The report brings out a sustainability issue in Japan and how swap corporation ltd., which is an Australian company, will handle the sustainability issues if it expands in Japan. What an Australian company has to learn before entering Japan for expansion. When looking at the history of the country, Japan, it is seen that the country has been suffering from Air pollution, water pollution, and soil contamination (Terao, and Otsuka, eds., 2016). When compared to early times, Japan has become cleaner and more responsible in avoiding the environmental issues but even after formation of policies Japan’s business, industrial and agricultural activities contribute to number of environmental issues that do not allow Japan to maintain its sustainability. The report brings out several environmental sustainable issues such as natural nuclear disasters, river flooding and improper management of waste (Smith, 2018). Further, it brings a discussion on certain business customs that generally are followed by every business and these are also marked as business etiquettes. Every country has different business etiquettes, at one place, it can be considered as influencing and graceful whereas at the other place, it can be considered as disrespectful. Moving into more depth in the report, it discusses the political situations of Japan to show whether it will support an Australian venture or it will unnecessarily get stuck in legal obligations. The social conditions of Japan tell about what culture and language they follow. Legal obligation necessitates the following of certain laws such as contract law and labour contract act. At last it highlights the economic conditions of the country (Sustainability JFS, 2014).
From the sustainability reports of the country, it can be seen that country`s business, industrial and agricultural activities face a wide range of environmental issues. One of the biggest environmental issues is management of waste, which is resulted from huge amount of trash. Due to small size of islands and lack of spaces, it becomes impossible to accommodate the trash production (Sustainability JFS, 2014). The municipal corporations of Japan burns huge amount of trash. The issues related to air pollution forced the government authority to adopt aggressive recycling policies. Application and implementation of strict management regulations and policies by the Japanese government has enforced the residential population to get an idea to how they can dispose the trash. For instance- small Japanese town named “kamikatsu” has devised to get a production of zero waste by 2020 (Smith, 2018). The people in this small town have developed systematic method of recycling the waste up to 80 percent. Another environmental issue in Japan is to deal with aftermath of nuclear plant disaster in 2013 (Smith, 2018). In the same year, the radioactive water was leaking from the plant directly into the Pacific Ocean. The related reports reveal that high level of radioactive particles that is extremely dangerous were found near the nuclear reactors. This nuclear plant disaster led to serious air pollution that started in the latter half of the 20th century. Aggressive governmental policies allowed the citizens to be designated and treated by WHO (world health organisation) to renew or purify the air in those cities (Sustainability JFS, 2014).
Other related environmental issues emerge due to extreme rainfall in Japan. The average frequency of mudslides caused due to extreme rainfall has been increasing. Japanese government decided to project 4.4 times rise in the probability of river flooding at the end of the century. The country has already faced a toiled increase in death frequency due to severe river flooding (Smith, 2018). In the sustainable report in 2010, OCED has strived to make necessary environmental progress with the help of series of aggressive policies. This has been reflected through reduced emission of poisoning gases, municipal waste generation, and water usage. The reports have revealed that Japan has made conscious efforts to ignore strictly ecological model for sustainable development to encompass the approach that focussed on finding the connections that exist between economic growth, social values, and ecological protection (Strupeit, and Palm, 2016).
Business customs
Business customs differs in every country. For instance in Japan, in business mentality, connections are useful but choosing the contacts carefully is important. Japanese businessperson want their people to learn as much as they can especially in regards to professional qualifications and background. Business customs in Japan prefer verbal agreements rather than the written ones and should not be at all pressured to sign a particular document (Digitaljournal.com, 2019). It encourages to remain cooperative at all stages. Individualism is not encouraged; decisions are mostly formed within the group. Foreigners must get acceptance from the whole group before they actually are influenced in a decision-making process. Due to contemporary competition in Asia, the previous concept of unhurried Japanese negotiation process do not exist anymore and is not at all applicable. It also includes the inquiring about the individual`s family, uses apologies conversation in order to express gratitude as it is considered as polite conversation in Japan (Digitaljournal.com, 2019).
Culture-
Culture mostly includes the family factors, religion, education, healthcare system and language. Many Japanese people do not identify and call them as a ardent follower of any one religion. The believe system of the people is formed on the basis of incorporated elements of different religion (Ohira et al., 2017). Therefore, being a Australian company who is deciding to enter into Japan market in order to expand then the company has to form such strategies that can serve the people of various religions (Tansakul, Suanmali, and Shirahada, 2018). Apart from this, it is important for an Australian company to discover each business etiquette that Japan follows such as they say silence is golden which is linked to credibility as silence empowers loudly about wisdom and self-control. People generally follow a more introvert and formal approach, especially when it is concerned with forming business relationships. For example- at times, in order to release stress in the business meeting, people resorts to silence so that they can move away from the area of difficulty. Another believe system in Japan says that group solidarity is paramount. It implies that a single arrow can be easily broken whereas, a bundle of ten can not be (Tansakul, Suanmali, and Shirahada, 2018). Although, the culture values are valued even if when a individual wants to achieve its own recognition and individual appraisal but the group concept is also true in Japan. Australian company “swap corporation ltd.” strive to give group credits and team concept is more important (Heidenheimer, 2018). The business culture marks that treat the old executives with a more remarkable deference as compared to which they do for younger ones while interacting. For example- be very sure to greet the elder and senior person before you treat anyone else in the group. Therefore, while understanding the business customs, Australian company can conduct a session of training and learning centre that will enable the employees, learn them, and offer the business card to a senior one first.
Political factors
The political factors in both Japan and Australia are just opposite. Although the emperor holds the resources but he has minimal power of the state. The population and public elect the parliament (Chapman, and Itaoka, 2018). The country has been maintaining a good business and non-business relation to all the countries either small or big. The country also maintains a good trading and corporate relation with other more countries (Terao, and Otsuka, 2016). As far the political environment is concerned, Japan functions through liberal democratic party whom landslide victory in 2012 elections and operate through two-thirds in the House of Representatives (Digitaljournal.com, 2019). The government has huge power and it is stable too. Other political factors include taxation policy, environmental law, labour law, tariffs, trade restrictions, and the political stability (Ward, and Rustow, 2015). Recently it is being reported that Japan has territorial disputes with Russia in regards to kuril islands. This dispute is in the part of control of marine and several natural resources such as possible reserves and natural gases. Apart from all these factors, the Australian company has to understand the official language and more than 99 percent of population speaks Japanese as their crucial language (Digitaljournal.com, 2019).
As due to environmental scandal prone, the country has strict healthcare policies made by government. It includes screening, infection disease, prenatal care where patient is responsible only for paying 30 percent of amount and rest of amount is paid by government. In order to provide a equality and easy access to certain insurance policies, government has created a separate committee and provided them with certain personal medical services. Moreover, the modernisation of corporate law is based on corporation code, which was implemented in 2006 (Kuno, and Kimura, 2017). Under the Japan`s law, the country different basic types of companies such as Anglo-American corporations, limited liability company of America, limited partnership of Anglo-American, and general partnership of Anglo-American and limited liability partnerships (Cornelissen, and Mine, 2018). The Australian company can opt laws of limited liability partnership where it will be safe too. The trademark law of Japan’s act, 1959. Under this law, organisations who are registered establishes a trademark right. Moreover, examination procedures are to be registered. Organisations who claim its trademark on urgent basis and register firstly get the opportunity on prior basis (Cornelissen, and Mine, 2018).
Another similar law undertaken by Japan government in order to protect the interest of labours is Labour law. Labour Law of Japan is a system that lay down some necessary conditions of employment agreement and supplementary rules that are provided to an employee such as minimum wage law describes that the actual amount should be at least based on local cost of living and this varies from place to place (Kuno, and Kimura, 2017). Other consideration, which this law undertake is the working hours. This law reveals that maximum full-timing working hours are eight hours per day or 40 hours per week. Apart from this, if an employee works for six to eight hours in a day, they should get 45 minutes break and if the employees works for eight hours then they are entitled to one-hour break. This labour act standard prescribes the minimum period of annual leaves which are paid and it is based on employee`s seniority (Kuno, and Kimura, 2017). The law also provides several form of unpaid leave such as maternity leave, family care leave, childcare leave, and nursing leave. This law also states that there should be any discrimination based on gender. This law prohibits national, ethnic, religious discrimination among the employees in regards to working conditions (Heidenheimer, 2018).
Another laws related to business operation that every organisation needs to follow if it works in the boundary of Japan. Consumer contract Act, 2000 that was enacted in 1999. This law ensures that no unfair consumer contract should be conducted in any organisation. Apart from this, the law ensures that the company do not uses unfair commercial practices, and misleading and aggressive conduct (Heidenheimer, 2018). Economic factors-
Japan’s economy is world`s third strongest after US and china. Even after so many environmental confronts, the GDP growth has a rate of 0.4 percent. The inflation rate is estimated at 1.3 percent and population, which are still below poverty line, is 13.5 percent with a unemployment rate of 5.6 percent. While calculating company foreign exchange transactions, imports of the country are more than exports (Lockwood, 2015). While looking at the history of economic conditions of japan, the country has suffered a lot. Japan have strived to grow in 1960s and 1970s by manufacturing steel, chemicals, automobiles, shipbuilding, and electronics. Moreover, monetary easing has increased the prices of goods that has spurred the customers to stop saving money. Fiscal policy has increased the government consumption. By lowering the corporation tax, the labour participation of women has been increased (Yang, and Chen, 2016). By the end 1970, Japan began to turn towards more service –oriented business options such as retailing, real state, transportation, finance, and communication. Therefore, but again Japan`s currency lost much of its value in and after the world war-II. Japan again regain its value after Plaza accord was signed which states than Japan`s yen is highly undervalued. After Japan’s long-post war and a economic expansion, Japan has faced recession in 2008 (Yang, and Chen, 2016). Deflation in Japan was due to high unemployment rate that resulted into low GDP rate. The level of unemployment has been increasing. This might be occurring due to seniority-order wage system or life-time employment customs have been collapsing. This unique life-time delegation of employment custom meant that a person joins the company and work with them for rest of their lives and ultimately they are uplifted to a certain to-level management level according to seniority and their experience (Teshirogi, Fujioka, and Iida, 2015). This process of training ac particular person for longer period and finally delegating power to him at the top level management led to faster economic growth from full employment, knowledge for the job as well as the experience. This lead to positive and rapid economic changes (Sato, Watanabe, Sasaki, Yamazaki, and Yamada, 2016). Apart from this, Japanese government has taken some initiatives that laid down a conservative policies as many organisations have introduced the concept of related wage system another develop countries. Australian company “swap corporation ltd” will have to give employment to Japan’s local population under wage related system. This may reduce the cost of Australian company as if it bring its employees from their home country; the company will have to pay transportation cost too (Nadtochy et al., 2016). Whereas, sourcing employees from Japan will help in GDP growth due to increased purchasing power and it will be availed at low cost (Strupeit, and Palm, 2016). The company has to look for various economic policies of the country and a unique report by lucintel that can provide them valuable information, tools, insights to find and identify new growth opportunity and it crucial features should can be used by Australian company while entering to Japan (Lockwood, 2015). To take the decisions strategically, the company needs valuable information, which is indispensable and involves core activities for multinational material product, investors, manufacturer, executives, distributors, and suppliers (Sato, Watanabe, Sasaki, Yamazaki, and Yamada, 2016).
Conclusion
From the above discussion, it can be concluded that Japan always remained a victim of environmental issues. Therefore, a fictitious company named “swap corporation ltd.” from Australia wants to expand its business operation in Japan. Before expanding, swap corporation ltd. has to undertake some important topics to be considered such as political conditions, economic conditions, business customs, social conditions, and legal condition of the Japan. Swap corporation ltd. should choose to expand in Japan because it will get an good, experienced, and qualified workforce (Katagiri, and Kim, 2018). Most importantly, age is no barrier to work in Japan, people work even when they are sixty-five. Another benefit that swap corporation ltd. can get if it expand in Japan is its technological assistance and advancement. Moreover, Japan has become one of the frontier in industrial technology, which means that prominent technology policy researchers pay more attention to Japan when they want any technological assistance.
References
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Cornelissen, S. and Mine, Y., 2018. Africa-Japan Relations in the Post-Cold War Era. In Africa and the World (pp. 269-286). Palgrave Macmillan, Cham.
Digitaljournal.com, (2019) Japan PESTEL Analysis, SWOT Analysis and Risk Analysis Market Research Report Launched. Available on: https://www.digitaljournal.com/pr/3405366 [Accessed on 20/01/19]
Heidenheimer, A., 2018. Disparate ladders: why school and university policies differ in Germany, Japan and Switzerland. Routledge.
Katagiri, K. and Kim, J.H., 2018. Correction: Factors determining the social participation of older adults: A comparison between Japan and Korea using EASS 2012. PloS one, 13(5), p.e0197865.
Kuno, A. and Kimura, F., 2017. The political economy of preferential trade arrangements: The case of Japan. China Economic Journal, 10(2), pp.128-146.
Lockwood, W.W., 2015. State and Economic Enterprise in Japan. Princeton University Press.
Nadtochy, Y.V., Klochko, E.N., Danilina, M.V., Gurieva, L.K., Bazhenov, R.I. and Bakharev, V.V., 2016. Economic factors and conditions for the transformation of the education services market in the context of globalization. International Review of Management and Marketing, 6(1S), pp.33-39.
Ohira, T., Nakano, H., Nagai, M., Yumiya, Y., Zhang, W., Uemura, M., Sakai, A., Hashimoto, S. and Fukushima Health Management Survey Group, 2017. Changes in cardiovascular risk factors after the Great East Japan Earthquake: A Review of the comprehensive health check in the Fukushima Health Management Survey. Asia Pacific Journal of Public Health, 29(2_suppl), pp.47S-55S.
Sato, Y., Watanabe, T., Sasaki, H., Yamazaki, J. and Yamada, T., 2016. Global Collaborative Creation with Customers on Energy Solutions. Hitachi Review, 65(9), p.393.
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Strupeit, L. and Palm, A., 2016. Overcoming barriers to renewable energy diffusion: business models for customer-sited solar photovoltaics in Japan, Germany and the United States. Journal of Cleaner Production, 123, pp.124-136.
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Ward, R.E. and Rustow, D.A. eds., 2015. Political modernization in Japan and Turkey. Princeton University Press.
Yang, Y.C. and Chen, S.L., 2016. Determinants of global logistics hub ports: Comparison of the port development policies of Taiwan, Korea, and Japan. Transport Policy, 45, pp.179-189.
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