Japanese Business Management

Paper Summary:

This paper discusses the future of small businesses in Japan and considers whether the era of the supportive small firm has ended. The paper examines whether small businesses are profitable in Japan's present economy. It then offers an explanation of the changing roles (trends) of the small firm in Japan. It looks at small businesses which have supported the large firm segment in Japan and then discusses their future.

From the Paper:

"The corporations in Japan have various dilemmas related to governance and has been thus since the decade of the 90's. The firms were termed "bank-based or stakeholder-oriented models with the external of corporate management vested in the main banks and the corporate management was a composition of internally promoted insiders that were assimilated into the culture of the corporation based on lengthy relationship terms .Approximately fifty-percent of the workers at a manufacturing company located in central Japan in the Tokai region work in a managerial capacity which is said to save money for the firm. The company, who wanted to be unnamed in an aggressive move convinced union members to become managers in 1999. Yet convinced these individuals that the company could not afford to pay them overtime. The managers make less in terms of overtime pay than do ordinary employees. With the second largest economy on a global basis, the country of Japan struggling with a banking (internal) crisis and an accompanying financial crisis. "

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