Hello everybody, this week’s topic for discussion involves the examination of certain codes of conduct pertaining to doing business in Japan. 1. A large Japanese firm makes important decisions by a so-called “nemawashi” consulting system which requires all internal stakeholders to review and sign the final decision. Research the concept online and compare the advantages and disadvantages of this decision making versus the vertical U.S. system. Describe specific situations when “nemawashi” could be advantageous and disadvantageous.

Ironically, the most optimal end-result that can be utilized to respond to this question is created by way of nemawashi. Basically, multiple acts of consultation take place with a variety of human information departments (references) in order to avoid discrepancies in the formal presentation of the complete answer (Stevetuf, 2009). So, with that having been said I will now take apart the original question and in putting it back together an optimal answer will be presented. To begin, nemawashi is a set of informal actions designed to identify and eliminate potential issues with a concept or idea prior to putting “the concept/idea” into play (Farlex Financial Dictionary, 2012). The primary advantage of nemawashi is that the concept/idea in question is thoroughly examined by multiple points of interaction, which in turn refines that concept/idea into the most optimal form possible. In addition to the advantage of a thorough examination there is also a higher degree of ownership associated with the concept/idea end-result (Saba, 2010). The ownership involved here tends to result in higher levels of effort put into the production of the concept/idea in question- thus creating an optimal end-result. It should also be noted that nemawashi provides the advantage of focusing attention toward finding solutions rather than wasting time trying to place blame for something going wrong. Now, on the other side of the nemawashi-coin are the disadvantages that involve the costly mismanagement of time. The large amount of time spent on running a concept/idea through multiple points of interaction and evaluation prior to formally presenting the end-result to the “bosses” as well as searching for whoever is at fault if something should go wrong will waste time and as we all know “wasting time” is just like wasting money. Too many wasteful time/money events can and will endanger an organization’s position in the global market place. The vertical U.S. system of business conduct usually involves either a single person or team of coworkers working toward the creation of a presentation of the concept/idea in question, and that presentation is then made to the “bosses”. Although, when compared to nemawashi, it is a simple thing to see that development costs of a concept/idea going through the vertical U.S. system of business conduct will be much less, which of course is an advantage. However, there is also the disadvantage of not spending the time to refine and tune a concept/idea as is executed with the nemawashi form of business conduct. This presents the possibility that a concept/idea influenced by the mechanics of the vertical U.S. system will be of a lesser quality than it counterpart in Japan. In addition, there is the distinct disadvantage of having only one shot to impress the “bosses” with the concept/idea utilizing the vertical U.S. system of business conduct. However, the nemawashi code of business conduct also presents one chance to impress the “bosses”, but the nemawashi system has afforded time for the refinement of the concept/idea. 2. Imagine that you are to welcome a Japanese delegation in your home-country. The delegation represents a potential business partner for your firm. Describe how you would prepare for the meeting and how you would decrease intercultural communication apprehension on both sides.

Before the Japanese delegation even gets on a plane to leave Japan, I would research every possible detail pertaining to them. Knowing such things will ultimately demonstrate the value that has been placed upon the potential business relationship. The following list of items of interest is to be handled before their plane has landed: a. Secure the services of a top rated translator. This translator should also be Japanese so as to put the Japanese delegation at ease. Unless the host speaks perfect Japanese, this first step is very important. If necessary, also provide a top rated translator for the Japanese delegation. b. Arrange hotel accommodations for Japanese delegation prior to their arrival. Make sure that the hotel accommodations for each member of the Japanese delegation are well suited to the station that they hold within their own organization. Hierarchy in any grouping of individuals is something that is taken very seriously in the Japanese culture (Reischauer, 1981). Mistakenly giving a junior member of the delegation better accommodations than the boss will cause loss of face and most likely result in killing the deal before it ever gets to the table. c. Make sure that all members of the host team (men and women) are dressed in business attire. The color of this business attire should be black, which is a color that symbolizes formality in the Japanese culture (Demand Media, 2012). d. Obtain and have on hand a supply of professionally printed business cards. The exchange of business takes on a ritual like nature in the Japanese business world. e. If the nature of the business to be discussed requires a higher than normal level of security, then it is up to the host to provide such. This security should be very well trained in armed as well as unarmed combat. f. Transportation will also be required. Either a limo or luxury sedan that is black will be well suited for this task.
The flight from Japan to almost any city in the United States will take about 17 to 20 hours, so with that in mind the first place the delegation should be taken is to their hotel. Later that evening take them to a nice (but not flashy) place for dinner and drinks. A guest is never to pour their own drinks, so if you order a bottle for the table it is up to the host to make sure that the guests always has a full glass. The following day, just prior to the beginning of the business meeting in question, the ritual of the business card exchange must take place before any sort of business discussion takes place. Both hands are to be utilized during the exchange of the business cards as the members of the delegation will be using both of their hands. In addition, remember to bow when bowed to and bow to the appropriate level as befits your place in the host organization. Also, only “shake hands” if the guest does. Finally, remember to have a gift on hand for the exchange of gifts at the end of the business meeting. 3. Access JETRO’s website and other e-Global resources and describe the complexities of setting a Japanese representative office. What are the advantages and disadvantages when compared to other forms of business establishments in Japan?
The creation of a representative office in the country of Japan is basically the act of creating a physical representation of any business in the country of Japan. These offices, as dictated by Japanese law, are not required to be registered but the only function that they can serve is to be a point from which market research is conducted and of course as a point from which to promote the business in question. This means that it is illegal for a representative office to be a point of sale for a transaction of any kind, establish business type bank accounts, or even enter into a lease agreement for real-estate. The costs of setting up such an office is relatively small, but so are the functions that they are permitted to perform like making sales directly from the office in question. In order for certain events to legally take place in Japan like making sales directly from that office, certain types of paperwork will have to be completed and turned into the proper Japanese governmental offices so that the business in question can legally operate within Japanese boarders. When such governmental approval is attained, that office in effect become a branch office and is then subject to the various taxes that similar types of businesses that are already in play are paying.

References
Demand Media. (2012). What is the meaning of color in Japanese culture? eHow, Retrieved from http://www.ehow.com/about_6658499_meaning-color-japanese-culture_.html
Farlex Financial Dictionary. (2012). Nemawashi. TheFreeDictionary, Retrieved from http://financial-dictionary.thefreedictionary.com/Nemawashi
Reischauer, E. (1981). The Japanese. London, England: Belknap Press.
Saba, I. (2010). Nemawashi: Doing business in Japan. Yahoo! Finance, Retrieved from http://voices.yahoo.com/nemawashi-doing-business-japan-7307148.html?cat=35
Stevetuf, R. (2009). Nemawashi. Toolbox.com, Retrieved from http://it.toolbox.com/wiki/index.php/Nemawashi