According to Trainer (2004), strategic planning models benefit organizations by providing a clear path to improving operations and better achieving their goals. The organization then shares these models with its leaders so that they understand and act on this strategy.
In this discussion, I will analyze tables 1 and 2 in the reading (Isac & Remes, 2018), fill out the third column (Rationale) according to what was previously studied about Japanese culture at work, and analyze the results accordingly.
MNC ___ Model of Strategy Formulation (Japan Subsidiary)
Activity | Model 1 | Rationale |
Scanning behavior | Search: active, focused, systematic | Japanese believe in long-term growth, a strong competitive attitude, etc. |
Selection (type of information, sources) | Quantitative objective, expert | Japanese culture is based on the product's history of past success and information on hand, not projected into the future; the opinions of an expert leader are better than those of an authoritarian leader |
Interpretation | Analytic | The information is analyzed through cooperation between the departments to reach a satisfactory result for all |
Validation | personal edict, bureaucratic rules, historical precedent | Adopting the functional hierarchical system, the employee cannot exceed his manager, the final decision is made by everyone |
Priorities | Urgency, certainty, task | The priority for growth if demand is high, production will double, maximum utilization of competitive advantage, and striving to beat competitors |
Overall | Top-down, elite-dominated | The leader does not completely dominate, although there is a career ladder that is respected by all, each according to his status and position. |
Cultural Variables | ||
Control | High | Strong commitment to hard work and not falling behind social norms |
Uncertainty | Reduction | Japanese employees are always ready for any sudden situation according to the nature of the fluctuating weather around them. |
Activity | Proactive | The employee serves the company's sustainability, and companies don't rely too much on quarterly earnings reports. |
Hierarchy | High | The job hierarchy is very important; bypassing the manager with an employee who works for him is difficult. |
Peer | Individual | The principle of self-denial is clear, and employees have great loyalty to their companies |
Relationships | Task-oriented | The leader and employees are flexible and work in a team spirit |
Model of Strategy Formulation Analysis:
If I think of opening a new company branch in Japan, I must study Japanese culture and build a strategy that matches that culture.
1. The company's product success record: Japanese culture is based on a product's record of success in the past. It is not like Western culture, which depends on adventure and expectations for the product's success in the future. Therefore, products and services that have proven to be effective and successful in the past must be introduced (Drucker, 1971).
2. Relying on an expert leader: The opinions of an expert leader are better than those of an authoritarian leader. Therefore, leaders and managers with high technical expertise must be appointed (FUKUSHIMA, 2001).
3. Dependence on collective decision: The information is analyzed through cooperation between departments to reach a satisfactory result for all; therefore, work teams must be established that cooperate in achieving the appropriate decision, each individual according to specialization and experience (Drucker, 1971).
4. Functional Hierarchical System: Respect the job hierarchy and the distribution of responsibilities. According to this hierarchy, an employee cannot override his manager.
5. Priority for growth: Adopting a growth strategy, not a quick profit; if the demand for a product is high, its production must be doubled, make the most of the competitive advantage, and strive to beat competitors (Yancey & Watanabe, 2009).
Conclusion
Japan's work culture is very different from that of the United States and Western countries in many respects; therefore, we must work according to these differences; otherwise, it will be challenging to achieve success there, according to the Western model. The strategic planning model improves knowledge of what can work best; it projects a clear picture of the target customer's culture and how this culture can be dealt with and compared to the culture of the mother company's country. We can analyze these differences and work according to the strategies needed to succeed in the new market.
References
Drucker, P. (1971). What We Can Learn from Japanese Management, https://hbr.org/1971/03/what-we-can-learn-from-japanese-management
FUKUSHIMA, G. (2001). Understanding 'leadership' in Japan, https://www.japantimes.co.jp/opinion/2001/03/28/commentary/understanding-leadership-in-japan/#.XnlVPYhKg2w
Isac, F. L., & Remes, E. F. (2018). The Relationship between Culture and Strategy–A Managerial Perspective Approach. Studia Universitatis Vasile Goldiș Arad, Seria Științe Economice, 28(3), 76-85.
Trainer, J. F. (2004). Models and tools for strategic planning. New directions for institutional research, 2004(123), 129-138.
Yancey, G.B., & Watanabe, N. (2009). Differences in perceptions of leadership between U.S. and Japanese workers. The Social Science Journal, 46(2), 268-281. http://dx.doi.org/10.1016/j.soscij.2009.04.004