Doing Business in Japan

1. Doing Business in Japan Greg Baker Ben Mabee Hedy Donnelly Saud Madani Suzanne Dutoit Stephanie Marmor Ayut Hongsongkeat Eric Yap Japan Training Presentation February 13, 2007

2. Agenda • Greetings • Meishi (Business Cards) • Business Luncheon Etiquette • Establishing Credibility • Negotiations and Decision-making • Business Socializing • Social Etiquette • Q & A Japan Training Presentation February 13, 2007

3. Greetings (goaisatsu ご挨拶) • Bowing (Formal) • Business Setting • Restaurant • Nodding (Informal) • On the Street • Gifts Japan Training Presentation February 13, 2007

4. Meishi(名刺 - Business Cards) • Visiting Side Begins the Exchange • Hand Your Card Over • Japanese Side Face Up So They Can Read It • With Both Hands • With a Slight Bow • Accept Theirs With Both Hands • Study the Card for Information (Name, Company, Position, etc.) • Place on the Table in Front of You or in Business Card Holder (Not in Back Pocket!) • Do Not Write on Or Play With Their Card • Take All Cards You Receive With You! Japan Training Presentation February 13, 2007

5. Business Luncheon • Seating arrangement • Topics of conversation • Exiting the room Japan Training Presentation February 13, 2007

6. Business Luncheon Etiquette • Seating arrangement • Guest sits on far side of room • Host sits nearest the entrance • Highest ranking guest occupies the most central seat • Highest ranking host sits directly across from highest ranking guest • Topics of conversation • No such thing as a real “working” lunch or dinner • Purpose is to build relationships, not to do business • Exiting the room • Guest must not turn their back to the host Japan Training Presentation February 13, 2007

7. Establishing Credibility Emphasize the importance of “we” instead of “I.” Announce your excitement about working as a team, and as a part of their group. When speaking about yourself, be humble and downplay your accomplishments. Show interest in the employees, and initiate conversation that allows them to lead the conversation. Dress conservatively, wearing neutral colors (i.e. dark colors, navy blue) so you do not stand out. Japan Training Presentation February 13, 2007

8. Japanese Negotiating Style • Initially quiet, then ask questions • Do not “lay it all out” like Western counterparts • Conduct frequent side meetings • Often consult senior managers not attending the meeting • Less worried about deadlines • React negatively to aggressive tactics Japan Training Presentation February 13, 2007

9. Ways to Avoid Saying “No” • Silence • “Yes, but…” • Exiting the Room • Criticizing the question • Counter question • Delaying response (“we will follow up with a letter”) Source: Yumi Adachi, “Sixteen Ways the Japanese avoid saying No”, in Business Negotiations Between the Americans and the Japanese (1997) Japan Training Presentation February 13, 2007

10. Japanese Decision Making • Importance of Middle Management • Nemawashi（ねまわし） • Individual group discussion • Tally the discussion points • Present it to the board • Consensus building • Management does not make quick decisions • Decisions rarely reached during meetings Japan Training Presentation February 13, 2007

11. Negotiating Tips • Be aware of seniority and group dynamics • Do not feel need to always talk • Do not show favoritism to individuals • Common Mistake: Fixating on most fluent English speaker • Avoid pressure tactics • Invest time in relationship building, be prepared to make multiple trips • Common Mistake: Rushing to decision because of travel schedule Japan Training Presentation February 13, 2007

12. Nuances of Business Socializing • Who decides where to go and what is ordered (role of seniority) • How to politely decline • Bill-paying dynamics • Female employee dynamics Japan Training Presentation February 13, 2007

13. Social Etiquette Home/Dining Invitation Dress formally if the host does not say “dress casually” Take off shoes when walking into a Japanese house Do not cross chopsticks when putting them together on a chopstick rest Do not pour beer/sake for yourself Japan Training Presentation February 13, 2007

14. Social Etiquette (cont’d) Giving gifts Wrapping style may be more important than the gift itself Do not open gifts immediately No potted plant because it is considered “illness” The number of gifts should not be 4 or 9 (unlucky numbers) Japan Training Presentation February 13, 2007

15. Social Etiquette (cont’d) Others (but important to know!) No tipping: Insistence on giving tips is considered rude It is rude to stand with your hands in your pockets or with folded arms Actions speak louder than words Japan Training Presentation February 13, 2007

16. Q & A We would be happy to answer your questions at this time! Japan Training Presentation February 13, 2007