"Insular Corporate Culture" Hampers Japanese Firms In China

[Mulboyne]

FT: Japanese fall behind in race for China
Japanese companies have fallen behind their European and US counterparts in the burgeoning Chinese market, a study released today by McKinsey, the research group, says. The study says Japanese companies have been hampered by an insular corporate culture, which fails to reward and promote local talent. It suggests many groups simply export their management systems to overseas markets and many use Japanese as their official language, even in China...McKinsey's study comes as Japanese companies are stepping up their efforts to globalise their operations, targeting the Chinese market in particular amid a shrinking domestic market...The study lauds European and US companies for being good at developing a Chinese presence by localising operations and attracting local talent...Out of 24 leading foreign players identified by McKinsey across 12 consumer-oriented markets in China, only four are Japanese: Toyota, Sharp, Suntory and Shiseido. Japanese PC makers have only a 2 to 3 per cent market share of China's rapidly growing PC market, compared with their 12 per cent global market share..."The root of the problem is the differences in organisational management and talent development structure" between Japan and the rest of the world, including China, said...one of the authors of the report. "The Japanese lifetime employment system . . . is unappealing to Chinese employees, and the Japanese workplace is typically much more hierarchical than in Chinese or western companies," the report notes. Japanese companies have had difficulty recruiting and retaining local talent, it stated. "Japanese companies have often had the wrong people in China or those who don't have the flexibility to act quickly enough"...more...

[Hikonejou]

OMG - Don't get me started on China:

#1 "China has seen an explosion of growth over the past 10 years.."

- Yes, mainley from Slave Labor Sweat Shops.

#2 "The Japanese lifetime employment system . . . is unappealing to Chinese employees, and the Japanese workplace is typically much more hierarchical than in Chinese or western companies," the report notes."

- WTF? The Chinese are more "Hierarchial" in the workplace than anything I have ever seen before! They talk to their Bosses and Supervisors like their living Gods! Also, the Chinese don't see employees as something that is the life of the company, they just see employees as "things" in their company's. That is why they can treat their employees like crap and throw them out on their faces without any compension or any severance.

#3 "Japanese companies have had difficulty recruiting and retaining local talent, it stated. "Japanese companies have often had the wrong people in China or those who don't have the flexibility to act quickly enough," Mr Salsberg said.

- Right, because the Chinese just want to make and export Crap Shit Products that poison small children and animals or Crap Shit Products that fall apart within a few months with no responsibility or accountability to their actions.

#4 "This in turn has led to a failure to adjust products to the needs of Chinese consumers, and to identify and make use of important distribution channels and ensure smooth government relations."

- Bullshit, the Chinese Government is pissed off at the tariffs that Obama slapped on them last Month on all their exports. It's so pathetic to watch China cry fowl play, when they are the ones fowling the entire World with their poisonous products and their arrogant attitude at destroying the environment all for their selfish greed.

Miss Michiyo Nakamoto - China is full of Crap.

Keep Japanese Companies where they belong - IN JAPAN!

[soulboy]

Its strange how people are able to point their fingers at other countries and never their own. Sounds like you have a chip on your shoulder. Personally I love China.

If you think Japan shouldn't try to do business in china or outside Japan you are an idiot. Every country in the world will be trying to set up there.

Yeah an because a few companies sell dangerous products it means the whole of China is like that! Have an iPod ? its made in China ! Have a PC ! Made in China. Every consumer item you
buy will be made in China or a similar developing country. If you mean what you say sell the PC you are writing this with, sell you iphone or ipod!

[fooj]

It's just as well, I don't think the Chinese are that big into Karoshi. Guy sounds like some kind of disgruntled oyaji.

[FG Lurker]

OMG - Don't get me started on China:

[blah blah blah]

their arrogant attitude