Cultural Understanding
Business in Japan
Same difference.
Doing business in Japan.
every country has its own cultural peculiarities and some
see these as a minefield of potential disasters. However,
arming yourself with the knowledge of what to expect
when going overseas to work, is invaluable and can ease
frustrations and make the whole business enterprise more
profitable and enjoyable.
Matthew Abrahams is President of international Trade and
Management Limited in Tokyo, an Australian national and
an expert on Japan, both culturally and in business terms.
Matthew abrahams (right) with ian ‘Thorpedo’ Thorpe (client)
D
oing business in Japan is similar to doing relaxed and, some would claim, more ‘Westernised’. best way to approach problem solving.
business anywhere in the world, with the However, behind the scenes a locally-focussed,
addition of some significant cultural and insular streak remains pretty dominant in the business Consensus
language hurdles. Foreign business people visiting community. What you see on the surface is not Integral to this is understanding that at Japanese
or operating in Japan are valued for the different always what you get. meetings decisions are rarely made. Nine times out
perspective we offer. So while it is important to adapt To achieve success it is vital to deliver relevancy. of ten you will find the meeting is being held for
to the local market, highlighting your ‘foreignness’ To do this, I think it is pretty important to hold true ‘information’ reasons (either giving or receiving), with
can also be an important business asset. Sure, to your business concept and strategy, while at the all decisions made beforehand. In Japan it’s called
Japanese people bow during greetings; however if it same time mesh it to the local market. Foreign ‘nemawashii’ (literally the ‘roots of a tree’) or consensus
feels right, shake hands. business people who end up succeeding in Japan building. This means your discussions/negotiations
Successful business negotiation process is typically arrive here and say ‘Okay, it worked for us in should take place before the meeting - so you are part
basically the same globally. There are always four London, New York and Sydney, we’ll use the same of the ‘nemawashi process’ - not at that meeting!
steps – introduction, information exchange, model for Tokyo, however let’s localise the offering Other people will say you must speak Japanese to
negotiation and agreement. The difference lies in the for the market’. So McDonalds in Japan is pretty achieve success here. Certainly it helps. However, it is
emphasis placed on each stage not mission critical,
of the process. In Western especially in places
culture, we skip through the
“So while it is important to adapt to the local market, highlighting your
such as Tokyo and in
first two steps and focus on industries such as
negotiation (‘why my product
‘foreignness’ can also be an important business asset. Sure, Japanese people
financial services
is better’). In Japan, 80 per
bow during greetings; however if it feels right, shake hands.”
and international
cent of the focus is on the first trade. One of my
two stages (building business colleagues
relationship trust and has been President
knowledge). If you clear these steps you can segue much the same as McDonalds anywhere in the of a very successful firm in Tokyo for eight years and
pretty quickly through negotiation to conclude the world, though the portions are smaller and they he can barely order a whiskey in Japanese.
business. Western businesses people can find this also sell teriyaki burgers. Ultimately, Japanese business is done at a
very frustrating, especially when the boss at home is Similar to anywhere in the world, there will personal level. So it is all about building real
calling every second day saying, “What do you mean always be naysayers who claim ‘it will never work’ or relationships with real people. The same as anywhere
you haven’t even started discussing the deal yet!” ‘it can’t be done’. Determination, persistence and in the world. It’s easy to visit Japan and spot the
patience are useful allies. differences in culture and style. However, identifying
Westernized In negotiations with Japanese businesses, we differences doesn’t build bridges. Look for the
Modern Japan has changed in recent years. In find that agreeing on the smaller points – building similarities as they will form a much stronger basis for
business terms, the Japanese are becoming a lot more consensus - before tackling the bigger issues is the a quality relationship.

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