J A PA N

C r o s s - C u l t u r a l M a n a g e m e n t S m a l l G r o u p P r o j e c t 1

A G E N D A

• CULTURE AND GLOBALIZATION

• COMPANY PROFILE OF AFLAC

• COUNTRY PROFILE OF JAPAN

• JAPANESE VS. AMERICAN VIEWS OF RISK

• OVERCOMING CULTURAL RISKS

• CULTURAL EXAMPLE

CULTUREAND

GLOBALIZATIONA N D R E W M U L L I N S

CULTURE &GLOBALIZATION

Culture: The combination of signs, beliefs, artifacts, social institutions and customs conceived by mankind.

*Paraphrased from Don Adams and Arlene Goldbard. (2002). “Community, Culture, and Globalization”.

Globalization: The evolution that led to the world getting smaller through the removal of numerous barriers and the new abilities to overcome long distances in a condensed period of time. Furthermore, this process has led to the interconnectedness of people across the entire world through the sharing of communication, culture, technology, transportation, etc.

*Paraphrased from Thomas Larsson. (2001). The Race to the Top: The Real Story of Globalization

CULTUREGLOBALIZATION

The process of cultures sharing more similarities and common experiences as a result of diminishing international barriers and the exportation of various beliefs, practices, customs, etc. *Paraphrased from James L. Watson, Encyclopedia Britannica

Influences:• Wireless Communication• Electronic Commerce• Popular Culture• International Travel

Globalization proliferates the number of similarities shared between cultures:• Fashion• Food• EntertainmentCulture-defining barriers (geographic distance, different languages, etc.) are curtailed, leading to accelerated rates of:• Exportation of Culture• WesternizationWhile certain idiosyncrasies between cultures may be dwindling, major differences still persist and must be carefully taken into consideration.

STANDARDIZATION OF CULTURES

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CULTURALCONSIDERATION

• Cultural barriers have the potential to create

misunderstandings that stunt international profit growth• Hofstede’ Cultural Dimensions Theory

• Power Distance, Masculinity vs. Femininity, Long-term

vs. Short-term, Individualism vs. Collectivism,

Uncertainty Avoidance• For international companies, culture must be strategically

applied every part of the organization• Idiosyncrasies in culture can lead to differences in consumer

preferences• International companies should depend on research instead of

making assumptions

http://vandijktrack.com/hofstedes-cultural-dimensions/

COMPANYPROFILE

OF AFLACJ O S E P H R O B E R T S

9 out of 10People know the Aflac brand. Aflac is the No. 1 life insurance company in terms of the number of individual insurance policies in force in Japan.

AFLACJAPAN

AFLAC COMPANYPROFILE• “Incorporated since 1973• Columbus, GA, USA based holding company that

offers supplemental health and life insurance plans• CEO: Daniel Amos• Two different business entities: AFLAC Japan, Aflac

US• Plans sold include: accident/disability, ICU, short-

term and long-term care disability, dental, vision, and life

• End of 2014 there were 70k+ licensed sales agents and brokers

• Revenues of $22,728M during the financial year ending in December 2014

Niche market in supplemental and

indemnity plans, relationships with banks

and local markets, strong financial performance

STRENGTHS

Market penetration in Japan increases risks, losses on

perpetual debentures likely to continue

WEAKNESSES

New products, new initiatives, Japan’s insurance market

OPPORTUNITIES

Competition, natural disasters

THREATS

COUNTRYPROFILE

OF JAPANQ U I N C Y N U N N A L Y

JAPANESE CULTURE

JAPANESECULTURE

The culture of japan is unique in many ways but there are three very important features that must not be overlooked

• Tradition• Fads or Trends• Religion

TRADITION

Japanese culture has one of the deepest cultures on the world

What is respected most of all is Family• Ex. Your best effort at work or school is for the family

• Ex. You must try you best in extracurricular for the family• What is meant is how the family is portrayed based on your

performance

Also, multiple religions and people exist within Japan

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“EVER-CHANGING”Trends can last a year, month, week, or day. They key here is that trends within Japan tend to change more rapidly than other countries.

One of the more notable trends worldwide is the how popular Anime :• Anime conventions• Anime specific Twitter Account• Anime specific YouTube Accounts

FADSOR TRENDS

Religion in Japan is different from religion in the west more than anywhere else.

It’s a mix between Shinto and Buddhism

Religion is rarely preached because it’s how a person lives (Moral Code)

JAPANESERELIGION

JAPANESECULTURE

• “The Cherry Blossom is the most revered flower in Japan”

• There are parties every year during the two weeks or less that they bloom called “ 花見 (Hanami)”

• “Japanese people are more relaxed during this time of year”

• Viewing of the blossoms are usually parks, gardens or castle grounds

• The blossoms in ancient Japan announced the rice-planting season

桜

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COMBININGKNOWLEDGEWITH AFLAC

• Since there is a difference from east in west in terms of religion, fads, and culture; there is a different customer approach as well to each market.

• In the U.S. the AFLAC duck is not really notice whereas in Japan the actors talk and interact with the duck as a means and visual of the Japanese culture :To help and protect one’s family, you become family.

• In the U.S. the duck has always been a duck and nothing more whereas in Japan it has been portrayed as an “ 招き猫 (Maneki neko) duck”

JAPANESE VS.AMERICAN

VIEWS OF RISKD Y L A N L I N D H O R S T

RISK BETWEEN AMERICAN &

JAPANESE CULTURE

AMERICANRISK

More likely to do things without preparation

Positive reinforcement is commonin child rearing

If something goes wrong, keep movingforward and try not to let it happen again

OVERALL CULTURE

JAPANESERISK

Take time to plan and discuss before making a decision

High use of negative reinforcement in raising children

If something goes wrong, take a step back and analyze situation and make sure to not

make same mistake

AMERICANRISK

Americans are typically rewarded by career advancement or higher pay for

taking risks that pay off.

For negative outcomes, Americans are usually given second chances and can

move past failures.

BUSINESS CULTURE

JAPANESERISK

Will not typically advance in career due to a successful event, but instead

advances with time.

Negative outcomes are viewed as failures and can be the end of

a persons career.

AMERICANRISK

Low Risks

Stable Economy

104.5% debt-GDP

POLITICAL RISKS

JAPANESERISK

Low Risks

Stable Economy

250% debt-GDP

OVERCOMINGCULTURAL

RISKSR I C H A R D N A V R A T I L

CULTURAL ISSUES:CHALLENGES &

MITIGATION

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BUSINESS CULTURE

• Appear “colder”• Last names + titles used• Keep a distance• No small talk, no physical

contact

EXTREMELY POLITE

• Patriotic, love their culture

and history• Not politically inclined

NATIONALISTIC,NOT POLITICAL

PUNCTUALITY

PROMBLEMS & CHALLENGES

• Use last names and get titles

down correctly• Keep a personal “bubble”• No touching past a firm

handshake

REMAIN POLITE

• Do appreciate the history and

habits

AVOID POLITICAL DISCUSSIONS & OPINIONS

NEVER BE LATE

SOLUTIONS & SUGGESTIONS

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OVERALLCULTURE

• America vs Japan – “melting pot” vs a “united nation”

ETHNICITY

• Common in Asian countries,

“extreme” in Japan• Business• Apologizing• Thanking

• Handshakes are OK

BOWING

PROMBLEMS & CHALLENGES

• Understand the “United Nation”

ETHNICITY

• Bowing where necessary or expected

BOWING

SOLUTIONS & SUGGESTIONS

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BUSINESS CULTURE

• Strict, few female

politicians/CEOs• Rank 101st, first place Iceland

GENDER ROLES

• Very important• Senior vs junior

SOCIAL HIERARCHY

COLLECTIVE CULTURE

PROMBLEMS & CHALLENGES

• Company Loyalty• Group accomplishments

• Respect the roles, expect

dealing with men mostly

GENDER ROLES

• Respect everyone, especially Elders/seniors in a company

SOCIAL HIERARCHY

COLLECTIVE CULTURE

SOLUTIONS & SUGGESTIONS

• Understand company loyalty, treat people as a part of a group

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OVERALLCULTURE

PROMBLEMS & CHALLENGES

• Can insultTIPPING CULTURE

• Island size of California

SPACE RARE & APPRECIATED

SUBTELTY • Directness• Eye Contact

SOLUTIONS & SUGGESTIONS

• Do not tip – seen as

rude/attackon waiter’s salary

TIPPING CULTURE

• Appreciate space (even if

there is a lack thereof)

SPACE RARE & APPRECIATED

SUBTELTY • Be less direct, avoid

prolonged eye contact

CULTURALEXAMPLES

A S H L E Y W I L L I A M S

CULTURALEXAMPLES

AFLACCOMMERCIAL

EXAMPLES

https://www.youtube.com/watch?v=4u2sxqHlUdg

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AFLACCOMMERCIAL

EXAMPLES

https://www.youtube.com/watch?v=VOJDvLt21U8

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QUEST IONS &ANSWERS

THANK YOUSMALL GROUP PROJECT TEAM 1