Compare and contrast American and Japanese Cultures doing Business

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Compare and contrast American and Japanese cultures doing business

Introduction

Business world has evolved in this century. The people in today's world have become more competitive then ever. All the big organizations especially operating in developed countries want to diversify to expand their business and create distinguished place for themselves. In this pursuit many large multinational belonging from United States have made successful efforts in business world. There are number of reasons for the successful intervention in different countries of the world. Organizational culture one of the reasons in enhancing the performance of any organization. Organization Culture is composed of norms, values, codes of conduct implemented in organization. Employees of the company are considered as key drivers, who conduct and apply the rues and regulations developed and designed by the company. In designing the framework the company, the senior executive of the company take into account the 'Culture' of the region where they intend to start the business. The success of U.S large multinationals in major parts countries of Europe gave it a confidence to made expansions in different regions of the world. Asia is considered as the most premium choice of investors all over the world but the companies want to create its mark in different regions to avoid bandwagon effect (Markus &Kitayama, 1991).

Discussion

The changing global trends and demands of the customers due to improved lifestyles have forced companies to focus upon its business strategies and management greatly to survive in the global market. The external and internal influences can create the need for change that is why today's contemporary organizations give major emphasis upon positive organizational change. Also, the rapid changes in all the aspects of human life have created a different scenario for all businesses Now, it is not possible to survive in the market with identifying the latest market trends, technology, customer demands, internal company problems and government policies etc. all these mechanisms and forces has impacted the business activities significantly. Large multinationals intend to diversify in different regions to exploit the opportunities of that region through better undertaking of organizational culture. The communication misunderstanding that occurred due to the cultural difference. In some culture certain things are acceptable considered to be ethnocentric and disgracing in other culture. This misunderstanding could be avoided if tried harder to understand his perspective according to cultural differences.

Compare and contrast American and Japanese cultures in Business

To penetrate into Japanese market, the company must be able to understand the deviant culture the country. Following are the characteristics, which help must be considered while starting a new business.

Speed vs. Consistency

In United States the decision making process is quick and generally taken at junior subordinates. The subordinates are empowered to take quick and spontaneous decision in order to avert long procedures of authority. At times errors are made, due to lack of vision and experience. On the contrary in Japanese organizations decisions are made by senior management only. The long chain of command and ...