Globalization

Within the last decades, a tendency for massive internationalization and globalization of economic activity has been developing in modern business circles. Economic globalization and international expansion bring new ample opportunities for world’s business structures, open the doors for foreign trade and commerce, and benefit economic growth and social welfare. That is why the number of multinational corporations and associations is rapidly growing. Within the scope of this tendency, it is hard to imagine a motivated manufacturing or commercial institution which does not seek expansion of its economic perspectives and does not look for an occasion to raise its commercial ambitions to much higher levels.

If a business organization or structure plans to expand its activities and break into international business environment, it is absolutely essential for its management to be aware about all various cross-cultural backgrounds and communicational challenges, which can be faced when establishing business contacts with overseas partners. Before starting doing business abroad, it is necessary to study thoroughly all possible issues related to cultural and historical traditions, customs, etiquette, the key values of foreign business culture, approaches and expectations, as well as social attitudes and standards. This report summarizes the findings about social and business culture of contemporary Japanese society and provides several recommendations for those, who intend to start doing business in Japan.

Basic Facts about Business Environment in Japan

The Japanese market is very well-developed and mature. Its capacity is about 127 million people with relatively high incomes. The economy of the country has already recovered after the crisis of the beginning of the 1990s, and currently Japan has the world’s 2^nd largest economic system. In 2004 the country’s GDP totaled $ 4.67 trillion, but GDP growth remains quite moderate: 2.6% (Enterprise Ireland, 2005).

On a global scale, Japan was one of the last countries to start adopting international industrialization and opening its industrial sectors for overseas investors, businessmen and foreign producers. Within the last decade, the country’s imports have been steadily increasing, coming up to 18.8% in 2004 (Enterprise Ireland, 2005). The Japanese government actively supports and promotes foreign investors giving them extremely favorable opportunities to develop their business.

Japan is governed by the Emperor and bicameral Parliament called Kokkai. Modern service sectors of the Japanese economy (especially banking and insurance segments) are thriving, but industrial development has been slightly slowed down by heavy dependence on foreign fuel and raw materials, as well as by a certain tax pressure. Recently, the Japanese government initiated a series of reformative programs directed on extensive privatization, economic reorganization, restructure of the existing tax system, and so on. Monetary unit in Japan is the Japanese Yen (¥) (Japan Guide, n.d.)

The country’s transportation, IT and communication infrastructures are, probably, the most advanced in the world, therefore, there will never be a problem of getting around and getting in touch with anyone. The same can be said about the accommodation: there is an abundance of comfortable first-class business hotels throughout the country. Finally, Japan is a very safe country from the point of health, business, personal and other risks. Crime rates are very low, medical care is excellent and always available, there are almost no risks of hard diseases, and the only possible threat is connected with frequent earth-quakes.

For those who intend to break into the Japanese market, it is always necessary to keep in mind that the country’s industrial sectors are very advanced and innovative. Therefore, the Japanese customer is very sophisticated and demanding, because he can enjoy the advantages of the first-class quality products. That is why it is necessary to come up with an interesting original effective concept or idea and be able to offer a high-standard product; otherwise, the attempts to enter the Japanese market will definitely fail.

Business Culture of Japan

Traditional Views on Business in Japanese Society

Some specialists suppose that traditional perception of business in Japan is heavily influenced by certain old-fashioned values preserved from the late feudal epochs. In his book Japan: Doing Business in a Unique Culture (2005), Kevin Bucknall points on several factors related to ancient feudal culture, including domination of men, respect to hierarchy and veneration of the old, prevalence of mercantilist viewpoints, life-long devotion to the job, etc. Bucknall resumes that “..the process of moving towards values more appropriate to a modern nation [has begun], but there is still a way to go” (Bucknall, 2005, p.5).

Another important tendency, which impacts traditional perception of business in modern Japanese society, takes source from a common social concept of defining a person according to his belonging to a certain group. From this point of view, business becomes an important footing for group development, offering great opportunities both for collective and individual achievements. Nevertheless, some observers consider that such emphasis on domination of social groups over individuals affects common understanding of business and entrepreneurship in Japan (Enterprise Ireland, 2005).

Main Values of Business Culture in Japan

Hierarchy. This value is originated from Confucianism and helps to define a position and status of an individual in a social group. A hierarchical system classifies the employees as the members of the groups of higher, middle and lower levels, according to their expertise, competence, qualification, experience, background, etc. Hierarchy is a core issue of Japanese organizational culture, which must be always taken into account when building relationships.

Group Orientation. The Japanese are convinced that personal identity of any employee can be evaluated only in the framework of group performance. Group orientation is based on such factors as team-work, participation, altruism and commitment, abilities to compromise and cooperate, etc. This value is one of the key concepts of Japanese business culture, and “..a Japanese will avoid doing anything that reflects badly on the group or causes embarrassment or loss of face” (Leslie, 1992, p.37).

Consensus Building (Nemawashi). Since Japanese organizations are group oriented, consensus building value is mostly related to collaboration when making decisions. Usually, business discussions in Japanese companies are put to talking about more general and important points. However, the decisions related to small details can be taken on higher hierarchical levels and submitted for general approval later on.

Achieving Harmony (Wa). This value is closely related to the previous one and can be expressed with a common tendency to avoid confrontation and disagreement. It is also based on religious dogmas of Confucianism which are calling to establishing good interpersonal relations, peace, unity and accordance. At that, the emphasis must be made on mutual trust, friendly support and cooperation, tolerance and humble attitude.

Respect. Respect is an important instrument to achieve harmony. This value can be also considered in the framework of hierarchy, which means maintaining the hierarchical relations by demonstrating respect to people of higher status. Respect can be expressed with the help of verbal and non-verbal communication, behavior or other forms of social interaction, personal achievements, devotion and loyalty to the company, and so on.

Obligation (Giri). This important value is developed in every individual through the system of education, personal experience, business and social life, etc. Obligation is closely linked to such social values as honor, dedication, duty and responsibility. Being a strictly conservative concept, Giri may include, for example, reluctance to leave a job which brings no personal satisfaction in order not to lose own reputation, and so on.

Organizational Culture in Japan

The most important aspects of the Japanese organizational culture include conservative and formal attitude, respect to higher ranking people, politeness, patriotism and loyalty to organizational traditions, hard work, modesty, honesty and conformism. Many observers also mention “..very conservative Japanese attitude toward corporate failure,” (Venture Japan, 2006). It is typical to dedicate own business life to only one company. Therefore, the concept of “life-time employment” is something usual, and the bonds between the company and its employees are extremely strong. That is why it is common to place the reputation of the company over own reputation and be proud of the progress and achievements of the company more than of own developments and success.

Typically, a classical vertical hierarchy is practiced in Japanese organizations. Such system defines the rules of organizational communication, both formal and informal. At that, the role of middle management is more significant than it is in Western companies, because the employees of middle level are the most familiar with all the aspects and details of the company’s activities. That is why top managers rely a lot on them in decision making process, and for those who want to establish business contacts with a Japanese company it is essential to find a good approach exactly to middle management.

Decision making process is quite specific in the Japanese business culture. Unlikely to Western style (from the top managers to lower managers), the Japanese prefer completely different approach: from the lowest managers to top managers. In particular, if a middle level manager wants to submit a proposal, he must do it in a written form (ringi-sho) and submit it for consideration of his lower subordinates. After some modifications and improvements are made, ringi-sho rises level by level up to the top manager, who approves the final decision.

The Japanese are very organized, very neat in their business routine, and usually they expect the same attitude from their business partners. That is why such organizational formalities as thorough planning, frequent reporting and so on, are highly appreciated. Since leadership is an important value, the Japanese like being managed and tend to minimize own initiatives. Instead, they are very obedient, hard-working, productive and easy to be managed. Finally, personal discipline is another key element of their organizational culture, and the Japanese never leave their workplaces before the working day is over: it is the best to leave the workplace after 2-3 colleagues have already left.

Strategies of Communication and Building Business Relationships

Specialists in international communication from CommunicAid Ltd came to the conclusion that building effective relationships with a Japanese counterpart has to be based on the following concepts: (1) compatibility, which means prioritizing such factors as personal relationships, company’s and social welfare, corporative success and achievements, etc.; (2) sincerity, meaning readiness to base business connections and cooperation on such values as honesty, openness, compromise, etc.; (3) trustworthiness, determining the abilities to keep own reputation high and be responsible for own deeds (Kwintessential, n.d.)

Implication and indirect factors play very important role in business culture, because Japanese businessmen tend to show respect to their partners and put informative part of business communication to minimum, assuming that the counterpart is very well-informed about the subject or matter. That is why it is necessary to be a very good listener and learn to understand the intentions or expectations of the Japanese partners. Besides, the Japanese prefer to deal with calm, well-balanced and objective people. That is why one must remain humble, quiet, modest, but at that be concerned and interested to a certain extent.

Exchange of information is actually a crucial point of business communication, and in order to establish good relationships it is necessary to provide the Japanese counterpart with comprehensive information about the product and beyond. It is prior for the Japanese to know and understand the ideas they intend to implement, so they are always ready to ask a lot of different related questions. Another important element of communication in Japanese business culture is the tendency to keep away from strict and direct expressions. This strategy is connected to the value of achieving harmony and is effectively used for avoiding confrontations and offenses.

Business Etiquette

Meeting and Greeting. In Japan, it is traditional to greet anyone with a bow which is considered to be a mark of respect. Nevertheless, it is a common practice in modern Japanese circles to greet foreign partners with a handshake and a slight nod. When meeting a Japanese businessman for the first time, it would be very good to be introduced by a third person who is well-familiar with both counterparts. One can introduce himself using full name and the name of the company he represents. The Japanese use polite form of referring to each other which includes the last name followed by “san”.

Business Card Exchange. It is a central ritual of modern Japanese business culture. Before going to Japan to establish any business contacts, it is absolutely essential to prepare a good amount of business cards which would have the reverse side translated into Japanese. Business card exchange ceremony usually takes place in the beginning of a business meeting. It is necessary to stand up facing the counterpart, to bow slightly and to hand out your business card using both hands. Correspondently, a business card must be received from the Japanese counterpart with two hands and a bow.

It would be considered offensive and impolite to place a received business card into the pocket or wallet without reading it. The information on the card has to be studied thoroughly, and if a name or position of the counterpart group member is unclear, it would be better to confirm it right away. This would signal about your genuine interest and respect. When the meeting starts, it is recommended to place the business cards received from the Japanese partners on the table and use them as a reference when addressing to the counterpart by the last name and title.

Business Meetings and Negotiations. The first meeting is very important because the Japanese businessmen consider it to be the best time to evaluate foreign counterparts and form an opinion about their trustworthiness and reliability. Usually, important meetings are scheduled between 10 a.m. and 12 p.m. and it is supposed to be a good tone to make a call 1 hour before the meeting time and confirm the arrival or reschedule it. Usually, the Japanese are very strict about the schedules and do not like wasting their time during the meetings. Therefore, it is good to plan the agenda and be equipped with proper supportive materials.

It is necessary to dress formally and arrive to the meeting 10 minutes before the time scheduled. It is recommended to greet the highest ranking person first. When entering a meeting-room, the participants of the higher status go first and sit at the head of the table. Then the attendees of lower ranks enter the room and take their sits according to the hierarchy. Foreign guests must not sit until they are shown the place and invited to sit down. The same rule applies for rising up after the meeting is over.

It is polite to bring a gift which must be handed out to the highest ranking host before the meeting starts. The best choice for the gift is a souvenir from the country of origin. When receiving a gift from the Japanese counterpart, it is polite to show gratitude with a bow, open it and demonstrate appreciation. But in case if the gift is wrapped, it is allowed not to open it right away. If some drinks are served, it is necessary to wait until the highest ranking host starts drinking. Taking notes during the meeting is usually appreciated as a sign of genuine interest, but one must remember not to write anyone’s name with the ink of red color.  Finally, one must be ready for some breaks of silence during business meetings.

Social Customs and Traditions of Japanese Society

Specifics of Social Interaction in Japan

Japanese society is one of the most homogeneous in the world, because for centuries the country was isolated from the outer world, both geographically and culturally. Regional differences in culture and social life-style are minor, and 98.5% of present national population is ethnic Japanese (Buchnall, 2005). Moreover, too rapid historic development used to cause frequent social transformations and reallocations. Combined with such cultural characteristics as love to liberty and equality, antagonism against ruling classes, high social responsibility and awareness, etc., it resulted in failure to form any strong system of social classes in Japan.

Undoubtedly, social interaction in Japanese society is influenced by the same cultural factors which influence their business culture. The Japanese are very concerned about their personal reputation, so during any communication or interaction they always try to reveal only positive sides of theirs. They are very trustable and responsible people, who have an extensive range of personal concerns, staring from their own welfare and ending with some problems of a global level. In their daily interaction the Japanese are quite opened and interested, trying to be aware about everything happening around them.

Another important characteristic of social interaction and co-existence in Japan is a common tendency to peaceful conflict resolution and social harmony. That is why there are no public scandals or misunderstandings, not to mention any possible acts of humiliation or discrimination. The Japanese are very sensitive to the concept of public shame. Undoubtedly, it seriously impacts public order and, together with traditional obedience to laws, makes public safety very high. The same can be said about general criminal situation in the country, which is controlled not only by public security services, but also by highly developed individual sense of community.

Impact of Religion and Ancient Cultural Traditions on Modern Social Life

Japan is famous for its ancient unique cultural customs and traditions which are still very well preserved due to geographical isolation of the country from continental influences.  The Japanese cherish their traditions and rituals, such as ancient tea ceremony, ceremonies of sharing meals, or the ritual of wearing their traditional clothing, kimono, and many others. They are used to combining old traditions and modern styles in their social culture.

The Japanese like spending free time in cinemas, restaurants with karaoke, bowling clubs or special game centers, where they play shogi or go. Though they are supposed to be one of the most workaholic nations in the world, people spend a lot of time watching TV, listening to music or reading comics, trying to relax and have rest from fast rhythm of their life.

Generally, the Japanese are less religious than American or European people are, and the religions dominating in the country (Confucianism and Shinto) have principally different impact on social life of the nation. In Western countries we draw our strength from God and praying. In Japan, religion serves social purpose in a different way, impacting personal development of every individual through learning how to become an exemplary and valuable member of the society. Thus, according to Bucknall, “The Confucian approach … involves much rote learning, discipline, and emphasis on conformity” (Bucknall, 2005, p.21).

Cultural Nuances of Informal Social Interaction

The Japanese consider a good manner to get together and socialize after work, but not always the idea to spend time together in non-working hours will be followed by a real invitation to a dinner or cup of tea. Actually, the Japanese do not prefer inviting their business partners to home: they usually arrange business lunches or dinners in the resultants, and such meetings often continue in coffee shops or little cafes. As a rule, the hosts of such “out-of-the-office” meetings cover all the expenses, but it is very polite at least to offer paying.

Good manners play a central role in Japanese social culture. When receiving meals from someone it is necessary to say “itadakimasu” (“I am grateful to receive”) and after eating one must say “gochisosama (deshita)” (“Thank you for your meal”). In traditional Japanese restaurants tables are very low and people sit around the table on the floor or on a special carpet, tatami. At that, men must sit cross-legged and women must sit on the knees laying their legs to the left or to the right. Usually, the most honorable guests are placed farthest from the door. It is essential to learn eating with chopsticks before going to Japan.

One must not blow the nose on public, especially at the table. Chopsticks must not be abused and one must avoid playing with them or pointing somebody/something.  It is necessary to avoid sticking the chopsticks into the meals, which is usually done in the funeral. Men are supposed to serve alcoholic drinks to women sitting next to them. It is good to carry own paper handkerchiefs and napkins as they are not always provided in public washing rooms and toilets.

In those rare cases when overseas business partners are invited to a Japanese home, it can be a sign of deep respect and friendly attitude. It is preferable to bring a small present for the hosts. However, it must not consist of four items since number four is considered to be unlucky, as well as whistling indoors and cutting nails at night. One must remember to remove the shoes before entering a Japanese house or apartment.

When the meals are served, it is polite to try at list a bit of everything and demonstrate appreciation of the cooking. The Japanese like drinking alcohol and usually they are quite insistent when offering alcoholic drinks. That is why for those who do not drink it is better to find a serious excuse to refuse drinking and be prepared to retell this excuse many times. It is quite a sensitive matter, and in order not to offend the hosts the best way would be trying a little bit of the drinks offered (Japan Guide, n.d.).

Conclusion: Recommendations on Developing

Effective Cross Cultural Competence When Doing Business in Japan

The importance of developing an effective cross cultural competence when staring business abroad is unarguable. After thorough analysis and study of the materials available, as well as taking into account the recommendations received by the author during his personal communication with Hidetoshi Kumamoto, a Sales Supervisor of Kawasaki GTA West (see Appendix), the following stages of the strategy aimed on breaking into the Japanese market were created for the consideration of general public.

The initial stage has to include the following measures: developing a first-quality product (preferably using some innovative idea or technology), studying possible opportunities and challenges connected with the Japanese market, attracting powerful investors for the project, and looking for some prospective Japanese business partners, keeping in mind that “…the first step in starting a business relationship is to approach the Japanese company at the appropriate management level” (Leslie, 1992, p.40).

The second stage must include the following important steps: spending efforts on studying the specifics and principal aspects of Japanese business culture and social traditions, finalizing all necessary formal preparations for starting business in Japan, initiating the activities directed on promoting the product in the market and earning good reputation (publicity, participating international events, etc.), etc.

Finally, the third stage of the strategy includes starting active negotiations with the Japanese partners and building good relations with the most influential market players, selecting the best distribution channels, overcoming all inter-cultural challenges and, finally, launching manufacturing capacities on a small scale. The next stages will include market and capacity expansion, receiving bigger profits, improving the product, more intensive marketing, and other measures.

Appendix

Personal communication with Hidetoshi Kumamoto, a Sales Supervisor of Kawasaki GTA West (kumamoto_hidetoshi@kmc-usa.com), January 23, 2007.

Mr. Kumamoto, how long did it take you to get adapted and more or less used to social traditions and life-style in the United States?

H.K. Actually, not as long as it may seem. The point is: modern Japanese society is very flexible and adaptive to the changes which are coming from other cultures. Though, certainly, we remain very conservative. I was assigned to work in the United States more than 3 years ago, and before coming here I was expecting to face more considerable differences between social lives of our two cultures. Americans are more liberal, opened, they do not hide their emotions and it is much easier to understand what they really think about you.

In your opinion, what are the most important and defining values of Japanese business culture?

In business we value, first of all, personal relations and personal identity of every single individual. We are always very concerned about our reputation and reputation of our organization, and everyone understands that success or achievements of a group depend entirely on individual success of every member. Besides, we base our business relations on infinite respect, commitment and loyalty to our business. No Japanese company owner would keep the employees who show no respect or interest in the job they do.

Mr. Kumamoto, what differences between the traditions of doing business in Japan and the ones in the US you could observe?

Oh, there are a lot of them. American businessmen are more liberal and relaxed in everything, starting from the way they organize the first negotiations and ending with their attitude toward contractual obligations. Even if the stocks are running out, sometimes they do not write a line. We try to calm down our customers and somehow solve the problem, but our American partners can not be reached! Such things would not happen in Japan. I do not want to say that you are not reliable or trustable: you just must be always reminded about what you need to do in terms of business and how you need to do this.

What type of communication strategy you would recommend in order to built good relationships and trust with Japanese business partners?

To my mind, one just must be sincere and honest. It is necessary to show that you are a man of your word and also that you are not chasing immediate profits. The main thing is to set up a good contact on personal level and arrive at an understanding. Besides, any foreign businessman must remember that it usually takes more time to receive some positive feedback from people of my culture, so their coldness must not be misinterpreted.

What are the first steps you would recommend to an overseas entrepreneur who wants to start doing business in Japan?

Undoubtedly, to find good local business partners and do everything possible in order to win a good reputation. It is very important not to be pushy and start as a small company with the opportunities of future development and enlargement. Besides, one must have a very precise approach to creating a proper product or service to come up with. Our customer is used to high-quality goods, and even a well-developed or well-promoted product can be rejected by the market. Finally, before coming to Japan it is essential to study some materials about our business culture, otherwise it would be almost impossible to build trust and good relationships with the Japanese business society.

Finally, what about the main differences in social life between Japan and the US?

Again, I have to underline that you are freer in your behavior and your life-style than my fellow nationals are. Our social culture is heavily influenced by ancient cultural traditions and conservatism, and we hold back to our historical backgrounds very strongly.

References

Bucknall, K. B. (2005). Japan: Doing Business in a Unique Culture. Boston: Boston Books.Doing Business in Japan. (n.d.) Kwintessential. CommunicAid Group Ltd. Retrieved January 25, 2008, from <http://www.kwintessential.co.uk/etiquette/doing-business-japan.html>.Enterprise Ireland. (2005). Doing Business in Japan. [Brochure]. Turner Print Group, Ireland: Fuji Chimera Research Institute Inc. & Enterprise Ireland.Japan A-Z. (n.d.). Japan Guide. Retrieved January 25, 2008, from: <http://www.japan-guide.com/e/e691.html.>Japanese Business Culture. (2006). Venture Japan. Venture Group Plc. Retrieved January 25, 2008, from <http://www.venturejapan.com/japanese-business-culture.htm>.Leslie, E. (1992, February 10). Some Observations on Doing Business in Japan. Business America, 123(2), 36-41.

A recap of how previous Philippine republics and administrations handled the country’s economy since the Spanish era, including their management of the economy. In the days wherein the Philippines was under the Spanish Republic the country was at a good spot in Asia. Manila and Cebu were the only European cities; we were one of the best countries in Asia when it comes to trading domestically and internationally. Before, we were always trading with mexico sharing our culture to them and them sharing there culture to us.

The country was at a good spot but as the Americans said the Philippines was like any other good but slow pish colonized economy like the economies of countries in South America namely Mexico, Puerto Rico, Argentina and etc. According to an article “Economy during the Spanish Colonial Period. ” n. page. Web. Aug. 2012. . After being controlled under the Spanish regime which lasted for 300 years, the Philippines were in a new republic under the American government. Our country once became a part of America.

It was one of the American States just like Hawaii right now, no matter how far they are, they still belong to the United States. Our country’s economy before was really pump-priming. It was rising back again because Americans knew a lot in controlling a country’s economy. They knew how to make people more productive in each of their daily lives, they knew the importance of the english language to us and they knew how to make this country moving from a good Latin country to a bustling busy city.

Americans taught Filipinos how to use the telephone that’s why now, as you can see, we have PLDT, We were taught how to speak english that’s why now, as you can see, we are now Asia’s most competitive english speakers. We were taught how to use the television, how to function the air conditioner, how to operate the washing machine and etc. We were so Americanized before that in the whole Asia we were the first Asians to taste coke and that’s why now, as you can see, coke has been a part of the filipino tradition like having coke and bread to your visitors – a way of showing Philippine Hospitality.

Our country had a lot of investments coming from America and they built a lot of places that could’ve been a major city if they were to stay here longer like Makati, Subic, Taft, Commonwealth and Clark. Without the Americans we wouldn’t have these right now. We should be grateful to them because now that the Philippines is growing, more call centers, condominiums, office spaces, retail , and commercial areas are sprouting in the place. According to an article “The Philippines: Changes in the American Period . ” n. page. Web. . While Philippines was at peace with the Americans there came the Japanese soldiers.

They controlled our country like any other country they controlled in other parts of Asia like Malaysia Singapore, Cambodia, Vietnam, Hong Kong and Korea, they stole many natural resources like gold, copper and many other metals that would help they’re country – Japan to get rich and have a good economic status. In the Japanese Era our country – The Philippines, experienced on of the worlds worst inflations. In that time everyone was struggling, striving to get a good life and exerting so much effort just to escape the poor situation.

In the Japanese era, The Philippines became poor. According to Balabag, Marilyn. “The Japanese Period in the Philippines. ” n. page. Web. Aug. 2012. . While the Japanese people were busy harassing Filipino women, Americans fought back for us because they knew we had enough of it and we deserve peace. Surprising the Japanese, the Japanese men were preparing in case the situation will get real serious like secretly planning the attacks, secretly creating and formulating bombs, secretly building aero weapons and aquatic weapons as well.

The Americans started it so both countries Japan and The United Stated of America began exchanging bombs from place to place destroying each other’s lands and properties and killing each other mercilessly. And finally Japan declared quits. The Philippine economy was at its worst. We couldn’t grab time to recover our country’s economy, our precious structures were being affected with all the bombs and missiles that soldiers threw on causing a lot of damage and money to recover it.

Japanese people even stole billions from us and never even bothered to pay they’re debts until now and to top it off they even stole gold from us like the huge beautiful golden statue called “Yamashita” …What a shame… and to think its one of the richest countries in Asia to date. According to Jess Chin, Carlos Gavino. “The Philippines-American/Japanese War. ” n. page. Web. Aug. 2012. . After being under the Spanish, American, and Japanese republic, The Philippines finally declared independence.

Philippines finally stood up on its own two feet. Former President, Gloria Macapagal Arroyo’s Administration, The Philippine Economy was lagging. A proof would be the GDP Growth where it grew for only a tiny 1%. If you would compare Philippines to other South-East Nations, The Philippines was behind amongst them. Even Vietnam chased after The Philippines and almost Cambodia thank God Cambodia has not been able to chase us yet because if we’re chased it just goes to show The Philippines is really Sick and not investor friendly.

We were down by then in her administration. According to Africa, Sonny. “Dark Legacies: The Economy under Gloria Macapagal-Arroyo. ” (2010): n. page. Web. Aug. 2012. . In The Present administration of President Noynoy Aquino, The Philippines is showing shocking results for example the GDP Growth. The 2010 GDP Growth in The Philippines early months were really high from 6% to 7% and to 8%. We were really in a good spot.

Reasons why the GDP grew that way was because of election spending and if you’re not familiar with election spending, it means that politicians spending so much money for ads and commercial for them for example Manny Villar, and by the way I chose Manny Villar because in my own opinion, I think Manny Villar had the most ads and commercial in the elections season like the famous song that was produced and composed for him only few knew the title we mostly called it “Nakaligo ka na ba sa dagat ng basura” so back to the topic, election spending is simply politicians putting they’re whole money on the commercials and ads which would equal to opening doors for new jobs like the employees of the printing press getting more productive, people will get jobs for pasting they’re posters, directors, writers and producers gets more productive and more people will be paid for talent fee. Well, those are the most common jobs when there is election spending there are still actually more jobs that are uncommon, more jobs that can help Filipinos sustain they’re daily needs. According to Edu Lopez, Chino Leyco. “GDP up by 7. 3% in 2012. ” (2011): n. page. Web. Aug. 2012. , Remo, Michelle. “Election Spending to boost GDP. ” (2009): n. page. Web. Aug. 2012. . As of now the Philippine GDP growth of 2012 in the 1st quarter is 6. 4%. Shocking everyone around the world for getting the second highest rank in asia only behind China.

China is ranked as the highest because of the endless construction of condominiums which until now…stayed empty… By the later years China will experience a huge property bubble burst which means when all condominiums are built and still stayed empty, what would happen is that, businessmen will go bankrupt and money will not be circulating anymore because why would China still build many condominiums when most of the condominiums are not even sold yet? Which would mean less construction equal to less people will be employed, equal to fewer people will get salary which would, in the end, equal to money not circulating around the country which would result to low GDP Growth even now, predictions for China’s 2nd Quarter GDP Growth are smaller than there 1st Quarter GDP Growth of 8%. This is one of China’s big problems, they keep on building infrastructures which in the end, it won’t even be utilized. According to an article “Phl GDP up 6. 4% in Q1, highest growth in ASEAN. ” (2012): n. page. Web. Aug. 2012. , Rapoza, Kenneth. China’s Housing Bubble Past, And Its Future. ” (2011): n. page. Web. Aug. 2012. . The Philippines, as of now, is doing really good, our country has been really doing good that the media said that sooner, the Philippines will get an credit rating upgrade and an investment grade. If you’re not familiar with credit rating upgrade and investment grade, these are somewhat like badges for countries interpreting how investor-friendly we are. If we get an investment upgrade than we will get noticed by investors easily and would mean the more investments this country will receive. To make it easier its like pasting more hashtags on an instagram photo.

The more hash tags, the more people can easily find it and will be able to like it and the more exposure your photo will get. Now back to the topic, Our country, The Philippines has been getting so much news from Moody, Fitch and etc. that sooner or in the near future the Philippines will be getting an investment grade and a credit upgrade rating. Which would also cite a proof that The Philippine Economy is really doing good. According to PH credit rating. ” (2012): n. page. Web. Aug. 2012. , Malinao, Alito. “S;P upgrade makes PH bullish about economy. ” (2012): n. page. Web. Aug. 2012. , Raquel, Nick. “PHL economy shows signs of credit boom, says Fitch. ” (2012): n. page. Web. Aug. 2012.

The Philippines shocked the whole world when it became a creditor to the International Monetary Fund (IMF) handing help to the other countries by donating dollars to the weakening countries like Greece. When The Philippines donated billions to IMF it made The Philippines more visible to everyone making businessmen think of the Philippines as a possible destination for putting up they’re future planned investments. It proved to the rest of the world that The Philippines is now a decent country, its now having a fresh start, its now making its name again and its now making a new reputation. A reputation that will forever change the mindsets of people around the world thinking that the Philippines is a Sick Laggard Man of Asia to A Rare Bright Spot of Asia.

According to an article “PH NOW AN IMF CREDITOR / IMF LOAN TO HELP STABILIZE WORLD ECONOMY. ” (2012): n. page. Web. Aug. 2012. . In the future we’ll be expecting more good things to come because as of now, we have a lot of positive outlooks beginning with the Filipinos’ capacity to speak english like no other non-english speaking countries in the world. Our Business Process Outsourcing (BPO) Industry is currently rising with so much buildings under construction for the new office spaces for call center companies expanding they’re company and for first timer call center companies finally entering the Philippines. A survey even showed that the Philippines still lacks office spaces.

Which just goes to show that we will be expecting different skylines in the future especially with Manila, Clark, Cebu and Davao that would show the country’s richness and status just like what they say, “You can simply estimate the country’s economic performance through its skyline” Which is true as you’ve notice big cities like New York, Tokyo, London, and Singapore they’re skylines are beautiful and it really compliments they’re long term economic status. According to Dela Pena, Zennia. ” Eton ramps up construction of new BPO buildings . ” (2011): n. page. Web. Aug. 2012. , Dela Pena, Zennia. “SMDC mulls development of BPO buildings . ” (2012): n. page. Web. Aug. 2012. , Dela Pena, Zennia. “Filinvest Land ramps up new BPO buildings . ” (2011): n. page. Web. Aug. 2012. . The Filipinos’ capacity to speak english so fluently led many foreigners from around the world to study here and learn how to speak english like how Americans speak the language. Most of the foreigners that come to The Philippines to study here are Koreans.

Koreans decide to study here rather than in The United States because education here is cheaper and much worthy plus if you talk about the plane ride and the ticket price, its way cheaper and hours of traveling is also shorter so its less hassle. Be it French, Italian, Kenyan, Thai, Vietnamese , Iranian, Indian and so much more to mention they’re purpose here is to study english for we Filipinos are good at it and they believe that too that Filipinos are really talented at it. But you would ask where will all of these expats stay for the time that they will be studying in this country? Well condominiums, houses, apartments are the answer. Lately, The Philippines’ real-estate market has been rising and one of the reason are the foreigners coming here to study english.

Real-estate in the Philippines is truly booming and when its booming that would mean the construction industry will also grow at a faster and plus not to mention the infrastructure projects and PPPs of the government. According to an article of “Why foreigners study English in the Philippines. ” (2006): n. page. Web. Aug. 2012. , “About 200,000 South Koreans study English in RP, says envoy . ” (2008): n. page. Web. Aug. 2012, Cecil, Morella. “Property boom transforming Philippine skylines. ” (2012): n. page. Web. Aug. 2012. . The Philippines is truly blessed with Filipino people who are so eager to work that they would leave they’re family and love ones just for the sake of earning money in order for they’re children and love ones to sustain they’re daily needs.

Thanks to the Overseas Filipino Workers (OFW) The Philippines has been receiving money or shall we say remittances from them. Remittances are a plus for the country because its like receiving money from other countries and would equal to adding up the circulation of money in the country from a base of billions, it would turn to trillions thanks to remittances that OFWs worked hard for. With remittances, retail industry in the country will grow which means sufficient salary for employees in shops and around and again it circulates which means economic performance will improve. According to Remo, Michelle. “Overseas Filipino remittances up by 5% to P10 B in 1st half. ” (2012): n. page. Web. Aug. 2012.

In industrial relation paternalistic patterns, focus is given to the organizational hierarchic roles that create closely associated groups with a single individual serving as the fulcrum of the association. In contemporary use, there is no discrimination in the use of the term based on gender but the etymology of the remains central to definition of the pattern. In this pattern, the head of the organization’s decisions and perspectives on industrial relations prevails all others because of the assumption that his outlook is superior in the organization’s welfare and interests (Dundon & Rollinson, 2004). In such a pattern, dissent is minimized and conformity becomes characteristic of relations patterns and political systems of the organization. Pulitzer Prize-winning writer and social commentator Upton Sinclair considers this pattern to be observable in Ford after the 1929 US Great Depression, with Henry Ford cast in the paternalistic role (Sinclair, 2001).

If bureaucratic pattern is prevalent in in an industrial relation system, political power is in the structure and regulations of the organization. In such a system, the means of control is done through the rule of law rather than the rule of one like in paternalistic patterns. The intense hierarchy of the industrial system which is based on effecting control and defining interactions and relationship within the organization. In general, the institution of policies that restrict industrial relations, such as the formation of unions, is independent to organizational policies however political influence may still be enforced by the bureaucracy indirectly through other policies or “internal political relations and the political consciousness, radical or conservative, of their leadership” (Schiavone, 2007 p. 30). Dundon and Rollinson (2004) considers the UK’s  Labour Party, which is characterized as  political expression of trade union bureaucracy, as an example this pattern.

From a positivist view point, human resource industrial patterns, recognizes more the humanistic value of individuals in organization since it considers its organizational value. On the other hand, some would argue that the system of valuation considers individual members of the organization as factors of production or operation with the primary concern reducing risk and maximizing organizational resources (Dine, 2007). It is currently the most espoused pattern in practice and lessens the concentration of political power from individuals or the organizational structure in favor of the organization as a whole. Reforms in the EU’s welfare systems can be considered as an example: focus is on the development of organizational competencies in response to client welfare requirements through the establishment of regulatory guidelines while maintaining the independence of state welfare systems (Bouguet, 2002).

Deterring Unionization

Considering the concept of unionization and labor markets are changing significantly with the internationalization of globalization of industries and labor markets, according to Sloane and Whitney (2006), there is an urgency in developing and understanding how these labor organization ideas and concepts are changing in today’s industries. In general, there is a perception that unionization contravenes management or organizational objectives. This is because when individual members of an organization become a collective, they are able to consolidate their representation, value and resources in the organization. A consequence of this development is that power shifts towards the side or union members versus organizational management. Historically, deterring unionization has led to significant conflict between labor groups and management (Sinclair, 2001). Direct action against unionization may have become limited because of labor liberalization or organizational laws however, Schiavone (2007) points out that many companies have created indirect institutional deterrents in the form of discrimination against union member for career and professional advancement or creation of waivers to right to unionization.

However, deterring unionization need not be necessarily combative. Instead deterrents to unionization, many companies are eying the development of incentive systems that will increase the cost or risk of membership (Sloane ; Witney, 2006). Another strategy that is in developing compensation and benefit programs that eliminate the necessity for union representation (Dundon ; Rollinson, 2004). Many companies have also given effort in impacting public perceptions of unionization by developing public relation campaigns, some even advocating unionization, suggesting that there is no urgency in membership because organization is accepted and supported by the company as well as the industry (Schiavone, 2007).

References

1. Bouguet, D. (2002). Convergence in Social Welfare Systems: What Are We Talking About?. Comparing Dynamics of Transformation of Social Protection Systems in Context of Globalization and European Construction. Oslo Norway: Welfare Reforms for the 21st Century – Second Conference
2. Dine, Philip M. (2007). State of the Unions: How Labor Can Strengthen the Middle Class, Improve Our Economy, and Regain Political Influence. New York: McGraw-Hill
3. Dundon, T. and Rollinson, D. (2004), Employment Relations in Non-Union Firms. Routledge: London
4. Schiavone, Michael (2007) Unions in Crisis: The Future of Organized Labor in America. Chicago: Praeger Publishers
5. Sincliar, Upton (2001). The Flivver King. Chicago: Charles H. Herr Publishing
6. Sloane, Arthur A and Witney, Fred (2006) Labor Relations, 12th Edition. New York: Prentice Hall

The start of the twentieth century was the movement of the world towards agricultural economy. Much of the focus, at that time, was to produce agricultural goods. Mass production was the key term; whereby, masses of agricultural products were produced to cater to human demand. Towards the mid of the twentieth century, the trend changed towards industrial economy. This gave birth to concepts such as assembly line product and batch order processing. Henry Force is generally considered as the father of such concepts.

His phenomenons were to have all processes lined up as an assembly line or have combine processes in the form of batches, and in either case, produce the same products in bulk quantity. This concept was of Standardized mass production, whereby, same product was produced using the repetitive processes, mainly controlled by machinery. This bulk quantity production led to other factors such as economies of scales i. e. the net cost reduced as the fixed costs are spread over a larger volume of output. There was a constraint, however, in this whole working. The output could not be extended infinitely.

It was limited to the demand made by the regional people. For example, Ford cars made in the US were catering to the US markets only. More specifically, geographical boundaries were the constraints to survive and cater the demand within. One of the common concepts that then came in the markets of goods and services was of ‘dumping-the-excess’. This was the technique used by manufacturers who previously had leftover capacity (un-utilized capacity) led by demand constraints. It was analyzed that utilizing the un-used capacity can lead to further decline in unit cost.

But the question arose was what to do with that excess output? ‘Dumping-the-excess’ concept then came into the minds i. e. to export the leftover output across the region. This led to rise of profits. Government Policies and Restrictions This became an issue of major concern for the local manufacturers. For example, if a manufacturer of garments in China has high un-utilized capacity and utilizing the same can lead him into higher economies of scales (drastic cut down in unit cost); the manufacturer would then be able to sell the export-garments at a heavily lower price in the international market.

If, for instance, the textile sector of any European country isn’t efficient enough, it can create their demand to decline and the economy to suffer. The global think-tanks then came with the idea of restricting the level of exports of a country. Of course no one can limit the exports of a country, so the aim was achieved by applying the import restrictions and penalizing any excess imports. For instance, Turkey cannot import more than 10 million units of garments annually from China. Any quantity in excess of 10 million units was to be penalized in the form of anti-dumping duties.

These policies came as a protection to the developing economies and gave them time to achieve a standard growth. However, it had a draw back. An economy that is dependent on the exports of a single commodity (as the country is master of the art of its production) suffered due to the trade restrictions. These are generally referred to as cross country trade barriers. Such policies and regulations truly hamper the spirit of competition and charge the customer surplus (premium) so that the industry can break even. This again led to the previous situation, whereby; there were barriers to reach the foreign customer.

During the later part of the twentieth century, inventions such telecommunication systems had enhanced, used and produced commercially, and were increasing customer awareness. This particularly stands valid for the telephone and the internet. This led to the manufacturers increasing their reach through telecom mediums. Initially, they created awareness among the customers regarding what exists in the other regions, the options and the variety. Alongside, the costs were conveyed. This made the customer re-think their buying decisions that if they are paying extra, why not pay it for value added service?

Impact of Globalization on Culture People around the globe are more connected to each other today than ever before in the history of mankind. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is commonplace. We live in an intensely interdependent world in which all the earth’s peoples with their immense differences of culture and historical experience are compressed together in instant communication.

We face today a world of almost infinite promise which is also a world of terminal danger. This phenomenon has been titled ‘Globalization. ‘ Indian culture which in effect means Hindu culture, Hindu religion, Hindu society, Hindu civilization, Hindu way of life are under the lethal threat of the ruthless forces of Globalization today. What went by the name of Colonialism in classical history textbooks produced in the days of British Raj has been replaced today by the synonym of Globalization.

The unbridled expansion of western culture has continued at an accelerated rate along with the denigration and decline of Hindu culture, civilization, religion, art, literature and customs. This new Colonialism has taken on several new faces or rather put on new masks. It cleverly masquerades itself through labels and slogans like democracy, humanitarian rights, gender equality, internationalism, free trade and humanitarianism. In the name of modernization and Globalization it pretends to be uplifting peoples whom it is really exploiting.

This is not very different in either kind or intent from old Western Colonialism ‘ British Imperialism in the Indian context ‘ which vaunted itself as the benign bringer of Civilization and culture to the uncivilized world. It was given the glorious title of ‘White Man’s Burden’. What has been its impact on culture in India? Every educated Indian seems to believe that nothing in Hindu India, past or present, is to be approved unless recognized and recommended by an appropriate authority in the West.

There is an all-pervading presence of a positive, if not worshipful, attitude towards everything in western society and culture, past as well as present in the name of progress, reason and science. Nothing from the West is to be rejected unless it has first been weighed and found wanting by a Western evaluation. Swamy Vivekananda foresaw the dangers of Globalization as early as in 1893 when he spoke at the Parliament of World Religions in Chicago. To quote his soul-stirring words: ‘Shall India die?

Then, from the world all spirituality will be extinct, all sweet-souled sympathy for religion will be extinct, all ideality will be extinct ; and in its place will reign the duality of lust and luxury as the male and female deities, with money as its priest, fraud, force, and competition its ceremonies, and human soul its sacrifice. Such a thing can never be’. Precisely such a terrible thing is taking place in India today on account of the inexorable and immutable process of Globalization.

Ethics has increasingly become an essential constituent of corporate business organizations worldwide. Business ethics is commonly understood as to the system of moral values and rules and code of conduct applied to business (Jalan, 2005). The issues that may arise in the ethical context of business are multifaceted; they can be interpreted in the way desired by organizations. It is known that there is no universally accepted ethical behavior for organizations because the practice of moral values and code of conduct vary from country to country.

However, there are some common ethical issues faced by global organizations. This paper attempts to discuss the common ethical issues faced by organizations in the global business environment. The paper takes a descriptive approach where the important ethical issues are presented separately for each area of operations of a business. The globalised firms are looking for expanding and exploiting new business and demolishing their competitors through attacking strategies of various types. Little is talked about how strategies are formed ethically; which does not harm the competitors and other business organizations.

It is obligatory for every business to follow certain corporate codes that are underlying principles of corporate practice. The primary concern every business should be towards customers and society.

Ethical issues in the society

Every business has certain responsibilities towards the society in which it operates. This principle is the foundation of Corporate Responsibility Concept. Modern organizations have realized the importance of being socially responsible and adhere to social norms and system. Following are some of the important ethical issues in this regards:

1. Over involvement in the community people
2. Over involvement in the community people
3. Honesty, truthfulness and accuracy in the market
4. High usage of animal products and animals for testing.
5. Degree of safety attached to the product.
6. Selling of addictive products such as tobacco, alcohol etc.
7. Trading with repressive regimes.
8. Ethical issues arising from internal and industry
9. Ethical issues arising from internal and industry practices.
10. Treatment of customers is a main task of every businessman. At the time of selling the product to the customer’s sellers agrees that we are providing good after sale service and warranty to the product but after the sale they are not following the said requirement of the customers.
11. Working conditions and treatment of employees in the business. At the time of joining they are agreeing for all facilities available in the company after joining they are refused to provide the facilities which is mentioned at the time of admission.
12. Employment of disabled people in the organization will lead to discrimination among the workers.
13. Working of child labors in the company.
14. Bribes to secure contracts.
15. The employees of the company are doing some unethical practices while purchasing the product from suppliers and negotiating with suppliers to the intention to get personal benefit.

Ethical issues in marketing

1. Charging high prices for low quality products.
2. The suppliers are misunderstanding customers that we are providing good products with attractive packing.
3. Selling at low prices with an intention to increase the market share of the company or to destroy the competitors in the same industry.
4. Copying the style of the packaging design for misleading the customers and also some misleading advertisement.
5. Issuing credit cards without bothering the capacity of the customers and value of credit cards.
6. Encouraging the customers to claim prizes when the customers are phoning for asking premium rates. Ethical issues related to production
7. Encouraging the customers to claim prizes when the customers are phoning for asking premium rates.

Ethical issues related to production

1. Selling of goods to outside the country which is banned by the home country. It means without getting the license they are doing international business.
2. If the products having low quality or any default in the product, firms are omitting that information.
3. Providing unsafe products to the customers, they are not bothered about the customer requirement of the customer.
4. Low packaging of products and wasteful packaging.
5. Misappropriation in the size and content of the product.
6. Inaccurate testing of products and inappropriate testing of products Conclusion Global firms face ethical issues both from local and international environment.

Related article: Challenges Facing By Ikea

They cannot avoid the ethical practice of every country in which they have operational units. Consequently, there are even conflicting practices between operational units in different countries as business practices and rules vary from country to country. However, it is possible to segregate certain problems as common to all global firms.

References

1. Jalan, P. K. (2005) Encyclopedia of economic development Restructuring Indian economy for future challenges Business environment & challenges of poverty alleviation in India Economic development in Asia Pacific Region, Sarup & Sons

Citation Silverstein, M. J. , and Sayre, K. (2009, September). The Female Economy. Harvard Business Review. Summary The article begins by stating that “women now drive the world economy. ” It goes on to discuss how women now represent a large portion of consumer spending, and that portion is expected to grow. Silverstein and Sayre discuss how companies are not taking seriously the fact that they may not have the best strategy when it comes to marketing towards the female market.

They underestimate or flat out ignore the female consumer. Dell is used as an example of such companies. The article discusses Dell’s failed attempt market laptops specifically to women. In May of 2009, it launched Della website, complete with a “make it pink” motto and topics based on female stereotypes. Instead of appealing to the women, it actually caused an uproar among them. Women felt the site was condescending. They posted blogs everywhere expressing their disgust towards the site.

Even though Dell was quick to react to making the necessary corrections, Silverstein and Sayre question why their marketers failed to see the potential problems before the site went up. The authors then discuss a 2008 study conducted by the Boston Consulting Group. More than 12,000 different women in all areas of life were asked 120 questions about their finances, education, careers, relationships, activities and hobbies, fears, and also their spending patterns and shopping behavior.

The study revealed that women were grossly underserved and there was lots of room for improvement. They continue to be undervalued even though they have great market power and social position. Women have many demands on them juggling work, family, and home, and few companies have taken action on their need for products and services designed specifically for women and for time saving solutions. Reaction Companies need to realize and understand the buying power that females possess.

They represent one of the largest market opportunities ever. Until recently, companies believed their marketing strategies were equally effective to women and men. That proved to be an incorrect assumption. Women approach big ticket purchasing completely differently than men do. They base their decisions on a different set of perceptions, priorities and preferences. Companies should be combining insight on female gender culture with solid marketing know-how and develop strategies that attract women’s business.

Effectively targeting women leads to higher customer satisfaction among both men and women. Companies like BMW, Wyndham Hotels and Merrill Lynch have found that improvements designed to enhance brand appeal among women actually deliver greater customer satisfaction among men, too. When you meet the expectations of women, companies exceed the expectations of men. Marketing to women delivers a better return on the marketing dollar through both greater opportunity and greater impact.

While in many categories the traditional male targets are saturated, the corresponding women’s segments are untapped and virtually uncontested by competition. The authors effectively bring to light the wrong approach that companies are taking when it comes to marketing to women. Simply adding pink to the campaign, which many companies erroneously do, will not suffice. They need to go back to the drawing boards. Services and products need to fill the gap. Companies need to aim their marketing efforts to women by seeing them as employees, managers, investors, and buyers.