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Serving Students at Santa Ana College and Santiago Canyon College JAPAN Business Tips

Business Tips

Japan is the world's second largest economy and a huge market for American goods and services.  The Japanese are dedicated to work and thoroughness; they work harder than those in the United States and Europe.  95 percent of all Japanese high school students graduate and leave school with the equivalent of an American college degree; 40 percent of those go on to higher education.

Meetings

Foreign businesspersons are expected to be punctual for meetings.  For social occasions, it is appropriate to be fashionably late.

Initial meetings are usually formal and made at the executive level, while more detailed negotiations are often carried out at the working level.  The first meeting is for the purpose of getting acquainted and establish the purpose of the visit.  A series of meetings with a large number of Japanese company representatives is common. 

Business Hours

The workweek is generally forty-eight hours without overtime pay, done in five and one-half working days.  Recently large firms have begun to institute the five-day week.  Few executives take their work home with them.

Office hours are. 9:00 a.m. to 5:00 p.m. except if on flex hours.
(Many people go to dinner, then return to the office until 9:00 or 10:00 p.m.)

Banks and offices close, while stores remain open during holidays.

During three weeks of the year New Year's holidays  December 28 to January 3, Golden Week April 29 to May 5; and O-Bon Festival in mid-August 12-15 conducting business and traveling are difficult during these periods.  If a national holiday falls on a Sunday, the following Monday is a compensatory day off.

January 1              New Year's Day
January 8              Adult's Day
February 11          National Foundation Day
March 20              Vernal Equinox Day
April 29                Greenery Day
May 3                   Constitution Memorial Day
May 4                   Declared Official Holiday
May 5                   Children's Day
July 20                  Marine Day
October 8              Sports Day
November 3           Culture Day
November 23         Labor Thanksgiving Day
December 23         Emperor's Birthday

Notes:

• When a national holiday falls on a Sunday, the following Monday is a holiday.
• When there is a single day between two national holidays, it is also taken as a holiday. This rule applies to May 4th, which is a holiday each year.
• Dec 29th - Jan 3rd - during this period government offices and many companies and shops close.
• With the exception of Spring and Autumn equinox, the holidays are on the same date every year.
• From 2000, Coming of Age Day (15th January) and Sports Day (10th October) will fall on the second Monday of the month.

Negotiating

Connections are very helpful in Japan.  Age equals rank in Japan, show the greatest respect to the oldest members of the Japanese group with who you are in contact.  Intermediaries should not be part of either company involved in the deal.  Use an intermediary, such as the one who introduced you to the company, to discuss bad news; if you don't have a connection, a personal call is better than a letter. 

The foreign businessperson must present an image of dependability, innovation, superior quality, competitiveness, and a commitment to building personal relationships.  Product service and customer support before, during and after the sale are important in Japan.  Technical questions should be answered in detail and information regarding delivery dates and other issues relating to shipment must be made clear.

The time it takes to develop an effective working relationship and the practice of group decision making in Japan tends to slow the process of negotiation.  It generally takes several visits to Japan to develop relationships with the top level executives and the staff level workers and consistent follow up before successful deals are negotiated. 

Though many Japanese business executives speak some English, a skilled and well-briefed interpreter may prevent miscommunication and be well worth the investment.  Speak slowly, pause often, and avoid slang.  Interpreters may seem to be taking more time with the translation than the speaker did with verbalizing the statement; this is because she or he is using lengthy forms of respect. 

Japanese are not comfortable with direct negative responses.  A Japanese response "I'll consider it" may actually mean "no." and negatively phrased questions will get a "yes" if the Japanese speaker agrees.  Contracts are not perceived as final agreements; you or they may renegotiate. 

On the job, the Japanese are very serious and do not use humor.  To save face, don't ask questions that your Japanese colleague may not be able to answer.  Do not compliment individual Japanese workers because the group and not the individual is rewarded. 

Most Japanese go through job rotation, in which they change jobs within the same company every few years so the employees get to know the company and its staff well.  A quality circle is made up of people doing the same work who will discuss ways to improve their work.  Suggestion boxes are useful in Japan because the well informed Japanese employees offer suggestions.

Business Entertaining

Business entertaining usually occurs often, sometimes on short notice, after business hours, and very rarely in home.  The evenings will probably be spent going from bar to restaurant; businesswomen may want to suggest karaoke.  While business entertaining is primarily for building friendships rather than doing deals, you may discuss business during the evening.

When you are taken out, your host will treat.  Allow your host to order for you (the menus are in Japanese).  Be enthusiastic while eating, and show great thanks afterwards. 

If you are invited to a Japanese home, keep in mind that this is a great honor and you should show great appreciation.  When entering a Japanese home take off your shoes at the door and wear one pair of slippers from the door to the living room, where you will remove them.  You will put them on again to make your way to the bathroom, where you will exchange them for "toilet slippers."  Don't forget to change back again.  In a home, you will sit cross-legged, or with your legs to the side, around a low table with the family; you may be offered a backrest.  Never point your chopsticks at another person; when you are not using them you should line them up on the chopstick rest.  Use both hands to hold a bowl or a cup that you wish to be refilled.  Meals are long, but the evening usually ends at about 11:00 p.m. 

Eventually, you will wish to invite your hosts out.  Be insistent, even if they claim that a foreigner should not pay for anything.  It is best to choose a Western-style restaurant for this occasion.

Regular visits to Japan and frequent communication by fax or phone is important in maintaining effective business relationships.

Introductions

Japanese bow when greeting each other but will expect to shake hands with foreign executives.  A slight bow is appreciated.  Bow to the same depth as you have been bowed to, because the depth of the bow indicates the status relationship between you.  As you bow, lower the eyes and keep the palms flat against the thighs.  Japanese handshakes may be weak; but this gives no indication of their assertiveness of character.  Do not pull away quickly; employing both hands to enfold another is common practice. 

Business Cards

The business card is extremely important for establishing credentials; have it prepared in advance by a Japanese airline or by a Japanese representative.  It should be bilingual and indicate the foreign businessperson's title and professional credentials.

Business cards are exchaged to formalize the introduction process and establish the status of the parties relative to each other. 

Cards are presented after the bow or handshake.  Present your card with the Japanese side facing your colleague, in such a manner that it can be read immediately.  Read the card presented to you, memorizing all the information.  Ask for help in pronunciation and in comprehension of the title.  Handle cards very carefully.  Do not put them in your back pocket.  Never write on a person's business card (especially not in his or her presence).

Names and Titles

Japanese executives deal on a last name basis in business relationships; initial business and social contacts are characterized by politeness and formality.  Use last names plus san, meaning Mr. or Ms.  Do not suggest that the Japanese call you by your first name. 

Non-Verbal Communications

Japan is a high-context culture; even the smallest gesture carries great meaning.  Therefore, avoid expansive arm and hand movements, unusual facial expressions, or dramatic gestures of any kind.  Some Western gestures convey nothing to the Japanese such as the shrug of the shoulders and the wink between friends.

Pointing is considered impolite; instead, wave your hand, palm up, toward the object being indicated, as the Japanese do.  To attract the attention of another, place the palm down.  Moving the open hand, with the palm facing left, in a fanning motion in front of the face indicates a negative response.  The American "O.K" sign  (thumb and forefinger curled in an "O") means "money" to the Japanese.

A smile can mean pleasure; but it can also be a means of self-control, as when it is used to hide displeasure; keep a smile, even when you are upset.  Laughter can mean embarrassment, confusion, or shock, rather than mirth.  Silence is not as uncomfortable for the Japanese as it is for North Americans; rather, it is considered useful. 

Sniffing, snorting, and spitting in public are acceptable, but nose blowing is not.  When you must blow your nose, use a disposable tissue and then throw it out; never put the tissue in a pocket.

Physical Contact

To get through a crowd, the Japanese may push others.  There is also a gesture meaning, "excuse me," which involves repeating a bow and a karate chop in the air.  Men do not engage in backslapping or other forms of touching.  The Japanese do not approve of male-female touching in public. 

In conversation, the Japanese remain farther apart than do North Americans.  Direct eye contact is not the norm.