the environment. Likewise, most Japanese will go to great lengths not to offend anyone or create open conflict or argumentation. As a result, communications in Japan tends to emphasize context at least as much as content. Nonverbal signs and signals are frequently used to convey thoughts in cases where words may be inappropriate.Japanese are frequently described as being moderately monochromic. That is, they tend to focus on one or only a few tasks at a time and clearly separate work and family issues as they relate to the workplace. And finally, many observers have noted that Japanese society tends to be highly particularistic. That is, while clear rules of law pervade society, exceptions are routinely made for friends and family or for powerful and influential people.and management trends in Japan s large vertically integrated keiretsu organizations (eg, Sumitomo, Mitsui,, Matsushita) represent a unique approach to organization that has served their companies and their country well over the years. The design of these organizations is rooted in Japanese history and is successful largely because it is congruent with the national culture. The effects of this congruence can be seen in the unsuccessful attempts of many Western firms to imitate the basic keiretsu design. In contrast to their Anglo-American and even to some extent some European counterparts, Japanese firms tend to treat their employees as a fixed cost, not a variable cost, and relationships with suppliers tend to be closer and more stable over time. Executives have less power and decision making is distributed throughout the firm. Financing is more likely to come from inside the Japanese conglomerate s own financial institutions (eg, company-owned banks or insurance companies), while marketing research and even legal advice is frequently done within the group. Finally, Japanese unions tend to be company unions (referred to as enterprise unions (see below)) and are more closely associated with company interests than is the case in the Westcceed in business, various individual Japanese companies (kaisha in Japanese) join together to form a business group, or keiretsu network. The keiretsu provides financial, organizational, legal, and logistical support for its sister companies. For example, when Mitsubishi Motors (a kaisha) needs glass, sheet metal, electrical components, or fabric for its automobile assembly line, it is likely to secure most if not all of these materials from other companies within the Mitsubishi Business Group (a keiretsu ). Obviously, not being a keiretsu member can lead to isolation and missed business opportunities. It is this isolation from the market - not being allowed membership in key business relationships - that many Western companies object to in attempting to conduct business in Japan.keiretsu can be divided into two basic types: horizontal (yoko) and vertical (tate). A horizontal keiretsu consists of a group of interlocking companies typically clustered around a main bank, a lead manufacturer, and a trading company, and overseen by a President s Council consisting of the presidents of the major group companies. Exhibit 6.4 illustrates how a horizontal keiretsu is organized. The Big Six horizontal keiretsu are Mitsui, Mitsubishi, Sumitomo, Fuyo, Sanwa, and Dai-Ichi Kangyo Bank Group. By contrast, a vertical keiretsu consists of a large manufacturing company surrounded by numerous small and subservient suppliers and distri...
