Global Business Plan -- Operations
GBM/489 - Strategic Topics in Global Business Management
As per the Economic Intelligence Unit (2011), the Japanese earthquake as well as
“tsunami flattened villages and towns, leading to huge devastation of property and the
displacement of hundreds of thousands of men and women,” (para. 1). During the 21st
century alone, Japan has suffered 14 major catastrophes which include tsunamis,
earthquakes, typhoons, and train derailments. This is just how UOPX Reconstruction
and Disaster Cleanup would come in. UOPX R& DC came to be in the United States of
America in the oil leak in the Gulf of Mexico. It is a privately owned agency which subcontracts renovation and cleaning up following serious catastrophes in the United
States of America. The latest tsunami together with the significant quantity of
catastrophes which continuously ruin Japan have inspired UOPX R&DC to think about
international growth. This document will offer a comprehensive risk evaluation of the
Japanese market regarding UOPX R&DC. To start with, this document will briefly
explain UOPX R&DC and the reason why an expansion to Japan has international and
local possibilities for the stakeholders. In this document the topic to talk about is the
following listing of factors and just how, they might impact UOPX R&DC’s Japanese
establishment: economical, political, government, national infrastructure, cultural,
geographical, and competition. Our company would offer a helpful service to the federal
government and citizens of Japan. Our company would assist the country of Japan with
a rapid crisis response to the majority of catastrophes. This would spare federal
government services to assist with disaster services instead of cleaning up. UOPX
R&DC is a catastrophe and crisis response agency, motivated by the requirement for
people to move back to their usual programs as soon as possible following a
catastrophe has taken place. Our company works closely with the government
authorities of countries which have had a catastrophe natural or otherwise in order to
clear infrastructure so that federal government authorities can offer shelter and other
facilities to its citizens.
Economic and political variables
Financially, the tsunami has slowed down present domestic progress. Even then
catastrophe relief and renovation attempts following big catastrophes will tend to lead to
short upticks in business activities given the catastrophe doesn't result in extended
interruption, (Economic Intelligence Unit, 2011). Normally, Japan is financially powerful.
They recorded substantial progress from 2003 to 2007 based upon desired exports to
developing markets such as China, (Economic Intelligence Unit, 2008). But, there are a
number of economical problems for Japan. For instance, Japanese exports have been
influenced by a gradual growth of the Japanese Yen from 2007 and deteriorating
consumer trust signifies that Japan won't be able to compensate the difference in case
its exports decrease. Politically, Japan is dominated by 2 most important parties: the
Liberal and Democratic Party (LDP) and the Democratic Party of Japan (DPJ),
(Economic Intelligence Unit, 2008). The Japanese federal government is comparatively
stable and generously business friendly. As per Symonds (2010), “Japan’s prime
minister specified an economical program which signaled a big reduction in corporate
tax rates from 40 to 25 %,” (para. 1).
Government
Japan's federal government is actually a constitutional monarchy having a parliamentary
federal government. The legal system of Japan is patterned following the European civil
legal system with both British and American Impact. Real political force in Japan lies in
the prime minister and the Diet rather than the Monarchy that functions as head of state
instead of government. The cabinet is selected by the Prime Minister for two-year
durations. Japan has got a bicameral legislature which includes a House of Councilors
and a House of Representatives. The Judicial part is composed exclusively of the
Supreme Court whose judges are selected by the cabinet.
Infrastructure
Japan provides an established commercial infrastructure which maintains the existing
society levels however is encountering a rise in demand. Its transport facilities are made
up of an international airports system which maintains “all but 1% of arrivals in Japan”
(Economist Intelligence Unit, 2011). This traveler growth shows the personal preference
for flying instead of alternative sea journeys. A properly controlled sea port system
provides ability for sea transportation of individuals and products; but, short working
hours have a tendency to increase handling periods and result in slow downs and
enhanced expenses for organizations looking for transport by these types of methods.
Even though upgrades are ongoing, Japan’s higher levels of earnings put high demand
from its citizens. A huge and fast railway and subway system is available in Japan. This
effectiveness reduces the requirement on road systems; but, areas served even now
need some car transportation following train movement. Telecoms and Internet service
availability is quickly increasing and mobile phone use has achieved high demand levels
more than the “88 Million users” (Economist Intelligence Unit, 2011).
Culture
Japanese tradition has been displayed by a lineage-driven group of social features.
Regard for experience above status, concentrate on customs above latest tendencies,
and a Japanese language which withstands time as a method for a sincere
development of culture. Religious beliefs have got s powerful effect on conduct, and arts
have a major effect on the pass down of social information to new generations.
Information technology and latest tendencies, however, are modifying how Japanese
youth communicate with the remainder of the world, an element which produces doubt
around the future of this strongly held culture.
Geography
Japans location provides a mixed set of problems. Being a huge group of islands, Japan
has got 4 main islands most with having access to the Sea of Japan and the Pacific
Ocean, and provides a mild climate with particular considerations of a rainy period, a
gusty period, and a snowfall period throughout the calendar year. Nearby to the western
side with the Korean peninsula and a huge part of Russia, Japan has direct accessibility
to the Asian landmass and main access to the Pacific side which can help for direct
movement to the western hemisphere.
Competitive Analysis
Japan has got a good reputation for buying and selling in regional and global locations
which has created the Yen one of today’s most powerful foreign currencies around the
world. Japan’s economy is created around a set currency rate with the United States
dollar to encourage money transfer. During recent years, Japan has carried out
currency controls and policies in an effort to support the Yen; but, Japan’s requirement
for imports and export-driven economic system has proved currency adjustments to be
worthless for the internationally integrated economic system of Japan. In spite of those
difficulties, as per Economy Watch (2011), “the Yen is the 3rd most-traded foreign
currency in the international currency market following the Euro and the U.S.
greenback. The Japanese currency is extensively utilized like a reserve foreign
exchange following the U.S. buck, the Euro and the pound sterling” (2011, para. 1).
International loan is a solid sign of a country’s condition. International loan evaluates the
sum of money which developing nations must pay back to advanced country’s financial
institutions. International debt is frequently left outstanding and pardoned by way of
trade contracts. The International Monetary Fund works with nations which go into
default on financial loans. The International Monetary Fund has methods set up in order
to evaluate a country’s prosperity and predict developing economic problems.
One more method to evaluate a country’s economical condition is by evaluating
Conventional and Purchasing-Power Parity Theory (PPP). Conventional Measures is
the action of utilizing the currency rate to show the per capita earnings of a nation. The
Purchasing-Power Parity describes that modifications in the currency rate of 2 foreign
currencies is proportional to the alternation in the 2 countries rising prices (Salvatore,
2005). Purchasing-Power Parity factors the blowing up of tradable items of nations,
instead of motionless items for example houses and property. By assessing the PPP of
nations anyone can get knowledge of a county’s economical growth and condition.
From a country’s financial obligation to its Gross Domestic Product rating, there will
always be scales of measurement in order to predict the condition of countries. Up to
now, the Japanese Yen is among the most powerful foreign currencies all over the
world. As per Economy Watch (2011), “the Yen is the 3rd most-traded foreign currency
in the foreign exchange market following the Euro and the U.S. buck. The Japanese unit
of currency is extensively used like a reserve foreign exchange following the U.S. buck,
the Euro and the pound sterling” (2011, para. 1). Presently the Yen is exchanging at
roughly. 83 Yen for the United States dollar. Japan carries on including its economy to
parallel global business and international cohesion. Japan’s economical growth relies
exclusively on the export of products abroad. As a consequence, the Japanese Yen will
always be at the front of the foreign exchange market.
Evaluate Global and Regional Business Opportunities
Japan, that is a country, made of islands, exports titanium, sheet mica, and seafood. As
per the United States Geological Study, during 2006 Japan was the world’s major
manufacturer of titanium sponge and accounted for 28% of the world’s total exports
(Salazar, 2009). Japan has got a competitive benefit in the manufacture of sheet mica
due to its volcanic plateau. Japan is among one of 5 countries which mine mica for
export, for that reason Japan will carry on to have a flourishing export market for the
mineral. Japan’s fishing industry is split into 4 kinds: fun fishing, costal fishing, remote
water fishing and aquaculture, or at sea farm fishing. The main one obvious truth is that
Japan keeps a presence on the global market. Japan’s exports perform an important
part in the development of the international trade market.
Conclusion
As this program has demonstrated the country of Japan is frequently hit by natural
catastrophes. The requirement for companies apart from the government to help with
cleaning up and repair is certainly set up. Although the government is in a position to
provide the services required, UOPX R&DC would be capable to react swiftly to aid with
cleaning up and other help the government needs. Our company would be capable to
open up swiftly highways and restore infrastructure so the people of Japan will come
back to their way of living as quickly as possible. UOPX R&DC is a rapidly expanding
dynamic company which has its origins in assisting people have their lives back in order
whenever a period of need comes up.