Friday, August 24, 2007

Japanese business culture

  • Working practices
    • Punctuality is considered quite important in Japanese business culture.
    • The decision making process in Japanese business has become quite swift and is usually done efficiently.
    • People in Japan prefer to do business on the basis of personal relationships.
    • Business appointments are more appropriate to be arranged through a personal call rather than sending a letter.
    • It is important to maintain good correspondence when doing business in Japan.

  • Structure and hierarchy
    • Japanese companies generally have a well defined corporate hierarchical structure during meetings and negotiations but decision-making is a group process.
    • Seniority is given prominence in Japanese business meetings and this is even reflected in the seating arrangements in the meeting.
    • Japanese people usually look for long-term relationships and therefore it is important to have a proactive and positive approach even in the most insignificant of requests.

  • Working relationships
    • Since this is a collective society, even if you think you will be meeting one person, be prepared for a group meeting.
    • It is important to show greater respect to the oldest member in the Japanese business culture.
    • Always give a small gift, as a token of your esteem, and present it to the most senior person at the end of the meeting. Your Japanese contact can advise you on where to find something appropriate.
    • Always provide a package of literature about your company including articles and client testimonials.

  • Business practices
    • A meeting in Japan starts with a formal and highly ceremonious exchange of business cards, a ritual referred to as meishi kokan.
    • It is customary in a meeting in Japan to always direct one's initial comments to the highest-ranking person present. One never disagrees with him and always gives him his due attention.
    • Written contracts are required.
    • The Japanese do not see contracts as final agreements so they can be renegotiated.

Business etiquette (Do's and Don'ts)

Ö DO greet your counterparts with the proper respect and politeness. Usually a handshake is sufficient.

Ö DO avoid confrontation or evade direct or aggressive refusals.

Ö DO use apologies where the intention is serious and express gratitude frequently as it is considered polite in Japan.

× DON'T give excessive praise or encouragement to a single Japanese colleague in front of others. Remember that the group is often more important than the individual.

× DON'T address your Japanese counterpart by their first name unless invited to do so.

× DON'T use large hand gestures, unusual facial expressions or dramatic movements. The Japanese do not talk with their hands.

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