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Japan needs to change from a manufacturing-led to consumer-driven economy; from an over-regulated bureaucracy to a more open market; and from a culture of corporate rigidity to one of entrepreneurial freedom.

Change has to occur but as long as each section of society continues to benefit from the current situation, there will continue to be no foreseeable movement for change, this lack of development will bring about the end of Japan as a economic power or at least take away the influence it has on the world. However this change cannot just be a gradual change because if it is not quicker in the next 10 years than it was in the previous five, it is highly likely that it
will not be able to get back its old position and instead will go into decline.
(FT 96 Dec 02 page 20)

3.4 What is Japan and her corporations doing to develop and change
At the moment there is a definite change in policy and a deliberate attempt at change within the corporations and this is helped by political changes too.

An example of this is seen in the appointment of Taizo Nishimuro as the president of Toshiba. There are three reasons why this appointment was seen as against the norm. The first was that he had spent 14 years overseas. This is seen as a long time and not the norm for a future corporate, because in Japan, head office jobs are seen as the quickest and best way to get to the top echelons . Secondly Mr Nishimuro was not next in line to the job as typically happens within Japanese corporations. There were another nine executives ahead of him, this was another big change in a corporate culture where seniority matters. And finally Nishimuro was not from Toshiba’s heavy engineering division but is an electronics expert, which is a big change for this particular corporation and is another indication of how much they want to change . (FT 96 Dec 05 page 6)

Another corporation that is changing the way it is ran forever is Canon, who supply computer printer, copier and camera’s. There internal changes have been in action for a longer period than most Japanese corporations. Their changes have been taken place over the last decade. It has given more management control to its foreign based subsidiaries, hired a greater proportion of foreign staff and management, and increased research and development abroad, and this a
massive move from what is seen as the ‘norm’ in Japan. This change to Canon’s culture and operations became even more radical during the summer of ‘96.

During this period, world responsibility for a series of key R&D projects was switched away from its headquarters in Tokyo to the US, France and Britain. Since this there have been more Japanese corporation follow this lead. (FT 96 Nov 18 page 14)

It is generally accepted that because of the structure and culture within Japanese corporations that their R&D is not as effective as it could be, as everything is from the grass roots up. The people at the bottom of the chain are asked and checked and so on. This is the reason behind these changes.

The Prime Minister of Japan, Ryutaro Hashimoto, has said that he wants to put in place far-reaching financial reforms. A great surprise to all was the idea that the Ministry of
Finance, which is the very heart of Japan’s bureaucratic oligarchy, should be broken up.

With the policy ideas of Ryutaro Hashimoto concerning deregulation, there has seen a mobile phone boom, a lowering in air fares and the establishment ofJapan’s first proper supermarkets.

In the corporate sector, cross-shareholdings are to be slowly dissolved, and a big change is in the perception that corporation have on profit. Companies are now starting to set targets for their financial returns. (FT 96 Dec 02 page 20)

4.0 Conclusion
The Japanese business culture is very different from that in western countries and China and this is a consequences of their history. Japan has never been invaded but different ideologies, religions and ways of thinking have be interwoven into the Japanese character.

There is however change occurring within the Japanese social structure. This is mainly down to the speeding up of urbanisation and this has the knock on effect of changing the corporate culture slightly.

Japanese corporations are not seen as been there for just profit. Profit is important, but it is not the only reason for the company’s existence, but involves people and their future. This is however changing with corporations starting to set financial targets for themselves and cut costs.

Ways in which the Japanese corporate culture is starting to change can be found in the way that promotions are decided. In the past seniority meant everything and no some positions are given on merit. Also, management positions are starting to be taken up by foreigners, as well as R&D relocation outside Japan. Japanese politics are also helping in the change of culture. Deregulation and liberalisation promote a more dynamic organisation culture and structure but
these developments need backing up with further proposals to deregulate and promote entrepreneurship

5.0 Bibliography

1. Brian Beedham, Tomorrow’s Japan, The Economist, July 13th 1996
2. Various Internet article with no title or author.
3. FT 96 Dec 05 page 6/ Survey - Japanese Industry: Routes to the top
4. FT 96 Dec 02 page 20/ Lex Column: Japan
5. FT 96 Nov 18 page 14/ Management: Time to pull back the screen

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