Business in Japan

Being culturally aware and sensitive in the diverse world in which we live and work is a very valuable asset. As the job market continues to struggle and competition is fiercer than ever, multinational organisations are increasingly looking for people who can prove they are easily adaptable to different situations and can work well in multicultural teams and multicultural environments – what is often termed being “culturally intelligent”.

Business relationships in Japan are characterized by a well-structured hierarchy and a strong emphasis on nurturing personal contacts. Generally, they are built up over long periods of time or are based on common roots, such as birthplace, school or college. It is not surprising, that many people see the Japanese business world as comparatively hard to break into. In fact, there are many different kinds of business relationships.  
Most Japanese companies have a series of very close relationships with a number of other companies that provide them with support. It has been traditional practice for a company to hold shares in these "related" companies, a practice which has given rise to a high proportion of corporate cross-share holdings in Japan. This has been a show of faith on the part of one company towards another, and also has been useful in providing companies with a core of stable and friendly shareholders.  
When dealing with a Japanese company, it is important to be aware of the existence and nature of some of these close relationships, in particular those with banks and trading companies. Understanding these can help to define the nature of the company and the way it does business, as well as its positioning in the Japanese business world. 
Business Negotiations & Meeting Etiquette 
Face to face contact is essential in conducting business. It is more effective to initiate contact through a personal visit than through correspondence. Initial contacts are usually formal meetings between top executives. During the first meeting, you get acquainted and communicate your broad interests; you size each other up and make decisions on whether ongoing discussions are worthwhile. At this point you should not spell out details or expect to do any negotiating. 
Exchange business cards (meishi) at the beginning of the meeting. Business cards are a pretty important exchange in meetings. . A card shows the employees significance to a company, and how much respect they must receive in a meeting when speaking. The traditional greeting is the bow. Many Japanese businessmen who deal with foreign companies also use the handshake. If you bow, then you should bow as low and as long as the other person, to signify your humility. Personal space is highly valued in Japan due to the densely populated areas in which they live. Physical contact, other than a handshake, is never displayed in public.

First names are not usually used in a business context. In Japan, the family name is given last, as in English. You should address Yoshi Takeda as "Mr. Takeda" or "Takeda-san." Expect to go through an interpreter unless you learn otherwise. If meeting high-ranking government officials, an interpreter is always used even if they can speak English fluently because customarily, they refrain from speaking foreign languages in public. Exchanging meishi 
Conservative dress is common for both men and women in public. Most Japanese professionals wear Western-style dress (European more than American), although during the hot summer months, men often do not wear suit jackets. 
Nonverbal communications - gestures, nuances, inferences - are very important in signaling intentions. "No" is seldom said directly, and rejection is always stated indirectly. Remember that the Japanese hai means "Yes, I understand you" rather than "Yes, I agree with you." The Japanese will sit in silence for some time - it is a way to reflect on what has been said. Early business and social contacts are characterized by politeness and formality. 
The Japanese like to launch new products or take other important initiatives on "lucky days." The luckiest day, called the "taian", occurs about every six days. Your Japanese colleague will probably want to delay a major announcement until the next "taian". Japanese calendars usually indicate these days. 
The presentation of a new product is traditionally followed by a reception with the product on display; an omiyage, or gift, is given to each attendee. This adds to the overall cost of the event. 
There is the main rule for business in Japan: "Make a friend, than make a sale." When selling to or negotiating with the Japanese, do not rush things. The Japanese prefer a ritual of getting to know you, deciding whether they want to do business with you or not. 
A Japanese negotiator cannot give a prompt answer during an initial discussion. No commitment can be made until the group or groups he or she represents reach a consensus. Negotiations may take an extended period. 
A Japanese partner will usually prefer to develop a business relationship in stages. So once you make a commitment, expect it to be for a long time. If you break it, your reputation will be affected and everyone will know. It may be difficult to find another Japanese partner after this happens. 
Gift giving is an important part of Japanese business life and should not be confused with bribery and corruption. Gifts should not be too lavish but should always be of good quality. Gifts should always be wrapped. Avoid giving gifts in quantities of four or nine as these are unlucky numbers. Anything sharp could signify the desire to end a relationship. Alcohol, especially good single malt whiskey, is always an appreciated gift.