Representing a Japanese Parent Company Setting Up Business Plan

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representing a Japanese parent company setting up a new international joint venture (IJV) in Sweden. There has been some debate over the type of control system the company should use.

Over the last several years, a wide variety of firms have been establishing operations around the world. Part of the reason for this, is because globalization has been forcing many companies to build these kinds of facilities in other locations to support their business model. In the case of the Japanese firm, the implementation of operations in Sweden can be challenging based upon different cultural factors. To determine what kind of control system should be used in Sweden requires: examining the variables to consider when designing the organizational structure, the way these variables are interacting, the most important ones for success of the IJV, balancing global / local needs and how the organization can be created to take these different views into account. Once this takes place, is when we can provide specific insights that will help us to be able to establish a venture that will support the long-term needs of the company.

As a Japanese company, what are the variables that you have to consider when designing the organizational structure for the international operations?

The biggest variable that must be considered is the cultural differences between the Japan and Sweden. In Japan, everyone believes that they should support the larger objectives of the group. This means that employees who are working at the firm will have greater amounts of loyalty towards the company and its larger objectives. As, the ideas of dedication, teamwork, doing the best job possible and helping each other have become a part of Japanese culture.

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(Urakami, 2006) ("Japan," 2011) ("Sweden," 2011) (Ghuri, 1992)

This is different from Sweden, where everyone will take a more relaxed approach to their work. The reason why, is because Swedish culture believes that there should be some kind of balance between family and work life. This means, that most people will perform a certain amounts of work. However, if the company begins to ask them to do more, is when they will refuse to do something extra for the firm. This is due to the fact that there are cultural differences between Japan and Sweden. As, the Japanese managers and employees will exhibit a certain amount of dedication towards everyone they are working with. This is important, because those firms who are taking these ideas into account will be able to quickly adjust to the differences between the two countries. (Urakami, 2006) ("Japan," 2011) ("Sweden," 2011) (Ghuri, 1992)

How do these variables interact?

The way that these cultural variables are interacting is through the policies / procedures that are implemented and the basic approach that is being utilized to deal with these issues. As far as the policies and procedures are concerned, executives must take into account specific customs that are embraced in Sweden. Then, introduce them as a part of the operating environment for the IJV in the country. If this kind of approach can be taken, it will ensure that the firm is able to adapt to these kinds of challenges. (Urakami, 2006) ("Japan," 2011) ("Sweden," 2011) (Ghuri, 1992)

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