Toyohiro Kono

Trends in Japanese Management: Continuing Strengths, Current Problems and Changing Priorities

The Context of Japanese Management Corporate Governance and Top Management Goals and Philosophies Product Mix and New Product Development Strategic Alliance and Vertical Integration Multinational Management Competition Strategy Planning and Decision Making Organizational Structure and Process Human Resource Management Concluding Remarks

Corporate culture and long-range planning

Abstract Corporate culture affects the planning and strategic decision-making processes of a company. This article is based on the findings of a research study of Japanese companies and it categories the types of corporate culture, the factors affecting the culture and the processes for changing a corporate culture.

Japanese management philosophy: can it be exported?

Japanese companies have many characteristics common to innovative organizations. Missions and goals are clearly stated. These motivate the employee and make it easier to introduce innovation. They also encourage more of a sense of involvement with the organization. Japanese corporations have growth oriented and long-range goals. This derives from the expectation of life-time employment. And pressure from shareholders is not as strong as in the U.K. The separation of management from ownership is well advanced with a management committee being in effective control. Group decisions tend to be innovative, in part due to the high number of university graduates. Japanese management thus remains sensitive to new technology and new ideas. Many characteristics of Japanese management do not originate in the uniqueness of their culture but rather in the positive introduction of new theory. Strategic decisions are made by top management. Formal long-range planning has a very high diffusion among large Japanese companies. Strategies are competition oriented. There is a long-term co-operative relation between the final products manufacturer and the parts manufacturers. There is also more use of internal growth and less use of acquisition.

Why New Products Fail

Often a new product development (NPD) process does not result in a new product. This may mean that the NPD process should be considered a failure. The company may desperately need the new product. But sometimes a NPD process can be considered successful because it prevents a money-losing product from being launched. Discontinuing development at an early stage may be the right decision. It may keep the company from spending a lot of money on a product that has poor prospects. In any case, no one should expect that every NPD process, or even most of them, will result in a product. To take an extreme example, the pharmaceutical industry screens an average of 10,000 molecules to find 250 suitable for preclinical testing. Of the 250 undergoing testing, only ten make it through to clinical trials, and only one is approved to go on the market. An effective NPD process is not one that makes a new product out of each new idea, but rather one that efficiently selects and develops the ideas that result in products that best fit the needs of the corporation and its customers.

Trends in Japanese management: an overview of embedded continuities and disembedded discontinuities

In this paper we consider the accounts of post-war Japans economic development in terms of a consideration of the argument from ‘embeddedness’. We note the dangers implicit in approaches that tend to proffer over-socialized accounts of action and stress the importance of institutionally and organizationally specific levels of analysis. We establish the significance of the immediate post-war period for analysis of Japanese organizations, and look at the continuities and discontinuities in their development up to the present. The paper analyses continuities in terms of the maintenance of a long-term orientation and global vision and that organizations remain both competitive and cooperative. The discontinuities have emerged in the last decade, since the economic ills of Japan became evident. These include a shift from a growth emphasis to the balancing of multiple goals; the emergence of new forms of competitive strategy, in the form of: alliances and cooperation; changing conceptions of careers; relaxation of the centralisation of authority; a shift from lifetime employment to employability; larger differentiation of wages and promotion opportunities in the status ladder system, and the increased scope for initiative and consensus. We conclude with some implications of the analysis for future research.

Success through culture change in a Japanese brewery

Abstract The birth, growth and subsequent decline of Asahi Brewery is described up to the appointment of a new president of the company and the introduction of a new management concept. This brought a change in strategic direction and the development of new products. Changes in corporate culture at the top and middle level of management encouraged change in employee culture. Improvements of organizational structure and programmes are described and principles for change in corporate culture are extrapolated.

Changing a company's strategy and culture

Abstract A companys product market strategy and corporate culture are interdependent. A successful strategy leads to challenging jobs and provides financial resources for pay and incentives. On the other hand a creative and innovative culture is required to develop a successful strategy. This article proposes three possible methods for changing a companys strategy and culture.

Transformations of corporate culture : experiences of Japanese enterprises

Concept of corporate culture dimensions and types of corporate culture total culture and subculture development of corporate culture transformation of corporate culture - factors and agents of change transformation of corporate culture - continued organizational and psychological process corporate philosophy and corporate vision product-market strategy organizational structure and personnel management system top management international comparison.

Long range planning— Japan-USA— A comparative study

Abstract This article reports on a comparative study carried out in the U.S.A. and Japan. He concludes that in the U.S.A. long range planning is used to integrate the strategies of divisions and to control the divisions. The planning process is usually bottom-up rather than top-down. In Japan, long range planning is used for improving strategic decisions of top management, so the planning process is a centralized interactive process. Project emphasis rather than quantitative planning is a common characteristic in both the U.S.A. and Japan. However American corporations are more advanced in this respect. Many Japanese corporations suggest that project emphasis is the key success factor for planning. To cope with uncertainty, American corporations tend to update their plans every year or even at shorter intervals, while adopting contingency plans. To the same end, Japanese corporations are using two time horizon plans which are composed of a long range strategy and a medium range plan. With respect to follow-up and implementation, American corporations follow-up more closely and long range planning is used for the evaluation of managers of divisions. The quality of plan and accomplishment are reflected to the economic rewards. Japanese corporations are less inclined to follow up the long range plan itself, but it is considered as important to implement it through the budget and also through the project plan. Project teams are quite frequently used.

A strong head office makes a strong company

Abstract This article is based on a survey of major Japanese manufacturing corporations. The author argues that the headquarters of a corporation has three functions: (a) formulating corporate strategy, (b) building core competencies, and (c) providing expert services. In simple terms, the headquarters is a research laboratory for management. Successful Japanese companies have about 8% of personnel in their head offices. The author also suggests that the interface between the headquarters and operating units is crucial for strategic leadership. This is particularly important where the product mix is technology-related or marketing-related.