Business relationships
in japan
Business relationships in Japan are
characterized by a well-structured hierarchy and a strong emphasis on nurturing
personal contacts. Generally, they are built up over long periods of time or
are based on common roots, such as birthplace, school or college. Also, an
unusually strong emphasis is placed on social activities to strengthen ties. It
is not surprising, therefore, that those looking in from the outside may see
the Japanese business world as comparatively hard to break into. In fact, there
are many different kinds of business relationships, but most share two features
- they have been built up slowly and carefully, and much time is spent in
keeping them up to date.
Business relationships in Japan are part
of an ever-broadening circle that starts within the company (uchi - inside,
or"us"), and moves towards the outside (soto) to include related
companies, industry or business organizations, and the like.
Most Japanese companies have a series of
very close relationships with a number of other companies that provide them
with support and a multitude of services. It has been traditional practice for
a company to hold shares in these "related" companies, a practice
which has given rise to a high proportion of corporate cross-share holdings in
Japan. This has been a show of faith on the part of one company towards
another, and also has been useful in providing companies with a core of stable
and friendly shareholders.
When dealing with a Japanese company, it
is important to be aware of the existence and nature of some of these close
relationships, in particular those with banks and trading companies.
Understanding these can help to define the nature of the company and the way it
does business, as well as its positioning in the Japanese business world. It should
also be understood that there is a constant flow of information between
Japanese enterprises and their banks and trading companies. Unless the need for
confidentiality is made very clear, these may soon be aware of any negotiations
in which the company is involved.
Larger corporate groupings are becoming
more familiar to non-Japanese business circles. These groupings are known as
keiretsu, and some have their roots in the large pre-World War II
conglomerates. Accusations of keiretsu favouritism overriding more attractive
outside offers sometimes are levelled at Japanese companies. When asked about
this practice by a foreign businessman, the president of a large Japanese
electronics company replied: "It's like going to the tailor your father went
to. He may be more expensive than the competition and perhaps even not the
best, but he has served your family well for many years and you feel duty bound
to remain a faithful customer." There is a tendency in Japanese business
to be guided by the familiar and human considerations, and thus it is important
for anyone wishing to do business in Japan to go a major part of the way in
establishing a communications network and a real presence.
Business Negotiations
& Meeting Etiquette
Face to face contact is essential in
conducting business. It is more effective to initiate contact through a
personal visit (set up by an introduction through an intermediary) than through
correspondence. Initial contacts are usually formal meetings between top
executives; more detailed negotiations may be carried out later by those who
will be directly involved. During the first meeting, you get acquainted and
communicate your broad interests; you size each other up and make decisions on
whether ongoing discussions are worthwhile. At this point you should not spell
out details or expect to do any negotiating.
Exchange business cards (meishi) at the
beginning of the meeting. The traditional greeting is the bow. Many Japanese
businessmen who deal with foreign companies also use the handshake. If you bow,
then you should bow as low and as long as the other person, to signify your
humility. First names are not usually used in a business context. In Japan, the
family name is given last, as in English. You should address Yoshi Takeda as "Mr.
Takeda" or "Takeda-san." Expect to go through an interpreter
unless you learn otherwise. If meeting high-ranking government officials, an
interpreter is always used even if they can speak English fluently because
customarily, they refrain from speaking foreign languages in public. Other
businessmen may speak some English but may not be adequate for undertaking
business negotiations.
Exchanging meishi
Conservative dress is common for both men
and women in public. Most Japanese professionals wear Western-style dress
(European more than American), although during the hot summer months, men often
do not wear suit jackets.
Concern about how others perceive you
pervades business and social communication in Japan. Since saving and losing
face are so important, you should avoid confrontation or embarrassing
situations. A distributor that cannot follow up on a promise made to a customer
loses face and may suffer damages to its reputation. Remember, if you are
supplying distributors in Japan, to deliver on time (especially if they are
samples) or else face a long chain of lost faces and apologies. An error or
delayed shipment, even if it is not your fault, may damage your company's
reputation with the Japanese company you are dealing with as well as all the
companies and customers that Japanese company does business with. Following
through on promises and agreements, both oral and written, is of utmost
importance and when you cannot do this you will have to swallow your pride and
apologize profusely until you are forgiven. This is all part of common business
practice and you may see business people (including top executives) on their
knees apologizing. When in Japan be ready to include this as a part (hopefully
not regular part) of your own business practice.
Nonverbal communications - gestures, nuances, inferences - are
very important in signaling intentions. "No" is seldom said directly,
and rejection is always stated indirectly. Remember that the Japanese hai means
"Yes, I understand you" rather than "Yes, I agree with you."
The Japanese will sit in silence for some time - it is a way to reflect on what
has been said. Early business and social contacts are characterized by
politeness and formality.
The Japanese like to launch new products
or take other important initiatives on "lucky days." The luckiest
day, called the «taian», occurs about every six days. Your Japanese counterpart
will probably want to delay a major announcement until the next «taian».
Japanese calendars usually indicate these days.
The presentation of a new product is
traditionally followed by a reception with the product on display; an omiyage,
or gift, is given to each attendee. This adds to the overall cost of the event.
Japan epitomizes the rule "Make a
friend, then make a sale." When selling to or negotiating with the
Japanese, do not rush things. the Japanese prefer a ritual of getting to know
you, deciding whether they want to do business with you at all, instead of
putting proposals on the table, and seeing whether agreement is possible within
a broad framework.
The Japanese prefer to close with a broad
agreement and mutual understanding, preceded by thorough discussion of each
side's expectations and goals. If they decide they want to do business, they
will negotiate the details with you later.
A Japanese negotiator cannot give a prompt
answer during an initial discussion. No commitment can be made until the group
or groups he or she represents reach a consensus. Do not expect an immediate
answer. Negotiations may take an extended period.
Japanese executives emphasize good faith
over legal, contractual safeguards. They are not in the habit of negotiating
detailed contracts that cover all contingencies. However, Japanese managers who
are accustomed to Western business dealings are familiar with more structured
contracts. In case of disputes, the Japanese prefer resolving issues out of
court on basis of the quality of the business relationship.
A Japanese partner or customer will
usually prefer to develop a business relationship in stages, with a limited
initial agreement that, if successful, is gradually extended into a broader,
more binding agreement. So once you make a commitment, expect it to be for a
long time. If you break it, your reputation will be affected and everyone will
know. It may be difficult to find another Japanese partner after this happens.
Список литературы
Internet (Alta Vista, Lycos)
Boye D Mente «Business guide to Japan.
Opening doors... and closing deals!»,1998
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