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2 MNC Case Studies
Pages 74-93

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From page 74... ... A research contract was also granted to Tama Institute of Management and Information Sciences to supplement the hearings. STATISTICS ON FOREIGN-BASED MNCS IN JAPAN Foreign capital companies have attached special importance to entry into the Japanese market in the past as well as the present, as Mr. Read the entire page →
From page 75... ... based companies, which make up 46.4 percent of all foreign capital companies. The manufacturing sector constitutes 30.3 percent of all business activities and other industries evenly divide the remainder. Read the entire page →
From page 76... ... SOURCE: Toyokeizai Handbook on Foreign Capital Companies 1993 (Tokyo: Toyokeizai-shinposha, 1994) Read the entire page →
From page 77... ... NOTE: H Yoshihara, Foreign Capital Companies (Tokyo: Toyokeizai-shinposha, 1992) Read the entire page →
From page 78... ... 29. Major access problems encountered by foreign capital companies are summarized in Table 2-6. Read the entire page →
From page 79... ... Yoshihara, Foreign Capital Companies (Tokyo: Toyokeizai-shinposha, 1992) Read the entire page →
From page 80... ... 27% 18% A B C D 31% 15%1 \|21%\| ~ 29% \|15%\| 16% 5% E F G H F: Ministry guidelines/policies G: Legal and regulatory restrictions H: Nonmarket pricing l: Testing associations and procedures J: Other Minor restriction \| \|~ Major restriction \| FIGURE 2-4 Reasons affecting companies' ability to do business in Japan. SOURCE: American Chamber \| of Commerce in Japan, Trade and Investment in Japan: The Current Environment, 1991, p. Read the entire page →
From page 81... ... based MNCs in Japan are more profitable than their operations in the States. A survey reveals that the foreign capital companies paid out in average 52.8 percent of after tax profits to dividends.3 This is a distinct difference from Japanese companies; they usually pay only 23.3 percent in dividends. Read the entire page →
From page 82... ... SOURCE: H Yoshihara, Foreign Capital Companies (Tokyo: Toyokeizai-shinposha, 1992) Read the entire page →
From page 83... ... Many foreign based MNCs in Japan have been expanding research and development activities recently. Most of them used to operate only engineering centers to transfer product technology from and manufacturing technology to the parent company. Read the entire page →
From page 84... ... Hence many Japanese companies have had difficulties in establishing their business bases, resulting from poor business strategies and poor knowledge of different cultures and socioeconomic changes. Even so a substantial number of companies have managed to succeed, overcoming various difficult conditions. Read the entire page →
From page 85... ... SOURCE: Ministry of International Trade and Industry, Fourth Annual Survey of Japanese Companies ' Overseas Activities, 1991. HAWAII industry EI Manufacturing SOME U.S.-BASED MNCS IN JAPAN STILL HAVE ROOM FOR MANAGEMENT EFFORTS Many U.S. Read the entire page →
From page 86... ... Table 2- ~ 1 shows a list of reasons for failure of foreign capital companies surveyed by Yoshihara. After the Second World War, Japanese industrialists were told by American leaders that the use of political power in business was against industrial morals. Read the entire page →
From page 87... ... For the U.S. companies seeking to enter the Japanese market, it is needless to say, but recommended that they make thorough preliminary studies on Japanese regulatory baITiers and commercial practices.6 It is also recommended that they effectively utilize the function of the Foreign Company Manager's Association established in 1993 as a forum of foreign business in Japan to make policy suggestions to national and local governments.7 DIFFICULTIES OF JAPANESE COMPANIES IN DOING BUSINESS IN THE UNITED STATES The rise in the yen, resulting from the dollar crisis of the early 1970s and the demise of fixed exchange rates, spurred the first phase of the foreign investment boom in Japan. Read the entire page →
From page 88... ... SOURCE: H Yoshihara, Foreign Capital Companies (Tokyo: Toyokeizai-shinposha, 1992) Read the entire page →
From page 89... ... Furthermore, the foreign capital companies accounted for 2.2 percent of total assets of all companies in Japan, 2.5 percent of sales, 3.4 percent of profits, and I.2 percent of employees. Although there are important differences between the industrial structures of Japan and the United States, investments by Japanese companies in the United States have led to many business opportunities for U.S. Read the entire page →
From page 91... ... SOURCE: Toyokeizai Handbook on Foreign Capital Companies 1993 (Tokyo: Toyokeizai-shinposha, 1993) Read the entire page →
From page 92... ... 1992. Toyokeizai Handbook on Foreign Capital Companies 1992. Read the entire page →
From page 93... ... ] 4 Toyo Keizai Inc., 1994. Read the entire page →

From page 74...

... A research contract was also granted to Tama Institute of Management and Information Sciences to supplement the hearings. STATISTICS ON FOREIGN-BASED MNCS IN JAPAN Foreign capital companies have attached special importance to entry into the Japanese market in the past as well as the present, as Mr.

2 MNC Case Studies Pages 74-93

2 MNC Case Studies
Pages 74-93