A short summary of the business culture and negotiating styles prevailing in Japan.

1. The Japanese negotiation
style

2. business culture
The and don’ts
Wa
Dos

3. business culture
Negotiators
Dos and don’ts

4. business culture
The Wa
Conclusions

5. business culture
The and don’ts
Dos Wa
Hofstede dimensions
90 95 92 90
80
54
46 42
Japan
30
Romania
Power distance Individualism Masculinity Uncertainty Long-term
avoidance orientation

6. business culture
The and don’ts
Dos Wa
Power distance = 54
• The japanese are somewhat hierarchical
• Not as much as other Asian cultures
• Slow decision making
• Meritocratic society

7. business culture
The and don’ts
Dos Wa
Individualism = 46
• The harmony of the group stands above individual
needs
• Strong sense of shame and of losing face
• Japanese are seen as collectivistic by Western
standards and individualistic by Asian standards

8. business culture
The and don’ts
Dos Wa
Masculinity = 95
• Severe competition between groups
• Drive for excellence and performance
• Japanese are notorious for their workaholism
• It is still hard for women to climb the corporate ladder

9. business culture
The and don’ts
Dos Wa
Uncertainty avoidance = 92
• One of the most uncertainty avoiding cultures on Earth
• In Japan, anything you do is prescribed with maximum
predictability
• Etiquette books describe what people should wear and
how they should behave at special events
• Changes are difficult to realize

10. business culture
The and don’ts
Dos Wa
Long-term orientation = 80
• The Japanese see their lives as a very short moment in
the history of mankind
• High rate of investment in R&D
• Priority to steady growth rather than quarterly results
• Companies are here to serve society for many
generations to come, not for short-term profits

11. business culture
Negotiators
Dos and don’ts
1. Establishing a personal relationship is crucial
• It’s a good idea to get to know the Japanese negotiator
beforehand
• Meet him/her for dinner or other events
• Relationships are core assets

12. business culture
Negotiators
Dos and don’ts
2. Avoid lawyers as negotiators
• The Japanese mistrust a negotiator that pushes for the
advantage of one side rather than for a fruitful
cooperation
• They see lawyers as outsiders

13. business culture
Negotiators
Dos and don’ts
3. Speak clearly and avoid idioms
• Language barriers
• The use of a basic vocabulary is advised

14. business culture
Negotiators
Dos and don’ts
4. Explain ideas several different ways
• They will not tell you if they don’t understand
• Ask the negotiator what he/she likes or dislikes about the
proposal

15. business culture
Negotiators
Dos and don’ts
5. Avoid addressing the Japanese as “you”
• In the Japanese language, “you” is rarely used
• Example: Mr. Tanaka or Mitsubishi instead of you and
your company

16. business culture
Negotiators
Dos and don’ts
6. Indirect no
• The Japanese will avoid saying NO directly
• Look for more subtle signs
• Avoid direct NOs yourself

17. business culture
Negotiators
Dos and don’ts
point of acceptance
initial
phase
“The Japanese rollercoaster”

18. business culture
The Wa
Conclusions
Relationships are extremely important
The Japanese are very competitive (success is
important)
They will try to avoid uncertainty whenever possible
(hence the rigid rules and procedures)
The emphasis is on long-term value and cooperation