Osaka - Sunday, January 30, 2011
Nikkei, Japan’s leading newspaper specialized in business and economy reported today that worldwide demand increase of new mobile terminals such as smart phones is positively impacting revenue of Japanese companies. Toshiba’s consolidated operating profit for 2010 April – December is expected to be the greatest in history. Revenue of many other companies engaged in mobile terminal businesses (manufacturing, services) are expected to drastically increase from previous year. Worldwide smart phone sales is expected to overcome those of PC and the positive effects of mobile market growth on company financial performance is likely to further increase.
However, in the future, competition with global companies as well as among Japanese companies would become tough and it would be a challenge for Japanese companies to improve their competitive edge.
1. How is the recent worldwide trend of mobile terminal market?
It is clear that new mobile terminals including smart phones (e.g. iPhone, Android) and tablets (e.g. iPad) are driving BtoC IT market growth. This is starting to positively impact content industries as well.
According to IDC, a research company based in the U.S., number of smart phone shipped to worldwide market in 2010 reached approximately 298 million, an increase by over 70% from 2009. Number of PC shipped to worldwide market in 2010 reached 300 million, an increase by over 10% from 2009. In 2011 smart phone market is expected to further grow by around 40% and is high probable that more smart phones than PC will be shipped to worldwide market.
2. How is BtoC IT market growth positively impacting financial performance of Japanese IT companies?
Examples of Positive Effects on Japanese IT companies
(Source: Nikkei, translated and edited by the author)
Company Name / Operating Profit (billion yen) / Operating Profit (Increase vs 2009/Effect) / Area of High Performance
Toshiba / 140.0 / 10 folds / Semi conductors, small and mid-sized LCD panels
Fuji Film* / 12.2 / Back to black / Components for LCD panels
Lintec / 17.0 / Double / Equipment for semiconductor production
Taiyo Holdings / 5.0 / 40% / Ink to preserve IC
Anritsu* / 4.3 / 130% / Measuring equipments used in terminal production processes
Soft Bank / 470.0 / 30% / Increase in mobile phone subscriptions attributing to popularity of iPhone
NTT DoCoMo / 758.5 / 8% / Terminal sales growth with new product launches
* Financial announcement for 2010 complete.
GAAP is applied to Toshiba, Fuji Film and NTT DoCoMo.
Examples of Positive Effects on Some Non-Japanese Companies
(Source: Nikkei, translated and edited by the author)
Company Name / Operating Profit (billion yen) / Operating Increase vs. 2009 / Area of High Performance
Apple (U.S.) / 7.8 billion USD (2010 Oct-Dec) / 66% / Worldwide hit of iPhone 4
Samsung (Korea) / 17.3 trillion won (2010) / 58% / IC, mobile phone terminal
1) Electronics (Toshiba)
Flash memories of semiconductors and small and mid-sized LCD panels trade with companies such as Apple was very strong. Consolidated operating profit (GAAP) for April – Dec 2010 is assumed to reach 140 billion yen, which is a drastic increase from April – Dec 2009 which was 12.9 billion yen, and is the greatest since 2002 when they started quarterly financial announcements. With increase in demand, they decided to construct a new LCD component factory in Ishikawa prefecture.
2) Components, Equipments
(1) Fuji Film
Inventory adjustment of components such as polarizer preservation film has been a challenge with more than expected orders but managed it.
(2) Lintec
Consolidated operating profit for April – Dec 2010 marked the greatest in history with strong business in equipments that are used in semiconductor production.
3) Telecommunications (Soft Bank)
Consolidated operating profit for April – Dec 2010 reached 470 billion yen, increase by 30% from previous year and greatest ever, because of revenue increase in data communication.
4) Mobile Content (MTI)
Members paying fees to benefit from music distribution site for smart phones drastically increased. The top executive commented that it is now possible for their smart phone content business to generate revenue similarly to their current mobile content business.
2011年1月29日土曜日
How Successful Chinese New Year Business in Japan Be?
Osaka - Saturday, January 29, 2011
Nikkei, Japan’s leading newspaper specialized in business and economy reported today that consumer electronics mass merchandisers, retailers and tourism are preparing to boost their business by attracting Chinese tourists during the upcoming Chinese New Year, February 2-8. Consumer appetite of Chinese people living in Japan is positive but growth of business from them cannot be expected as much as last year. Chinese tourists visiting Japan, once stopped coming to Japan after Senkaku Island incident in September 2009, have been coming back. Therefore, war to attract consumers that generate high revenue is expected to be extremely fierce this year but with effective promotion can lead to success.
1. How is the recent trend of business with Chinese tourists?
Tourists from China had decreased after Senkaku Island incident in September 2010 mentioned in the previous article Risk Management and Interdependence in Today’s Global Economy but recently they have been coming back to Japan.
According to The Japan National Tourism Organization, Chinese people visiting Japan in 2010 reached 1.41 million people, which is the greatest ever with the increase by 40% from 2009. And according to Japan Department Stores Association, sales from Chinese tourists for December 2010 were +12.4% from December 2009, which was in positive after 3 months of in negative.
2. How are consumer electronics mass merchandisers and retailers preparing to attract Chinese tourists and consumers in Japan?
Examples of the promotion of major companies
(Source: Nikkei, translated and edited by the author)
Company Name / Promotion
Mitsui Fudosan / Event in 8 nationwide outlet malls in which abundant made in Japan products are displayed and sold
Huis Ten Bosch / Chinese style parades with Chinese costumes and music
Fujikyu Highland amusement park / Events for participants to experience Japanese New Year customs such as playing Japanese drums and rice-cake making
Prince Hotels / Chinese dumpling served in breakfast in all 44 nationwide hotels
9 Departments Stores in Hokkaido / Implementation of translation system (English, Chinese, Korean) on iPad
1) Consumer Electronics Mass Merchandisers
(1) Bic Camera
During a specific period, consumers can enjoy maximum of 15% discount in purchasing their consumer electronics products with coupons issued by their Chinese business partners. The discount rate is greater by 2% compared with 2010. Bic Camera hopes to attract “high revenue” customers whose average purchasing price is approximately 50,000 yen, 5 times that of Japanese customers.
(2) Laox
Laox, how a member of the Chinese consumer electronics mass merchandisers leader, recently opened their own drug store in the main store in Akihabara, an area where many consumer electronics retailers gather and many tourists from abroad shop. Col medicine, digestive medicine and dried milk, all popular among Chinese people, will be sold for cross selling.
(3) Yodobashi Camera
Multimedia Akiba, Yodobashi Camera subsidiary store close to Laox mentioned in (2), will expand duty free sales floor from January 30 until February 13. They will add products such as games and expect to increase revenue by 40% from previous year.
2) Retailers
(1) Tokyu Department Store
Department stores in Tokyo will deliver what their customers bought to hotels of the Tokyu Group in Tokyo.
(2) Matsuzakaya
A foreign currency exchange corner recently opened in Matsuzakaya in Ginza, the area where many tourists from abroad visit and shop.
3) Tourism
JTB (Japan Travel Bureau), Japan’s leader in tourism, started a free bus service until February 11 for tourists who made reservation using their web site. The busses will take tourists around shopping spots of Akihabara, Ginza and Asakusa in Tokyo.
Nikkei, Japan’s leading newspaper specialized in business and economy reported today that consumer electronics mass merchandisers, retailers and tourism are preparing to boost their business by attracting Chinese tourists during the upcoming Chinese New Year, February 2-8. Consumer appetite of Chinese people living in Japan is positive but growth of business from them cannot be expected as much as last year. Chinese tourists visiting Japan, once stopped coming to Japan after Senkaku Island incident in September 2009, have been coming back. Therefore, war to attract consumers that generate high revenue is expected to be extremely fierce this year but with effective promotion can lead to success.
1. How is the recent trend of business with Chinese tourists?
Tourists from China had decreased after Senkaku Island incident in September 2010 mentioned in the previous article Risk Management and Interdependence in Today’s Global Economy but recently they have been coming back to Japan.
According to The Japan National Tourism Organization, Chinese people visiting Japan in 2010 reached 1.41 million people, which is the greatest ever with the increase by 40% from 2009. And according to Japan Department Stores Association, sales from Chinese tourists for December 2010 were +12.4% from December 2009, which was in positive after 3 months of in negative.
2. How are consumer electronics mass merchandisers and retailers preparing to attract Chinese tourists and consumers in Japan?
Examples of the promotion of major companies
(Source: Nikkei, translated and edited by the author)
Company Name / Promotion
Mitsui Fudosan / Event in 8 nationwide outlet malls in which abundant made in Japan products are displayed and sold
Huis Ten Bosch / Chinese style parades with Chinese costumes and music
Fujikyu Highland amusement park / Events for participants to experience Japanese New Year customs such as playing Japanese drums and rice-cake making
Prince Hotels / Chinese dumpling served in breakfast in all 44 nationwide hotels
9 Departments Stores in Hokkaido / Implementation of translation system (English, Chinese, Korean) on iPad
1) Consumer Electronics Mass Merchandisers
(1) Bic Camera
During a specific period, consumers can enjoy maximum of 15% discount in purchasing their consumer electronics products with coupons issued by their Chinese business partners. The discount rate is greater by 2% compared with 2010. Bic Camera hopes to attract “high revenue” customers whose average purchasing price is approximately 50,000 yen, 5 times that of Japanese customers.
(2) Laox
Laox, how a member of the Chinese consumer electronics mass merchandisers leader, recently opened their own drug store in the main store in Akihabara, an area where many consumer electronics retailers gather and many tourists from abroad shop. Col medicine, digestive medicine and dried milk, all popular among Chinese people, will be sold for cross selling.
(3) Yodobashi Camera
Multimedia Akiba, Yodobashi Camera subsidiary store close to Laox mentioned in (2), will expand duty free sales floor from January 30 until February 13. They will add products such as games and expect to increase revenue by 40% from previous year.
2) Retailers
(1) Tokyu Department Store
Department stores in Tokyo will deliver what their customers bought to hotels of the Tokyu Group in Tokyo.
(2) Matsuzakaya
A foreign currency exchange corner recently opened in Matsuzakaya in Ginza, the area where many tourists from abroad visit and shop.
3) Tourism
JTB (Japan Travel Bureau), Japan’s leader in tourism, started a free bus service until February 11 for tourists who made reservation using their web site. The busses will take tourists around shopping spots of Akihabara, Ginza and Asakusa in Tokyo.
2011年1月24日月曜日
Japanese Companies Are Changing Global Talent Development Strategy
Osaka – Monday, 24 January, 2011
Following the previous article How Japanese Companies Started Acquiring and Retaining Global Talent, this article introduced how Japanese companies have been developing Japanese employees to make them global talents and what additional actions they started to take. This is because they are short of global talents when they are to globalize their business.
Globalization of the Japanese employees would lead to fostering a global culture with D&I (Diversity and Inclusion) mindset. This would help develop and retain non-Japanese global talent successfully acquired as mentioned in the previous article as well thus would further drive globalization and D&I culture, which is a requirement to survive in the global economy.
1. How can “Japanese business person of global talent” be defined?
Japanese business person of global talent has been a hot topic in media lately in Japan and the definition seems to vary from people to people.
Having said that, based on the articles and discussions on this topic and from her own experience, the author would like to define as “a business person with global employability in today’s global and flat world”. Such global business person would have hard and soft skills and competencies, and mindset such as the following.
- Solid expertise in his/her specialty
- English proficiency
- IT literacy
- Financial literacy
- Logical thinking, analytics, conceptualization
- Communication skills (including inter-cultural communication skills and inter-personal skills)
- Global mindset, D&I spirit
2. What have Japanese companies been focusing on in globalizing their Japanese employees?
Japanese companies have been focusing mostly on developing English fluency. For this reason, many large companies have made all employees to take TOEIC. And for example some companies made the policy that TOEIC 450 points (out of 1000 points) is a requirement to become a manager and TOEIC 650 points is a requirement to work in an international department.
3. What kind of training and development programme have Japanese companies been providing to their employees to make them globalized?
1) English courses
Many companies provide English courses of different levels to meet needs of different English proficiency employees.
2) Overseas Training
Some large companies have overseas training programme. They would select a few “overseas talent” from new graduates and send them to overseas sites for 2 years immediately after a few months orientation training. In the first year the new graduate employees go to a local university to learn English and in the second year they work in the site (sales company, factory etc.). Living, learning and working abroad would not only improve their English but also foster inter-cultural communication skills and global mindset.
After their 2 year overseas training they return to Japan and are usually allocated to international/overseas department.
3) International Assignments
Limited people, very often employees who were allocated in international/overseas department, are sent to sales companies and other sites outside Japan as international assignment for 3 to 5 years per assignment. This would have greater effect in terms of developing global talent than 2 year overseas training.
4) MBA / Business School
Many large companies select candidates among those who applied, train their English and send them to MBA courses in the U.S. Also a few senior people, candidate for senior executive, are sent to study for 6-12 months in business school in the U.S. or Europe. These are aimed to acquire business administration knowledge and logical thinking but would also make the candidates to improve English and to foster global mindset and make them being able to work with diverse team.
3. What are additional actions that Japanese companies to take to further drive globalization of their Japanese employees?
1) International Assignment to all employees graduated from university
Last year many leading trading companies announced the policy of sending all their employees graduated from university for a year or two abroad as international assignment before they become 28 years old.
And, earlier this month, the top 2 trading companies additional announced that with growing China market, they are to send their employees for a year to two to their sites in China as international assignment before they become 28 years old. In the future they aim to make half of their employees be able to communicate in Chinese.
2) English as official language in the workplace
Last year Fast Retailing and Rakuten made English the official language used in the company, although currently the proportion of their overseas business is still low, something like 10% or 20% at the most. The reason is because they plan to grow their overseas business and they believe it would be necessary for all their employees to be able to communicate in English.
English was used in meetings in which non-Japanese participants were included but these two companies now use English in meetings even if the participants are all Japanese. The news about the 2 companies provoked much discussion among many business persons in all industry of all levels of the organization.
3) Hiring exlusively candidates with high English communication skills
Only a few days ago Takeda Pharmaceutical, the pharmaceutical leader in Japan, announced the new policy of one of the new requirements for new graduates in applying to work with them is to have TOEIC score of 730 points or more, regardless of what they studied in university.
4. The author’s final thoughts
Developing Japanese employees to make them global talent does not only mean improving hard skill of their English although it is an important factor. English is simply a tool of communication and other skills such as of their specialty, logical thinking, analytics and conceptualization are also extremely important.
What might be even more important are “soft” skills and competencies such as global and D&I mindset that makes them comfortable working in a diverse team of different culture and background that requires such skills as inter-cultural communication skill. These “soft” skills can only be acquired through experience at work or virtual situation such as in MBA courses and therefore strategic international rotation by international assignments needs to be designed for global talent development as well as achieving short-term goal.
Last but not least, fostering global and D&I mindset among employees does not necessarily mean they all should live and work abroad. It can be fostered even in Japan as long as they work in an environment in which people of different culture and background (including ethnicity) work as a team. For this reason, although few local employees abroad were transferred to work in Japan until today, it is important that international rotation includes people coming into Japan from other countries as well as people going to other countries from Japan. This is eliminating boundaries among countries and regions while respecting each country and region.
Following the previous article How Japanese Companies Started Acquiring and Retaining Global Talent, this article introduced how Japanese companies have been developing Japanese employees to make them global talents and what additional actions they started to take. This is because they are short of global talents when they are to globalize their business.
Globalization of the Japanese employees would lead to fostering a global culture with D&I (Diversity and Inclusion) mindset. This would help develop and retain non-Japanese global talent successfully acquired as mentioned in the previous article as well thus would further drive globalization and D&I culture, which is a requirement to survive in the global economy.
1. How can “Japanese business person of global talent” be defined?
Japanese business person of global talent has been a hot topic in media lately in Japan and the definition seems to vary from people to people.
Having said that, based on the articles and discussions on this topic and from her own experience, the author would like to define as “a business person with global employability in today’s global and flat world”. Such global business person would have hard and soft skills and competencies, and mindset such as the following.
- Solid expertise in his/her specialty
- English proficiency
- IT literacy
- Financial literacy
- Logical thinking, analytics, conceptualization
- Communication skills (including inter-cultural communication skills and inter-personal skills)
- Global mindset, D&I spirit
2. What have Japanese companies been focusing on in globalizing their Japanese employees?
Japanese companies have been focusing mostly on developing English fluency. For this reason, many large companies have made all employees to take TOEIC. And for example some companies made the policy that TOEIC 450 points (out of 1000 points) is a requirement to become a manager and TOEIC 650 points is a requirement to work in an international department.
3. What kind of training and development programme have Japanese companies been providing to their employees to make them globalized?
1) English courses
Many companies provide English courses of different levels to meet needs of different English proficiency employees.
2) Overseas Training
Some large companies have overseas training programme. They would select a few “overseas talent” from new graduates and send them to overseas sites for 2 years immediately after a few months orientation training. In the first year the new graduate employees go to a local university to learn English and in the second year they work in the site (sales company, factory etc.). Living, learning and working abroad would not only improve their English but also foster inter-cultural communication skills and global mindset.
After their 2 year overseas training they return to Japan and are usually allocated to international/overseas department.
3) International Assignments
Limited people, very often employees who were allocated in international/overseas department, are sent to sales companies and other sites outside Japan as international assignment for 3 to 5 years per assignment. This would have greater effect in terms of developing global talent than 2 year overseas training.
4) MBA / Business School
Many large companies select candidates among those who applied, train their English and send them to MBA courses in the U.S. Also a few senior people, candidate for senior executive, are sent to study for 6-12 months in business school in the U.S. or Europe. These are aimed to acquire business administration knowledge and logical thinking but would also make the candidates to improve English and to foster global mindset and make them being able to work with diverse team.
3. What are additional actions that Japanese companies to take to further drive globalization of their Japanese employees?
1) International Assignment to all employees graduated from university
Last year many leading trading companies announced the policy of sending all their employees graduated from university for a year or two abroad as international assignment before they become 28 years old.
And, earlier this month, the top 2 trading companies additional announced that with growing China market, they are to send their employees for a year to two to their sites in China as international assignment before they become 28 years old. In the future they aim to make half of their employees be able to communicate in Chinese.
2) English as official language in the workplace
Last year Fast Retailing and Rakuten made English the official language used in the company, although currently the proportion of their overseas business is still low, something like 10% or 20% at the most. The reason is because they plan to grow their overseas business and they believe it would be necessary for all their employees to be able to communicate in English.
English was used in meetings in which non-Japanese participants were included but these two companies now use English in meetings even if the participants are all Japanese. The news about the 2 companies provoked much discussion among many business persons in all industry of all levels of the organization.
3) Hiring exlusively candidates with high English communication skills
Only a few days ago Takeda Pharmaceutical, the pharmaceutical leader in Japan, announced the new policy of one of the new requirements for new graduates in applying to work with them is to have TOEIC score of 730 points or more, regardless of what they studied in university.
4. The author’s final thoughts
Developing Japanese employees to make them global talent does not only mean improving hard skill of their English although it is an important factor. English is simply a tool of communication and other skills such as of their specialty, logical thinking, analytics and conceptualization are also extremely important.
What might be even more important are “soft” skills and competencies such as global and D&I mindset that makes them comfortable working in a diverse team of different culture and background that requires such skills as inter-cultural communication skill. These “soft” skills can only be acquired through experience at work or virtual situation such as in MBA courses and therefore strategic international rotation by international assignments needs to be designed for global talent development as well as achieving short-term goal.
Last but not least, fostering global and D&I mindset among employees does not necessarily mean they all should live and work abroad. It can be fostered even in Japan as long as they work in an environment in which people of different culture and background (including ethnicity) work as a team. For this reason, although few local employees abroad were transferred to work in Japan until today, it is important that international rotation includes people coming into Japan from other countries as well as people going to other countries from Japan. This is eliminating boundaries among countries and regions while respecting each country and region.
2011年1月15日土曜日
How Japanese Companies Started Acquiring and Retaining Global Talent
Osaka – Saturday, 15 January, 2011
As a follow-up of the previous article Japanese Companies Join War for Global Talent, this article introduces a case of Ricoh http://www.ricoh.com/ a typical Japanese company, of acquiring, developing and retaining global talent, which was introduced in a recent Japanese HRM (human resource management) publication http://www.busi-pub.com/.
1. How are sales and employees of the group company geographically diversified?
56% of worldwide sales come from overseas (outside Japan) and 62% of worldwide employees are located overseas. Geographical diversification of sales and employees are balanced for a Japanese company.
Sales by region
Region / Sales (billion yen) / %
Japan / 876.5 / 43.5
Americas / 557.6 / 27.7
Europe / 458.5 / 22.7
Others / 123.4 / 6.1
Total / 2016.0 /100.0
Employees
Region / Number of employee / %
Japan / 41,118 / 37.9
Americas / 35,000 / 32.3
Europe / 17,239 / 15.9
China / 10,143 / 9.3
Asia-Pacific / 5,025 / 4.6
Total / 108,525 / 100.0
2. Has the company been hiring non-Japanese in Japan already?
Yes and at present there are 84 non-Japanese employees (64 regular, 20 non-regular). Their country of origin are varied including China, South Korea, Taiwan, Germany, France, Russia, the U.S., Kenya, the U.K., Peru, and Malaysia. 80% of new graduate hiring of non-Japanese are engineers.
The reason for non-Japanese hiring is because the company is to increase the percentage of overseas sales, which means they would need more global talent.
300-350 people are hired annually and their target is to hire 30 of them who are non-Japanese, which they have been achieving. However, this does not mean they have been acquiring global talent globally because the process and requirements are exactly the same as Japanese graduates. This means that Japanese fluency would be one of the requirements, which is a big hurdle for majority of non-Japanese.
3. How is the company to change their global talent hiring?
They are to change the target and process of the recruiting. Non-Japanese living in Japan have been their target and therefore their recruiting has been all done in Japan but they will also target people living outside Japan.
The have recently tried something new, which is joining a group recruiting event held in Boston, the U.S. It turned out to be that 90% of the participants of the event are Japanese people studying in the U.S.
They knew there are many non-American participants for the event but they were shocked to know the reality that few non-Japanese students are interested in their company. Thus their challenge is how to attract attention and interest of non-Japanese people and how to navigate them to apply for their positions. Of course, engaging and retaining them would be the challenge as well.
4. What is the impact of increase in non-Japanese employees on workplace?
It is true that the ratio of non-Japanese employees in the company (non-consolidated, some 13,000) is still very low and not every departments has non-Japanese employees thus it takes time for the total company to globalize but there has been some positive impacts.
A Chinese new graduate was assigned as a first non-Japanese in a HR department and he has contributed to changing culture of the department. He casually teaches English and Chinese to members of the department who enjoy learning, which also facilitated communication. An American moved into another department, which encouraged members of the department to learn English.
5. What is the challenges the company is facing or to face in recruiting non-Japanese from outside Japan?
1) Appropriate hard and soft factors to admit non-Japanese employees in the workplace
(1) Hard factors
This is mainly about language issue, making internal infrastructure/DB (data base) and documents bilingual (Japanese and English). The change in the company’s hiring of global talent to be strategically assigned in Japan means they would hire people who cannot understand Japanese but since they have hired people who are fluent in Japanese they did not need to make internal infrastructure and documents bilingual.
(2) Soft factors
This is all about people and culture of the workplace in Japan. It is about people with global and D&I (Diversity and Inclusion) mindset and actions. It is about the D&I culture. This deserves much discussion and a book can be written on this topic so the author would like to refrain from discussion this issue in this article.
2) International job rotation
As explained in the previous article Japanese Companies Join War for Global Talent there were not truly international job rotation in Japanese companies but with acquiring, developing, retaining and engaging global talent and leverage them international rotation would be necessary for globalization of the company and its people. This is one important way of developing employees with global and D&I mindset and cultivating an organization of global, D&I culture.
In one of the upcoming article the author would like explain and discuss how Japanese companies are trying to globalize their Japanese employees.
References:-
Global HR Development of Ricoh (a special article) 2011 January edition of http://www.busi-pub.com/ (in Japanese)
As a follow-up of the previous article Japanese Companies Join War for Global Talent, this article introduces a case of Ricoh http://www.ricoh.com/ a typical Japanese company, of acquiring, developing and retaining global talent, which was introduced in a recent Japanese HRM (human resource management) publication http://www.busi-pub.com/.
1. How are sales and employees of the group company geographically diversified?
56% of worldwide sales come from overseas (outside Japan) and 62% of worldwide employees are located overseas. Geographical diversification of sales and employees are balanced for a Japanese company.
Sales by region
Region / Sales (billion yen) / %
Japan / 876.5 / 43.5
Americas / 557.6 / 27.7
Europe / 458.5 / 22.7
Others / 123.4 / 6.1
Total / 2016.0 /100.0
Employees
Region / Number of employee / %
Japan / 41,118 / 37.9
Americas / 35,000 / 32.3
Europe / 17,239 / 15.9
China / 10,143 / 9.3
Asia-Pacific / 5,025 / 4.6
Total / 108,525 / 100.0
2. Has the company been hiring non-Japanese in Japan already?
Yes and at present there are 84 non-Japanese employees (64 regular, 20 non-regular). Their country of origin are varied including China, South Korea, Taiwan, Germany, France, Russia, the U.S., Kenya, the U.K., Peru, and Malaysia. 80% of new graduate hiring of non-Japanese are engineers.
The reason for non-Japanese hiring is because the company is to increase the percentage of overseas sales, which means they would need more global talent.
300-350 people are hired annually and their target is to hire 30 of them who are non-Japanese, which they have been achieving. However, this does not mean they have been acquiring global talent globally because the process and requirements are exactly the same as Japanese graduates. This means that Japanese fluency would be one of the requirements, which is a big hurdle for majority of non-Japanese.
3. How is the company to change their global talent hiring?
They are to change the target and process of the recruiting. Non-Japanese living in Japan have been their target and therefore their recruiting has been all done in Japan but they will also target people living outside Japan.
The have recently tried something new, which is joining a group recruiting event held in Boston, the U.S. It turned out to be that 90% of the participants of the event are Japanese people studying in the U.S.
They knew there are many non-American participants for the event but they were shocked to know the reality that few non-Japanese students are interested in their company. Thus their challenge is how to attract attention and interest of non-Japanese people and how to navigate them to apply for their positions. Of course, engaging and retaining them would be the challenge as well.
4. What is the impact of increase in non-Japanese employees on workplace?
It is true that the ratio of non-Japanese employees in the company (non-consolidated, some 13,000) is still very low and not every departments has non-Japanese employees thus it takes time for the total company to globalize but there has been some positive impacts.
A Chinese new graduate was assigned as a first non-Japanese in a HR department and he has contributed to changing culture of the department. He casually teaches English and Chinese to members of the department who enjoy learning, which also facilitated communication. An American moved into another department, which encouraged members of the department to learn English.
5. What is the challenges the company is facing or to face in recruiting non-Japanese from outside Japan?
1) Appropriate hard and soft factors to admit non-Japanese employees in the workplace
(1) Hard factors
This is mainly about language issue, making internal infrastructure/DB (data base) and documents bilingual (Japanese and English). The change in the company’s hiring of global talent to be strategically assigned in Japan means they would hire people who cannot understand Japanese but since they have hired people who are fluent in Japanese they did not need to make internal infrastructure and documents bilingual.
(2) Soft factors
This is all about people and culture of the workplace in Japan. It is about people with global and D&I (Diversity and Inclusion) mindset and actions. It is about the D&I culture. This deserves much discussion and a book can be written on this topic so the author would like to refrain from discussion this issue in this article.
2) International job rotation
As explained in the previous article Japanese Companies Join War for Global Talent there were not truly international job rotation in Japanese companies but with acquiring, developing, retaining and engaging global talent and leverage them international rotation would be necessary for globalization of the company and its people. This is one important way of developing employees with global and D&I mindset and cultivating an organization of global, D&I culture.
In one of the upcoming article the author would like explain and discuss how Japanese companies are trying to globalize their Japanese employees.
References:-
Global HR Development of Ricoh (a special article) 2011 January edition of http://www.busi-pub.com/ (in Japanese)
2011年1月10日月曜日
Japanese Companies Join War for Global Talent
Osaka – Monday, 10 January, 2011
Japanese companies are taking actions for globalization of their human resources to survive in globalized economy. This includes hiring Japanese people with global mindset and strategically developing them, and hiring non-Japanese people. The former has been a hot topic discussed by HRM (human resource management) experts and management professionals lately and the author would like to discuss in one of her upcoming article.
The topic of this article is about how Japanese companies have started to proactively hire non-Japanese new graduates.
1. How have human resources of Japanese companies been until today?
Globalization of human resources of Japanese companies are far behind other developed countries and even some emerging countries. It seems to attribute to the mindset of Japanese top executes and the general public; to them abroad is something special for them. Also it might attribute to the fact that Japan market was sufficient for Japanese companies to survive.
Under such a situation, although many Japanese companies such as Toyota and Sony to name a few have been doing business worldwide, their human resources and systems have been domestic. There have been “barriers” between business in Japan market and overseas market thus departments are usually separate and job rotation between the two departments/markets has been not so popular. Executives of sites outside Japan were expatriates from Japan HQ. Local employees were all hired locally and never been rotated to positions in Japan HQ or any other countries and regions outside other than where they were locally hired.
2. Why Japanese companies started to globalize their human resources now?
It is because the situation has changed. Japan is no longer #2 in its GDP. Japan domestic market demand will no longer expand so Japanese companies need to grow their business abroad especially the emerging markets.
However, Japanese companies realized that they lack in human resources that can be competitive in today’s global economy. This is prominent from the survey result implemented by HRM consultant companies.
Therefore, they started to take measure to cope with the drastic change, and one of them is strategically hiring non-Japanese new graduates, especially Chinese, to develop as tomorrow’s leaders.
3. What are some strategies and actions of Japanese companies to hire non-Japanese?
1) In general
Lawson, a leader in convenience store industry (CEO is a MBA holder from a U.S. business school), was one of the first company to strategically some hire none-Japanese new graduates to “bring in new wind in their company”.
Then in late 2010 many Japanese companies, leaders in their industry and operating worldwide such as Mitsubishi Trading and Panasonic, decided to hire so many hundred new graduates from outside Japan, which is 50% or more of their total hiring of new graduates for some companies. They have started contacting top class universities abroad, hosting seminars for new graduates introducing their companies, opening positions and other relevant information.
2) A case of a local retailer
A TV programme that went on air in December 2010 introduced a case in which a local retailer (supermarket) in Kyushu, southern Japan, recruited a female Chinese new graduate. The background of the hiring is their plan of starting business in China in few years and they hired her to develop her as a key person in their business in China.
It is a risk for her to relocate to Japan, away from her family, but she is interested in Japan and she saw the future in working for a Japanese company in Japan, so she made her decision.
The company welcomed her warmly. They provided her with housing and all furniture, which she was satisfied with. They made her start her career in a shop floor so that she would fully understand the business, systems, procedures and company culture from real experience at the shop floor. This approach is often adopted by many Japanese companies. The staff members at her new workplace were all told about her hiring and welcomed her warmly to minimize her culture shock and help her get used to living and working in Japan. It is not long since she started working in Japan so we will have to see her case as a pilot.
4. The author’s final thoughts
Globalization of the organization and human resources was what the author found Japanese companies are far behind their western counterparts when she was working for a Japanese company, and she was convinced it is quite true when she started working for a European company.
To her, it is a little late but she is happy that at least Japanese companies started to join “war for global talent”, a requirement to survive in the global, flat world.
In addition to change in their recruitment, Japanese companies would need to review their total HRM systems to successfully engage, retain and develop new global employees they have managed to hire.
Japanese companies are taking actions for globalization of their human resources to survive in globalized economy. This includes hiring Japanese people with global mindset and strategically developing them, and hiring non-Japanese people. The former has been a hot topic discussed by HRM (human resource management) experts and management professionals lately and the author would like to discuss in one of her upcoming article.
The topic of this article is about how Japanese companies have started to proactively hire non-Japanese new graduates.
1. How have human resources of Japanese companies been until today?
Globalization of human resources of Japanese companies are far behind other developed countries and even some emerging countries. It seems to attribute to the mindset of Japanese top executes and the general public; to them abroad is something special for them. Also it might attribute to the fact that Japan market was sufficient for Japanese companies to survive.
Under such a situation, although many Japanese companies such as Toyota and Sony to name a few have been doing business worldwide, their human resources and systems have been domestic. There have been “barriers” between business in Japan market and overseas market thus departments are usually separate and job rotation between the two departments/markets has been not so popular. Executives of sites outside Japan were expatriates from Japan HQ. Local employees were all hired locally and never been rotated to positions in Japan HQ or any other countries and regions outside other than where they were locally hired.
2. Why Japanese companies started to globalize their human resources now?
It is because the situation has changed. Japan is no longer #2 in its GDP. Japan domestic market demand will no longer expand so Japanese companies need to grow their business abroad especially the emerging markets.
However, Japanese companies realized that they lack in human resources that can be competitive in today’s global economy. This is prominent from the survey result implemented by HRM consultant companies.
Therefore, they started to take measure to cope with the drastic change, and one of them is strategically hiring non-Japanese new graduates, especially Chinese, to develop as tomorrow’s leaders.
3. What are some strategies and actions of Japanese companies to hire non-Japanese?
1) In general
Lawson, a leader in convenience store industry (CEO is a MBA holder from a U.S. business school), was one of the first company to strategically some hire none-Japanese new graduates to “bring in new wind in their company”.
Then in late 2010 many Japanese companies, leaders in their industry and operating worldwide such as Mitsubishi Trading and Panasonic, decided to hire so many hundred new graduates from outside Japan, which is 50% or more of their total hiring of new graduates for some companies. They have started contacting top class universities abroad, hosting seminars for new graduates introducing their companies, opening positions and other relevant information.
2) A case of a local retailer
A TV programme that went on air in December 2010 introduced a case in which a local retailer (supermarket) in Kyushu, southern Japan, recruited a female Chinese new graduate. The background of the hiring is their plan of starting business in China in few years and they hired her to develop her as a key person in their business in China.
It is a risk for her to relocate to Japan, away from her family, but she is interested in Japan and she saw the future in working for a Japanese company in Japan, so she made her decision.
The company welcomed her warmly. They provided her with housing and all furniture, which she was satisfied with. They made her start her career in a shop floor so that she would fully understand the business, systems, procedures and company culture from real experience at the shop floor. This approach is often adopted by many Japanese companies. The staff members at her new workplace were all told about her hiring and welcomed her warmly to minimize her culture shock and help her get used to living and working in Japan. It is not long since she started working in Japan so we will have to see her case as a pilot.
4. The author’s final thoughts
Globalization of the organization and human resources was what the author found Japanese companies are far behind their western counterparts when she was working for a Japanese company, and she was convinced it is quite true when she started working for a European company.
To her, it is a little late but she is happy that at least Japanese companies started to join “war for global talent”, a requirement to survive in the global, flat world.
In addition to change in their recruitment, Japanese companies would need to review their total HRM systems to successfully engage, retain and develop new global employees they have managed to hire.
2011年1月8日土曜日
Cool Japan Strategy: Japanese Culture Export in 10 Businesses
Osaka – Saturday, January 8, 2011
Nikkei, Japanese leading newspaper specialized in business and economy, reported today in its evening paper that by implementing “Cool Japan” strategy the Japanese government (METI: Ministry of Economy, Trade and Industry) is to initiate new businesses to promote export of Japanese culture of animation, fashion and foods that are highly evaluated and popular abroad from 2011. Such initiatives include installation of time-limited antenna shops that introduce Japanese sake (alcoholic drink) and food, and collaboration with local distributors to proliferate Japanese culture. The initiatives are expected to drive export of products of small and mid-sized companies and individuals (craft men and creators), to achieve export or 13 trillion yen in 2020.
1. What is Cool Japan Strategy?
It is a strategy in which Japanese products with global competitiveness in fashion, design, content such as animation and movies, food industries are positioned as “Cool Japan = Japanese culture that the world find it cool” and are used as drivers in expanding business worldwide and attracting tourists from around the globe. The Japanese government had developed Cool Japan Strategy and included in the New Strategy of Japan that was agreed among the cabinet members in June 2010.
2. How has the Japanese government been initiating the Cool Japan Strategy?
METI established Cool Japan Office in June 2010, which is planned to be up-graded to a department headed by “Creative Industry Councilor” in 2011, integrating all departments engaged in fashion and content business. Thus, the department is to promote Cool Japan strategy across the related industries.
METI allocated 1.4 billion yen for Cool Japan Strategy in the 2011 budget. The budget is to be used in 10 businesses that have been selected together with target country/region in order to drive export in fashion and household goods to China and in selling animation and consumer electronics to Brazil that adopted Japanese format in digital terrestrial broadcast.
10 Selected Businesses of Cool Japan Strategy
(Source: Nikkei, translated and edited by the author)
Country or Region / Business / Objective
Asia / Food / Introduce Japanese food culture and sell good, alcoholic drinks, dishes etc.
Asia / Housing / Sell housing, environmentally-friendly electronics, furniture etc.
China / Fashion, household goods / Collaborate with shopping mall targeting the rich
China / Content / Leverage Japan & China co-hosting events such as of movies
South East Asia / Japan regional traditional goods / Branding of Japan regional traditional goods
South East Asia / Fashion, household goods / Export Harajuku Brand targeting the young
India / Fashion / Collaborate with local fashion media
US / Food / Establish Japanese food and alcoholic drinks
US / Content / Export content leveraging animation and 3D technologies to Hollywood
Brazil / Content, consumer electronics /Proliferate TVs and One Seg mobiles leveraging animation at the timing of FIFA and Olympics
3. What are concrete examples of the initiatives?
For example, in China, consortium constituted by Japanese product planners and producers such as designers and small and mid-sized companies will be established. Then products will be gathered at antenna shops and EC website for experimental sales locally. In addition, collaboration is to be made with local distributors that have access to shopping malls to make experimental sales into sustainable sales. When this system becomes a success, it will be rolled out to other businesses.
4. Who are the main players in Japan Cool culture industries?
It is mainly individuals of designers and creators, and small and mid-sized companies. Many of them have difficulty in starting business abroad themselves due to insufficient capital and know-how. METI would like to discover such business owners and match them with overseas business owners to develop as an export industry. METI also believes that it would contribute to creating jobs for the young generation.
5. What are the assumed positive effects of the initiative?
1) Increase in export
METI estimates that worldwide market size of fashion, food and content in 2020 will be 932 trillion yen. Achieving feasible market share of 1.4% means 13 billion yen export, which is far greater than the current export.
2) Image enhancement of Japan
Proliferation of Japanese culture industries around the globe to expand business would lead to image enhancement of Japan as well. These initiatives are similar to Cool Britania initiatives of the U.K. in latter 1990s, and the recent South Korea initiatives of which export in consumer electronics and apparel increased through export of life style via export of movies and TV dramas to Asian countries.
Nikkei, Japanese leading newspaper specialized in business and economy, reported today in its evening paper that by implementing “Cool Japan” strategy the Japanese government (METI: Ministry of Economy, Trade and Industry) is to initiate new businesses to promote export of Japanese culture of animation, fashion and foods that are highly evaluated and popular abroad from 2011. Such initiatives include installation of time-limited antenna shops that introduce Japanese sake (alcoholic drink) and food, and collaboration with local distributors to proliferate Japanese culture. The initiatives are expected to drive export of products of small and mid-sized companies and individuals (craft men and creators), to achieve export or 13 trillion yen in 2020.
1. What is Cool Japan Strategy?
It is a strategy in which Japanese products with global competitiveness in fashion, design, content such as animation and movies, food industries are positioned as “Cool Japan = Japanese culture that the world find it cool” and are used as drivers in expanding business worldwide and attracting tourists from around the globe. The Japanese government had developed Cool Japan Strategy and included in the New Strategy of Japan that was agreed among the cabinet members in June 2010.
2. How has the Japanese government been initiating the Cool Japan Strategy?
METI established Cool Japan Office in June 2010, which is planned to be up-graded to a department headed by “Creative Industry Councilor” in 2011, integrating all departments engaged in fashion and content business. Thus, the department is to promote Cool Japan strategy across the related industries.
METI allocated 1.4 billion yen for Cool Japan Strategy in the 2011 budget. The budget is to be used in 10 businesses that have been selected together with target country/region in order to drive export in fashion and household goods to China and in selling animation and consumer electronics to Brazil that adopted Japanese format in digital terrestrial broadcast.
10 Selected Businesses of Cool Japan Strategy
(Source: Nikkei, translated and edited by the author)
Country or Region / Business / Objective
Asia / Food / Introduce Japanese food culture and sell good, alcoholic drinks, dishes etc.
Asia / Housing / Sell housing, environmentally-friendly electronics, furniture etc.
China / Fashion, household goods / Collaborate with shopping mall targeting the rich
China / Content / Leverage Japan & China co-hosting events such as of movies
South East Asia / Japan regional traditional goods / Branding of Japan regional traditional goods
South East Asia / Fashion, household goods / Export Harajuku Brand targeting the young
India / Fashion / Collaborate with local fashion media
US / Food / Establish Japanese food and alcoholic drinks
US / Content / Export content leveraging animation and 3D technologies to Hollywood
Brazil / Content, consumer electronics /Proliferate TVs and One Seg mobiles leveraging animation at the timing of FIFA and Olympics
3. What are concrete examples of the initiatives?
For example, in China, consortium constituted by Japanese product planners and producers such as designers and small and mid-sized companies will be established. Then products will be gathered at antenna shops and EC website for experimental sales locally. In addition, collaboration is to be made with local distributors that have access to shopping malls to make experimental sales into sustainable sales. When this system becomes a success, it will be rolled out to other businesses.
4. Who are the main players in Japan Cool culture industries?
It is mainly individuals of designers and creators, and small and mid-sized companies. Many of them have difficulty in starting business abroad themselves due to insufficient capital and know-how. METI would like to discover such business owners and match them with overseas business owners to develop as an export industry. METI also believes that it would contribute to creating jobs for the young generation.
5. What are the assumed positive effects of the initiative?
1) Increase in export
METI estimates that worldwide market size of fashion, food and content in 2020 will be 932 trillion yen. Achieving feasible market share of 1.4% means 13 billion yen export, which is far greater than the current export.
2) Image enhancement of Japan
Proliferation of Japanese culture industries around the globe to expand business would lead to image enhancement of Japan as well. These initiatives are similar to Cool Britania initiatives of the U.K. in latter 1990s, and the recent South Korea initiatives of which export in consumer electronics and apparel increased through export of life style via export of movies and TV dramas to Asian countries.
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