1.

The link between culture and business

Perhaps you ask yourself why it is necessary to be aware of
cultural differences when doing business with other nations? Isn’t
business just about making money and aren’t all nations striviing
for the best they can make out of it? The answer to this question
can be definitely NO! There are many examples in todays
business where cultural misunderstanding led to a flop of a
product or the breacking off in negotiations, like the ad campaign
of Toyota. We can deduct from those happenings that it is
esential to know the impact of culture on business.
Let us now analyse this impact by defining the concept of culture
and then linking it to business.

1.1. The definition of culture

Encyclopedia Britannica

1.2. The link

Culture determines our attitude towards everything.

1.3. Examples
Women in business

2. The structure of my speech

In the following slides I will discuss the cultural characteristics of
the Japanese system. In specific I will mention those 5 areas of
differences:
Process
Community
Hierarchy
Time orientation
Communication methods

Within every chapter I will hold on to this structure:

First of all I will give you the actual facts, then go for the
backgrounds so that I can close with examples and some tips
you might want to take with you while going to Japan. I will
sometimes mix the background explanations with examples to
better illustrate them.

3. Process vs. Result

Let me start over with the first caracteristic of Japanese culture:
The process orientation.

3.1. Fact
Japanese culture concentrates on the process of negotiating and
not just on the result as many western cultures do. The
 relationship is considered to be even more important than the
outcome of the event taking place. This doesn’t meen that
Japanese aren’t interested in the results of their actions, but we
will see further on that for example business communication is
structured quite diferently and you have to know about those
differences to find the right approach of dealing with the
Japanese people.

3.2. Background
But where does this process orientation come from?
It is deeply embedded into Japanese culture and prevails within
for thousands of years as can be seen in the famous Japanese
Tea Ceremony as well as in food preperation.

3.3. Examples
When our Japanese group was invited to a dinner at Mrs.
Mochidas house we were really impressed by the ritual precedure
of the dinner. Everything was arranged very precisely and food
was decorated so that the

3.4. Tips
But what does this mean to you as future managers?
You should be aware of ceratin precedures taking place in every
day business life and you should know most basic ones like the
ritual taking place while exchanging business cards called meishi.
Another think you will not want to forget is the gift giving custom
on year ends, the so called oseibo. There it is extremly important
to let the other party know that you care about them. That’s why
every year the average Japanese recieves about 600 greeting
cards.

4. Community vs. Self-determinace

4.1. Facts
Japanese people consider themselves as being part of a big
community.

4.2. Background
The roots of this conduct lie in the whole education system.
When a young Japanese grows up the first thing he learns is the
difference between the home or inside (uchi) and the outside
(soto). This learing process multiplies by every day rites like
putting the shoes infront of the door when entering a house. In
this way it is exemplified that you belong to a group. This sense
of uchi is then transported to other areas of life. For example
when you take a job at a company you belong to the group
represented by your fellow employers. A Japanese employee
would never say that he is an accountant or a secretary, but he
 will mention the companies name, like: “I’m working for Toyota”.
As Matthias will point out there are rarely any words in Japanese
culture for job titles.
We mentioned the integrating process of a group, but there can
also be seperation aspects you have to be aware of. For example
will you never be able to be considered as a Japanese. As John
B. Ford puts it: “You may learn to speak the language and
understand the ways of the people, but it is clear that you can
never actually become Japanese”.

4.3. Examples
There are other examples that stress the community aspect. The
typical Japanese office is designed in an open system, so that
everyone is aware of what’s going on in the whole office. If you
are a manager or a worker, you will all sit together in one big
room.
This also gives way to the group as a control mechanism. In
Japan, decision making is always done by concensus. There are
to different rituals as Matthias will point out later.
Another example for Japanese people being group orientated can
be found in the Entrepreneurship sector. Being an entrepreneur
requires certain skills, like thinking differently than the others or
having ideas you’re willing to fight through no matter if you got
serious drawbacks while doing so. The Japanese always
concentrate on the groups well being and not the particular profit
thus not unleashing any entrepreneurial spirits. You can see on
the following diagram, how low the founding rate actually is in
Japan.

4.4. Tips
Taking this into account you should always consider the group
orientation of Japanese people when dealing with them. Never
urge your business counterpart for a decision as he deliberately
has to wage his decision against community aspects. If he has to
do a hasty decision without contacting the group he will lose his
face infront of his collegues, as it is considered immature to
handle things without the approval of the group.
As I pointed out earlier you have to turn to the guest role as you
will never be able to reach the status of a full member of such a
sworen in society as the Japanese.

5. Hierarchy vs. Disarry

Let us now turn to another theme going through Japanese
society like a red string: Hierarchy!

5.1. Facts
Japanese society is definitely one of the most structured societies
in the world.
 5.2. Background
The roots of this fact lie in the Confucianism. In the old days
Confucian preached the submission to elders and those of
superior positions within the group.

5.3. Examples
This idea is totally integrated into the Japanese corporate system
where promotion is based on seniority.
Examples of the respect Japanese people have towards superiors
can be found in every day life. While walking trough the large
rooms of Japanese bureaus you will not learn a lot of new names
but titles, as the Japanese always address their business
counterpart with its title. For Europeans it might seem a bit
grotesque when the hear of addressing people by “Mr. Manager”
or “Mrs. Subordinate”, but for the Japanese it is a day to day
business ritual showing their respect for one another.
But using titles in every day business communication is not the
only form to show respect. When Japanese people meet they
don’t shake hands or give kisses: The bow. Bowing is a essential
part of showing respect to another person. They distinguish
between 3 different grades of bowing. The normal one is used for
people you know better. The formal one is used for people that
are of higher rank in society, for example a Manger. So you
would say “Yes, Mr. Manager” (while bowing). And they do bow
quite frequently as well!!! The very formal form of bowing is just
used to address the tenno.

5.4. Tips
To explain how deeply the sense for respect is integrated into
Japanese culture let me tell you a short story.
There was a Japanese in Nürnberg negotiating with a German
about a project. The negotiations were quite fruitful and they
agreed to sign the contract when the Japanese was back in
Tokyo. After they were having dinner together the German said
he has to leave for another meeting, but his secretary will bring
the Japanese home and pick him up for the airport the next day.
On the next day the Japanese cancelled the contract because in
his eyes the German was acting very disrespectful.
What you should learn out of this story is that you should be
aware of the nuances of respect the Japanese are able to
perceive and wisely choose how to respond to that.

6. Time orientation (long term vs. short term)

Let us now take a look on how the Japanese orientation within
time.
 6.1. Facts
Japanese people are long term orientated.

6.2. Background
The roots of this time orientation lie in the limitations of their
island nation. This will be made clearer when you follow the line
of reasoning. The limitations that are imposed by a scarcity of
land and raw material evokes a strong will for survival in the
Japanese personality which then drives them for committing
themselves thus breaking their time horizon down to a long
term scale.

6.3. Examples
How far long term orientation goes can be seen at strategic
planning. Japanese companies take a long term approach even if
they have to sustain losses at the beginning. This is a clear
contrast to US bottom line orientation.

6.4. Tips
You as future managers should bear that in mind and interpret
Japanese companies actions with a strong linkage to their

7. Communication style
Let us now turn to the process of communication.

7.1. Facts
Japanese people have a very high context communication with
can only be interpreted by relating it to their culture.

7.2. Background (The concept of Amae)

To understand this better let us now turn to the concept of
“Amae” developed by the Japanese psychiatrist Doi Takeo. It can
be described best as “The principle of mutuality that must be
present to guarantee smooth transactions”.
That means that the Japanese people have a great sense for
harmony and are not willing to make any decisions that might
destroy harmony.
The greater the power of cohesiveness, the more violent the
effect of a break. It is like splitting the atom how Doi Takeo
describes it.

7.3. Implications on negotiating techniques

(Tatemae vs. Honne)
Being in this need to guarantee harmony the Japanese
developed a unique system of communication. They have two
different levels of speech. The first one Tatemae is the general
agreement on one subject, the second one Honne is the specific
 intention of a person. There should never be a disagreement on
the Tatemae level of an argument, but there can be a
disagreement on the Honne side. This ambiguity can be resolved
while

7.4. Examples
One implication on negotiating practices is that Japanese feel a
strong reluctance to say NO. It really embarrasses them that
strongly, that they will prefer to say yes instead of not doing
something bad. (link to tatemae and hone!!)
The relation side of the Amae concept is extremely important in
Japanese culture.

7.5. Tips