jsp156 / ls173 japanese business management & labor strategic issues in doing business in japan...
TRANSCRIPT
JSP156 / LS173
Japanese Business Management & Labor Strategic Issues in Doing Business in Japan
THE JAPANESE BUSINESS ENVIRONMENT
REAL ESTATE COSTS IN JAPAN
Some figures:
• Ginza: US$23,000 per square foot!
• Chiyoda-ku: US$81,165 per square foot!!
• Tokyo alone is more expensive than all of the United States!
• At one point, Japan was 4X more expensive than the U.S.!
REAL ESTATE COSTS IN JAPAN
URBAN LAND PRICE INDEX
REAL ESTATE & SHARE PRICES
MULTI-LAYER DISTRIBUTION & REGIONAL DIFFERENCES
CONBINI
• POS TERMINALS• SEASONAL PRODUCT LINES• LONG STORE HOURS• CONVENIENT PAYMENT OF BILLS
D.M.: MAIL ORDER BUSINESS
Y 2,200,000,000,000 INDUSTRY:• CLOTHING (40%)• FURNITURE, APPLIANCES, OTHER
HOUSEHOLD (16%)• PERSONAL GOODS & SERVICES (44%)
REGIONAL DIFFERENCES
LEGAL SYSTEM
• Less than 11,000 lawyers in Japan (vs. >500,000 lawyers in US) Government of Japan is the largest “law firm” in the world
• Product liability: 15 yr. period: 130 suits (vs. 13,595 suits in the U.S. in one year) must prove intent
• Koban (“police box”) system
• Organized crime (83,600 boryokudan members) 6,300 extortion companies (sokaiya)
Country Homicides Thefts
JAPAN 1.2 / 100,000 1,414 / yr.
GERMANY 3.5 / 100,000 4,051 / yr.
U.S.A. 6.3 / 100,000 4,049 / yr.
YAKUZA
ENVIRONMENTAL ISSUES
TOXIC PLUTONIUM
O-BENTO & O-HASHI
SODAI GOMI (DEBRIS)
NAGASAKI DOLPHINS
JAPANESE CONGLOMERATES
BANK OF JAPAN
BANK BANK
BANK
BANKBANK
BANK
ZAIBATSU
MITSUBISHI YASUDA
Dissolved by 1947 Anti-Monopoly Law (AML) of the Supreme Commander of the Allied Powers (SCAP) after WWII
KEIRETSU
• 1952 Laws towards keiretsification of the economy: Kyodo koi (cooperative behavior): cartels among businesses Law against using old clan names abolished
• Old Three groups re-formed: Mitsui, Mitsubishi, Sumitomo New Three groups formed: Fuyo, Sanwa, Dai-Ichi Kangyo
• Banks allowed to own stocks in client companies (against AML)
• Import restrictions & foreign capital restrictions protected cos.
KEIRETSU• “link”, “affiliate with”, “connect to”
• Definition: A keiretsu is a group of individual entities viewed together, usually as a hierarchical organization, involving a flow of goods and services either upwards or downwards in the hierarchy
• Types:
Horizontal: Bank-based Vertical: Manufacturing, Distribution
• Characteristics:
Maintain control and overall management through equity cross- holdings/directorships, financing, joint investments and projects
Diversified but successful in a few principal areas
Not for profit but for stability of its members
COMPARINGSYSTEMS
HORIZONTAL KEIRETSU
INTRA-KEIRETSU TRANSACTIONS
MITSUI
MITSUI
MITSUBISHI
MITSUBISHI
MITSUBISHI
BOT-MITSUBISHI
SUMITOMO
SUMITOMO
SANWA
DKB
RELATIONSHIPS AMONG KEIRETSU
Sakura Bank
1999
Chuo Trust
Mitsui Trust
Dai-Ichi Kangyo Bank
Fuji Bank
Industrial Bank of Japan
Mizuho Trust
Sumitomo Bank
Bank of Tokyo-Mitsubishi
Mitsubishi Trust
Nippon Trust
Sanwa Bank
Tokai Bank
Toyo Trust
Tokai Trust
Tokyo Trust
Asahi Bank
Asahi Trust
Daiwa Bank
Mizuho
HoldingsSumitomo Mitsui Banking Group
Dai-Ichi Kangyo BankFuji BankIndustrial Bank of JapanMizuho Trust
2001
Daiwa Bank HoldingsDaiwa Bank
Kinki Osaka BankNara Bank
Mitsubishi Tokyo Financial Group
Bank of Tokyo-Mitsubishi Mitsubishi TrustNippon TrustTokyo Trust
UFJ HoldingsSanwa Bank Tokai BankToyo TrustTokai Trust
Chuo Mitsui Trust
Sakura Trust
Mizuho Holdings
Sumitomo Mitsui Financial
GroupSumitomo Mitsui Banking Corporation
Mizuho BankMizuho Corporate BankMizuho Trust
2002
Mitsui Trust Holdings
Resona HoldingsDaiwa Bank
Asahi BankKinki Osaka BankNara BankDaiwaTrust
Chuo Mitsui TrustMitsui Asset Trust
Mitsubishi Tokyo Financial
GroupBank of Tokyo-Mitsubishi Mitsubishi Trust
UFJ HoldingsUFJ Bank UFJ Trust
NEW KEIRETSU (FROM 2002)
NEW KEIRETSU (FROM 2008)
Mizuho Financial Group
Mitsubishi UFJ Financial Group
Sumitomo Mitsui Financial
GroupSumitomo Mitsui Banking Corporation
Bank of Tokyo-Mitsubishi UFJMitsubishi UFJ Trust
Mizuho BankMizuho Corporate BankMizuho Trust
2011
Chuo Mitsui Trust Holdings
Resona HoldingsResona Bank
Saitama Resona BankKinki Osaka Bank(Nara Bank)(Resona Trust)Chuo Mitsui Trust
Chuo Mitsui Asset Trust
NEW KEIRETSU
VERTICALKEIRETSU
TOYOTA