Choice of Market
Asia has become the focus of leading companies today. Nearly all the major multinational companies want to establish branches in Asia. This confirms my professor’s assertion that this century belongs to this continent because it constitutes the second world. My preferred choice for this company is Japan. It has become a leading motor and electronic market in the world. Many global companies are eyeing this market because it is so promising. As a member of the expansion team for company A, I would like to recommend Japan as the preferred country to expand this business. It has a lot of opportunities which if properly utilized, can make great contributions to the development of this company.
While doing this, it is paramount for the management to acknowledge the fact that it will be so challenging to succeed in this market. Just like many other markets, Japan has become extremely competitive. Therefore, it is paramount to come up with well researched strategies which are feasible and can be easily achieved in this country. Just like the United States of America (USA), Japan is a sovereign country with different regulations controlling business activities. These are more stringent to the foreigners making it a bit challenging to operate here. In this regard, it is necessary to conform to all the laws so as not to face penalties with would otherwise be avoided.
To begin with, there are issues of cultural diversity and multicultural communication. Japan is in Asia which is a continent closely associated with Arabs. These are business oriented people who put a lot of emphasis on trading activities. In this regard, it is upon the management to come up with strategies to ensure that there is a smooth communication amongst the company employees, management, clients and the general public. This can for the employment of bilingual or multilingual professionals to carry on with the activities of the company. Otherwise, a team of dedicated interpreters can be recruited to help ease communication between the locals and expatriates. While doing this, the management should ensure that the local Japanese are actively involved. Hence, it will be possible to accommodate employees speaking different foreign languages such as English, French, Arabic and Spanish.
On the other hand, the issue of cultural differences should be considered. All the expatriates deployed to work in this branch must appreciate the local Japanese cultural practices especially those directly affecting them as corporate. As we all know, Japan is reach in cultural traditions which are deeply rooted in conservative practices. They are polite people who are good at initiating, maintaining and defending friendships. They are so welcoming and can not show any form of hatred to the foreigners. This is a very good quality which has helped business operations in this country to run so smoothly with fewer obstacles.
Besides, the culture of trustworthiness and honesty has been so instrumental in shaping Japanese business. They are always committed to their decisions and do their best to establish a good rapport with foreign traders. However, their culture of generosity and egalitarianism is contradictory to the American individualism and self-centeredness. In order for this company to succeed here, it must be acculturated into this nation. The employees must be ready to accept and appreciate the Japanese cultural practices at all times. This is because they are very important in determining the reputation of the company. If the potential buyers develop a negative perception towards it, they will not accept to make any transaction with it. As a result, it will face a lot of problems which will eventually lead to its collapse in the long run.
In order to address all these issues, the management should come up with appropriate marketing strategies which are relevant to these people. This means that their demands should be met at all costs. They should be provided with whatever they need so as to be contented with services provided by this company. Many clients only feel the benefits of a business enterprise if it identifies with them and strives to satisfy their diverse tastes, preferences and fashions.
Doing business in this country is so challenging to the foreign investors. The government of Japan is so stringent on the entry requirements for multinationals in the country. This initiative was launched in the early 1980s when the department of trade decided to come up with stern measures to protect local industries from collapsing. It has come up with high taxations and tough policies targeting foreign investors. The policies have put strict regulations to control entrance into this market. Therefore, it means that company A has got slim chances of venturing into this market unless it adequately prepares and avails all the required resources. Hence, it will be able to meet all the legal requirements and be in a position of paying all his employees the standard wage rates recommended for the local and foreign workers.
Just like any other country, business activities in Japan are controlled by ethical codes of conduct. These are the pillars of success of any business in this country. The law requires that all business enterprises conform to the standard ethical regulations stipulated by the law. As a motor industry, company A should be careful not to violate any of the rules set aside for the control of such operations. He law requires that the company should be concerned with the welfare of its employees, clients, government and the general public in different ways.
As a manufacturing plant, the Japanese law requires that it should be concerned about the welfare of the environment. Meaning, it should not contribute to its pollution because this can be so dangerous to the lives of the people living around the plant. At the same time, the law requires it to contribute a small percentage of its gains for Corporate Social Responsibility (CSR). These are services aimed at benefiting the local population in sustaining their environment. The company should not discharge any harmful by products which can endanger the biodiversity.
Lastly, in Japan, it is unethical for a business enterprise to participate in misleading adverts, sell low quality products, charge exorbitant prices, discriminate potential clients, endanger the personal privacy of clients and participate in corruption. These are not only unethical, but also unlawful and should be condemned at all costs. Therefore, the management of this company must ensure that it strictly conform to these standards. Otherwise, it can damage its own reputation and ends up losing its already established customer base. The Japanese can lose confidence in its services and instead opt to deal with the other rival firms.
In conclusion, I would like to say that it should be the primary goal of every business to grow and expand its operations beyond its national borders. I would like to commend the management of company A for its tremendous success. Japan is a real market which must be exploited. However, a lot of preparations must be done in order to allow the company to fit. It is highly competitive and only needs creative and innovative minds to survive. It should adopt the most appropriate marketing strategies which will enable it to out do all the other competitors and emerge as the best alternative.