6. Population: 127,078,679 (July 2009)
Size: 377,915 sq km
Population density = 91
per square kilometre
Population density = 343
per square kilometre
Reference: Kwintessential (2009)
7. Ethnicity
• 99% are Japanese
Religion
• 84% observe both Shinto and Buddhism
• Beliefs of Confucianism also
impact many ethics
and laws
Reference: Kwintessential (2009)
8. Education
• Literacy rate is close to 100%
• 95% have a high school education
Reference: Kwintessential (2009)
9. • 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)
10. Following World War II
• Strong economic growth- 10% in 1960s, 5% in
1970s
• ‘Keiretsu’- close interlocking of manufacturers,
suppliers and distributors
• Guarantee of lifetime
employment
Reference: CIA (2010)
11. 1990s
• Economic decline due to poor investment and
asset price bubble
2008
• Entered into recession due to GFC
• Sharp downturn in business investments and
exports
Reference: CIA (2010)
12. 2009/2010
• 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)
13. Exports
• $516.3 billion (2009)
• Ranked 5th in the world (GDP)
• Important export partners- US (17.8%),
China (16%), South Korea (7.6%),
Taiwan (5.9%), Hong Kong (5.1%)
Reference: OECD (2009)
14. Transport Motor Vehicles
equipment Chemicals
Exports-
Commodities
Semi- Electrical
conductors Machinery
Reference: OECD (2009)
15. Imports
• $490.6 billion (2009)
• Ranked 6th in the world (GDP)
• Important import partners- China (18.8%),
US (10.4%), Saudi Arabia (6.7%), Australia
(6.2%), UAE (6.1%)
Reference: OECD (2009)
16. Machinery and Foodstuffs
equipment Fuels
Imports-
Commodities
Raw
Textiles
Chemicals materials
Reference: OECD (2009)
18. • Economy is stabilising again after
GFC- strengthened growth of exports
• Economic growth
and decline-
1956 - 2008
• Public Debt:
192.1% of GDP
Reference: World Economic
1956 2008
Prospects (2010)
19. • Be on time
• Greet with a bow
• May shake hands
Reference: Clark et al (2010)
20. Appearance
• Dark conservative attire
• Women- low heels and skirts
Gestures
• Do not talk with your hands- pointing is
unacceptable
Address
• Last name and ‘san’- sign of respect
Reference: Williams (2008)
21. Social Events
• Drinking important part of culture
• If invited out let the host order and pay
Negotiation
• Non-confrontational- avoid saying no
• Don’t lose your temper- strive for harmony
• Polite- avoid embarrassment
Reference: Clark et al (2010)
22. • Called ‘meishi’
• Treat like you would a person
• Place on table in front of you
Reference: Kwintessential (2009)
25. • Hierarchy- most senior will sit furthest from
the door
• Always provide literature about your company
Gift Giving
• Ceremony surrounding this is very important
• Gifts are not opened in front of giver
• Always give a gift and receive it with two hands
Reference: Clark et al (2010)
29. Mitsubishi and Kim Eng
Motor vehicles + many Securities and
other smaller companies investment broker
Japanese Singaporean
company company
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?
30. Mitsubishi and Kim Eng
Q1
• Strengths: Mitsubishi’s distribution capacity,
Kim Eng’s equity research capability
Maximize Share cost Gain access to
business distributors
Benefits
Reduce risk Increase
exposure market share
31. Mitsubishi and Kim Eng
Q1
• Decreased costs + increase in economies of
scale
• Savings passed on to consumer = lower prices
• Increased market share and exposure-
new markets
32. 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?
33. Mitsubishi and Kim Eng
Q2 Potential Complications
Cultural Differences of
differences opinion
Complications
may arise from
Advantages May become
may diminish one-sided
34. Mitsubishi and Kim Eng
Q2 Results of Complications
• Greater understanding, strengthening of alliance
• OR end to alliance
• E.g. Cultural differences greater education
and understanding
• E.g. Becomes one-sided improve balance or
end/discontinue alliance
35. Mitsubishi and Kim Eng
Q2 Will the alliance last?
• Yes
• Fairly large companies
• Kim Eng- good reputation working with other
companies
• Clear agreements
• Mitsubishi’s investment in Kim Eng
36. Symantec Middle East and Scanit
Information security Security Services
company Company
Dubai-based Dubai-based
company company
Q3:
• How can this alliance be mutually beneficial?
• Will this increase consumer desire to purchase
their goods and services?
37. Symantec and Scanit
Q3 Mutually beneficial
• Can tap into each other’s strategic strengths
• Can offer wider range of services
• Share costs
• Multitude of services– create new market
38. Symantec and Scanit
Q3 Customer Benefits
• One company to manage range of systems
• Cost and time management savings
• Locally based
• Cheaper, efficient customer support network
39. Q4:
• Will this trend of forming international business
alliances continue?
• Yes!
• Why: Advantages- may enter a foreign market
• Also, share risks and expenses, share knowledge
and gain competitive advantage
40. Q4 Advantages
• Flexibility of strategy- range of alliance levels
• Small businesses can participate
Increased competition
Need to operate on global scale
• Growing need for alliances:
Changing marketplace
Industry coverage in markets
41. Mitsubishi and Kim Eng
Q5:
• Assess the formation of this alliance in terms of
the strategic factors for selecting entry modes
Cultural Political and Legal
Environment Environment
Factors
International Production and
Experience Market Size Shipping Costs
42. Mitsubishi and Kim Eng
Q5 Entry Modes
• Entry mode = strategic alliance
a) Cultural Environment- Kim Eng’s extensive
experience
• Cultural differences and existing
relationships
43. Mitsubishi and Kim Eng
Q5 Entry Modes
b) Political/Legal Environment
• Kim Eng- identify risks, conditions
c) Market Size
• locate potential markets- risks and growth
44. Mitsubishi and Kim Eng
Q5 Entry Modes
d) Production/Shipping Costs
• identify cost-effective forms of production
e) International Experience
• Kim Eng’s prior experience abroad
45. 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
46. 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
47. Case Study
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.
48.
49. 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?
