How Far Can Business Methods Developed In One Country Be Applied In Another

How Far Can Business Methods Developed In One Country Be Applied In Another

Length: 1778 words (5.1 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
The question states the transferability of business methods from one country to another, via Japanese techniques. However, in order to answer, we must define the term culture, as the term culture encompasses business methods, i.e. in order to adopt foreign business methods we must adopt its culture. In Needle's (1994) definition of culture he states, "A particular interest in business is the extent to which we can learn from the business experiences of other cultures and transplant ideas d eveloped by businesses in one culture and use then in a totally different setting."

A major implication of the work of Hofstede (1980) and Trompenaars (1994) and other contributors to the knowledge about international culture and management is that "cultural interpretation and adaptation" are a necessary prerequisite to the comparative understanding of national and international management practice.

Hofstede suggests that while 'hard - nosed' (short termist, task/result orientated) American or Anglo-Saxon approachs to business management may work well in Chicago, they may be counterproductive in Japan.

More specifically, the procedure of international cultural adaptation may be applied to the three following areas: 1. Motivation theories, 2. Leadership concepts,
3. Management by Objectives (MBO)

The three areas are described by Hofstede as symptomatic of the issue at hand. Hofstede states that "not only organisations are culture bound; theories about organisations are equally culture bound." Morden (1993) comments "There is no guarantee, therefore, that theories and concepts developed within the cultural context of one country can with good effect be applied in another. This implies that it is not possible for such theories to be 'universally valid'."

In the UK, interest has been awakened by the considerable investment in the economy by major Japanese firms, who have entered certain key industries, such as motor manufacturing and electronics. Whilst taking advantage of investment incentives offered by the British Government, and the range of skills offered by British workers, these Japanese companies (e.g. Toyota, Honda, Panasonic, etc.) have also introduced several of their own personnel and production practices. These have been adapted to achieve the acceptance of the managers and workers concerned, especially in relation to production methods, quality control and management worker attitudes. A comparison between east and west industrial environments can simply illustrate culture differences., In particular, Britain versus Japan. Nevertheless, a number of Japanese management practices have been adopted very successfully in a British context (e.g. Nissan).

One of the important general difference between Japanese and British companies lies in the way they are funded.

How to Cite this Page

MLA Citation:
"How Far Can Business Methods Developed In One Country Be Applied In Another." 07 Dec 2019

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

International Trade And Commerce : A Very Tangible Part Of How Business Essay

- In the last century, globalization has become a very tangible part of how business is conducted. Technological advancement allows international trade and commerce to happen rapidly and easily while the advancement in how goods are transported and how people communicate have had a drastic effect on the globalization of business. Management practices and culture also has a bearing on how international enterprise has is conducted. Managers have to adapt to different management practices, adjust to a new culture, and sometimes face ethical issues in a foreign field....   [tags: Management, Sociology, Business ethics, Ethics]

Research Papers
1164 words (3.3 pages)

A Brief Note On Kenya And A Largest Sub Saharan African Country Essay

- When imagining being an entrepreneur in the United States people typically only think of the luxurious side of the job, such as, setting your own hours, being able to call all the shots, and being able to make big paychecks on your own terms; very rarely, if ever do people consider the amount of obstacles that must be overcome and hard work that has to be done in order to build a successful business. This proves to be even more accurate in poor, underdeveloped countries such as Kenya. Kenya is a large sub-Saharan African country located in Northeast Africa....   [tags: Entrepreneurship, Entrepreneur, Joseph Schumpeter]

Research Papers
981 words (2.8 pages)

Business Environment : Starbucks New Zealand Essay

- Business Environment – The firm is considered a coffee giant company that is a big brand in the business being able to expand aggressively in the market worldwide before it entered in New Zealand. But the business environment of this country is quite unimaginable for a US based company for it to venture without having a thorough marketing analysis covering all the risks in the venture considering the distance and the traditions which differs a lot in many countries thus making it very unique and incomparable....   [tags: Strategic management, Strategic planning]

Research Papers
917 words (2.6 pages)

Applied Business Research Case Study Essay

- The field of business management continues to evolve as organizations engage in the ever-changing global market. After years of unscrupulous corporate leaders managing and leading some of the world’s biggest corporations to failure, researchers and business leaders realize the need for ethical and sound leadership. The need for ethical and sound leadership helps to facilitate and manage daily operations and to sustain their competitive advantage within the global economy. However, with this evolution, numerous research studies add to the understanding of leadership theories and the effects on organizational climate and culture....   [tags: Business, Organization, Leadership Styles]

Research Papers
937 words (2.7 pages)

How Innovation and Creativity can Benefit an Organisation, Its Customers, and Stakeholders

- How Innovation and Creativity can benefit an organisation, its customers, and stakeholders. The present age of globalisation, deregulation, and acquisitions has led to increased competition and rapid technological advancement. Today’s organisations are increasingly looking toward Creativity and Innovation as a business strategy to enable them to compete and survive. The past widespread use of management initiatives such as, ‘low cost outsourcing’ ‘downsizing ‘business re-engineering’ and over the counter IT enterprise packages ERP, SAP , ‘Six Sigma’/’Kanban’ lean manufacturing have all played their part providing a competitive edge of lower costs and reduced expenses by streamlining internal...   [tags: Business Management]

Research Papers
1733 words (5 pages)

`` Out Of A Far Country `` Essay

- We are all sinners in God’s eyes. No sin is too great for God to forgive and no one has fallen too deep for God’s forgiveness. God hates homosexuality, but He does not hate homosexual people. He offers his grace and forgiveness to all who come to him in repentance and faith. Christopher Yuan’s life is an example of how God’s grace and mercy is displayed in his conversion from a homosexual lifestyle to a committed Christian. In his book, Out of a Far Country, Yuan explains his journey to Christ. From his youth, Christopher realized he was gay because he was attracted to other boys....   [tags: Homosexuality, Same-sex marriage, LGBT]

Research Papers
1491 words (4.3 pages)

Recommendations To Start a Business in a Foreign Country Essay

- Singapore as a country selection holds some disadvantages as well. First, Sysco will face the challenge as a food distributor some resistance to exporting their goods for Food safety concerns. The Singapore government holds “strict public policies of food safety’ (MacLaren, 2006), which is a good regulation to have, but also as a new company entering the country, the rigorous initial inspection may elongate the exporting into Singapore. There also exist the issues of strict legal liabilities, if they were ever to arise, and the lack of rules and regulations to an unknown jurisdiction....   [tags: International Business]

Research Papers
793 words (2.3 pages)

An Ethical Theory Applied to Business Organizations Essay

- The object of this essay is to establish whether there is an ethical theory that can be successfully applied to business organizations. In order to answer this question, it is necessary first to define the major ethical theories, which are utilitarianism, deontology and virtue ethics, before determining whether there are any other options. After that, the ethical needs, problems and limitations of work organizations will have to be examined so that the different theories can be evaluated in this context....   [tags: Business Ethics]

Research Papers
2803 words (8 pages)

Teaching an Applied Critical Thinking Course: How Applied Can We Get? Essay

- Teaching an Applied Critical Thinking Course: How Applied Can We Get. ABSTRACT: Encouraging students to apply classroom knowledge in their personal, everyday life is a major problem confronting many teachers of critical thinking. For example, while a student might recognize an ad hominem argument in a classroom exercise, it is quite another thing for him or her to avoid the same in interpersonal relations, say with parents, siblings, and peers. One approach to this problem is the creation of interaction software to which students can turn for input on the rationality of their own thinking....   [tags: Applied Philosophy Papers]

Research Papers
3258 words (9.3 pages)

Corporate Law Essay

- Harmonization of private international law aspects concerning corporations is the best way to resolve the uncertainties surrounding corporate cross-border mobility. Harmonization of substantive laws concerning corporations is, on the other hand, unattainable and undesirable. Discuss in relation to: (i) Regulating company law matters; AND (ii) Regulating their insolvency. 1. Introduction Modern day corporations with their multilateral nature have created their owned corporate governance regime. Proponents argue that this corporation are replacing states and brining their own current in world’s economy especially the free market....   [tags: Business, Free Market]

Research Papers
1472 words (4.2 pages)

Related Searches

For example, in Japan, there is much reliance on shareholders for the funding of business. Instead the major banks play the greater role in providing funds. One result of this is that the Board of Directors is more powerful than the shareholders' meeting. The Board determines the long term strategy of the company, appointing an Executive Board made up of senior direcors, which concentrates on short-term, operational issues. Most Japanaes directors have line responsibilities, and this gives the Executive Board a strong production emphais.

A second difference is that the trade unions in Japan are company based rather than occupationally based, as in Britain. The company based approach to trade union organisation is a reflection of a unitary attitude towards employee relations. Thus, employees are only able to join their company union, whose primary aim will be to achieve lifetime job security for its members, and ensure, in collaboration with the management, the success and efficiency of the company, upon which everyone depends. This contrasts strongly with British trade unions, for example, where the emphasis is clearly on protecting and promoting the members interests, although naturally this in practice implies support for the employment opportunities offered by the business concerned.

A third difference is that personnel policies in Japanese firms are based on a number of specific assumptions, which have to be seen against a background of loyalty to the company, and identification with its products and ultimate success. Cole (1996) describes it as, "a strong adherence to company culture." He exerts the key assumptions that lie at the root of Japanese employee relations are as follows:

- the workforce will be composed of a core labour force supported by casual or part-time employees.
- lifetime employment will be offered to core workers only
- retirement of core workers at age 55 is insisted on
- career paths for core workers are non-specialised, and job flexibility is a key feature of all work
- pay is based on seniority
- considerable attention is paid to employee selection and training
- collaboration and team-working are seen as essential
- the culture is egalitarian in which single status predominates
- promotion is invariable from within the workforce.

Fourthly, the organisation structure of Japanese companies, whilst still hiercachiacal, is much less dependant on formal, burecractic authority than on group consensus and individual expertise. Decision making processes in Japanese firms are focused on defining questions rather than on finding solutions. Thus, as all levels of the organisation are involved in this process, so an overall consensus on problems and priorties emerges. This consensus approach tends to reinforce feelings of loyalty and commitment from all concerned.

Finally, particular attention is paid to production planning and quality issues. Points of interest here include:quality control is seen as the responsibility of every employee not just supervisors and an overall sense of teamwork and commitment to company business goals is encouraged.

To see Japanese management practices have been adapted in the context of employee relations in the UK, Cole states the typical features of employment conditions in Japanese owned companies in Britain as:
- Terms and conditions of collective agreements are held to be binding on both sides
- There is a 'no strike' clause in procedure agreements
- Single status applies, i.e. all employees are staff, receive annual salaries and the share the same facilities.
- Selection if rigorous and training is thorough.
- Great attention is paid to the quality of work and the efficiency of systems.

Japanese firms investing in Britain have undoubtedly been able to take advantage of a situation which was favourable to them, i.e. unemployment in the areas selected for investment has been high, enterprise zones have been made available from government and trade union power has been diminishing. However, it is clear that such firms have won the support of their workers, who have demonstrated their ability to collaborate positively with the Japanese styles of management to produce quality products. What is interesting to note is that many of the practices mentioned are by no means new to British management. The pay off for the Japanese companies who have invested in Britain is that they have been able to provide themselves with regional manufacturing bases from which to launch their products into Europe at a time when that continent is steadily becoming one vast market.

Now to consider an actual example of transferability. Harrision (1991) describes the UK industrial environment through British peoples attitude in the early 1980's. That is, that the main incentive is money, the enforcement of company rules is not strict and the improvement in working practices and productivity is purely managerial. Whilst Japanese attitudes towards work vary significantly. He states "the majority of Japanese workers committed themselves to a full days work, adhered strictly to company rules and procedures and strived to improve". Harrison obtained his comparative view after the decision to establish a Japanese company in the UK.

Harrison set out to create an ideal management approach which would be strong enough to compete with Japanese companies in Japan. It comprised ways of life, the nature of people and customs for conducting business. In the different Western environment, he could not introduce the Japanese way directly. The route that he chose was to set out to transform the essence of the successful Japanese way into a new way which would be successful in the Western environment.

Firstly, he listed the good aspects of the Japanese way. Then he developed the essential points of the Japanese way by discarding Japanese specialities such as tradition and habit. Finally, he added back Western specialities to the essential points to develop a 'successful Western way'.

For example: Japan has a long history of rice farming in small fields, where people who formed small communities could not survive unless as a team. Flexibility and small group activity was maintained because the need to start from scratch due to the second world war. Teamwork benefits the industrial envirobnment. However, he could not use the team spirrit tradition as in Japan, and instead replaced with with the western sport and games. His other aspects included, loyalty to work, and flexibility of work. Here the speciality is interest in challenge of hobbies. If companies can provide individual memebers with opportunities to develop their own interest, such people become flexible in work.

Dunning (1986) asked affiliates themselves what working practices did they think difficult to transfer from Japan. He states:

"There was a strong feeling among both Japaneses and UK managing directors and personnel managers that while most Japanaese style personnel practices could be satisfactorily introduced into the UK environment ('after all,' quipped one UK personnel director, 'they are common sense') there remained a fundamental difference between the attitudes to work by Japanese and UK workers."

How far will these differences in anglo-japanese culture and work ethic, which is believed as the most signigicant non-tranferable reasons for differences in the performance of the Japanese worforce, will last as they beome multinational, remains to be seen. Neither should it be assumed that one culture or ethic is preferable to the other.

Hence, it may well be that as Japanese particiapation grows in the UK industry, Japanese personnel polices will need to be more carefully and selectively approached to take account of the idiosynchrasiess of the individuial UK worker and the labour environment than has been necessary up to now.

Countries should recognise the strengths within individual cultures and use those strengths to make the essential points work for them in creating their own management style as clearly seen by Harrison and work effectively. The objective is to make each country and its people wealthy and prosperous. To achieve this, all people must strive to work creatively and with good application.


1. How to make Japanese managament methods work in the west.
Kazuo Murata and Alan Harrison, Gower Publishing (1991)

2. Japanese Participation in British industry.
John H. Dunning, Routledge (1986)

3. Management theory and practice.
G A Cole, DP Publications (1979)

4. Riding the waves of culture.
Fons Trompenaars, The Economist Books (1993)

5. Business in Context.
David Needle, Chapman & Hall (1994)

6.Culture's consequences: International differences in work-related values
G Hofstede, Sage Publications (1980)

7. Business Strategy & Planning
Tony Morden, McGraw Hill (1993)
Return to