You are on page 1of 24

cPage International B usiness - JAPA N

? ?

  

Conventional short form: Japan

Local long form: Nihon -koku / Nippon-koku

Local short form: Nihon/Nippon

  

In 1603, after decades of civil warfare, the Tokugawa shogunate (a military-led,


dynastic government) ushered in a long period of relative political stability and isolation
from foreign influence. For more than two centuries this policy enabled Japan to enjoy a
flowering of its indigenous culture. Japan opened its ports after signing the Treaty of
Kanagawa with the US in 1854 and began to intensively modernize and industrialize. During
the late 19th and early 20th centuries, Japan became a regional power th at was able to
defeat the forces of both China and Russia. It occupied Korea, Formosa (Taiwan), and
southern Sakhalin Island. In 1931 -32 Japan occupied Manchuria, and in 1937 it launched a
full-scale invasion of China. Japan attacked US forces in 1941 - triggering America's entry
into World War II - and soon occupied much of East and Southeast Asia. After its defeat in
World War II Japan recovered to become an economic power and an ally of the US While
the emperor retains his throne as a symbol of national unity, elected politicians hold actual
decision-making power. Following three decades of unprecedented growth, Japan's
economy experienced a major slowdown starting in the 1990s, but the country remains a
major economic power. In January 2009, Japan assumed a nonpermanent seat on the UN
Security Council for the 2009 -10 terms.


 

Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the
Korean Peninsula.

Department of Management Sciences


© 
        

 Page International B usiness - JAPA N




Total: 377,915 sq km

Land: 364,485 sq km

Water: 13,430 sq km

?

29,751 km

? 

Varies from tropical in south to cool temperate in north


?

Mostly rugged and mountainous

 



Mineral resource is Fish which is negligible. The world͛s 2 nd largest Oil Importer.

?? 
  

25,920 sq km (2003)

?
  
 ?


Air pollution from power plant emissions results in acid rain; acidification of lakes and
reservoirs degrading water quality and threatening aquatic life; Japan is one of the largest
consumers of fish and tropical timber, contributing to the depletion of these resources in
Asia and elsewhere.

Department of Management Sciences


© 
        

^Page International B usiness - JAPA N




?

127,078,679 (July 2009 est.)




0-14 years: 13.5% (male 8,804,465/female 8,344,800)

15-64 years: 64.3% (male 41,187,425/female 4 0,533,876)

65 years and over: 22.2% (male 11,964,694/female 16,243,419) (2009 est.)

?  


-0.191% (2009 est.)

? 

7.64 births/1,000 population (2009 est.)


 

9.54 deaths/1,000 population (July 2009 est.)

 ??

Urban population: 66% of total population (2008)

Department of Management Sciences


© 
        

[Page International B usiness - JAPA N


 ?

At birth: 1.06 male(s)/female

Under 15 years: 1.06 male(s)/female

15-64 years: 1.02 male(s)/female

65 years and over: 0.74 male(s)/female

Total population: 0.95 male(s)/female (2009 est.)

?   ? 

Total: 2.79 deaths/1,000 live births

Male: 2.99 deaths/1,000 live births

Female: 2.58 deaths/1,000 live births (2009 est.)

?


   ?

Total population: 82.12 years

Male: 78.8 years

Female: 85.62 years (2009 est.

 
?? 

1.21 children born/woman (2009 est.)

 ? 

Japanese 98.5%, Koreans 0.5%, Chinese 0.4%, other 0.6%

Department of Management Sciences


© 
        

DPage International B usiness - JAPA N


? ? 

Shintoism 83.9%, Buddhism 71.4%, Christianity 2%, other 7.8%

 


Japanese

?


Definition: age 15 and over can read and write

Total population: 99%

Male: 99%

Female: 99% (2002)

?

?

3.5% of GDP (2005)

Department of Management Sciences


© 
        

0Page International B usiness - JAPA N







 

A parliamentary government with a constitutional monarchy

?

Name: Tokyo

Geographic coordinates: 35 41 N, 139 45 E

Time difference: UTC+9 (14 hours ahead of Washington, DC during Standard Time)

 ? ??
??? 

47 prefectures: Aichi, Akita, Aomori, Chiba, Ehime, Fukui, Fukuoka, Fukushima, Gifu, Gunma,
Hiroshima, Hokkaido, Hyogo, Ibaraki, Ishika wa, Iwate, Kagawa, Kagoshima, Kanagawa, Kochi,
Kumamoto, Kyoto, Mie, Miyagi, Miyazaki, Nagano, Nagasaki, Nara, Niigata, Oita, Okayama,
Okinawa, Osaka, Saga, Saitama, Shiga, Shimane, Shizuoka, Tochigi, Tokushima, Tokyo,
Tottori, Toyama, Wakayama, Yamagata, Yamaguchi, Yamanashi

? 




660 B.C. (traditional date of the founding of the nation by Emperor JIMMU; first recognized
by Emperor Meiji in 1873)

?  ?

Birthday of Emperor AKIHITO, 23 December (1933)

Department of Management Sciences


© 
        

·Page International B usiness - JAPA N

 ??

3 May 1947


 

Modeled after European civil law systems with English-American influence; judicial review of
legislative acts in the Supreme Court; accepts compulsory ICJ jurisdiction with reservations


?
 

   Emperor AKIHITO (since 7 January 1989)

Head of government: Prime Minister Yukio HATOYAMA (since 16 September 2009); Deputy
Prime Minister Naoto KAN (since 16 September 2009)

Cabinet: Cabinet is appointed by the prime minister

Elections: Diet designates the prime minister; constitution requires that the prime minister
commands parliamentary majority; following legislative elections, the leader of majority
party or leader of majority coalition in House of Representatives usually becomes prime
minister; the monarchy is hereditary


??
 

Bicameral Diet or Kokkai consists of the House of Councillors or Sangi-in (242 seats -
members elected for fixed six-year terms; half reelected every three years; 146 members in
multi-seat constituencies and 96 by proportional representation) and the House of
Representatives or Shugi-in (480 seats - members elected for maximum four-year terms;
300 in single-seat constituencies; 180 members by proportional representation in 11
regional blocs); the prime minister has the right to dissolve the House of Representatives at
any time with the concurrence of the cabinet

Elections: House of Councillors - last held on 29 July 2007 (next to be held in July 2010);
House of Representatives - last held on 30 August 2009 (next to b e held by August 2013)

Department of Management Sciences


© 
        

-Page International B usiness - JAPA N


? 


House of Councilors - percent of vote by party - NA; seats by party

DPJ: 109, LDP: 83, Komeito: 20, JCP: 7 SDP: 5, Others: 18

House of Representatives - percent of vote by party (by proportional representation)

DPJ: 42.4%, LDP: 26.7%, Komeito: 11.5%, JCP: 7.0%, SDP: 4.3%, others: 8.1%; seats by party -
DPJ 308, LDP 119, Komeito 21, JCP 9, SDP 7, others 16 (2009)

u??  

Supreme Court (chief justice is appointed by the monarch after designation by the cabin et;
all other justices are appointed by the cabinet)

?? ?
   



à‘ Democratic Party of Japan or DPJ [Yukio HATOYAMA];

à‘ Japan Communist Party or JCP [Kazuo SHII];

à‘ Komeito [Natsuo YAMAGUCHI];

à‘ Liberal Democratic Party or LDP [Sadakazu TANIGAKI];

à‘ People's New Party or PNP [Shizuka KAMEI];

à‘ Social Democratic Party or SDP [Mizuho FUKUSHIMA]

Department of Management Sciences


© 
        

‰Page International B usiness - JAPA N

  
Japanese contract law is based mostly on the Civil Code, which defines the rights and
obligations of the parties in general and in certain types of contract. Kawashima writes that
Civil Code theory requires the contractor to ͞complete the work͟ of construction at the
agreed price, and that until then the contractor bears the risk of all expenses. But he notes
that pre-war public works contracts had stipulated a possible shifting of a burden from the
contractor to the owner of the works in the event of an act of God, albeit at the discretion of
the owner. Kawashima does not spell out that the contractor will be excused from
contractual liability by an act of God under Art 415 of the Code, and the novice needs the
guiding hand of academic theory to readily draw that implication from the words of the
provision. Nor does he spell out that the owner is relieved from making payments under art
536(1)Ͷa rule that extends to all ͞bilateral͟ contracts, including the contract for work
(ukeoi keiyaku). A reader must then know that the contractual stipulation allowing the
discretion to vary the effect of those Code provisions, so that the owner may share so me of
the loss, is acceptable because those provisions are classified by theorists as ͞optional rules͟
(nin-I hoki).

The ͞relational contract theory͟ developed by Uchida from the start of the 1990s identifies
the perceived gap between contemporary social p ractices and the legal values of ͞classical͟
(kotenteki) contract law in Japan. Uchida further argues that the Japanese legal system now
reveals communitarian values that deviate from the ͞modern͟ (kindaiteki) paradigm of
values of individualism and freedo m, but which should now be seen as normatively
appealing.


 ?  
Like several other civil law states, Japan places a great emphasis on the rights of the tenant,
and landlords are generally not allowed to unilaterally terminate leases without " just
cause", a very narrowly construed concept. Many landlords are forced to "buy out" their
tenants if they wish to demolish buildings to make way for new development: one well-
known contemporary instance is the Roppongi Hills complex, which offered sever al previous
tenants special deals on apartments.

Despite this emphasis on tenant rights, the government exercises a formidable eminent
domain power and can expropriate land for any public purpose as long as reasonable
compensation is afforded. This power was famously used in the wake of World War II to
dismantle the estates of the defunct peerage system and sell their land to farmers at very
cheap rates (one historical reason for agriculture's support of LDP governments). Narita
International Airport is ano ther well-known example of eminent domain power in Japan.

Department of Management Sciences


© 
        

c  P a g e Internati onal Busi ness - JAP AN


    u

The  
 u  is the second largest in the world, after the United States at $5.07
trillion in terms of nominal GDP and third after the United States and China when adjust ed
for purchasing power parity. The workers of Japan rank 18th in the world in GDP per hour
worked as of 2006. The Big Mac Index shows that the wages in Tokyo are the highest among
principal cities in the world.

For three decades, Japan experienced rapid economic growth, which was referred to as the
Japanese post-war economic miracle. With average growth rates of 10% in the 1960s, 5% in
the 1970s, and 4% in the 1980s Japan was able to establish itself as the world's second
largest economy. However, in the second half of the 1980s sliding stock and real estate
prices caused the Japanese economy to overheat in what was later to be known as the
Japanese asset price bubble. The Ñ ÑÑ came to an abrupt end as the Tokyo Stock
Exchange crashed in 1989. Growth in Japan throughout the 1990s was slower than growth
in other major industrial nations, and the same as in France and Germany. From 4.5% per
annum in the 1980s, real GDP rose just 1.5% p.a. in the 1990s and 0.8% p.a. in the 2000s.
The problems of the 1990s may have been exacerbated by domestic policies intended to
wring speculative excesses from the stock and real estate markets. Government efforts to
revive economic growth throughout the 1990s were not very successful and when the
global economy slowed in 2000-2001 the Japanese economy was in a serious economic
situation. The economy began to recover under the policies of Junichiro Koizumi and revived
strong growth in global trade, raising an average of 2.1% a year in 2003-07. Subsequently,
the global financial crisis and a collapse in domestic demand saw the economy shrink 1.2%
in 2008 and 5.0% in 2009.

Department of Management Sciences


© 
        

cc  P a g e Internati onal Busi ness - JAP AN


  ? 

This is a chart of trend of gross domestic product of Japan at market prices estimated by the
International Monetary Fund with figures in millions of Japanese Yen.

 
   ?  ?     ? 


 
   c    

1955 8,369,500 360.00 10.31

1960 16,009,700 360.00 16.22

1965 32,866,000 360.00 24.95

1970 73,344,900 360.00 38.56

1975 148,327,100 297.26 59.00

1980 240,707,315 225.82 75 74.04

1985 323,541,300 236.79 86 63.44

1990 440,124,900 144.15 92 105.82

1995 493,271,700 122.78 98 151.55

2000 501,068,100 107.73 100 105.85

2005 502,905,400 110.01 97 85.04

For purchasing power parity comparisons, the US Dollar is exchanged at 93.59 (August
2009).

Department of Management Sciences


© 
        

c   P a g e Internati onal Busi ness - JAP AN

u 



?


Japan's service sector accounts for about three -quarters of its total economic output.
Banking, insurance, real estate, retailing, transportation, and telecommunications are all
major industries such as Mitsubishi UFJ, Mizuho, NTT, TEPCO, Nomura, Mitsubishi Estate,
Tokio Marine, Mitsui Sumitomo, JR East, Seven & I, and Japan Airlines counting as one of the
largest companies in the world. The Koizumi government set Japan Post, one of the
country's largest providers of savings and insurance services for privatization by 2014. The
six major keiretsus are the Mitsubishi, Sumitomo, Fuyo, Mitsui, Dai -Ichi Kangyo and Sanwa
Groups. Japan is home to 326 companies from the Forbes Global 2000 or 16.3% (as of 2006).

? 

Japanese manufacturing is much diversified, with a variety of advanced industries that are
highly successful.

Industry is concentrated in several regions, in the following order of importance: the Kantō
region surrounding Tokyo, especially the prefectures of Chiba, Kanagawa, Saitama and
Tokyo (the Keihin industrial region); the Tōkai region, including Aichi, Gifu, Mie, and
Shizuoka prefectures (the Chukyo-Tokai industrial region); Kinki (Kansai), including Osaka,
Kyoto, Kobe, (the Hanshin industrial region); the southwestern part of Honshū and northern
Shikoku around the Inland Sea (the Setouchi industrial region); and the northern part of
Kyūshū (Kitakyūshū). In addition, a long narrow belt of industrial centers is found between
Tokyo and Fukuoka, established by particular industries, that have developed as mill towns.

The fields in which Japan enjoys high technological development include consumer
electronics, automobile manufacturing, semiconductor manufacturing, optical fibers,
optoelectronics, optical media, facsimile and copy machines, and fermentation processes in
food and biochemistry.

 ?

Only 12% of Japan's land is suitable for cultivation. Due to th is lack of arable land, a system
of terraces is used to farm in small areas. This results in one of the world's highest levels of
crop yields per unit area, with an overall agricultural self -sufficiency rate of about 50% on
fewer than 56,000 km² (14 million acres) cultivated.

Department of Management Sciences


© 
        

c^  P a g e Internati onal Busi ness - JAP AN

Japan's small agricultural sector, however, is also highly subsidized and protected, with
government regulations that favor small-scale cultivation instead of large-scale agriculture
as practiced in North America.

Imported rice, the most protected crop, is subject to tariffs of 490% and was restricted to a
quota of only 7.2% of average rice consumption from 1968 to 1988. Imports beyond the
quota are unrestricted in legal terms, but subject to a 341 yen per kilogram tariff. This tariff
is now estimated at 490%, but the rate will soar to a massive 778% under new calculation
rules to be introduced as part of the Doha Round.

Although Japan is usually self-sufficient in rice (except for its use in making rice crackers and
processed foods) and wheat, the country must import about 50% of its requirements of
other grain and fodder crops and relies on imports for most of its supply of meat. Japan
imports large quantities of wheat, sorghum, and soybeans, primarily from the United States.
Japan is the largest market for EU agricultural exports. Apples are also grown, mostly in
Tohoku and Hokkaidō; Pears and Oranges are mainly grown in Shikoku and in Kyūshū. Pears
and oranges were first introduced by Dutch traders, in Nagasaki in the late 18th century .

?


Japan ranked second in the world behind the People's Republic of China in tonnage of fish
caughtͶ11.9 million tons in 1989, up slightly from 11.1 million tons in 1980. After the 1973
energy crisis, deep-sea fishing in Japan declined, with the ann ual catch in the 1980s
averaging 2 million tons. Offshore fisheries accounted for an average of 50 % of the nation's
total fish catches in the late 1980s although they experienced repeated ups and downs
during that period

Coastal fishing by small boats, set nets, or breeding techniques accounts for about one third
of the industry's total production, while offshore fishing by medium -sized boats makes up
for more than half the total production. Deep -sea fishing from larger vessels makes up the
rest. Among the many species of seafood caught are sardines, skipjack tuna, crab, shrimp,
salmon, pollock, squid, clams, mackerel, sea bream, saury, tuna and Japanese amberjack.
Freshwater fishing takes up about 30% of Japan's fishing industry. Among the species of fish
caught in the rivers of Japan are many different types and some freshwater crustaceans.

Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the
global catch, prompting some claims that Japan's fishing is leading to depl etion in fish stocks
such as tuna. Japan has also sparked controversy by supporting quasi -commercial whaling.

Department of Management Sciences


© 
        

c[  P a g e Internati onal Busi ness - JAP AN

?
 ? u

 ?
 
      
  

We are one of the leading processors, millers, suppliers and exporters of the finest quality
Pakistani super kernal basmati rice and long grain rice.

 ? ? ?

From the foothills of Himalayas and fed by the enriched mineral snow -fed water, the slender
long grain of Basmati Rice is well known for getting doubled its size after cooking. It͛s exotic
aroma, delicious nutty flavor and best nutritious value makes it the ultimate choice of Rice
lovers͛ across all continents. The name basmati originated from a Sanskrit word "BAS"
meaning smell.

 ? ?


?


    
  is a long grain with a slender kernel, four to five times longer
than its width. The grains are separate, light and fluffy when cooked, and mostly used for
special dishes such as biryani.


  ^-D  is a rather dry grain. The grains become long and separate when
cooked having real aroma and delicate texture.

‰- 
  Sindhi Basmati is a variety that has eventually replaced PK-385 for
reasons such as more yield than the latter in the province of Sindh.

   is the rice variety that undergoes a hydrothermal steaming process to
partially boil the un-husked rice. Parboiled rice is the elite rice variety that is liked by
consumers and chefs who love to have the best quality, separately cooked grains and extra
fluffy rice.

Department of Management Sciences


© 
        

cD  P a g e Internati onal Busi ness - JAP AN

?
? 


? 
? u

We are going to start exporting Rice to Japan. The major reason behind selecting rice is
because it is widely used in their routine life. The average price of high quality rice is 2400
Yen in Japan which is around 2300 Pak istani Rupees per 5 KG bag. There is a huge potential
of profits in this business. In past years, the Japanese had restricted their rice imports to
protect their local farmers, but due to World Trade Organization Agreement they ha ve to lift
ban on Rice imports which provided the opportunity for rice exporters to capture the
market. The American high quality rice is available around 1400 Yen per 5 KG in Japan but
that is considered to be of low quality as compared to Japanese rice. Concluding that there
is a rationale behind selecting this business that we can earn profits by going international.

Department of Management Sciences


© 
        

c0  P a g e Internati onal Busi ness - JAP AN


  ? 
 ?  ?


We will use 


   strategy as we anticipated demand of high quality rice in
Japan. It will help us to

y‘ Increase Profitability

y‘ Realize location economies

y‘ Realize cost economies

y‘ Earn greater returns by exploring new geographical markets


? ?

y‘ ?     

‘ Firms create value by transferring valuable skills & products to foreign


markets where indigenous competitors lack

‘ Centralize R&D at home, establish production & marketing in each country,


retain control over strategy -> high operating costs

‘ Relatively weak pressure for cost reduction & local responsiveness

Department of Management Sciences


© 
        

c·  P a g e Internati onal Busi ness - JAP AN

  ??  ?




Vertical Differentiation will be the structure of the organization. Centralized decision making
in core decisions and division in Japan will be able to make decisions about Marketing and
Distribution. But key decisions will be more centralized.

    ? 
?


     we choose this control system because it best suits with the nature of
business. The output means sales for the Japanese Division will be efficient control system
for them.

? 
?


Factors influencing incentive system

y‘ Seniority and nature of work

y‘ Cooperation between managers in subunits

y‘ National differences in institutions and culture

y‘ Consequences of an incentive system should be understood

The incentive will be according to the efficiency of their work. Specially the sales force that
will be responsible for introducing the brand in Japanese market.



Values and norms are basis for any culture and our organization will follow local culture. The
Japanese culture is not very different from Pakistani culture so there would be no such
problem to mix both of them to make a culture that would be best in the favor of the
organization. The core values for our organization are honesty, integrity, timely delivery and
keeping the promises.

Department of Management Sciences


© 
        

c-  P a g e Internati onal Busi ness - JAP AN


 
   
? ? 

?
 
?? 

  
 

Our target market is Japan and specifically Tokyo, Yokohama and Osaka. Later we will
expand to further cities also.

    

The main season for rice in northern Japan is May to October and in central Japan it is April
to October. Therefore we will hit the Japanese market in off season when fresh crops is not
available. As the old rice is considered more than the fresh one as it becomes of high quality
as it gets old and we will be able to receive positive response from market with out having
much problem from major competitors.

       

Firstly we are going to enter in three major cities of Japan which are Tokyo, Yokohama and
Osaka. We are planning to provide 15 ton rice monthly in start and later we will expand and
increase it as per the market response.

 

Exporting is the entry mode we are going to use with our warehouse and wholesale store in
Japan. We will register our company in Japan and have the import license for the rice. Then
the imported rice will be sold out in the market with our own brand name that would be
Japanese friendly. We will have a warehouse in Japan where the shipments will be stored
and our sales task force will do the marketing and selling job. The main focus will be to have
contracts with local retail chains to buy our product s.

Department of Management Sciences


© 
        

c‰  P a g e Internati onal Busi ness - JAP AN


 
?


  



We are going to enter into the market on very small level and if the market respons e will be
as per desired then we will try to expand and it reduces the risk of failure to greater extent.


? ? ?  ??

It will be our priority to have good relationships with local distributors as they will be our
strategic partner in order to survive in that market.

  
 


Our focus will be on few markets as described above, then gradually we will move towards
other markets and it is cheaper and better way to enter a new geographical area.

 ? ? u

We will export rice in bulk in Japan and there in our warehouse it will be packed as per the
market requirement. It will reduce our transport cost per kg and more quantity can be
export without hassle.

  ? 

The transaction will be between our office in Tokyo and head office in Rahim Yar Khan.
Therefore there is no risk of any fraud or cancellation of order. We will have Letter of Credit
in favor of our Foreign Office and amount will be settled as per the management decision.

?  ?

As we are going to export our commodity so there is no point of outsourcing , we will use
our own production in Pakistan to fulfill the market needs in Japan. As rice is location based
product and we have the best rice available in Kamonki, Sialkot, Narowal and adjacent areas
which is then processed and polished in order to make it ready for export.

The information technology has made the communication lot easier therefore we will be in
touch with our Japan office all the time. And any order that needs to be fulfilled will be
immediately dispatched.

Department of Management Sciences


© 
        

   P a g e Internati onal Busi ness - JAP AN

 
?   

Marketing is an essential part of any business to survive and be successful. In our particular
business we are also going to use marketing as effective tool to grab the maximum possible
share of the market. We will try hard to recognize ourselves as a brand in Japanese Rice
Market.



?

Our segmentation is on geographical basis as there is no point of segmentation on the basis


of demography or social or cultural factors. We will divide our market into geographical
segments as South Japan, Central Japan and North Japan.


 


Our target markets are three main cities in the first phase, Tokyo, Yokohama and Osaka.
Then we will further include more cities in our target market with the passage of time.



Our product is standardized and its packing depends upon the distributors requirements. So
there is no chance of any differentiation in the quality of the product. The different verities
available are discussed above.

??? 


We will have contracts with local distribution channels in order to save our distribution cost.
By such way we can utilize the existing channels for penetrating into retail market.

?? 


Price discrimination strategy will be used as we cannot charge same price for the customers
in Japan and Pakistan. In Japan, price will be as compared to other imported and quali ty
Department of Management Sciences
© 
        

 c  P a g e Internati onal Busi ness - JAP AN

equivalent rice. Our prices will be competitive as we are new to the market and will try to
establish ourselves as quality competitor therefore we cannot set the price either too low or
too high.


??

Our rice will be advertised in retail stores and outlets; we cannot do a media advertising in
early stages. But we will try to recognize our brand in food market.



   




We are not making any R&D department; rather we will take services of consultants in
Japan, in order to identify the needs of local people regarding rice. They will conduct surveys
and make analysis in order to identify the areas where our product can be successful and
suggest us pricing and market strategies.

Department of Management Sciences


© 
        

    P a g e Internati onal Busi ness - JAP AN

   

  



? ?

It is about selecting individuals with required skills to do a job. We will use Ethnocentric
Policy in which the key management position will be filled by our representative from
Pakistan and other staff will be hired from local market. It will help us to unify our
organizational culture.

? ?   




We will aim to provide out staff cultural, language and practical training in order to cope
with the business requirements. Various development programs will be conducted in order
to provide our employees opportunity to grow and develop themselves.


  
?

The appraisal of local manager will be given more weight. And local manager will be given
authority to appraise the subordinates in the best interest of the organization.

 
?

The compensation will be designed by the professionals in Japa n by considering the local
market conditions and currently prevailing compensation system in various organizations.

Department of Management Sciences


© 
        

 ^  P a g e Internati onal Busi ness - JAP AN

  ?  

Accounting Standards Board of Japan (ASBJ) and International Accounting Standard board
(IASB) have been closely working to unify the standard in Japan . Now Japan also follows the
rules given by International Financial Reporting Standards (IFRS). We cannot assure that
there is no difference in their accounting methods but as Japan has accepted and
implemented the International Standards for Accounting and Financial Reporting therefore
we will also follow the International Pattern.

?  ?  



Financial management is an important decision for any organization. We cannot invest


hundred percent of the amount required to setup our company in Japan . We will need some
financial assistance.


  ?  
  

We have decided that we will finance 40% of the amount from Pakistan and rest of the
money will be financed by Japanese Bank at nominal interest rate. In such way we can
utilize the benefit of leverage and our cost of capital will also be low.

  ? 
?

?

There is always foreign exchange risk in foreign transactions. Therefore we will try to best
use the Forward contracts in order to avoid foreign exchange risk. And un-necessary
transfer of funds will be avoided.

?

The tax rate for corporations in Japan is currently set at 30% fixed on their incomes. And a
tax return will also be submitted with Financial Statements of our subsidiary and also
Consolidated Financial Statements as per the legal requirement.

Department of Management Sciences


© 
        

 [  P a g e Internati onal Busi ness - JAP AN






The following references were used in preparing this report

http://en.wikipedia.org/wiki/Japan

http://www.japan-101.com/culture/

http://www.venturejapan.com/

https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html

http://www.jetro.go.jp/en/invest/

http://www.introductiontojapan.com/

http://www.theodora.com/wfbcurrent/japan/index.html

http://www.photius.com/countries/japan/economy/index.html

http://en.wikipedia.org/wiki/Law_of_Japan

http://en.wikipedia.org/wiki/Economy_of_Japan

http://internationalbusiness.suite101.com/article.cfm/businessinjapan

http://www.startupoverseas.co.uk/starting-a-business-in-japan

http://www1.american.edu/ted/japrice.htm

http://internationaltrade.suite101.com/article.cfm/japans_top_exports_imports

http://www.meti.go.jp/english/policy/index_FDI_into_Japan.html

http://www.internationalbusinessstrategies.com/market-research-reports/japan.html

http://www.atimes.com/atimes/Japan/LB19Dh01.html

http://wgordon.web.wesleyan.edu/papers/jacc3.htm

http://en.wikipedia.org/wiki/Trade_policy_of_Japan

Department of Management Sciences


©