Japanese Business Survival In A Global Environment!

June 28-2008:

WORD:

What Is The Deal With Japanese Business Management?

Historically, Japanese firms or companies never allowed foreign directors on their boards. It was the view then, and still is, that enlisting foreign or outside directors to the board, may cause corporate espionage of their technologies, or manufacturing secrets.

Furthermore, Japanese firms do not see shareholders as that important to the company's image, growth, or ability to survive. Japanese corporations see shareholders as just shareholders. The primary importance or emphasis is placed on the management. and the board of directors.

This provincial mentality of Japanese firms, makes them unable to fully comprehend global financial problems, investment fluctuations, and hedge funds.

And this poses a problem for foreign investors who may want to invest in Japanese firms, but would be unable to have a say in the policies of that company.

Japanese business owners feel they owe their survival and growth to the customers, the society at large, the board of directors, and then towards the investors.

Derryck.
NYC.