding business and social etiquette in Japan can be challenging, however, and many people who visit Japan are intrigued by the multitude of extremes and exceptions in Japanese etiquette.

Japan Chris Pritchard i Doing Business in Japan: What’s in a Name?

One part of Japanese etiquette revolves around Japanese naming conventions. The Japanese language is comprised of an array of formal and informal terms that are used to address each other. In Japanese business people tend to prefer to be addressed with their last name. Most Japanese names end with the suffix ‘-san’ which is a rather neutral option and stands for Mr. or Ms.

The Japanese naming system is however much more elaborate and uses different suffixes to indicate the status of a person in addition to this. It is also commonplace in business to add the job title after someone’s name to show their authority and seniority. In this case the suffix ‘-san’ would then be replaced with the job title or profession of that person. For example, a head of department named Takahashi is referred to as Buchō or Takahashi-buchō.

Intercultural awareness training courses like Doing Business in Japan can help anyone working with Japanese counterparts to not only learn the words that are added to names in Japan but also to understand the meaning and values that people in Japan attach to them. Understanding these honorific naming conventions will help you to build trusting relationships with your Japanese counterparts.

Japanese naming conventions expand beyond business to the family sphere as well. Older family members can address younger family members with their name alone. Younger family members will address their elders with a referential suffix that will reveal how close they are to the person they are addressing. When addressing people outside their family, Japanese use a different word for mother, brother, sister etc which creates an even stronger sense of family in Japanese culture.

Family is a core value in Japanese culture and strongly impacts Japanese naming conventions, but attitudes towards family are changing as Japanese society becomes influenced by American and European trends. One area of Japanese naming conventions which are being influenced by these changes is marriage. A recent article in the Guardian suggests that an increasing number of women are refusing to change their family name. Traditionally the head of the Japanese family is always the man. Couples have to agree on one surname when they get married as Japanese society does not allow couples to have different or double surnames.

An increasing number of Japanese women have recently started to challenge the status quo and are fighting to keep their surname. To some this is an astonishing insight as it seems to contradict the emphasis on strict Japanese etiquette and family traditions which are so important in Japanese culture. Some fear that this new trend could negatively impact the unique concept of family and its associated traditions in Japanese culture.

Although new trends are challenging traditional Japanese culture it will take a considerable amount of time before they become completely commonplace and significantly change a whole set of elaborate etiquette. Anyone doing business in Japan will certainly find that the traditional business etiquette will prevail for some time to come. However an understanding of how Japanese society is changing and being influenced by new approaches and attitudes will help anyone doing business in Japan to respond appropriately and not make false assumptions. Taking an intercultural training course like Doing Business in Japan will ensure you are up to speed on all of the recent trends as well as traditional customs in Japanese society that impact business and social spheres enabling you to effectively respond to and harness unique aspects of Japanese culture.

© Communicaid Group Ltd. 2011

Tagged with: Courses - Cultural Training • Culture in Japan • Doing Business in Japan • Japanese business culture • Japanese culture • Japanese honorifics • Japanese names • meaning of Japanese names • Working with Japanese

Apr 12

Benefits of Doing Business in Japan

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

Towards the end of the 19th Century, Japan rapidly embraced western technological influences to become a centre of creativity and development. Following its defeat in WWII, Japan experienced tremendous economic expansion and growth and swiftly became the world’s most successful exporter.

JETRO – Japan External Trade Organisation reports that an increasing number of companies around the world are partnering with Japanese companies to develop products and services, create innovative technologies and create R&D projects. To this day, Japan remains one of the world’s leading industrial powers making doing business in Japan an excellent location for international companies. Some of the key benefits of doing business in Japan are outlined below.

Train station sack i Benefits of Doing Business in Japan

Gateway to the Asian market
Not only does Japan offer a captive audience of 127 million citizens, it also offers an exciting yet stable business market open to trade and foreign investment. Globally competitive, especially in the fields of environment, healthcare, IT and automotives, Japan’s huge economy already boasts an established base of the world’s top companies. Doing business in Japan also has the added benefit of working in the showroom for the rest of Asia.

Highly educated workforce
The presence of over 600 universities in Japan means that university education is all but taken for granted. A result of this is a workplace where education is prized as an important quality. Prestigious university graduates are often given access to the most sought after jobs due to certain university names still being held in high regard. Other vital and valued qualities include experience, leadership, openness to new ideas and being hard working and personable. When doing business in Japan, foreign employees will often encounter high levels of expertise, knowledge and attention to detail.

Discerning consumers/customers
A highly educated and affluent population results in discerning consumers. The level of household expenditure, which is among the highest in developed nations, illustrates how Japan can act as a brilliant testing ground for new products. Lars Petersson, President and CEO of Ikea Japan states, “Japanese customers are very well educated, so they understand the difference between a product that’s high performance and low-cost, rather than the opposite.”

Strong work ethic
Japan is a predominantly collective society which places a huge emphasis on the group, meaning that each individual often feels a strong sense of belonging and responsibility towards their work place. Leadership is important, and a competent, hard working and personable superior is expected to be willing to sacrifice his personal time in order to listen to his staff and even tend to their personal matters. When doing business in Japan it is important to remember to address and consider the group rather than the individual. Existing relationships are valued so there is certainly worth spending time developing them initially.

Dedicated employees
In the Japanese corporate world, loyalty and cooperation are valued over aggressiveness and competitiveness. Japanese tend to take pride in their jobs and work long hours to demonstrate their dedication in hopes increasing their status in the company. This group of reliable employees, willing to work long shifts over unusual hours, is a huge benefit for international organisations doing business in Japan.

International organisations can profit immensely from the above benefits of doing business in Japan. Harnessing these benefits comes with the need to navigate the geographic, linguistic and cultural diversity of Japanese society. This requires a comprehensive understanding of Japanese business and social culture on all levels. International organisations employing people in Japan or working with Japanese on a regular basis should therefore have a series of Cross Cultural Awareness Training Japan programmes to ensure they develop the skills to successfully deal with the many cultural differences.