RESEARCH PROJECT

Research Project

Research Project

1.0 Introduction

A leading Australian retailer i.e. ABC Café is seeking international expansion into a developing country. Therefore, in order to make such decision, a depth environmental analysis of the developing country i.e. Japan is required.

Economically, the country demonstrates an investment in itself as land, as a result of the past economic crisis. From this crisis, it shows that property market has slowed down making retail companies able to negotiate better deals for sites. While also giving the downturn in consumer demand in Asia making Harvey Norman easier to negotiate sites for construction close to shopping malls, which is a key choice of location. At the same time having the advantages for Japan having huge creation in jobs and improvement in education, development of infrastructure, improved capital and financial structures and access to advanced technology.

Emphasising constantly on culture is the key to winning the Japanese people to "ease" your work. Learning the different customs and adapting to their traditions gives great advantages to the organization. However, the smallest non-verbal cue from a westerner make be very offensive to the Japanese so great care must be taken with everything that is done and how its done. This is regarded as a serious threat, even if it's from one individual, the organization may suffer for his/her actions.

1.1 Purpose

The purpose of this report is to analyse and recommend whether Japan is applicable for a leading Australian retailer i.e. ABC Café to expand their market there.

1.2 Scope

        In determining whether Japan will be appropriate for such decision, depth analysis about the environmental of this country is essential. This environmental analysis will include the following dimensions: economic, cultural, technological and political environment of Japan.

1.3 Methodology

        In order to complete the report, depth environmental analysis need to be conducted. The information is gathered from books, newspaper articles, and journal articles, also from the Internet.

1.4 Limitation

The limitation of the report is that there might be some other environmental dimensions that need to be analysed that relevance for the retailer. Also, this report is valid for this period only.

1.5 Assumption

        In preparing this report, it is assumed that Japan is a developing country that has good environments condition for the retailer to expand their business in Japan.

1.6 Background

        Japan, the world's second largest economy, occupies an important position in virtually every industry and business activity worldwide. Japan comprises four main islands, which are Hokkaido, Honshu, Shikoku, and Kyushu. And nearly 4,000 small islands which all allocated along the northeastern coast of the Asian continent. The country's total land area is approximately 377,819 sq km. Japan had an estimated population of 126.7 million with an annual growth rate of 1.5% in 2000). Over 28 million people were living in Tokyo and Yokohama (www.undp.org).

2.0 Japan's environment analysis

The country that has been chose to be analysed is Japan. There are four environmental dimensions that need to be analysed and be addressed. They are:

2.1 Economic environment

2.2.1 Market

        Japanese government encourages foreign investment by having low tariff rate. The economic markets it therefore wide open to any ...