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Japan: Background

  • Population & GDP

  • Landscape

  • Ring of Fire

Questions?

Facts About Japan

Landscape and Ring of Fire

Landscape:

Map, general locations

Ring of Fire

need for flexible building

Government: Parliamentary with constitutional monarchy

Capital: Tokyo

Population: 127,368,088

Population Growth Rate: -0.077% (2012 est.), World Rank: 198th

Birth Rate: 8.39 births/1,000 population (2012 est.),

World Rank: 217th

Industries: Consumer electronics, motor vehicles, machine tools, steel, and nonferrous metals

Currency: Yen

Facts Continued

Life Expectancy: Average: 82, Male: 78.8,

Female: 85.6

GDP: 4.34 Trillion (2008)

GDP per Capital: $33,800

Literacy Rate: 99%

Unemployment Rate: 4%

Quickrete

Cement & Concrete Products

  • Family owned Company
  • 70 years of experience
  • Low cost quality product
  • commercial construction & home improvement
  • Global company

Entry Strategy

Operations

Joint Venture

  • Obayashi Corporation
  • Global Company
  • Top construction company
  • Corporate ethics
  • Information security

Tokyo

  • Largest city in Japan
  • 2020 Olympics

Kansai Region

  • Great opportunity for business

Manufacture in Kansai Region

Quikrete in Japan

Japan Culture Profile

Hofstede Country Comparison

Brad Dickinson, Sam St. Germain AKA your Boy, Stephen Cote, Komot Gabriel, Aseeb Niazi

Negotiation

Religion

  • Freely practiced
  • Private Family Affair
  • Syncretism
  • Japaneses are very cultive
  • Negotiate in groups
  • Usually a central figure that would ultimately make the decision.
  • High Power distance
  • Need to develop trust before doing business

Shintoism

  • Concerned with spirituality

Buddhism

  • Concerned with the soul and the afterlife.

Interpreter Strategy

Bamboo Strategy

Shintoism

  • Native Religion of Japan
  • The worship of all things in nature including ancestors
  • Kami- The line between the living and the dead
  • Belief that community life and religion are one

Japanese Etiquette

Greetings

Communication

  • Respect must be shown to elders in the company
  • Japanese people do not use the word “no” when doing business
  • Non-verbal communications are very important for the Japanese

  • Bow upon meeting

  • Exchanging business card

  • Business cards should contain name, title of businessman, company name, address, and phone number.

Outline

Quikrete Intro

Japan Background

Entry Strategy

Japan Culture Profile

Marketing Strategy

Construction Industry in Japan

Organizational Structure and Staffing Policy

Japanese Labor Laws/Construction Codes

Leadership Training and Motivation Systems

Marketing Strategy

Marketing

Marketing cont.

  • lack of space

  • extensive pre-purchase evaluations

  • consumer are very loyal to a product

  • Commercials with Obayashi

  • Earth Quake story

  • Business to business

Pricing in Japan

Concrete Mix:

80lb Bag: ¥ 384.95 = $3.77

60lb Bag: ¥ 299.95 = $2.93

Mortar Mix:

60lb Bag: ¥ 489.95 = $4.79

Leadership Training and Motivation

changes to the products

Change Bag writing

and art directions

Japanese Labor Laws/Construction codes

Leadership:

  • older person, hopefully Japanese
  • Clarity is critical. Extreme knowledge to ensure faster decision making for Japanese vertical decision making process

Training:

  • Focus on breaking into markets (changing perceptions)
  • Product knowledge for suggestive selling and technical support

Motivation:

  • Competitive from birth, continue the competition
  • Incentives based on numbers that are clear and known to all
  • Posters/Plaques for great performance
  • Money and promotion incentives

Japanese Building Codes

  • Forefront of seismic
  • Dampening technology
  • National Seismic Code (1924)

Base Isolation

Organizational Structure & Staffing

Construction Industry in Japan

Organizational Structure

CEO of Quikrete

V.P. of International Operations

Construction Industry In Japan

  • Vertical structure with clear lines of hierarchy/authority

  • Corporate Division of Japan

  • Mimic the structure of Japanese organizations

Quikteams

International Manager of Japan

Obayashi Corporation

  • Similar to U.S. construction industry
  • Contractors generally specialized
  • Licenses: Don’t need if...
  • Non-building construction work under ¥5 Million or roughly $48,000 USD.
  • Building construction under 15 million yen or roughly $145,000 US
  • Earthquakes create constant Infrastructure repair/preparation

Construction Industry

Staffing Policy

  • Must be a male manager (Japan highly masculine)

  • Confident in international management abilities

  • International Manager: liaison for the V.P. of International Operations of Quikrete.

  • Quikrete Engineers: maintain quality of Quikrete products.

Labor Contract Act

  • “Quikteams”= Japanese+Americans (group work)

  • Extensive knowledge of Japanese marketing and construction industry knowledge

  • Expatriate: manager with international experience

  • Interested in Asian culture/business
  • Workers employed on fixed-term contracts for five years must be granted open-ended employment if they apply for it.
  • Contract workers make up 25% of Japanese workforce
  • Found in construction, manufacturing, blue collar employment

Tokyo Olympics 2020

Labor Standards Act

Labor Union Act

  • 8 hour work day
  • 1 day rest per week
  • 10 days of leave w/ 6 months of continuous employment
  • Under 15 yrs of age must NOT be employed
  • Established 1949
  • Collective Bargaining
  • Promote safe working conditions for employees with hazardous jobs.
  • Wages/Salaries
  • Ability to conduct Strikes/Lock outs

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