university work: intro to international business presentation
TRANSCRIPT
Presentation by Melinda Smith, Rosie Campo,
Stefanie Oncescu and Janice Mok
• Japan called ‘Nippon’ (にっぽん) or ‘Nihon’ (にほん)
• ‘Land of the Rising Sun’
Size: 377,915 sq km
• Approx. one-twentieth the size of Australia
Reference: Kwintessential (2009)
Capital: Tokyo
Size: 377,915 sq km
Population: 127,078,679 (July 2009)
Population density = 343 per square kilometre
Population density = 91 per square kilometre
Reference: Kwintessential (2009)
• 99% are Japanese
Ethnicity
• 84% observe both Shinto and Buddhism
Religion
• Beliefs of Confucianism also impact many ethics and laws
Reference: Kwintessential (2009)
• Literacy rate is close to 100%
Education
• 95% have a high school education
Reference: Kwintessential (2009)
• Japanese is the sixth most spoken language in the world
• Agglutinative language- works on complex system of honorifics
• English lessons compulsory in Japanese schools
Reference: Clark et al (2010)
• Strong economic growth- 10% in 1960s, 5% in 1970s
• ‘Keiretsu’- close interlocking of manufacturers, suppliers and distributors
• Guarantee of lifetime employment
Following World War II
Reference: CIA (2010)
• Economic decline due to poor investment and asset price bubble
• Entered into recession due to GFC
1990s
2008
• Sharp downturn in business investments and exports
Reference: CIA (2010)
• GDP = $4.137 trillion (US Dollars)
• Ranked 4th in the world (GDP)
• Among world’s largest producers of motor vehicles, electronic equipment, machine tools, steel, textiles
Reference: OECD (2009)
2009/2010
• Ranked 5th in the world (GDP)
• $516.3 billion (2009)
• Important export partners- US (17.8%), China (16%), South Korea (7.6%), Taiwan (5.9%), Hong Kong (5.1%)
Exports
Reference: OECD (2009)
Exports-Commodities
Transport equipment
Motor Vehicles
Chemicals
Electrical Machinery
Semi-conductors
Reference: OECD (2009)
• Ranked 6th in the world (GDP)
• $490.6 billion (2009)
• Important import partners- China (18.8%), US (10.4%), Saudi Arabia (6.7%), Australia (6.2%), UAE (6.1%)
Imports
Reference: OECD (2009)
Imports-Commodities
Machinery and equipment
Foodstuffs
Fuels
Raw materialsChemicals
Textiles
Reference: OECD (2009)
JAPAN USChina
South Korea
TaiwanHong Kong
• Economy is stabilising again after GFC- strengthened growth of exports
1956 2008
• Economic growth and decline-1956 - 2008
• Public Debt: 192.1% of GDP
Reference: World Economic Prospects (2010)
• Greet with a bow
• May shake hands
• Be on time
Reference: Clark et al (2010)
• Do not talk with your hands- pointing isunacceptable
• Last name and ‘san’- sign of respect
• Dark conservative attire
Gestures
Address
Appearance
• Women- low heels and skirts
Reference: Williams (2008)
• Non-confrontational- avoid saying no
Negotiation
• Don’t lose your temper- strive for harmony
• Polite- avoid embarrassment
Reference: Clark et al (2010)
• Drinking important part of culture
• If invited out let the host order and pay
Social Events
• Called ‘meishi’
• Treat like you would a person
• Place on table in front of you
Reference: Kwintessential (2009)
ReceivingGiving
Reference: Kwintessential (2009)
Reference: Kwintessential (2009)
• Ceremony surrounding this is very important
Gift Giving
• Gifts are not opened in front of giver
• Always give a gift and receive it with two hands
Reference: Clark et al (2010)
• Hierarchy- most senior will sit furthest from the door
• Always provide literature about your company
Tradition Technology/Advancement
Mitsubishi and Kim Eng
Q1: • What are the strengths of the companies? • How can this alliance be mutually beneficial? • Will this increase consumer desire to purchase
their goods and services?
Motor vehicles + many other smaller companies
Securities and investment broker
Singaporean company
Japanese company
Mitsubishi and Kim Eng
• Strengths: Mitsubishi’s distribution capacity,Kim Eng’s equity research capability
Q1
Benefits
Maximize business
Share cost
Increase market share
Gain access to distributors
Reduce risk exposure
Mitsubishi and Kim Eng
• Decreased costs + increase in economies of scale
Q1
• Savings passed on to consumer = lower prices
• Increased market share and exposure-new markets
Mitsubishi and Kim Eng
Q2: • Any complications that may arise? • What might the result of these complications be? • Do you think this partnership will last?
Mitsubishi and Kim Eng
Q2
Complications may arise from
Cultural differences
Differences of opinion
May become one-sided
Advantages may diminish
Potential Complications
• Greater understanding, strengthening of alliance
Mitsubishi and Kim Eng
Q2
• OR end to alliance
• E.g. Cultural differences greater educationand understanding
• E.g. Becomes one-sided improve balance orend/discontinue alliance
Results of Complications
• Yes
Mitsubishi and Kim Eng
Q2
• Fairly large companies
• Clear agreements
• Mitsubishi’s investment in Kim Eng
Will the alliance last?
• Kim Eng- good reputation working with other companies
Symantec Middle East and Scanit
Q3: • How can this alliance be mutually beneficial? • Will this increase consumer desire to purchase
their goods and services?
Information security company
Security Services Company
Dubai-based company
Dubai-based company
Symantec and Scanit
• Can tap into each other’s strategic strengths
Q3
• Can offer wider range of services
Mutually beneficial
• Share costs
• Multitude of services– create new market
Symantec and Scanit
• One company to manage range of systems
Q3
• Cost and time management savings
Customer Benefits
• Locally based
• Cheaper, efficient customer support network
• Yes!
Q4: • Will this trend of forming international business
alliances continue?
• Why: Advantages- may enter a foreign market
• Also, share risks and expenses, share knowledge and gain competitive advantage
• Flexibility of strategy- range of alliance levels
Q4
• Small businesses can participate
• Growing need for alliances:
Increased competition
Need to operate on global scale
Changing marketplace
Industry coverage in markets
Advantages
Mitsubishi and Kim Eng
Q5: • Assess the formation of this alliance in terms of
the strategic factors for selecting entry modes
Factors
Cultural Environment
Production and Shipping Costs
Political and Legal Environment
International Experience Market Size
Mitsubishi and Kim Eng
• Entry mode = strategic alliance
Q5
a) Cultural Environment- Kim Eng’s extensive experience
• Cultural differences and existing relationships
Entry Modes
Mitsubishi and Kim Eng
b) Political/Legal Environment
Q5
• Kim Eng- identify risks, conditions
c) Market Size
Entry Modes
• locate potential markets- risks and growth
Mitsubishi and Kim Eng
d) Production/Shipping Costs
Q5
• identify cost-effective forms of production
e) International Experience
Entry Modes
• Kim Eng’s prior experience abroad
CIA 2010, ‘Japan: Economics’, Central Intelligence Agency, 21 April, viewed 8 May 2010, https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html
Clark RL, Ogawa N, Kondo M and Matsukura R 2010, ‘Population Decline, Labor Force Stability, and the Future of the Japanese Economy’, European Journal of Population. Dordrecht: 2010. Vol. 26, Iss. 2; p. 207
Kwintessential 2009, ‘Japan - Language, Culture, Customs and Etiquette’, United Kingdom. Accessed on: 08 May 2010. Accessed via: http://www.kwintessential.co.uk/resources/global-etiquette/japan-country-profiles.html
‘Developments in individual member countries: JAPAN’ Organisation for Economic Cooperation and Development. OECD Economic Outlook. Paris: Nov 2009. p. 144
‘Japan’ World Economic Prospects. Oxford: Spring 2010. p. 27
Williams DE 2008, ‘Japan’ International Business Center Newsletter. Accessed on: 08 May 2010. Accessed via: http://www.cyborlink.com/besite/japan.htm
Case Study
Booz-Allen & Hamilton 2009, ’Strategic Alliances’, Small Business Notes. Accessed on: 10 May 2010. Accessed via: http://www.smallbusinessnotes.com/operating/leadership/strategicalliances.html
Flynn, F & Suzuki, I 2008, ‘Mitsubishi UFJ Considers Yuanta, Daewoo Investments’, Bloomberg, 12 May, viewed 10 May 2010, http://www.bloomberg.com/apps/news?pid=20601087&sid=a4ICdxzvNTO4&refer=home
Mitsubishi UFJ Securities 2008, ‘Mitsubishi Seals Strategis Alliance with Kim Eng’, Mitsubishi UFJ Securities, 22 February, viewed 6 May 2010, http://www.sc.mufg.jp/english/e_press/pdf/e_press20080222.pdf
Mitsubishi UFJ Securities 2008, ‘Mitsubishi UFJ Securities invests in Kim Eng Holdings Limited’s subsidiary, KE Capital Partners Pte. Ltd.’, Mitsubishi UFJ Securities, 8 August, viewed 6 May 2010, http://www.sc.mufg.jp/english/e_press/pdf/e_press20080808.pdf
Stenzel PL 2010, ‘Strategic Alliances’, Reference for Business, Encyclopedia of Business, 2nd ed., Advameg Inc. Accessed on: 10 May 2010. Accessed via:http://www.referenceforbusiness.com/encyclopedia/Sel-Str/Strategic-Alliances.html
Thomson Reuters 2007, ‘Kim Eng Holdings Ltd. And Mitsubishi UFJ Securities Co. Ltd Sign MOU on Strategic Alliance’, Thomson Reuters, 7 November, viewed 8 May 2010, http://www.reuters.com/finance/stocks/keyDevelopments?symbol=KEHS.SI&pn=3
Thomson Reuters 2008, ‘Kim Eng Holdings Ltd. Forms Strategic Alliance with Mitsubishi UFJ Securities’, Thomson Reuters, 21 February, viewed 8 May 2010, http://www.reuters.com/finance/stocks/keyDevelopments?symbol=KEHS.SI&pn=3
Sutton, M 2005, ‘Japanese Trade Policy and ‘Economic Partnership Agreements’: A New Conventional Wisdom’, Ritsumeikan Annual Review of International Studies, vol. 4, pp. 113-135.
Trevor Lloyd-Jones 2006 ‘Dubai company Scanit monitors airport security breaches’, Business Intelligence Middle East , 3 November, viewed 8 May 2010, http://www.bi-me.com/main.php?id=6414&t=1&c=34&cg
United Arab Emirates, 2010, ‘Symantec blocks average of 100 potential attacks per second in 2009’ 6 May, Accessed on: 09 May 2010 Accessed via: http://www.ameinfo.com/231816.html
Wild, J, Wild, K & Han, J 2010, ‘Selecting and Managing Entry Modes’, in International Business: The Challenges of Globalization, Pearson Education Inc., New Jersey, pp. 378-407.
Case Study
1. Demonstrate how to bow and greet a Japanese person
2. What does the ‘okay’ hand sign mean to Japanese people?
3. Why can it be considered bad for a Japanese person to smile?
4. What are two of the benefits of forming a strategic alliance?