To make a point, most people are not aware what the rubber industry means for their daily lives. Namely, that they can’t live without it. The material, for example, drives personal mobility. Tires use up about 70 percent of global rubber production and car engines and other car parts another substantial amount. No rubber, no cars. Also no bicycles, airplanes […]
Editorial
Industry-Academia Collaboration in Japan – Opportunities for Foreign Companies
Technology transfer from science to industry has not been particularly well developed in Japan traditionally. Yet the country’s level of science is excellent and offers a good source for industry and even foreign companies. Before turning to the latest developments in the Japanese Science and Technology system in my next article, let me today make a detour to the situation […]
Subcontractor Bullying in Japan
If your products are not selling as planned, do you ask longstanding suppliers to accept returns? Or, if you are offering discounts, do you have them bear some portion? These are just two examples of considerations you may have if your bargaining position against your suppliers is very strong. And you wouldn’t be alone. In fact, not a few companies […]
The Smart House – Japanese Technology and Standards
By Frank Piller, General Manager Products at TÜV Rheinland Japan Protecting the environment, conserving energy and reducing carbon emissions are global challenges. In Japan too, various sectors, including the government, are aggressively addressing these difficult issues. The Japanese government has recently introduced a variety of measures to reduce energy consumption at home, in order to promote energy conservation by […]
The Japanese Candidate
“We have difficulties in finding the right people,” or “there are not enough suitable candidates available in Japan” are only two sentences I am hearing too often. Domestic hiring is without a doubt a question of supply and demand, and method. But there are other factors, too. Before tackling the topic, let me throw in some general information and statistics. […]
Internet of Things in Japan: Quietly, Systematically Plowing Ahead
Germany’s famed Plattform Industrie 4.0 initiative has become nothing less than a mainstay at seminars focusing on the future of manufacturing. The U.S. based Industrial Internet Consortium has been gathering momentum, too. Even China has prominently launched its Made in China 2025 initiative. Yet one of the world’s most important industrial powerhouses is apparently not much being talked about. One […]
Effective B2B Communications in Japan: The Vital Role of Strategy
Many small and mid-sized subsidiaries of foreign B2B companies in Japan don’t have large budgets for communication activities. Although there is a trend toward recognizing communications as a strategic function here, too, more often than not, this awareness is still lacking. It’s not uncommon for sales people to think that communications equals advertising, which in turn equals a waste of […]
Energy Regulations and Electricity Deregulation in Japan
By Frank Piller, General Manager Products at TÜV Rheinland Japan Renewable energy. Energy efficiency. Energy conservation. Energy storage. Hotly discussed topics all of them – indicating that energy has become one of the most important issues of our time. The Paris Agreement at COP21 and the 2015 United Nations Climate Change Conference last November are evidence of global momentum. […]
What Is the Cost of Dismissing Employees in Japan?
Many foreign companies don’t properly understand how hard it actually is to unilaterally terminate employment in Japan. In fact, they often try to dismiss employees based on norms of their home countries and without careful consideration of the local situation. As introduced in a previous article, dismissals in Japan are strictly regulated under the Labour Contract Act. Employers have to […]
Japan: The Nation Based on Science
Remarkably, in 1986 the mounting U.S. trade deficit in semiconductors with Japan even led to a trade agreement easing the situation. The Japanese semiconductor industry was expanding rapidly. Technologically, this was the outcome of the most successful of the so-called Big Projects I described in a previous article: The research association for the very-large-scale integrated circuit VLSI (1976-1980) helped push […]
What Is the Shelf Life of Indirect Sourcing Managers?
Several of my friends and clients are directors or managers of indirect sourcing divisions at foreign capitalized firms in Japan. They are part of a clear trend among these companies to establish such divisions and assign high profile managers with consulting background or business school education. Shortly after taking over, they’re all motivated and proud of their significant cost reduction […]
Japan Tax Reform 2016
In December 2015, the Japanese Government made two major announcements: The Japan Tax Reform 2016 and the signing of a revised tax treaty with Germany. What are the drivers behind the reform and the treaty revision and what impact will they have on doing business in Japan? Fiscal policies of the Japanese Government aim at growth and bringing forward Japanese […]
Toward Fewer Work-Related Accidents: Japanese Regulations
By Hiroyuki Arie, General Manager, Business Stream Systems at TÜV Rheinland Japan The year 2016 started with a number of news items that remind us of the importance of safety and quality management. From the tour bus incident and repeated food scandals we learned that we should always use a process approach to ensure safety and quality and limit […]
Why Creating a Problem Avoidance Environment Matters
What makes you feel good about using a specific device, tool, or machine? Its functionality, of course. But besides, you’ll be glad if you never experience malfunctions or break downs. In which case you may recommend the product or buy more of the same manufacturer without pondering too much about alternatives. Malfunction however is only a question of probability. There […]
How to Employ People in Japan — a Legal Perspective
Many people in Japan call life-time employment, seniority-based employment and company unions the Three Sacred Treasures of Japanese-style management. But in reality, these treasures have increasingly become things of the past. Companies now adopt various patterns to employ people in Japan. Statistics of the Ministry of Health, Labour and Welfare (MHLW) show that while the share of limited-term employees was […]