Globetrotter Seminar #2
Japan
日本
2/12/2008
Promotion Video
Promotion Video
Topics
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Economics
Japanese Language & Culture
Organizational Behavior
Sustainable Enterprise
Marketing
Travel & Food
Economics
Overview of Japan, Including History,
Business, Politics
Geography
China
●
Korea Osaka
●
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Sapporo - Boston
Tokyo - Chapel Hill
Pacific
Ocean
●
Okinawa - Miami
From CH, NC
- 14 hours by air
Time Zone
- 14 hours ahead
Climate
Northern
Middle
Southern
Demographics
• Population - 128 million (ranked No. 10)
• Race / Ethnicity - Japanese 98%
• Life expectancy - Male 79 yrs, Female 86 yrs (Ranked No.1)
• Declining birth rate
- Aging society : 20% of people are 65 yrs old or more
- Population growth : Negative
• Big cities - Tokyo area: 32 million,
- Osaka area: 12 million,
Politics
Prime Minister
Problems…
- Budget deficit
(worst in developed countries)
- Reform of government pension
Plan
etc.
Few regulations for imports,
exports and capital transfer
The 13th minister in 20 yrs
Economy
GDP composition
USA
GDP
1.2%
17.4% 4.9% 19.6%
1.2%
Japan
22.7%
0%
6.5% 18.8%
20%
Agriculture
Wholesale, retail
40%
32.0%
27.7%
60%
$ 13,202 bil.
($44K per capita)
23.0%
$ 4,366 bil.
($35K per capita)
80%
Manufacturing
Finance, real estate
- Low growth rate
- Extremely low interest rate
24.9%
100%
Construction
Other service
Stock Market
NIKKEI225 vs. S&P500
25,000
2500
Nikkei 225
20,000
S&P500
2000
15,000
1500
10,000
1000
5,000
500
2000
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.595
R Square
0.353
Adjusted R Square
0.347
Standard Error
2630.313
Observations
98
2004
t-stats =72.24
P-value =0.0000
2008
Leading Companies
Company
Industry
Profit
Toyota Motor Co.
Automobile
$ 16.1 bil.
$ 208 bil.
Mitsubishi UFJ Financial Co.
Bank
$ 8.9 bil.
$ 107 bil.
Nippon Telegraph and Telecom Co.
Telecom
$ 4.6 bil.
$79 bil.
NTT DoCoMo Inc.
Telecom
$ 4.8 bil.
$76bil.
Nintendo Co., Ltd.
Electronics
$1.7 bil.
$75bil.
Sumitomo Mitsui Financial Group
Bank
$ 4.4 bil.
$63bil.
Canon Inc.
Electronics
$ 4.6 bil.
$61 bil.
Honda Motor Co., Ltd.
Automobile
$ 5.9 bil.
$61 bil.
Matsushita Electric Industrial Co.
Electronics
$ 2.2 bil.
$58 bil.
$ 3.4 bil.
$57 bil.
Takeda Pharmaceutical Company, Ltd. Pharma
Market Cap.
Long-term Relationship
•Between Company and Employee
- Lifetime employment
•Between Companies (Keiretsu)
Zaibatsu-oriented
(Mitsubishi group)
Large manufacturer
(Toyota Group)
Aisin seiki Co.
Transmission
Mitsubishi
UFJ Bank
Mitsubishi
Chemical
Mitsubishi
Estate
Denso Co.
Toyota Motor Co.
Mitsubishi
Heavy Industry
Mitsubishi
Electronics
Mitsubishi Co.
(Trading)
Electrical Components
Toyota Industry Co.
Forklift truck
Toyota Tsusho Co.
Trading
Japanese Language and
Culture
What is behind the Japanese people?
Strange People?
Why Japanese people are…
• Shy?
• Hard working/dedicated?
Why Japanese people do
NOT…
• Think out of the box?
• Speak out in meetings?
Small and Closed Community
• Island surrounded by seas
• SAKOKU (鎖国)
– disconnected from overseas (1633-1853)
• SHIMAGUNI-KONJO
(島国根性)
– Not much experience
under diverse environments
historically and geographically
Small and Closed Community
• HONNE-TATEMAE (本音-建前)
– Honest feelings and official position
• WA (和)
– sense of harmony and togetherness
• NEMAWASHI (根回し)
– Technique to reconcile interests
while maintaining WA
Hierarchical Society
• Feudal society (till 19th century)
– Samurai
– Vertical Society
– Strict orders and strong relationships
• ON(恩) / GIRI(義理)
– Seniors care for Juniors
– Juniors respect Seniors
• KENSON (謙遜)
– WA and social hierarchy
• Ethics
– Small and vertical society
Internationalization
• Importing Western Cultures
• Exporting Japanese Cultures
• Constantly changing
Organizational Behavior
A day in the Life of a Salaryman
Business Etiquette
8:00AM
Commuting Rush
Rate of congestion--- Unknown, but very high!
http://jp.youtube.com/watch?v=a6rYUvSFWro
9:00AM:
Morning Meeting
• Start with morning meeting
• Contents: Boss’ speech, short exercise,
and confirmation of the day’s goals
Angles of Greeting
• Three different angles of bowing used
Normal
For Customers
Apology
Business Card Exchange
• Exchange business cards at start of meeting
• Pass first to the higher-ranked person
• Treat business cards carefully (display on
table) until leaving
Seating Position
• Visitors sit further away from door
• Most senior member sits furthest from door
• Boss sits in the middle
Meeting Room
Entrance
Cafe
8:30PM:
After Work
• Usually, Japanese can’t leave office on time
• Often, boss asks subordinates for a drink (at
Japanese pub)
• Most of topics are business
• Only the last train can
stop this drinking party
0:45AM(Next day):
Capsule Inns
• Cheap alternative to taking a taxi
• 4000 Yen (~$37) includes “room,”
common bath, bathroom, locker
• Clothes and toiletries sold
After work 1:
Goukon (Matchmaking Party)
• Very important opportunity to find
sweetheart(s) for Japanese workers
• Men and women sit alternately
After work 2:
Cherry Blossoms Viewing
• Eat and drink under trees
• Company as community
• New hires save spots all day
Sustainable Enterprise
Environmentally Friendly
Practices in Japan
Mottainai (勿体ない）
• Unique concept, no direct translation
• Respect for nature and man-made objects
• Concepts of 3R (Reduce, Reuse, Recycle)
and Repair
• Concept practiced since ancient times
• Part of everyday life
• Spread by Wangari Maathai
(Nobel Peace Prize Winner, 2004)
Reducing Waste in Daily Life
• Handkerchiefs
– Used to wipe hands, sweat, as accessory
• Energy efficient hand dryers
– Dries hands quickly
Reuse and Reduce:
Refillable Shampoo
• 80% of families purchase shampoo refills
• Body wash, hand soap, softener, detergent,
bleach are also refillable
Percent of families buying refillable shampoo
100%
79.3%
50.2%
% of shampoo
buying families
0%
0.4%
1990
2000
2005
Reducing Energy Usage
• Cool biz: office AC set at 82.4F
– Uchiwa, Sensu (hand-held fan)
• Warm biz: office heater set at 68F
• Kotatsu (electronic heater)
Composting Trash
• 40 pounds of food waste produced every year
by average Japanese household
(vs.195 pounds in the US)
• Subsidy given by cities for families to
purchase composting machine
Microbes change
garbage into compost
After 24 hrs
http://www.alighterfootprintfilm.com/statistics.html
Disposal of Cooking Oil
• Products available to solidify used oil
• Some recycle it as bio-fuel
• If directly dumped in sink:
Extreme increase of BOD
(Biochemical Oxygen Demand)
Kill fishes in rivers, oceans
Sorting Trash in Typical City
Apartment:
• Sort out trash in up to 18 different bins
• Throw out any day of the week
• Pay community fee for trash pick up
Homes:
• Around 4 separate pick ups
• Purchase trash bags specified by district
• Place in specified area before 8AM
• Community duty and peer pressure
How would you throw this out?
1. Water bottle
Answer: Separate into 3 groups
1) Caps-recycle with plastic
2) Label-recycle with plastic
3) Bottle- flatten and recycle
Typical Trash Collection
Plastic: bags,
cups, trays.
Once per week
“Rinse the bottles
and be creative in
reducing the size of
containers.”
Cans, glass,
plastic bottles.
Once per week
“Flatten out the
bottles. Remove the
labels and caps from
bottles and recycle.”
Newspaper,
magazines, milk
cartons. Twice
per month
“Tie the paper
according to
type and place
in transparent
trash bag.”
Food waste,
battery, broken
glass. Twice per
week
“Label the
contents of bag”
How would you throw this out?
2. Half-full coffee in paper cup, in café
Answer:
1) Throw out the remaining liquid in
container
2) Place paper cup in bin for paper
recyclables
Research at Toyota: Eco-driving
Quiz : Which improves gas mileage most?
A. Stop idling (10 min/month)
B. Stop aggressive acceleration/deceleration
(10 times/day > 0 times/day)
C. Proper tire pressure
D. Remove unnecessary stuffs (30 kg)
Eco-driving
35 mpg
34.31
Mileage
32.33
31.20
30 mpg
(Baseline)
30.08
Idling stop
30.38
Mild driving Tire Pressure Remove 30kg
All
Marketing
Product:
• Japanese product
• Integration of new functions
• High quality
• Excellent services
Product example: Super Toilet
• Adoption rate: 60% of Japanese household
• Features
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Automatic open/flush/close
Heated seat
Shower & dryer (no paper)
Sound
Deodorization
• Testimony
Product example2: Services
• Respect customers
• Customers have been king for a long time
• You can “really” expect  for 0 Yen at
McDonald
• Side Effect: demanding customers
Promotion:
• Comparative Advertising
Historically, not accepted and hated
But
Promotion:
• Free ad pocket tissues
– Personal loan company
– Dating site
– Contact lenses
– Cell phone
– ...and more
Place: Convenience Store
It’s not just 24 hours operation
• Everywhere in cities
• Sell many kinds of goods/services
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–
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Cooked food, Magazines, Beer, etc.
2500 SKU in 110㎡ (1200 sft)
70% of products replaced/year
Parcel delivery, entertainment ticket
Tax, gas, electricity payment, ATM
• Super efficient inventory control
– State-of-the-art inventory management
– Frequent delivery: 2-3 times a day
Travel & Food
Travel
Tokyo
• Business and political center of Japan
Many companies’ headquarters
• One of the biggest cities in the world
12M population in city of Tokyo, 32M in metropolitan area
• Something for everyone
Shopping, dining, sports, entertainment….
• Extensive public transportation
Tokyo: Railway Network
Tokyo: example
Fashion center
Nighttown
Business district
Old town
Cybertown
Shinkansen (“Bullet train”)
• The world’s first bullet train
(since 1964)
• Extremely reliable
– Speed:
– Frequency:
– Fatal accident:
– Average delay:
170 mile/hour (max)
13 train/hour (peak)
never
6 seconds!!
Kyoto
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In west part of Japan
Historic city (former capital for 1200 years)
Listed as World Heritage Site
One of the most popular travel destinations
Kyoto: example
“Onsen”: Hot Spring
• Onsen is
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Japanese favorite resort
scattered around countryside thanks to volcanoes
located indoor and outdoor
believed to be healthy
• Experience Onsen
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–
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Exercise (optional)
Bathe in Onsen until you feel bored
Enjoy Beer/Food
Sleep in traditional lodge
Food
Japanese Food
• Essence
– Quality of ingredient
• Value true taste of ingredient
– Very little spices used
• Offer raw ingredient
– Seasonality of food
• most available = best in quality
e.g. crab in winter, salmon in fall
– Presentation
Japanese food: Example
End
Other
What we missed today
• Sports
• Language
• Technology