UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT (FAM)

FACULTY OF BUSINESS AND FINANCE (FBF)

ACADEMIC YEAR: 2023/2024

OCTOBER 2023 TRIMESTER
UKMB1013 - PRINCIPLES OF INTERNATIONAL BUSINESS

GROUP ASSIGNMENT

Programme Details
Tutorial Group: T5
Lecturer’s Name: Hooi Pik Hua @ Rae Hooi
Tutor’s Name: Hooi Pik Hua @ Rae Hooi

Assignment Details
Company’s Name: (Fast-food Industry)

Country: Japan/日本国

Due Date: Week 4 (24th November 2023, Friday)

Students’ Details

No. Students’ Name Student ID Programme Year/Sem

1. Chaw Khun Thin 2200658 IN Y1S3
2. Lam Munn Hong 2106165 IN Y1S2
4. Ng Zhen Yang 2201706 IN Y1S2
5. Tan Guan Ming 2105202 IN Y1S3

Signature:

Date:
 Marking Scheme

Assessment Marks

General Information About the Targeted Country

• Country profile, historical and current development, 15
national attributes and values, population, and capital

General Information About the Industry

• Industry development, infrastructure, market share,
15
competition, industry standards, and government
support and initiatives

Country Environment Assessment

• Comprehensive country analysis assessment (analysis
10
of economic, political, social culture, technology, and
legal system).

Competitor Analysis
15
• Identify and analyse the main competitors in the country.

Cultural Study and Analysis

• Study and analyse the national culture by using
Hofstede’s cultural dimension and study the cultural 15
practices such as social and corporate cultures. Besides,
recommend some good practices in dealing with locals.

Trade Policy Analysis

• Discussion of the country’s trade policy, tariff, standard
10
requirement etc., that are relevant on exporting the
product.

Human Resource Management

• Determine the human resource strategy and its rationale. 10
• Organisation communication and leadership

References and Format

• Quality of the written assignment
10
• Source of the information
• Citation and references (APA formatting)
•

Total Marks 100

UKMB1013 Principles of International Business
ORIGINALITY REPORT

SIMILARITY INDEX INTERNET SOURCES PUBLICATIONS STUDENT PAPERS

PRIMARY SOURCES

Submitted to National College of Ireland

II Student Paper

■ Submitted to Hong Kong University of Science

and Technology
Student Paper

■ Submitted to University of South Australia

Student Paper

■ Submitted to Southern New Hampshire

University - Continuing Education
Student Paper
<1%

■ Submitted to NCC Education

Student Paper <1%

■ Submitted to Saginaw Valley State University

Student Paper

www.coursehero.com
Internet Source

■ www.mdpi.com
Internet Source

Exclude quotes On Exclude matches < 8 words

Exclude bibliography On
 Contents
Cover Page ...............................................................................................

Marking Scheme.......................................................................................

Turnitin Report .........................................................................................

1. Country Profile ................................................................................... 1

2. Industry Information .......................................................................... 3

3. Environment Assessment ................................................................. 5

4. Competitor Analysis .......................................................................... 7

4.1. Overview ........................................................................................ 7

4.2. Comparison .................................................................................... 8

5. Cultural Study and Analysis ............................................................. 9

5.1. Masculine Culture........................................................................... 9

5.2. Collectivist Society ....................................................................... 10

5.3. Interaction Techniques ................................................................. 11

6. Trade Policy ...................................................................................... 12

7. Human Resource Management....................................................... 13

References ............................................................................................ 14

Appendices ........................................................................................... 18
 1. Country Profile

Japan is an archipelago consisting of 14,125

islands. The country is located off the coast of East
Asia, on the western edge of the Pacific Ocean.
Hokkaido, Honshu, Shikoku, and Kyushu comprise
the geographical backbone of its landmass, which is
surrounded by a slew of smaller islands. Together,
these swaths of land constitute a continuous string of
islands that spans a significant amount of the Pacific
Ring of Fire. From the majestic Mount Fuji to the
beaches of Okinawa, Japan has a diverse terrain. The
country, however, is also cursed with frequent natural
disasters such as tsunamis, earthquakes, and volcanic
eruptions due to its unfortunate geographic location.

The country has national symbols that it uses to symbolise its distinctive characteristics.
Most notably, it is represented by its national flag, the Hinomaru, a rectangular white banner
with a red circle in the middle. Its national crest is the Chrysanthemum Seal, which also acts as
the imperial seal. Mount Fuji, with its elegant conical shape, is arguably the most famous
depiction of Japan itself. Because it is Japan's tallest peak, its people revere it as a sacred
emblem. Besides, cherry blossoms are an iconic tree that is special to the hearts of the people
of Japan; they represent the transient aspects of life, springtime, and rebirth (Takeda, 2014,
para. 2). The tree’s significance has been ingrained in the lives of the people and the country
since antiquity.

No official language or religion was gazetted in the country, but Japanese is the
dominant language in Japan. The language is used in day-to-day functions and acts as the de
facto national language; besides, Japanese is among the most popular languages for learners
worldwide. There, the people predominantly practice state Shinto and Buddhism (Acar, 2023,
para. 6). The Japanese frequently consider themselves to be a homogeneous society with a
strong sense of group and national identity and little or no ethnic or racial diversity. In fact,
98 per cent of the Japanese population is of the Yamato ethnic group. Despite the lack of
racial pluralism, many people in Japan are proud of where they were born and the regional
variations across the country (Scroope, 2021, para. 2).

1
 Japan has one of the most colourful histories of any country on Earth. The Japanese
people are descended from early human settlers from the Asian mainland. Regardless of the
geographical separation, the historical development of Japan has been under constant influence
from the continent, particularly China. Numerous chronicles mythically identify Emperor
Jimmu as the first Japanese national ruler. The country isolated itself from the outside world
for a period of over 200 years during the Edo period through its foreign policy of Sakoku, or
‘locked country’, although restricted trade was present with its neighbouring countries. The
Meiji Restoration allowed Japan to modernise and become one of the great powers on par with
the industrialised West, following the expedition led by Matthew Perry and a series of unequal
treaties to force the nation to abandon its isolationist policies.

The country works as a parliamentary democracy, with the emperor as the ceremonial
head of state. It has a multi-party democratic political system, but the Liberal Democratic Party
has been dominating Japan’s political scene since the mid-1950s. Nonetheless, Japan is among
the most successful democracies in Asia, if not the world, where regular, free, and fair elections
are held. It has strong institutions that prevent the concentration of power and keep all sectors
of government in check. Japan's democracy has a hybrid form of government that incorporates
aspects of the US and UK political systems (Nilsson-Wright & Wallace, 2022, para. 6). This
system was enacted as a result of the 1947 constitution change following its defeat in the
Second World War. In Japan, the cabinet government headed by the prime minister is
collectively responsible to the country’s bicameral legislature, the National Diet. The Japanese
legal system is based on civil law. The system was implemented in 1896 and is still in use
today. Prosecutors in the country take on many of the responsibilities of lawyers, meaning
judges preside over civil proceedings (Hazard & Dondi, 2006, p. 61).

Tokyo is the capital and largest city in Japan and the world. It serves as the nation's
political, economic, and cultural hub and the home of the imperial family as well as the
government. The country's population is concentrated in the major cities of the Kanto and
Kansai regions, especially Tokyo, Yokohama, Osaka, Nagoya, and Kobe. Owing to the lack of
natural resources in the nation, much of its fuel and food must be imported from outside.
Regardless, Japan's economy, with a nominal GDP of $4,231.14 billion US dollars, is the third
largest in the world. Japan is one of the biggest producers of automobiles, steel, and high-tech
manufactured goods globally. Its industrial and service sectors have become increasingly
diversified.

2
 2. Industry Information

The fast-food sector is a branch of the food and beverage industry that serves food that
is intended for immediate consumption by customers. It all began in the United States in 1921,
when White Castle opened its first restaurant, selling hamburgers for five cents each. The sector
truly took off in the 1950s, when then-US President Dwight D. Eisenhower was developing his
national interstate highway system (Diamond, 2019, para. 7). Many reputable establishments
that we are familiar with today, such as McDonald’s, KFC, Burger King, and so forth, were
founded during this period. Fast-food joints quickly gained popularity and have spread to all
corners of the globe since then.

In Japan, the fast-food industry is thriving in the country’s gourmet scene. The Japanese
have adopted this distinctly American custom, but they have also succeeded in making it
uniquely their own by adding regional touches to the menus. It can be said that aside from
traditional Western-style hamburgers and french fries, Japanese fast-food options include
Japanese gastronomic treasures, namely ramen and tonkatsu. Simply put, fast food has become
integral to the country's gastronomic culture. This was not always the case; before the arrival
of fast food, the Japanese had never seen, let alone eaten, a hamburger (Tanaka, 2021, para.
4). Fast food originally made its way into Japan in the early 1970s, when international
franchises opened shops there. Over time, as they continued to grow in the Japanese market,
several homegrown chains appeared to take on the likes of KFC and McDonald's. Examples
include Yoshinoya, a well-known brand that specialises in gyudon and other rice-based
dishes, and MOS Burger, a Japanese burger chain famous for its rice burgers.

The fast-food sector encompasses a wide range of establishments that provide

customers with quick-service meals. The industry is distinguished by the quickness with which
food items are served from the kitchen to customers. Speed and efficiency act as the backbone
of the services it provides, while also providing top-notch fares for its consumers. The fast
preparation is attributed to their often-streamlined menus, which feature core items of their
respective chains. This limited menu enables fast food joints to cook in bulk and make them
ready upon ordering. Standardisation and consistency are prioritised by fast food franchises.
Every location should serve the same menu items that are the same in terms of quality, flavour,
and appearance. Their food is designed to be eaten on the go. It is typically put in wrappers or
containers that make consuming it while travelling convenient. The fast-food sector has catered
to today's fast-paced, globalised environment by taking convenience into account.

3
 Like their counterparts in almost every other industry, fast-food operators in Japan
depend on the facilities and infrastructure that support their daily operations. The nation boasts
one of the best infrastructures in the world because of its highly developed system. Japan's
highly connected and easily accessible infrastructure, including its intricate network of roads
and railways, provides a significant advantage to players in the fast-food business. The
advanced port and logistics systems, which guarantee the effectiveness, affordability, and
standard of doing business, also benefit the industry. Apart from that, Japan is prone to many
natural disasters. As a result, Japanese businesses have acquired the skills required to work on
a range of infrastructure that is both resilient and flexible to various environmental
circumstances (Dominguez, 2022, para. 5). In the long run, operational efficiency is brought
about by a durable and high-quality infrastructure, which makes Japan an optimal business
location.

Figure 1 indicates Japan's market share of food service providers in 2021. It is

important to take this into account since a handful of them are fast food restaurants or holding
businesses that own and run fast food restaurants. For this reason, it can be seen that the
fastfood sector in Japan is extremely competitive. Even American fast-food giants like Burger
King and Wendy's were forced to repeatedly withdraw from Japan in order to restructure their
business plans (International Trade Administration [ITA], 2022, para. 3). In terms of number
of locations, McDonald's is the biggest fast-food restaurant in the nation as of 2021. Hotto
Motto is in second place, and MOS Burger is in third, see Figure 2. Aside from stiff
competition, Japanese fast-food restaurants face an additional challenge. There is a growing
trend of health consciousness in the country (Dizon, 2023, para. 1). As a result, there is a
greater need for more diverse and healthier eating options. Fast food restaurants in Japan
must adjust their menus to satisfy the changing needs of their customers.

As far as government aid is concerned, the Japanese government indirectly supports

fast-food operators in the country. Since early 2020, as COVID-19 hit, the government has
been taking action to reinforce its supply chain (Watanabe, 2022, para. 3). This is to ensure
that any ingredient shortage can be avoided. For instance, the Ministry of Economy, Trade,
and Industry initiated subsidy programmes to help Japanese companies relocate their
production of consumer goods back to Japanese soil. As a result of improved supply chain
security, Japanese companies, including the fast-food industry, can minimise their reliance on
the global supply chain. Furthermore, restaurant expenses will decrease, as will customers’
spending, enhancing the purchasing power of the Japanese people and stimulating the market.
4
 3. Environment Assessment

Japan has a reputation for its cleanliness, convenience, and safety, and it has become a
major player in the global economy. After the Second World War, Japan had recovered
remarkably quickly and completely by the late 1960s. Today, it has a well-developed
infrastructure and an industrialised economy. That said, Japan offers excellent business
conditions for companies that wish to establish their presence in the country.

Japan presently stands as the second-largest economy in the Free World and a stable
democracy. Politically, the country has been controlled by the Liberal Democratic Party, albeit
with only two short interruptions. The key selling point of the country is the low level of crime
rates and corruption in all sectors of its society. The government of Japan has initiate steps to
improve its aid for international businesses looking to establish themselves in the country after
realising that there is a deficiency of foreign direct investment. In addition to business-friendly
government initiatives, the country has a highly skilled labour force that is unrivalled by its
neighbours. Furthermore, foreign investors operating in the Japanese market have open access
and can readily reach other Asian markets due to its strategic location. The past few decades
have seen foreign companies and investors rush to Japan in an attempt to take advantage of
those competitive advantages (“Japan: Where High Tech Meets High Value Foreign Direct
Investment,” n.d., para. 3).

The country boasts a thriving economy, which can be linked to its role as an Asian
industrialisation pioneer. Between 1945 and 1991, Japan witnessed rapid and sustained
economic expansion, becoming an economic powerhouse that the rest of the world admired.
Over the previous ten years, Japan's economic growth has averaged just 1 per cent annually, far
less than that of other developed nations. The "lost decades" allude to the more than three
decades of stagnant growth. The elderly population and decreased fertility rate are factors
contributing to the slow growth. In Japan today, over 10 per cent of the population is 80 years
of age or older (Ng, 2023, para. 1). Despite this, the country's fast-paced lifestyle has resulted
in a high consumption of fast food. In fact, fast food consumption in Japan ranks in the top
ten globally (Hutchins & Negin, n.d., p. 1). It also has a substantial middle-class population,
which is the key consumer segment for fast food items. However, the numbers are dropping
as wages decline, and this has been accelerated as the pandemic has hit the country.
Regardless, the Japanese market remains as an attractive place for fast food businesses, both
foreign and domestic, to further expand their operations.

5
 Japan’s collectivist culture is famous for its effectiveness. Their society and their
country always came first. It can be noticed in almost all spheres of their lives. Respect for
tradition as well as elders is very valued in Japan. There are several rituals that stem from
antiquity; a lot of individuals in Japan assert that preserving cultural legacy is important. The
two main Japanese religions are Shintoism and Buddhism, and they usually coexist
harmoniously. Japan, especially its traditional aspect of culture, which encompasses customs
and holidays, has a lot to do with the Shinto religion. Buddhism, especially for ceremonies
marking birth, marriage, and death, should not be overlooked either. Both the concepts of
honour and honesty hold very high value in Japan. People value morality and one’s reputation
very much.

Japan has an excellent education system that embraces academic excellence. The
educational system in the country is quite competitive and orderly. The children in Japan start
having moral education and industrial training at an early stage of their lives so that they can
survive beyond their classrooms. The life expectancy rating in Japan is among the highest
worldwide. This is because the Japanese people have a proper diet and lifestyle and easy access
to quality medical care throughout their lives. Besides, Japan has many lush forests. It is one
of the most forested countries in the world, with 62.3 million acres of forested land (Yasuka,
2020, para. 1). This shows that Japan values nature, as evidenced by its concern with
environmental issues. They highly value environmental protection and sustainability due to
their religious beliefs that there is a spirit within every living being, and they must be
respected.

The Japanese culture of innovation is strong; some of their companies have led the way
in various technical advances. Japan has led the way in using new technologies. This results in
a culture that is accustomed to emerging innovations and technologies in the population, hence
a technologically savvy culture. The country spends a lot of money on research and
development. Both the public and private sectors sustain a healthy R&D ecosystem. There is a
history of cooperation among universities, scientific research establishments, and business
entities facilitates the transfer of scientific discoveries into practical use. Many times, Japan
works with international partners in their R&D programmes. The partnership also bolsters the
reputation of Japanese innovations in other parts of the world while promoting information
dissemination. The country has long had modern and digitalised business and public services
that are efficient and of high quality. With this, fast-food businesses in Japan can remain
competitive in an ever-changing market.
6
 4. Competitor Analysis

4.1. Overview
Marrybrown is a Malaysian homegrown fast-food chain. Aside from standard burgers
and fries, it also serves Malaysian specialities including its signature Nasi Lemak
Marrybrown and the local favourite Mi Kari. Marrybrown has long been marketing itself in
the country as a Muslim-friendly restaurant. The fast-food restaurant chain is currently one of
the most successful in Malaysia. It has already established a foothold in several countries,
primarily in Asia and the Middle East. In order to target its customers, Marrybrown has
concentrated on geographic segmentation. Restaurants of Marrybrown are found in high-
density areas of metropolitan and semi-urban population centres (Phoong et al., 2019, p. 16).
Japan is an extremely urbanised country. As of 2023, roughly 92 per cent of the people in
Japan reside in cities. This allows Marrybrown to take its present method of geographic
segmentation in Malaysia to Japan.

Unlike in most other countries, the fast-food scene in Japan is not completely dominated
by the big names from the West. On the streets of Japan, there are many local chains, big and
small, selling everything from pizza to Japanese rice bowls. The country's fast-food industry is
highly competitive. Because Japan's work ethic is based on a strong sense of dedication,
professionals and students alike frequently seek quick and easy food options. As a result, fast
food continues to be popular in Japan. The country's modern, fast-paced lifestyles support the
country's growing trend of quick-service restaurants. This explains the wide range of fast-food
restaurants in Japan. For the leading fast-food operators in the country, Figure 2 indicates the
rankings by number of locations.

Local and international fast-food companies alike compete in Japan's fast-food

market, offering a variety of fast-food items. Table 1 shows what the top fast-food companies
in Japan have to offer to consumers, along with their market positions, value propositions,
target markets, and strengths. The value propositions offered by these businesses can easily
be differentiated, which further solidifies the competitiveness of the country’s fast-food
industry. As Marrybrown aims to expand its presence into Japanese territory, it will have to
brace itself for fierce competition upon arrival. However, every challenge is an opportunity in
disguise. Marrybrown can play the role of a pioneer in introducing Malaysian-style fast food to
the Japanese populace. As of the time of writing, there has yet to be a fast-food eatery of this
kind in the country.

7
4.2. Comparison

Table 1
Leading Fast-food Restaurants in Japan and Their Specifications

Company Specification

Area of Market Value Target

Expertise Position Proposition Market Strength(s)

Food of consistent Resilient

McDonald’s Hamburgers High quality All supply chain

Strong value
chain and
White- concentrated
MOS Unique, Japanese- collar market
Burger Hamburgers Moderate style burgers workers strategy

Fried High-quality food Young High brand

KFC chicken High at affordable prices people recognition

Affordable,
Domino’s convenient, and Positive brand
Pizza Pizza Moderate high-quality pizzas All image

Hokka Affordable bento

Hokka Tei Bento Moderate boxes Workers Low prices

Pizzas of Japanese
Pizza-La Pizza Moderate and Italian flavours All N/A

Customisable Young Positive brand

Pizza Hut Pizza High pizzas people image

Good
Premium Takoyaki investment
Gindaco Takoyaki Moderate balls All opportunity

Honke Fresh and healthy

Kamadoya Bento Moderate bento boxes Workers N/A

8
 5. Cultural Study and Analysis

Cultural diversity management is seen as a process that helps to create a pleasant

business atmosphere where the similarities and differences of people from diverse cultural
origins are valued and shared (Nguyen & Kumar, 2021, p. 71). It has become increasingly
crucial as globalisation increases. Geert Hofstede's research on Japanese culture is depicted in
Figure 3 using his cultural dimensions theory. The dimensions of masculinity-femininity and
individualism-collectivism will be used to analyse Japanese social and business cultures in this
paper and pave the way for Marrybrown’s expansion into the Japanese market.

5.1. Masculine Culture

The degree to which a society incorporates traditionally masculine qualities such as
assertiveness, consumerism, and a lack of care for others is defined as masculinity. It
distinguishes gender roles, which emphasise men's benefits over women's, highlighting their
ambitions and perceiving more riches. Men, for example, are expected to be harsh, assertive,
hardworking, and materialistic, whereas women are expected to be soft, modest, and concerned
with the quality of life. Furthermore, femininity is defined as a society that explains fluid
gender roles, and both men and women are concerned with the quality of life.

The environment in Japan is stressful, which leads to an upsurge in suicides. Suicides

have resulted in around 21,000 documented instances by 2020 (Kyodo, 2022, para. 6). Toxic
masculinity has instilled in males a great deal of pressure, which has a severe impact on their
mental health, leads to an unhealthy lifestyle, and leads to misogyny and hate crime. Aside
from that, business was once the most used phrase in Japan. When walking on the streets in
major cities in Japan, we see a group of men dressed in suits going about their businesses
instead of spending time with their family and friends, reflecting the impassive ‘salaryman'
stereotype (Endo, 2022, para. 2). It precisely represents the traditional Japanese household
concept of husbands working and wives staying at home.

There is another example to show that Japan has a highly masculine culture. Samurais
were the most iconic male culture for men in the feudal era (McKissack, 2017, p. 85). They
were the warrior nobility who embodied the Japanese knighthood's ideals of devotion, self-
sacrifice, responsibility, and physical and mental endurance. Salarymen today have carried
samurai qualities and spirit into their profession as corporate fighters. Through a system of
long-term employment, they tend to maintain their traditional conceptions of masculinity.

9
5.2. Collectivist Society
People in Japan are considered collectivist. Many aspects of Japanese culture are
collectivist. Family-honouring rites and rituals abound in traditional Japanese society. The
country has been able to resist the influence of foreign cultures for millennia since it is an island
nation. The people value social harmony, conformity, and the importance of communal aims
over personal aspirations. Respect for authority leaders and elders is a vital component in
Japanese culture. Shinto is Japan's indigenous belief system. It indicates that the way of the
gods, in which the Japanese believe that every living thing has a spirit, must be respected. The
word is also known as coexisting with nature's harmony. It thinks that respecting the
environment promotes improved fertility and health for themselves and their neighbours.
Shinto practices are now among the most vital to implement in Japan. Furthermore, the concept
of wa is frequently used in Japanese communication. Around 600 B.C., a hierarchical
governance structure gave rise to this notion. It is also an understanding of their society's
harmony, and everyone should do their best to do what is required of them. The concept of
harmony is used by the Japanese to address people in a specific way to express respect and
loving care for one another, and vice versa.

The Japanese continue to work in the traditional Japanese manner, emphasising

teamwork over individual effort. Aside from that, they place a greater focus on rank structure.
In Japan, for example, a businessman will only speak with the company's owner or executive
management during meetings since they believe it is a waste of time to speak with a lowerlevel
employee. Furthermore, individuals in Japan work long hours. Roughly a quarter of
Japanese employers force their employees to work overtime, up to 80 hours each week
(Saiidi, 2018, para. 2). It is considered impolite in Japan for employees to return home if their
superiors have not left the office. This is one of the primary reasons why employees labour
past midnight.

Furthermore, the Japanese make sluggish decisions. In Japanese culture, anything new
is met with strong psychological resistance. This is because they do not have a single decision
maker and must hold a conference to consider every possible side effect and outcome before
reaching a decision. This usually means holding off on deciding until they are 100 per cent
certain. Aside from that, the Japanese communicate in an indirect manner. The
Japanese language is difficult to learn since there are numerous implicit conventions, styles
of speech, and workplace habits. They are high-context communicators who resist
talking about nonsense and negative thoughts (Sasaki & Dickey, 1999, p. 5).
10
5.3. Interaction Techniques
Marrybrown must first recognise the cultural differences between Malaysia and Japan
and make changes in its style of operations based on the Japanese way of life. The Land of the
Rising Sun is one of the most courteous countries in the world. Businesses must exercise
caution when establishing a presence in Japan in order to prevent confrontation with local
customs and faiths. Before travelling to Japan, visitors should often first acquire some
fundamental knowledge of the Japanese language and vocabulary. In addition, to show
respect for others, people should bow or nod if they are doing something improper.
Furthermore, disrespectful behaviours such as pointing fingers at others, drinking, or eating
on the street, blowing their nose loudly, and being late for work, just to name a few, must be
avoided.

Aside from that, the Japanese customer has some expectations. One of the expectations
is for high-quality goods and services. It includes not only the quality of the food items but also
textual communication and personal encounters. Before delivering orders to consumers, the
company's workers should always double-check them to ensure there are no quality issues or
errors. If the team is pleasant and behaves responsibly, the image of the company will improve.
Firms can also provide feedback for their customers to fill out. This is because the firm can
determine what problems are underlying and what needs to be improved. As a result, the
consumer will notice the firm's commitment and comprehensive follow-up and become
satisfied. As a result, the customer will see the firm's commitment and comprehensive followup
and become a devoted customer.

Last but not least, there are also some expectations from the Japanese suppliers. First
and foremost, a firm needs to list its good track record to attract suppliers or local firms to work
with them. This is because suppliers and firms in Japan are very concerned about the matter of
working with a stable and long-term commitment company in the future. Therefore, some
foreign firms need to show off their awards and customer lists that they have received in the
past, as well as their quality certification. These inquiries will help prove your company is
worth trusting to work together. Furthermore, while working with Japanese customers, a
company must designate a local contact person to better access the Japanese business networks.
For example, the company could consider hiring Japanese-speaking employees for customer
service and sales. This is due to the fact that some Japanese companies are more accustomed
to interacting with Japanese people and are also easier to communicate with because both of
them can speak Japanese well.
11
 6. Trade Policy

Japan pursues an open trade policy in compliance with World

Trade Organisation regulations (Ministry of Foreign Affairs [MOFA] of Japan, n.d., p.
2). This means it will not implement new tariffs on imported goods from any other
country. Considering many of Marrybrown’s ingredients must be sourced and
imported from Malaysia, Japan’s actions guarantee minimal influence on the
vital factors of Marrybrown’s future operations in the country. This is made even
more evident when goods imported from developing nations like Malaysia are subjected
to reduced tariff rates under Japan's preferential tariff scheme, though the country currently
has some of the lowest tariff rates worldwide.

On non-tariff barriers, Japan only imposes import quotas on certain items and does not
include the food ingredients needed to run a fast-food business. Also, goods do not need any
import licences when going in as food imports into Japan (Clavecilla, 2023, para. 6). This,
however, requires following the documentation regulations very carefully. This includes
information on the import commodity’s ingredients and manufacturers, among other crucial
attributes. Japan’s move to develop strong free trade agreements across the world
highlights its efforts to promote economic relationships globally. It must be noted
that Japan has demonstrated its support for multilateral cooperation, for instance, through
the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an
agreement signed and ratified by both Malaysia and Japan, plus countries across the Indo-
Pacific. For this reason, trade between Malaysian and Japanese companies is
unrestricted and receives minimal influence on decisions from both governments.

Foreign food and beverage businesses who wish to set up a location in Japan
must adhere to the Food Sanitation Act (FSA). This regulation oversees food quality and
integrity in the country, including fast food restaurant meal processing and food imports. The
objective is to protect the health of its population from sanitation hazards when consuming
food goods (Kawase, 2023, para. 3). When food are imported into Japan, they must pass
inspection, making sure the items adhere to Japanese safety and quality requirements.

Japan has a favourable trade policy for the fast-food industry because of its low
tariff rate and membership in several trade agreements that allow preferential access,
Under the country's current arrangements, Marrybrown's entry into the Japanese market
will meet very few roadblocks.
12
 7. Human Resource Management

Japan has a labour force of 69 million people or roughly half of its population. However,
due to the country's dwindling population, the number is expected to decrease in the foreseeable
future. This can be a potential challenge for Marrybrown when seeking sustainable human
resources. The country’s Labour Force Participation Rate (LFPR) in the first nine months of
2023, as displayed in Figure 4, is 62.81 per cent on average. The average yearly wage for
Japanese workers is $45,453 US dollars. Judging by its LFPR, the Japanese people are willing
to work for current salaries.

When it comes to staffing policy, it is in Marrybrown’s best interests to employ a

polycentric approach should it decide to make an entrance into the Japanese fast-food industry.
That is, the company should allow Malaysians to occupy important positions back in its
Malaysian headquarters while the Japanese oversee its operations in Japan. The polycentric
approach is advantageous to Marrybrown as it enables the company to better understand the
local markets and run its business in the country more effectively (Whitehead, 2023, para. 10)
while omitting the need for cross-cultural training. This staffing approach provides the
Japanese with more opportunities to advance in their careers through promotion. It is worth
noting that the country is among the most educated in the world, with 52.7 per cent of its
population having completed some form of post-secondary education. Pursuing the
polycentric employment practice may, however, have the unintended consequence of
widening performance and knowledge disparities between managers in Japan and those in
Malaysia (Whitehead, 2023, para. 10). Despite the downside, this approach does Marrybrown
more good than bad because it provides the company with access to a large pool of skilled
labour and therefore makes it more likely to hire competent managers.

In addition, hiring local managers implies that the company will have to follow a
decentralised decision-making philosophy. Doing this enables its Japanese operation to better
address local conditions and meet its unique needs (Pustay & Griffin, 2020, p. 557). The
cultural differences have highlighted the need for power delegation. The obvious distinction is
that the Japanese are a collectivist society with a corporate culture that values loyalty and
lifetime employment. No one knows about the Japanese other than the Japanese themselves.
The organisational communication in Marrybrown’s Japanese locations can and should be
managed by the locals. Conflicts will be minimised, and confidence between the Malaysian
and Japanese parties will be fostered, allowing for a smooth endeavour ahead.

13
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 Appendices

Figure 1

Market Share of Leading Foodservice Companies in Japan in 2021, by Percentage

Toridoll
Kura Sushi
Plenus
Colowide
Yoshinoya
Starbuck's Japan
Food and Life Companies
McDonald's Japan
Skylark
Zensho
0 2 4 6 8 10 12 14

Note. Adapted from Leading Foodservice Companies in Japan 2021, by market share, by Arba,

2023, Statista (https://www.statista.com/statistics/1235219/japan-top-foodservice-

companiesby-market-share/). Copyright 2023 by Statista.

Figure 2

Number of Stores of Leading Fast-food Restaurant Brands in Japan as of January 2023

McDonald's
Hotto Motto
MOS Burger
KFC
Domino's Pizza
Hokka Hokka Tei
Pizza-La
Pizza Hut
Gindaco
Honke Kamadoya
0 500 1000 1500 2000 2500 3000 3500

Note. From Leading Fast-food Restaurant Brands in Japan 2023, by Number of Facilities, by

Arba, 2023, Statista (https://www.statista.com/statistics/1309576/japan-leading-fast-

foodrestaurants-by-stlore-number/). Copyright 2023 by Statista.

18
Figure 3

Japanese Culture as per Geert Hofstede’s Cultural Dimensions

92 95
100 88

80
54
60 46
40

20

0
Power Distance Uncertainty Individualism Masculinity Long-Term
Avoidance Orientation

Note. Adapted from “Impact of Different Conflict Levels on Culturally Diversified Japanese

Organisations’ Performance Under a Collaborative Conflict Management Style,” by G.

Nguyen and V. Kumar, 2021, International Journal of Organisational Business Excellence,

4(2), p. 74 (https://journal.binus.ac.id/index.php/ijobex/article/view/7983). Copyright 2021 by

Giang Nguyen and Vikas Kumar.

Figure 4

Labour Force Participation Rate in Japan from January to September 2023

63.5

63

62.5

62

61.5
Jan '23 Feb '23 Mar '23 Apr '23 May '23 Jun '23 Jul '23 Aug '23 Sep '23
% 62.2 62.1 62.6 62.9 62.9 63.1 63.1 63.1 63.3

Note. From Japan Labour Force Participation Rate, by CEIC, 2023

(https://www.ceicdata.com/en/indicator/japan/labour-force-participationrate). Copyright 2021

by CEIC Data.
19