Your team is a large U.S. corporation that manufactures rubber tires, and you want to begin manufacturing and distribution in another country. As a team, choose a country that you think you would want to start a manufacturing plant in. 1000-1500 word with in-text citations and references included. 
Please answer the following questions about Japan: Vice-chairman: Research and write on the following issues: What are the political, cultural, environmental, and economic risks of doing business there? If you do decide to do business there, how would you staff the operation?
- What kind of approach would you take?
- What type of concerns would you have?
- What do you need to consider when you recruit, evaluate, train, and deal with labor relations issues?
- How would you select the manager?
- What are some of the issues to consider regarding the expatriate?
- What if it does not work out?
Environmental Analysis Assignment Help
Environmental Analysis of Japan Risks in Japan for US Corporation It is essential for an organization to determine several types of risks that it could face while operating in other countries due to change in different environmental aspects. The political environment of Japan is quite unstable in comparison to US that expose significant risk for the business of US firm as it creates vulnerability in rules and regulations. The unstable environment of Japan may lead to increase tax rates for this US Corporation. Unlike US, cultural environment of Japan gives importance to the collectivism and due to this; US Corporation may sacrifice its own interest due to its individualistic culture. In Japanese culture, direct communication is not allowed between the subordinates and managers (Hasegawa & Hook, 2012). Unlike US, Japanese culture gives importance to the interpersonal relationship and trust that may create confusion for this corporation Business Development Assignment Help.
The environment of Japan also exposes several disasters such as Tsunamis, Earthquakes, Typhoon etc .that expose significant risk for business sustainability. At present, the contraction dispute with China exposes significant risk for the economy as it experiences a significant slump in its GDP and growth rate, which shows the reduction in purchasing power of consumers. By considering the above risk, joint venture strategy will be used to start the business as the existing company of Japan would be beneficial to determine the risks and their solutions in effective manner (Harris, Brewster & Sparrow, 2003). An approach to built relationship would be used to ensure success of this joint venture while addressing the above risks. In order to avoid several risks, overwhelming importance will be given to the personal relationship within the business cycle. In Japan, relationship is considered prior to the business itself and it is because this approach would be used to avoid the cultural and political risk. For this, effective communication sources would be established to disseminate clear meaning of any aspect or issue. The vague statements are not allowed in Japan as it affects the trust level (Inkster & Satofuka, 2001). The main concern will be on the elimination of the risks that could affect the success of this joint venture. In the joint venture strategy, less initial investment is required as with this, US Corporation will be enabled to access the manufacturing facilities, equipments and plants of the Japanese company.
It would be beneficial to provide the protection from the economic vulnerability of this company. The approach of developing and respecting the cultural values of Japan will also be effective to maintain and strengthen the relationship with government that would be beneficial to reduce political risk. In addition, an entry in Japan will also help to create cross cultural awareness including meeting etiquettes, business protocol etc (Burton, 2008). It would be beneficial to strengthen the relationship factor within the community and government both that would be helpful to reduce the risk of political uncertainty. Joint venture will also help to understand the environmental risks and their potential solutions. The approach of creating cross-cultural awareness with joint venture would be taken to reduce the risks that are associated with the political, economic and cultural environment of Japan.
Japanese cultural values are quite different from Americans that would create major concern in regard to the human resource. It creates significant difference in the requirement of both countries’ employees that may create problems in maintaining relationship with the workers (Guffey, Almonte & Karka, 2007). Manufacturing is a labor intensive industry and due to this; it is essential for firms to maintain relationship with them. The Japanese cultural values are required to consider, while recruiting, training human resource. The culture of any country is responsible to shape values, beliefs, behaviors of people that is essential to consider, while recruiting human resource for an organization. As per the culture of Japan, labor will be recruited on the basis of their belongings in society rather than their age, gender, role, qualification etc. At the same time, to evaluate and appraise the human resource of a Japanese company, group cohesion and trust development ability would be considered as this factor plays an important role to motivate them at workplace (Rosenhauer, 2009).
On the other hand, the training would be also provided by considering the needs and requirements of human resource, while considering cultural values. The background of labor would be considered, while training them as it supports the collectivism value of Japanese culture (Levinson, 2001). It would be effective to create an effective environment for training at the workplace. For avoiding the labor relation issues, the ways that enable to create trust among labor over the management would be considered. Trust is an important value of Japanese culture that is essential to maintain and improve business relations. The manager for this manufacturing organization would be selected on the basis of his/her ability to create relation and trust among the labor. In order to determine this ability, different labor relation issues will be communicated with potential managers and would be asked them to solve it (Gudykunst & Mody, 2001). The managers who are able to create significant balance between labor and organization needs would be selected for this organization. Legal issue is also required to consider for being established of US Company in Japan.
Each country has different rule and regulation in regard to the expatriate that need to be considered by this manufacturing organization. Technological environment in Japan changes frequently that may facilitate issues for US corporation to cope with the changing technology. At the same time, difference in communication modes of both countries are also required to be understood as it may create conflict among the labor and management (Levinson, 2001). Employee motivation and retention related issues are also required to be considered as different value, beliefs leads to change in motivational factor of an organization. After considering economic, political, cultural, environment and other potential risks, this joint venture may fail due to uncertain nature of business environment. By using liquidation as an exit strategy, this company will enable to settle all its activities and function with the partner company (Burton, 2008).
References: Burton, D. (2008). Cross-Cultural Marketing: Theory, Practice and Relevance. Taylor & Francis. Gudykunst, W.B. & Mody, B. (2001) Handbook of International and Intercultural Communication (2nd ed.). USA: SAGE. Guffey, M.E., Almonte, R. & Karka, A.M. (2007). Essentials of Business Communication for English Language Learners. USA: Cengage Learning. Harris, H., Brewster, C. & Sparrow, P. (2003). Research Methods in Human Resource Management. UK: CIPD Publishing. Hasegawa, H. & Hook, G.D. (2012). Political Economy of Japanese Globalization.UK: Routledge. Inkster, I. & Satofuka, F. (2001). Culture and Technology in Modern Japan. Great Britain: I.B.Tauris. Levinson, D. (2001). Encyclopedia of Crime and Punishment. USA: SAGE. Rosenhauer, S. (2009). Cross-Cultural Business Communication: Intercultural Competence as a Universal Interculture. GRIN Verlag.
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