China economy

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Japan and China economy:
Japanese unique social-business-government
system & hints to improve China growth
Group
members:
Fang Yuan
Cheng Yvyao
Liu Siyan
Shao Qianrui
Preparations
When you see these countries what come to your
mind first?
Japan
Germany
United State
Preparations
China
When you see
come to your mind first?
what
introduction
• China and Japan has deep historical tie
• After World War II, the rapid rising Japanese economy
became the second biggest economy in the world
• but after twrist and turns, China has leapfrogged Japan
to become the world's second largest economy, a title
Japan held for 40 years
8.227 trillion USD (2012)
1,351,000,000
introduction
• How Japanese unique social-businessgovernment system as a unique factor
to inject enterprises?
• Does China have such special thoughts
to develop its domestic business and
economy growth?
Japan economy
• The economy development reasons:
1. a typical export-oriented economy and the world economy trend drive
domestic resorce shortage-(the economy build on Trade)
(1949-1961) the first internationize:
encourage to export
control import
(1960-1973) the second internationize:
☞limited foreign capital invade into domestic important
industry(mainly limited quantity and tax rate)
(1970s-1990s) the third internationize
Japan economy in 20th century
• The internal country strategy drive
• Government-oriented
• Market activities closly relate to the government
1. government has power to control social resource allocation(government
plan and fiscal policy to arrange resource)
2. Each industry structure exchange was lead by government
3. the protection policy made from gvernment to make sure firms invested
and management in government’s expected way(sent government
officers to work in firms)
Unique firm system
• the special enterprise function system drive:
1. combine the Neo-confucianism( team spirit,Confucian businessman)
2. The relationship between firms—government & firms relate to each
other(Industry associations and financial sector organizations), and
relationship between enterprises(Zaibatsu, financial help from banks,
small company & big company).
3. Capability driven strategy + Corporate culture combine and renew
Technology
strategy
Market strategy
Management
strategy
Globalization in Japan’s enterprise
http://www.chusho.meti.go.jp/sme_english/whitepaper/whitepaper.htm
l
Utilization of organizations
supporting management innovation
http://www.chusho.meti.go.jp/sme_english/
whitepaper/whitepaper.html
Company case
• Panasonic
• Career Long Employment
Once you are hired by the
company, you will work for it
until you retire
• Multidivisional structure
You are assigned various kinds
of jobs in different
departments within the
company
• Wage system based on seniority
Salary goes higher as you get
older
• Corporate culture
Reference-James Abegglen 1958: The Japanese Factory
Difference of salary you get and
salary based on your performance
1000000
900000
800000
700000
Salary you get
600000
Salary base on your
performance
500000
400000
300000
200000
100000
22
30
40
50
60
Leadership Credo in Panasonic
Sense of purpose, strong values, selfdiscipline
Respect others, Builds community,
Manifest honesty, shows justice
Staying focused on the Customer
http://www.nytimes.com/2012/11/09/techno
logy/09iht-panasonic09.html
Reference by Kelly, T (Nov. 8 2012). A New
Style of Leadership at Panasonic. New
York, NY: The New York Times
Company case
• Confucian Entrepreneurs
• the virtues of Confucianism: tolerance, sympathy, empathy, and
benevolence.
• not run counter to the basic principles of the market economy and
democracy.
• not compete for profit, but for excellence
• create a win-win situation ,thus serve and influence society at large
How Japanese company interpret
Confucianism
• Elements of nature and ancestor worship
1. The continuity if their family's good reputation-succession of family
business
United enterprise group: Mitsubishi, Sumitomo, etc
Single family enterprise: Toyota & Panasonic
2.




Spiritual dimension-poor performance is most often seen as a spiritual
failure—employees should chase from their hearts
Discipline and diligent practice-corporate training setting-employees
have endurance, concentration and detachment
Networking-Keiretsu
Paternalistic Leadership and Management-humanity-effective function—
trust-motivation
Japanese work ethics-accepting controls--self-discipline-competition
What Japanese enterprise face t0day
 A under-estimate trade
deficit in 2014 (already last 3
years—deficit)
 Japanese Yen keep
deflation—weaker, the
weaker Yen
Still not stimulate export as
expected.
 baby boomers start to
retire in larger numbers from
2015(population issues)
 energy shortage
(oil,fossil,etc)
Reference-JAPANESE ENTERPRISE FACES THE 21ST CENTURY
By D. Eleanor Westney
M.I.T. Sloan School of Management
(Forthcoming, Firm Futures edited by Paul DiMaggio, Princeton University Press)
China economy
• Three Cabs
– Investment,Consumption,
Export imports and
Exports as Leading
• Enough supply of factory production
– high rate of capital accumulation, increasing of labors and
contiune improving of technologies
• Change of Social Insititution
– open policy, urbanization plan
Problem in Chinese Economy
- Urbanization Plan
- Labor Issues
- Lack of National Brands
The improvement strategy in Chinese
Growth
• The 20142020
urbanization
plan
Lack of National Brands
Enterprises which over 200 years
•
•
•
•
•
-
Japan ( 3146 )
Germany ( 837 )
Netherlands ( 222 )
France ( 196 )
China ( 5 )
• Average life of small business:2.5 years
• Average life of conglomerate:7-8 years
Company Case
Hero
- 1931 established in Shanghai
- 1937 set up joint stock company
- 1958 stirred "Pragmatic Innovation" enterprise
spirit and surpass parker.
- At end of 1980s, it occupied more than 70%
market
- During 1990s, it sold in more than 60 countries.
Company Case
• At the end of 2012, it transferred
49% company's share to Parker,for the
price of 2.5 million yuan
Case Anaysis
•
•
•
•
Lack of asset
Did enhance brand value
Failure in company strategic transition
Lag in techologies
• Government pay less attention to help national
companies
• People are crazy to buy foreigh products and
ignore national brand
Comparison of China and Japan Economy
The similar of China and Japan economy in 20th centry
• In 20th centry, China and Japan had similar stage of
economic development and growth partterns. There was no
advantage of high-end product.
• China and Japan faced closed international environment and
trade surplus with the United States increased. The
exchange rate appreciated under external pressure.
Comparison of China and Japan Economy
The differences of China and Japan economy
• From the aspect of international market, Japan focus on
produce their own brands. However, China pay more
attention to the global industurial chain instead of own
brands.
• Japan’s company pay more attention to combine the Neoconfucianism
Comparison of China and Japan Economy
• In the development of new technologies, China depends on
the foreign production technology. Japan is focusing on the
development of independent intellectural property rights.
• Japan is a country which is lack of resources. The
utilization of resources is high though the resources are
heavily dependent on import. China is rich in resources, but
the efficiency is not high.
Comparison of China and Japan Economy
• China and Japan’s survival rates are different under a
significant change of external condition. The survival rate of
Japan is very high due to its strong independent innovation
capability.
• China’s economic development relies on the support of
foreign trade growth. Japan’s economy depends on the
domestic support.
conclusion
• No permanent “miracle” economy model
• Japan as the leader in flying geese, still have to get rid of
role of “medium” between Asia and US
•
China still work on labor issues, social welfare issues, and
cultivating more domestic enterprise(increase domestic
demand),etc.
• Next decades, Is China the world's next superpower?
Thanks!
Q&A?
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