Osaka - Sunday, March 13, 2011
On Friday afternoon of March 11, magnitude 8.8 earthquake (being revised just now, 12:57, to 9.0, in the explanation broadcasted in the TV news, because of multiple collapse of fault) struck Northern East Japan, provoking huge tsunami, which is described as “Death Wave” and “Hell on Earth” by the U.S. media headlines. This is the largest in Japan with the energy is 180 times that of the Kobe earthquake in 1995 that made the beautiful Kobe city (in western Japan) into a hell all at once mostly with fire, in which as many as 6000 people or more died.
Investigation, rescue and support will be ongoing for a while. Smaller earthquakes of magnitude 3-5 has been continuing in places or wide a scope including in southern area such as Ibaragi, Chiba, Tokyo and Nagano, which is assumed to continue for a month.
1. How is the situation as of 12:55 of March 13 (Japan time)?
1) North Eastern Japan
According to the TV news the author had been watching wince this morning, more than 2,100 people are dead or missing (the number continuously increases even when the author is watching the news), 10,000 people cannot be contacted, 2.15 million households are still without electricity, hundreds of houses are destroyed and hundreds of people are still being evacuated. The devastated area remains submerged. Transportation is paralyzed.
2) Other parts of Japan (Kanto area such as Tokyo, Chiba, Saitama, Kanagawa and others)
Even Tokyo and prefectures around Tokyo, far away from the earthquake, were severely affected. Tokyo suffered from earthquake of magnitude 5. Some buildings were partially collapsed. Public transportation paralyzed on March 11 and therefore people had to walk from work/ school or stay overnight and Shinkansen bullet train also stopped (thus people could not return from Osaka, western Japan, to Tokyo), but recovered smoothly the next day.
According to the TV news, currently 310,000 households in Kanto area are without electricity, and 1.4 million houses from Hokkaido to Kanto are without water. Also, Tokyo Disneyland and Disney Sea in Chiba will be out of service for a while.
3) Factories of leading Japanese Companies
Many global companies located in Japan with factories in the devastated area or in places nearby are forced to stop domestic production for a while, as reported by media including those of the leading U.S. media on March 12. Such companies include automobiles such as Toyota, Nissan and Honda, and consumer electronics such as Panasonic, Sony and Toshiba.
2. How were the actions by various parties?
People evacuated as instructed by government, and investigation and rescue have been ongoing. Experts have been getting together to share information and discuss.
Over 60 countries and regions around the globe including New Zealand that recently suffered from their own earthquake tragedy offered for help and staff are now arriving one after the other this morning. Some countries such as Germany and the U.K. arrived. 150 people from the U.S to arrive soon (or arrived by now).
The Japanese government decided to increase SDF (Self Defense Force) of Japan from original plan of 50,000 to 100,000.
Telecommunication and IT companies have been quick in starting services to help people to connect, share information and find missing people.
Red Cross and many NPOs were also quick in their actions to help. Some individuals also started to act such as donations.
3. What are the lessons from the tragedy?
1) Importance of Risk Management, BCM/BCP and Crisis Communication
It may well be difficult to have simulation training like the one the author experienced at work in 2007 for pandemic flue BCM (Business Continuity Management) / BCP (Business Continuity Plan) and crisis communication but risk management is necessary so if an emergency similar to this earthquake should occur in the future all parties can take appropriate actions immediately and disaster is minimized.
At least manuals should be ready and actions should be taken based on the manuals.
Crisis communication is especially the meaningful lesson from the Fukushima atomic reactor issue. This issue is something unique and significant to this earthquake tragedy yet the information became snarled and many people were confused. This is because this issue was reported with possibility of the meltdown by worldwide media before the official announcement was made by the Japanese government (speech by the Prime Minister and then explanation by the Chief Cabinet Secretary from 20:30 on March 12, which was after the explosion of the first reactor around 15:30. It turned out to be that it was not of the meltdown, the worst scenario, but it seems to take time to “correct” the information once proliferated worldwide.
It is highly understandable that the government needed time to investigate and find out the truth before making an official announcement but they could have minimized misunderstanding if they acted differently much earlier. The government has been disclosing information in a timely manner since the announcement last night and frequent updates have been made this morning.
2) Importance of integrity in accurate information sharing
There have been chain mails which had spread incorrect, negative information about a gas station company whose source and how it started is completely unknown. The corporate communications of the company immediately made a comment saying so and that the company is very sorry to have made nearby residents worried.
With social media, everyone can be a publisher and share information online to make it “viral” so responsibility of the individuals is vital and the key words would be “integrity” and “calmness”.
The above is an exceptional case and there have been information sharing based on “integrity”, helping to overcome the tragedy. Some examples to name just a few include calling to all people in Japan to save energy and transfer the saved energy to areas that suffer from electricity shortage, sharing information about the services of telecommunication and IT companies mentioned above, sharing useful websites, and asking people for information about the friends who cannot get in contact with.
4. The author’s final thoughts
Whatever the situations might have been until now, we cannot go back to the past. We simply need to move forward. We cannot afford to insult or fight with internal and/or external stakeholders. Every individual, every organization and every country/region is expected to help one other, do what he/she can, and fulfill his/her responsibility.
Of course, we need to learn from the incident so that we can manage should something similar occur in the future.
We are all connected and inter-dependence in the today’s global world. That is how we can all survive, co-exist, co-prosper, and realize sustainability.
Resources:-
The earthquake and tsunami tragedy that struck Northern East Japan presents lessons such as risk management and crisis communication, and what kind of mindset and actions we (individuals, organizations, countries/regions) need to have to overcome tragedies. Such mindset and actions are also requirements for sustainability of all of us in the today’s global world.
2011年3月8日火曜日
Shinkansen Bullet Train Extension Throughout Japan – Meaning, Benefits, Actions
Osaka - Tuesday, March 8, 2011
With completion of the extensions, Shinkansen bullet train is to go through across from north to south Japan on March 12 (excluding Hokkaido and Okinawa islands). This allows us to travel more than 2000km from Aomori in the north end of the mainland to Kagoshima in the south end in of Kyushu in southern Japan by train only in about 8 hours. This project has been ongoing for many years and is expected to boost tourism and economy of regions and towns along the Shinkansen, while competition between railway and aviation industries would become fierce.
1. How has the Shinkansen bullet train been until today?
The Shinkansen service first started between Tokyo and Osaka of 552km in 1964. The service was then extended between Osaka and Hakata (capital of Kyushu in southern Japan) of 644km. More extension followed from Tokyo towards northern Japan and towards Japan Sea Regions of Johetsu and Hokuriku to name a few.
At first there were Kodama, which stops at every station and Hikari, which is express. It used to take 3 hours from Tokyo to Osaka by Hikari but with the availability of Nozomi, super express, since 1993 it now takes only 2-1/2 hours from Tokyo to Osaka.
2. What is the Shinkansen bullet train route extension project?
It is to extend to make the route truly extending across the nation from north to south. The recent northward extension to Aomori of 714km was complete and the service started on March 5, 2011. And the southward extension in Kyushu from Hakata (northern Kyushu) to Kagoshima (southern Kyushu) of 2167km is to complete to start its service on March 12, 2001.
The two extensions are one of the hottest news among the many past extensions. The ticket to ride on the first extended Shinkansen sold out in less than 5 minutes.
More extensions are ongoing and being planned across to cover major cities and regions nationwide, excluding Okinawa.
3. What are the benefits of the extension for travelers?
1) Quicker and easier travelling
It is the fact that people can travel from South to North Japan without changing transport, much quicker than it used to take. For example, the author travelled from Osaka to Kagoshima last year which took total of 4 hours, changing trains. She went from Osaka to Hakata by Shinkansen (Nozomi) which took 1-1/2 hours, changed to JR (Japan Railway) limited express and rode for over 1 hour to a station in Kumamoto, then changed again and rode Shinkansen (Hikari) to Kagoshima for 40 minutes, meaning total of 3-1/2 hours. This is far quicker than before Shinkansen services became available but changing trains multiple times is inconvenient. However, it would only take 3 hours without changing trains after March 12. The similar benefit applies for the northward extension.
2) More options
The fact that by Shinkansen people can travel nationwide on trains means more options for travelers. Due to burden of changing trains and long hours of travelling, most travelers would choose to travel by air if they are to travel from Osaka or Tokyo to Kyushu other than Hakata, or Tohoku other than Sendai. In reality people travelling from Osaka would always choose to travel by air if they need to go to Tohoku.
However, with the Shinkansen extension, it would be realistic for people to travel nationwide by Shinkansen as well as by airplane. Therefore, they would be able to choose the optimum option according to the available time and cost, and preferences.
4. What would the extension mean for related industries?
It means more competition between railway and aviation industries. The two industries have been competing between Tokyo and Osaka and between Osaka and Hakata and therefore there have been two types of travelers, especially in business; one preferring Shinkansen and the other preferring planes.
With the Shinkansen route extension the scope of competition would extend to nationwide, when the third player of cars became another option for holiday travelers and the competition has been increasing. This is because the Japanese government implemented a system in which one time fee of 1000 yen allowed car drivers to use motorway nationwide at weekends and holiday seasons since last year when the fee varied according to the distance and it could be as much as almost 10,000 yen.
5. What has the cities/regions been doing to benefit from the Shinkansen extension?
1) From Tourism
To benefit from the Shinkansen extension, Aomori has renewed the area around the new Shinkansen station, and has been proactively developing, announcing and executing campaigns to attract tourists. In addition, restaurants and shops in and around the station have been creating new products and services
Three prefectures in Kyushu, Fukuoka (in which Hakata belongs), Kumamoto and Kagoshima, have been planning and executing something more dynamic and strategic. Not only do they plan to attract tourists within Japan but also from neighbor Asian countries by collaborating to develop strategic campaign and joint-announcing to tourist agencies in Asian countries such as South Korea and China. This kind of campaign was not feasible before the Shinkansen extension when it was such a burden in terms of time and effort to visit all three prefectures.
2) From population increase and city development
With the Shinkansen extension in Kyushu, it would take just over 1-1/2 hours to travel from Hakata to Kagoshima. This time is quite commutable in Japan and therefore it is quite possible that the extension have a big influence on population shift and city development. In fact, multiple flats including modern, luxury ones are being built near the new Shinkansen stations.
With completion of the extensions, Shinkansen bullet train is to go through across from north to south Japan on March 12 (excluding Hokkaido and Okinawa islands). This allows us to travel more than 2000km from Aomori in the north end of the mainland to Kagoshima in the south end in of Kyushu in southern Japan by train only in about 8 hours. This project has been ongoing for many years and is expected to boost tourism and economy of regions and towns along the Shinkansen, while competition between railway and aviation industries would become fierce.
1. How has the Shinkansen bullet train been until today?
The Shinkansen service first started between Tokyo and Osaka of 552km in 1964. The service was then extended between Osaka and Hakata (capital of Kyushu in southern Japan) of 644km. More extension followed from Tokyo towards northern Japan and towards Japan Sea Regions of Johetsu and Hokuriku to name a few.
At first there were Kodama, which stops at every station and Hikari, which is express. It used to take 3 hours from Tokyo to Osaka by Hikari but with the availability of Nozomi, super express, since 1993 it now takes only 2-1/2 hours from Tokyo to Osaka.
2. What is the Shinkansen bullet train route extension project?
It is to extend to make the route truly extending across the nation from north to south. The recent northward extension to Aomori of 714km was complete and the service started on March 5, 2011. And the southward extension in Kyushu from Hakata (northern Kyushu) to Kagoshima (southern Kyushu) of 2167km is to complete to start its service on March 12, 2001.
The two extensions are one of the hottest news among the many past extensions. The ticket to ride on the first extended Shinkansen sold out in less than 5 minutes.
More extensions are ongoing and being planned across to cover major cities and regions nationwide, excluding Okinawa.
3. What are the benefits of the extension for travelers?
1) Quicker and easier travelling
It is the fact that people can travel from South to North Japan without changing transport, much quicker than it used to take. For example, the author travelled from Osaka to Kagoshima last year which took total of 4 hours, changing trains. She went from Osaka to Hakata by Shinkansen (Nozomi) which took 1-1/2 hours, changed to JR (Japan Railway) limited express and rode for over 1 hour to a station in Kumamoto, then changed again and rode Shinkansen (Hikari) to Kagoshima for 40 minutes, meaning total of 3-1/2 hours. This is far quicker than before Shinkansen services became available but changing trains multiple times is inconvenient. However, it would only take 3 hours without changing trains after March 12. The similar benefit applies for the northward extension.
2) More options
The fact that by Shinkansen people can travel nationwide on trains means more options for travelers. Due to burden of changing trains and long hours of travelling, most travelers would choose to travel by air if they are to travel from Osaka or Tokyo to Kyushu other than Hakata, or Tohoku other than Sendai. In reality people travelling from Osaka would always choose to travel by air if they need to go to Tohoku.
However, with the Shinkansen extension, it would be realistic for people to travel nationwide by Shinkansen as well as by airplane. Therefore, they would be able to choose the optimum option according to the available time and cost, and preferences.
4. What would the extension mean for related industries?
It means more competition between railway and aviation industries. The two industries have been competing between Tokyo and Osaka and between Osaka and Hakata and therefore there have been two types of travelers, especially in business; one preferring Shinkansen and the other preferring planes.
With the Shinkansen route extension the scope of competition would extend to nationwide, when the third player of cars became another option for holiday travelers and the competition has been increasing. This is because the Japanese government implemented a system in which one time fee of 1000 yen allowed car drivers to use motorway nationwide at weekends and holiday seasons since last year when the fee varied according to the distance and it could be as much as almost 10,000 yen.
5. What has the cities/regions been doing to benefit from the Shinkansen extension?
1) From Tourism
To benefit from the Shinkansen extension, Aomori has renewed the area around the new Shinkansen station, and has been proactively developing, announcing and executing campaigns to attract tourists. In addition, restaurants and shops in and around the station have been creating new products and services
Three prefectures in Kyushu, Fukuoka (in which Hakata belongs), Kumamoto and Kagoshima, have been planning and executing something more dynamic and strategic. Not only do they plan to attract tourists within Japan but also from neighbor Asian countries by collaborating to develop strategic campaign and joint-announcing to tourist agencies in Asian countries such as South Korea and China. This kind of campaign was not feasible before the Shinkansen extension when it was such a burden in terms of time and effort to visit all three prefectures.
2) From population increase and city development
With the Shinkansen extension in Kyushu, it would take just over 1-1/2 hours to travel from Hakata to Kagoshima. This time is quite commutable in Japan and therefore it is quite possible that the extension have a big influence on population shift and city development. In fact, multiple flats including modern, luxury ones are being built near the new Shinkansen stations.
2011年2月27日日曜日
Japan’s Rare Earth Metal Investment – Goodbye to Excessive China Dependence
Osaka - Sunday, February 27, 2011
Nikkei, Japan’s leading newspaper specialized in business and economy, reported on February 25 that Japan (public and private sectors) will invest total of 110 billion yen in rare earth metals in order to shed its excessive dependence on China.
The objective of the investment is to change the supply structure of rare earth metals that is highly dependent on China. This is urgent because China has been drastically limiting rare earth metal export, as mentioned in the previous article Risk Management and Interdependence in Today’s Global Economy.
The initiative will involve 160 businesses from 110 companies and the government will give financial assistance of equipment investment.
1. What is the background and objective of rare earth metal investment?
1) Shed its excessive dependence on China to reduce risk
The investment would decrease risk for Japan. In the latter half of 2010 import of rare earth metals from China once terminated. The Chinese authorities have also reduced allocation of rare earth metal export. Currently 90% of rare earth metals used in Japan are those imported from China and excessive dependence on China is a very high risk for Japan.
2) Decrease outflow of technology
The financial assistance from the government would help globally competitive manufacturing sites remain in Japan, which means decrease in outflow of technology. Chinese government has been promoting investment of Japanese component manufacturers in their country using stable supply of rare earth metals as its reason. It is because high tech components made from rare earth metals are extremely globally competitive. By providing financial assistance to Japanese component manufacturers that utilize rare earth metals, the Japanese government would like to retain such globally competitive manufacturing sites in Japan.
2. What is the overview of the initiative?
The initiative is led by METI (Ministry of Economy, Trade and Industry), which selected 160 businesses from 110 companies that align with the government’s financial assistance policy. It is decided to that total of 33.1 billion yen will be provided. 9 billion yen will be invested to seek additional businesses.
The companies are to start the investment from 2011, aiming to reduce import of rare earth metals from China by approximately 30%. Currently as much as 30,000 ton of rare earth metals from China are used in Japan, and 10,000 ton of them will be reduced in mid/long term.
3. How will rare earth metal import from China reduced?
1) Reduction in use of volume and recycling
An affiliate of Konica Minolta will implement new equipment that efficiently uses cerium oxide as glass abrasive.
Mitsubishi Trading and Dido Steel make alliance with a venture company specialized in this realm to start a new business with the objective of reducing use of dysprosium by 40% in neodymium magnets production that are used in motors of EV cars.
Hitachi Metals plans to recycle refuse of manufacturing process of neodymium magnet.
2) Diversification of supply
Rare earth metals imported from the U.S. and Australia will be used and initiatives to drive such diversification of rare earth metal supply are driven by companies.
Rare earth metals from China are usually processed as alloys before imported to Japan but the U.S. and Australia are still behind in alloy process equipment. For this reason, Mitsui Mining and Smelting and Japan Metals & Chemicals will import rare earth metals in the form of raw stone and then process as alloys in Japan. Leveraging the knowhow, the two companies also plans to implement a new equipment to extract rare earth metals Nickel-metal-hydride batteries collected from around the globe.
Rare metal import from other countries such as Vietnam and Brazil is being studied as well.
3) Examination of new components
Reduction of rare earth metals and use of rare earth metals that are different from previous ones (i.e. those imported from countries other than China) means change in constituent. This means it is quite possible that performance of motors and catalysts change.
For this reason, leading automobiles companies including Toyota, Honda and Nissan will implement equipment to examine use of such new components for EV cars as a part of their development of motors and catalysts of EV cars.
Kureha Corporate will implement testing and evaluation equipment as apart of their load material development of lithium-ion battery.
Nikkei, Japan’s leading newspaper specialized in business and economy, reported on February 25 that Japan (public and private sectors) will invest total of 110 billion yen in rare earth metals in order to shed its excessive dependence on China.
The objective of the investment is to change the supply structure of rare earth metals that is highly dependent on China. This is urgent because China has been drastically limiting rare earth metal export, as mentioned in the previous article Risk Management and Interdependence in Today’s Global Economy.
The initiative will involve 160 businesses from 110 companies and the government will give financial assistance of equipment investment.
1. What is the background and objective of rare earth metal investment?
1) Shed its excessive dependence on China to reduce risk
The investment would decrease risk for Japan. In the latter half of 2010 import of rare earth metals from China once terminated. The Chinese authorities have also reduced allocation of rare earth metal export. Currently 90% of rare earth metals used in Japan are those imported from China and excessive dependence on China is a very high risk for Japan.
2) Decrease outflow of technology
The financial assistance from the government would help globally competitive manufacturing sites remain in Japan, which means decrease in outflow of technology. Chinese government has been promoting investment of Japanese component manufacturers in their country using stable supply of rare earth metals as its reason. It is because high tech components made from rare earth metals are extremely globally competitive. By providing financial assistance to Japanese component manufacturers that utilize rare earth metals, the Japanese government would like to retain such globally competitive manufacturing sites in Japan.
2. What is the overview of the initiative?
The initiative is led by METI (Ministry of Economy, Trade and Industry), which selected 160 businesses from 110 companies that align with the government’s financial assistance policy. It is decided to that total of 33.1 billion yen will be provided. 9 billion yen will be invested to seek additional businesses.
The companies are to start the investment from 2011, aiming to reduce import of rare earth metals from China by approximately 30%. Currently as much as 30,000 ton of rare earth metals from China are used in Japan, and 10,000 ton of them will be reduced in mid/long term.
3. How will rare earth metal import from China reduced?
1) Reduction in use of volume and recycling
An affiliate of Konica Minolta will implement new equipment that efficiently uses cerium oxide as glass abrasive.
Mitsubishi Trading and Dido Steel make alliance with a venture company specialized in this realm to start a new business with the objective of reducing use of dysprosium by 40% in neodymium magnets production that are used in motors of EV cars.
Hitachi Metals plans to recycle refuse of manufacturing process of neodymium magnet.
2) Diversification of supply
Rare earth metals imported from the U.S. and Australia will be used and initiatives to drive such diversification of rare earth metal supply are driven by companies.
Rare earth metals from China are usually processed as alloys before imported to Japan but the U.S. and Australia are still behind in alloy process equipment. For this reason, Mitsui Mining and Smelting and Japan Metals & Chemicals will import rare earth metals in the form of raw stone and then process as alloys in Japan. Leveraging the knowhow, the two companies also plans to implement a new equipment to extract rare earth metals Nickel-metal-hydride batteries collected from around the globe.
Rare metal import from other countries such as Vietnam and Brazil is being studied as well.
3) Examination of new components
Reduction of rare earth metals and use of rare earth metals that are different from previous ones (i.e. those imported from countries other than China) means change in constituent. This means it is quite possible that performance of motors and catalysts change.
For this reason, leading automobiles companies including Toyota, Honda and Nissan will implement equipment to examine use of such new components for EV cars as a part of their development of motors and catalysts of EV cars.
Kureha Corporate will implement testing and evaluation equipment as apart of their load material development of lithium-ion battery.
2011年2月13日日曜日
The First Chinese Accounting Firm Enters Japan
Osaka - Sunday, February 13, 2011
Nikkei, Japan’s leading newspaper specialized in business and economy reported in its evening newspaper on February 12 that a leading Chinese Accounting Firm is to establish its first office in Japan. This is the first Chinese Accounting Firm to start business in Japan.
The firm is to support from accounting perspective Chinese companies starting business in Japan such as establishing affiliates or joint ventures in Japan. It is quite possible that the entry triggers global accounting network originating in China to expand worldwide.
1. What is the background of the first Chinese accounting firm entering Japan?
It is the fact that Chinese companies are extremely proactive in investing in Japan, especially M&A, as mentioned in the previous article Japanese Companies Leverage China / Asia Capital for Survival.
In fact, the number of M&A in Japan (acquisition of Japanese companies) by Chinese and Hong Kong companies has been increasing since 2000 and the pace has speeded up in the last year.
The number of M&A was around 10 in 2000 and has remained below 15 until 2005 but increased to above 20 in 2007. And, in 2010 the number jumped from around 25 in 2009 to over 35 in 2010.
2. Which Chinese accounting firm enters Japan?
It is Shinewing Certified Public Accountants, based in Beijing, China, that enters Japan. They have already completed registration. Japanese accounting professionals operating in China are the certified accountants.
3. What is the plan?
The company plans to officially start their business in Japan this spring, and increase the staff to approximately 10 by the end of this year.
Their core business is to support accounting and audit of affiliates and joint ventures of Chinese companies and to support M&A in Japan of Chinese companies. The company also would like to support Japanese companies investing in China.
The country manager of the Japan office commented that Japanese products are of high quality and globally competitive even though the price might be high. He also commented that Chinese companies are extremely interested in market, technology and know-how of business administration of Japan.
4. Positioning of Shinewing Certified Public Accountants
Revenue of Shinewing Certified Public Accountants is third in China, excluding western accounting firms such as PricewaterhouseCoopers. It has been supporting approximately 300 Japanese companies operating in China. It already has offices in other countries such as Australia and Singapore.
Chinese government is currently strengthening education of accountants. For this reason, they would like to expand accounting network of Chinese accounting firms by initiatives such as encouraging M&A of accounting firms/offices. The first office of in Japan is part of their initiative.
Nikkei, Japan’s leading newspaper specialized in business and economy reported in its evening newspaper on February 12 that a leading Chinese Accounting Firm is to establish its first office in Japan. This is the first Chinese Accounting Firm to start business in Japan.
The firm is to support from accounting perspective Chinese companies starting business in Japan such as establishing affiliates or joint ventures in Japan. It is quite possible that the entry triggers global accounting network originating in China to expand worldwide.
1. What is the background of the first Chinese accounting firm entering Japan?
It is the fact that Chinese companies are extremely proactive in investing in Japan, especially M&A, as mentioned in the previous article Japanese Companies Leverage China / Asia Capital for Survival.
In fact, the number of M&A in Japan (acquisition of Japanese companies) by Chinese and Hong Kong companies has been increasing since 2000 and the pace has speeded up in the last year.
The number of M&A was around 10 in 2000 and has remained below 15 until 2005 but increased to above 20 in 2007. And, in 2010 the number jumped from around 25 in 2009 to over 35 in 2010.
2. Which Chinese accounting firm enters Japan?
It is Shinewing Certified Public Accountants, based in Beijing, China, that enters Japan. They have already completed registration. Japanese accounting professionals operating in China are the certified accountants.
3. What is the plan?
The company plans to officially start their business in Japan this spring, and increase the staff to approximately 10 by the end of this year.
Their core business is to support accounting and audit of affiliates and joint ventures of Chinese companies and to support M&A in Japan of Chinese companies. The company also would like to support Japanese companies investing in China.
The country manager of the Japan office commented that Japanese products are of high quality and globally competitive even though the price might be high. He also commented that Chinese companies are extremely interested in market, technology and know-how of business administration of Japan.
4. Positioning of Shinewing Certified Public Accountants
Revenue of Shinewing Certified Public Accountants is third in China, excluding western accounting firms such as PricewaterhouseCoopers. It has been supporting approximately 300 Japanese companies operating in China. It already has offices in other countries such as Australia and Singapore.
Chinese government is currently strengthening education of accountants. For this reason, they would like to expand accounting network of Chinese accounting firms by initiatives such as encouraging M&A of accounting firms/offices. The first office of in Japan is part of their initiative.
2011年1月30日日曜日
Japanese Companies Benefiting from Worldwide Mobile Market Growth
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.
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.
登録:
投稿 (Atom)