The goal of this course is to help students to appreciate the major characteristics and structural issues of Japan’s contemporary economy, and to reflect upon the role of Japan’s economy in the 21st century. Since the bubble burst of the early 1990s analogous to the American Sub-prime shock, Japan’s economy has struggled for recovery for more than a decade (which has come to be known as the “lost decade”). While Japanese economy remains the third largest in the world, the people seem to have lost faith in their economy, and to have been convinced that the economic system they were once proud of no longer functions in the way it did. On top of that, Japan had a historical disaster of earthquake and nuclear crisis on March 11, 2011. Taking into account the impact of the earthquake, tsunami and nuclear crisis, Japanese government and businesses have to change the traditional approach dramatically including rebuilding and recovery policy of Tohoku area (Eastern Japan), spending policy with government financing (tax increase), energy policy, business channel strategy (logistics & distribution), new business strategy based on consumers’ psychological aspect affected by natural disaster, etc. Those contents will be touched upon in the class lecture.
Later in the course, we shall turn to some brighter aspects of the future of Japanese economy and industries. Recently, there have been signs of improvement in Japan’s some industries including the “fast fashion” business (UNIQLO & H&M). Japan is still considered a world technological leader in some industries. For example, Japanese auto makers have taken the lead in R&D activities for hybrid and fuel cell vehicles despite Toyota’s recall issue. The development of Keitai (Cellular Phone) business is keeping a unique course compared with Apple’s iPhone. Moreover, Japan’s pop culture industry, including game companies (Nintendo and Sony) and manga/amine production companies, has made considerable impacts not just on the Japanese youths, but on their counterparts in the U.S. and other countries as well, thereby exerting (what Dr. Joseph Nye, Harvard University has called) “Soft Power of Smart Power.” Japan’s leading status in those areas may be indicative of where their future lies ahead.
Related to the brighter side of Japanese economy and industry, we will touch upon marketing and businesses strategies of Japan’s entertainment industry focusing on music industry. New strategy facing the digital age such as “360 deals” contracts (adopted by Lady Gaga, Madonna and U2) will be discussed
comparing Avex’s business model.
Prerequisites:
No prior studies are required to the admission of this course. However, some materials will include basic economics, business strategy and marketing concepts. Therefore, this course may be suitable for students with such academic backgrounds and experiences. Some topics of this course overlap those of “Key Features of Japanese Marketing Strategy (MK325)” in spring program including field studies.
Attendance policy:
Following the attendance policy of IES Tokyo, attendance to all class meetings
is strictly required for the students. In other words, students should attend every class meeting including field trips because there will be important information regarding economics and business strategy to learn but also it is fair that your classmates have your critical observations and insight in the class. The three-hour format for classes makes missing a single class equivalent to missing a full week during a regular semester. Therefore, students are permitted a maximum of one unexcused absence. Additional unexcused absences will result in a penalty of one of letter grade from your final grade, for each additional absence—i.e. two missed classes turns an A into a B, three turns it into a C, and so on. A student’s absence is considered “excused” only if it is unavoidable due to illness and health condition, and for any other reasons but only if the instructor is notified in advance or on the student’s return to the class.
Learning outcomes:
At the end of this course, the students will be able to:
1) Summarize the key features of current Japanese economy and society utilizing statistical data such as GDP, population, yen-dollar exchange rate, prices of gasoline and other consumer products, central government debts accumulated and so on.
2) Understand and explain the basic concepts and terminologies of economics and business strategies such as supply and demand, trade-off, theory of currency exchange rate, mechanism of governmentspending policy, etc.
3) Develop practical skills to analyze industry and business cases such as SWOT, Five-Forces Model, Value Net, Blue Ocean Strategy, etc.
4) Incorporate basic economic concepts and analytical approaches aforementioned into finding out critical problems in the industry and company the student choose.
5) Present new directions and construct solutions for problems the industry or company faces.
6) Develop 10-15 page business report writing along with 1- page executive summary, which will be very helpful and practical in the real business scene.
7) Demonstrate business presentation skills in 10-minute oral presentation, utilizing business presentation software such as Power Point or Keynote.
8) Develop self-confidence as an economic analyst and a business communicator by completing the assignment of business report and oral presentation aforementioned.
9) Incorporate diversity and global awareness acquired by understanding Japanese economy and society into appreciating US economy, industry, and companies.
Method of presentation:
Lectures, discussions, oral presentation, and field study. A lecture note, mainly Power Point handouts will be distributed in each class meeting. Depending upon different academic backgrounds and interests of the students, supplementary materials will be handed out. In this course, students are also expected to develop skills of presentation, basic academic research, and report-writing, utilizing various information sources. IES Moodle will be utilized for making class activities more efficient.
Field study:
1) ENTERTAIMENT INDUSTRY---“AVEX”, J-pop record label” (Oct 17, 2011, Fixed)
The class will visit AVEX, one of the largest record labels in Japan and learn about the structure of J- Pop music and entertainment industry
2) BUSINESS OFFICE DESIGN & STATIONARY INDUSTRY (Nov 7, 2001, Fixed)
The class will visit a show room of KOKUYO, one of the largest business office design & stationary companies in Japan to learn about their marketing strategy combining Japanese craftsmanship, advanced technology & universal design concept. There is some possibility that KOKUYO will conduct renovation for their show room for that period. In that case, this field trip will be canceled. New field trip plan will be arranged by Dr. Sugimoto.
3) TWO FIELD STUDY REPORTS
Students are required to submit a 1-2 page report on each field study, focusing on major findings, comparison with US company and industry, and some lessons for US businesses in relation to class discussions and each student’s interest. Each report is due the next class after the field trip.
4) TOKYO MOTOR SHOW (Dec 5, 2011, Spare Plan)
If a field trip to Kokuyo aforementioned is canceled due to their show room renovation, we will take this plan. The class will visit TOKYO MOTOR SHOW 2011 to learn a cutting-edge technology including green tech, business strategy and new direction of Japanese auto manufacturers such as Toyota, Honda and Nissan.
Required work and form of assessment:
1) 10-Minute Oral Presentation (20% =20%*1). See below for the detailed information.
2) Two Field Study Reports (20% =10%*2). Students are required to submit a 1-2 page report on each field study excursion. The due date is the next class after the field study.
3) 15-Minute Short Quizzes (20% =5%*4). Questions consist of multiple-choice ones. The content of
quizzes basically comes from the preceding class discussions, required readings and other reading assignments. At the end of every session assignments for the next session will be announced/
confirmed. A sample for 15-Minute Short Quiz (which is not counted for students’ grade) will be shown to students at the 2nd session.
4) Mid-Term Exam (20%). Questions consist of multiple-choice ones. Please review all sets of the
15-minute short quizzes.
5) Final Report (20%). The due date is the final session. The 1-page outline of the final report (or an executive summary of your oral presentation) due the fifth session counts 1/4 of 20%. See below for the detailed information.
6) Mid-term Grade Report. Mid-term grade for students will be individually given by the instructor.
content:
1) Overview of the Current Japanese Economy
The overall picture of the current Japanese economy will be sketched out by utilizing various economic statistics. Simultaneously in this session, the course structure, schedule, assignments
and grade assessment policy will be explained to the students. (The content of following sessions
might be fine-tuned, depending upon the students’ individual interests.) Additionally some key concepts of Japanese management system will be discussed. Criteria of students’10-minute oral
presentation will be also explained and a demonstration of 10-minute oral presentation will be given to students by the instructor.
*Reading Assignment: None
2) Government Sector and Political System
*Short Quiz Trial (This is trial one and not counted for students’ grade)
In this session, the students will study the government sector, the political system and public policy making processes in Japan. The government has historically played a principal role in Japan’s economy. Even in the 1990s, when Japan suffered severe economic recession, the
Japanese government had sought to control almost all aspects of its economy, despite the worldwide trend toward the small or efficient government. We shall discuss a kind of paradox found in this policy. On top of that, Japan had a historical disaster of earthquake and nuclear
crisis on March 11, 2011. Taking into account the impact of the earthquake, tsunami and nuclear crisis, Japanese government and businesses have to change the traditional approach dramatically including rebuilding and recovery policy of Tohoku area (Eastern Japan), spending policy with government financing (tax increase), energy policy, business channel strategy (logistics &
distribution), new business strategy based on consumers’ psychological aspect affected by natural disaster, etc. The whole new picture of Japanese economy and society will be described. The topic of the presentation should be decided in consultation with the instructor.
*Assignment for a 10-minute oral presentation:
Please select the topic for a 10-minute oral presentation related to Japanese economy and businesses.
*Reading Assignment:
Paul Krugman et al. (2007) economics (European Edition) Worth Publishers, Ch.2 Appendix: Graphics in Economics, pp.41-55
N. Gregory Mankiw (2007) Essentials of Economics, Fourth Edition Thomson-Southwestern, Chapter 1
Ten principles of Economics pp.3-17
Ulrike Schaede (2008) CHOOSE AND FOCUS, Cornell University Press, Chapter 2 JAPAN’S STRATEGIC INFLECTION POINT, 1998-2006 pp.21-46
David Magee (2007), HOW TOYOTA BECAME #1, Portfolio (Penguin Group), Chapter 2 Strive for
Continuous Improvement, pp.25-45
3 ) The Recovering Banking Sector in Japan
*Student Oral Presentation#1
*Short Quiz #1
In this session, firstly we discuss the weakened banking industry and its adverse impact on the
Japanese economy during the Lost Decade. In the late 1980s, the banking sector in Japan was very confident of its economy, and provided the real estate industry with too much credit. As soon as the bubble burst took place, however, this has precipitated the banking sector to accumulate huge bad loans. In order to streamline its operation, the banking sector has stopped providing the industries with sufficient loans. This has led to the credit crunch. Consequently, many small and middle sized companies went bankrupt. Some of big financial institutions also
went bankrupt, an event quite unimaginable in Japan before the bursting of the bubble economy. Secondly, we shall see that several mega banks have recently become “profitable” due to
“extremely low interest rate” monetary policy. Thirdly, we shall see the status quo of the banking sector, taking into account the economic impact caused by American sub-prime shock.
*Reading Assignment:
Pankaj Ghemawat (2001) Strategy and the Business Landscape, core concepts, Prentice Hall, Inc. Ch.2
Mapping the Business Landscape, pp.24-35
James C. Abegglen (2006), 21st –Century Japanese Management, Palgrave Macmillan Chapter 4
Japanese Style Management pp.73-90
John B. Taylor (2007) Economics 5th edition, Houghton Mifflin Company, Ch.3 The Supply and Demand
Model, pp.50-75
4) Field Study (1) Entertainment Industry: AVEX (Not Fixed & Under Negotiation)
A 1-2 page field study report is due the next session. *Reading Assignment: None
See the below for the detailed information on AVEX field trip.
5) Guest Speaker Session- Strategy of Japanese Fashion Model Agency and role of fashion models in advertisement business *Reading Assignment: None
*The Due Date: Field Study Report (1)
*The Due Date: A 1 page outline of the final report
6) Post-Bubble Economy to the Present Recession---Fiscal and Monetary Policy
*Student Oral Presentation#2
*Short Quiz#2
After giving them an overview of Japan’s post-bubble economy, we shall examine a series of government economic packages against the recession. In the course of today’s lecture, we shall learn that these economic packages have led to soaring national debt, and that it has enormous bearings upon on currently contested public policies like pension reform program and privatization initiatives. The role played by the Ministry of Finance in the policy making process of the 1990s will also be touched upon, compared with the former Koizumi administration’s policy making process. Simultaneously, we will see how some aspects of structural economic reform will be changed after March 11 earthquake.
*Reading Assignment:
Robert J. Schiller (2008) The Subprime Solution, Princeton University Press, Chapter 2 Housing in History pp.29-38
Bill Emmott (2009) RIVALS, PENGUIN BOOKS, Chapter 4 Japan: Powerful, Vulnerable, Ageing pp.87-120
Robert B. Reich (2007) SUPERCAPITALISM, Vintage Books, Chapter 1 The Not Quiet Golden Age, pp.15-49
7) Field Study (2): Business Office Design & Stationary Industry: KOKUYO
A 1-2 page field study report is due the next session. *Reading Assignment: None
See the below for the detailed information on KOKUYO field trip.
8) Japanese Pop Culture---Japanese Amine , music and Keitai industries
*Mid-term Examination
*Student Oral Presentation#3
*The Due Date: Field Study Report (2)
In this session the students will study the basic structure of Japan’s anime and music industries. About 60% of the “Animation” films and TV programs watched by children worldwide are said to be Japanese. The number of the anime production companies in Japan is around 400 and approximately 80% of those are located in Tokyo area. Presently, the Japanese anime industry is facing some threats such as lack of the creative and skilled workers, falling behind the world-wide digital technology trend, complicated commercial practices regarding patents, and shortage of mega hit films in the world market. However, overall, Japanese Animation Films are still regarded as one of the very few “soft powers” that Japan now has. On top of that, we will see the Japanese music industry which has had a huge impact on Asian youths. Unique direction of the
Japanese Keitai (Cellular Phone) business collaborating with Japanese entertainment industry will be also confirmed, compared with US.
*Reading Assignment:
Joseph S. Nye Jr. (2008) The Powers to Lead, Oxford University Press, Chapter 2 Leadership and Power, pp.27-52
Roland Kelts (2007) JAPANAMEIRCA-HOW JAPANESE POP CULTURE HAS INVADE THE U.S., Palgrave Macmillan, Chapter 1 may the g-force be with you, pp.9-34
James Day Hodgson et al. (2008), DOING BUSINESS WITH THE NEW JAPAN, Rowman & Littlefield Publishers, Inc., Chapter 4 The Japanese Negotiation Style, pp.39-54
W. Chan Kim and Renee Mauborgne (2005), BLUE OCEAN STRATEGY, Harvard Business School Press, Chapter 1 Creating Blue Oceans, pp.3-22
9) Competitive Industry and Technology---Automobile, “Does anyone have a Japanese car?”
*Student Oral Presentaion#4
*Short Quiz#3
The Japanese auto industry has been highly competitive in the U.S. market. More people in the U.S. drive Japanese cars, such as Toyota, Honda and Nissan, sometimes without knowing it. Now the U.S. and Japanese auto makers are competing to develop new-generation models such as plug-in hybrid, electric vehicles, fuel cell vehicles and hydrogen vehicles. Both Japanese and American administrations have been supportive of auto makers’ efforts to bring new-generation cars into use. By discussing the R&D activities for the fuel cell vehicles, the students will appreciate competitive factors in the Japanese automobile industry. Other technology issues, e.g. nanotechnology, will be also discussed.
*Reading Assignment: None
10) Distribution System in Japan: Why is everything so expensive in Japan, compared to the U.S.?
*Student Oral Presentation#5
*Short Quiz#4
When living in Japan, students may suffer from high costs of living. Everything from food (even Coke and hamburgers at McDonald’s) to clothing is considerably more expensive than is the case in the United States. One reason for this is that the typical Japanese distribution system has a number of stages within its channel. Simultaneously Japan has the most advanced Convenience Store System such as Seven-Eleven. In this session, the students will learn about the basic structure of Japanese distribution system and new distribution models such as the one employed by “convenience stores.” E-commerce in Japan will also be discussed.
*Reading Assignment:
Roy Larke and Michael Causton (2005), Japan – A Modern Retail Superpower, Palgrave Macmillan
Chapter 8 Convenience Stores pp.137-162
Chris Andersen (2006), The Long Tail, Hyperion, Chapter 1 The Long Tail pp.15-26
11) Housing, Transportation, and Urban Development
*The Due Date: Field Study Report (2)
*Student Oral Presentation#6
This session will guide the students to comprehend the infrastructure issues in Japan. Along with strengths symbolized by the train network of JR, Tokyo Metro, and other private rail companies, some negative aspects of Japan’s transportation system, which is known for its efficiency and precision, will be discussed in relation to Japan’s overall infrastructure development. We shall discuss, for instance, poor housing conditions for city dwellers, and contrast them with the efficient networks of city transportation and recent inner city development projects.
*Reading Assignment:
Reading materials will be handed out in advance.
12) Consumption Trends among the Younger Generation in Japan
*Student Oral Presentation#7
*The Due Date: Student’s Final Paper
The students are likely to be interested in their Japanese counterparts. On arriving in Japan they will soon notice that the Japanese youths dress differently. How and on what do they spend their money? Clothes, cellular phones, and CDs & DVDs might be their main consumption items. They usually love the U.S. professional sports, music, clothes and Hollywood movies. What do Japanese students think of U.S. economy and culture? By discussing their varied consumption patterns, the similarities and differences between the Japanese and American young generations will be sketched out. It is very important to understand the ways of thinking for both sides because individuals belonging to the young generation are bound to play a major role in the Japan-US economic future relationship and the 21st world economy. And finally, we study consumer behavior characteristics and changes in satisfaction mechanism of Japanese consumers. Some interesting aspects of “conspicuous consumption” in Japan along with bandwagon, snob, and Veblen effects will be discussed. Finally we survey several contested issues of Japan’s public policy making taking into account impacts from March 11 earthquake. Such issues include environmental policy along with the global warming issue, soaring government’s debt, the nearly defaulted national pension program along with the coming aging society and Kakusa Shakai with sever economic recession. In addition, the Japan’s future in the 21st century in relation to the U.S. will be discussed.
*Reading Assignment:
David Flath (2005) The Japanese Economy, Oxford University Press, Chapter 1 Incomes and Welfare of the Japanese Today, pp.10-20
10-MINUTE ORAL PRESENTATION: In each class session, two or three students are asked to make a
10-minite oral presentation on an aspect of the Japanese economy. A student may choose any topic related to Japanese economy, industry and business, based on his or her interest. Topic examples would include: the strengths, weaknesses, opportunities of, and threats to, the current Japanese economy; the Japanese anime industry as a “soft power; the relationship between Japan and U.S. economy in the 21st century; and recommendations for reviving the Japan’s economy directed to the Japanese policy-makers, Competitive advantages of Japanese automobile industry, Japanese music industry, Comparison between Japanese and American computer industries, etc. Students are supposed to do secondary research for the presentation. The presentation should be well-organized and equipped with qualitative and quantitative proofs. Utilizing visual aids, such as POWER POINT are strongly recommended, and a one-page executive summary of the presentation should be handed out to the class for the audience’s convenience. A five-minute question and answer session should follow the presentation. A 10-minute oral presentation with an executive summary will be demonstrated by the instructor at the first session. The presentation schedule will be negotiated at the second session. Presentation topics should be decided by the second session, and students assume the primary responsibility for choosing their topic. (Tentative registration will be admitted.). Regarding the topic, keeping consistency between your 10- minute presentation and the final report is strongly recommended.
FINAL REPORT: Every student is required to submit the final report with around 10-15 pages. The due date will be the final session. Students may choose any topic regarding the Japanese economy. In selecting a topic, please refer to the examples given in the 10-minute oral presentation explanation. Choosing an identical topic, or closely related topics, for10-minute presentation and final report is strongly recommended to make effective use of your time. Students are required to submit a 1-page outline of the final report in the mid term. If necessary, the instructor and the student will have an individual meeting based on the outline, and recommendations will be given to the student. The outline accounts for 1/4 of 20% for the final report assessment. Contents of the final reports should include the title, abstract or executive summary, purpose, company and industry background, propositions, analysis of industries or companies strategies with quantitative and qualitative proofs, conclusion, and future direction, footnotes, and bibliography. The due date is the final session.
Dr. Yuzo Sugimoto holds Doctor of Philosophy in Economics, Yokohama National University, Japan and Master of Business Administration in Finance, Graziadio School of Business and Management, Pepperdine University, California. He worked for Japan Highway Governmental Corporation more than 10 years, mainly specializing in public finance and privatization for infrastructure. Recent research areas focus on business strategies of eco-friendly vehicles, Japanese fast-fashion (apparel industry), and Japanese entertainment industry. Since 2001 at the request of Sangyo-Nouritsu University he has been consulting for Japanese large corporations regarding human resource development. His clients include Toyota Motor Corporation, Toyota Trading Corporation, NEC Soft(ware), AEON etc. He teaches marketing and economics at Kanda Institute of Foreign Language and IES spring and fall area study courses (“Key Features of Japanese Marketing Strategy” & “The Contemporary Economy of Japan). His recent books include “What A Pop Diva Lady Gaga Teaches Us About Business”(Garyusha, 2011), “Invited To Victoria’s Secret”(Garyusha, 2010), “President Obama and Hybrid Vehicle” (Garyusha, 2010), and “Public-Private Partnership and Public Policy Making in Japan”(co-author, Nihon-keizai-hyouron-sha, 2008).
The goal of this course is to help students to appreciate the major characteristics and structural issues of Japan’s contemporary economy, and to reflect upon the role of Japan’s economy in the 21st century. Since the bubble burst of the early 1990s analogous to the American Sub-prime shock, Japan’s economy has struggled for recovery for more than a decade (which has come to be known as the “lost decade”). While Japanese economy remains the third largest in the world, the people seem to have lost faith in their economy, and to have been convinced that the economic system they were once proud of no longer functions in the way it did. On top of that, Japan had a historical disaster of earthquake and nuclear crisis on March 11, 2011. Taking into account the impact of the earthquake, tsunami and nuclear crisis, Japanese government and businesses have to change the traditional approach dramatically including rebuilding and recovery policy of Tohoku area (Eastern Japan), spending policy with government financing (tax increase), energy policy, business channel strategy (logistics & distribution), new business strategy based on consumers’ psychological aspect affected by natural disaster, etc. Those contents will be touched upon in the class lecture.
Later in the course, we shall turn to some brighter aspects of the future of Japanese economy and industries. Recently, there have been signs of improvement in Japan’s some industries including the “fast fashion” business (UNIQLO & H&M). Japan is still considered a world technological leader in some industries. For example, Japanese auto makers have taken the lead in R&D activities for hybrid and fuel cell vehicles despite Toyota’s recall issue. The development of Keitai (Cellular Phone) business is keeping a unique course compared with Apple’s iPhone. Moreover, Japan’s pop culture industry, including game companies (Nintendo and Sony) and manga/amine production companies, has made considerable impacts not just on the Japanese youths, but on their counterparts in the U.S. and other countries as well, thereby exerting (what Dr. Joseph Nye, Harvard University has called) “Soft Power of Smart Power.” Japan’s leading status in those areas may be indicative of where their future lies ahead.
Related to the brighter side of Japanese economy and industry, we will touch upon marketing and businesses strategies of Japan’s entertainment industry focusing on music industry. New strategy facing the digital age such as “360 deals” contracts (adopted by Lady Gaga, Madonna and U2) will be discussed
comparing Avex’s business model.
No prior studies are required to the admission of this course. However, some materials will include basic economics, business strategy and marketing concepts. Therefore, this course may be suitable for students with such academic backgrounds and experiences. Some topics of this course overlap those of “Key Features of Japanese Marketing Strategy (MK325)” in spring program including field studies.
Following the attendance policy of IES Tokyo, attendance to all class meetings
is strictly required for the students. In other words, students should attend every class meeting including field trips because there will be important information regarding economics and business strategy to learn but also it is fair that your classmates have your critical observations and insight in the class. The three-hour format for classes makes missing a single class equivalent to missing a full week during a regular semester. Therefore, students are permitted a maximum of one unexcused absence. Additional unexcused absences will result in a penalty of one of letter grade from your final grade, for each additional absence—i.e. two missed classes turns an A into a B, three turns it into a C, and so on. A student’s absence is considered “excused” only if it is unavoidable due to illness and health condition, and for any other reasons but only if the instructor is notified in advance or on the student’s return to the class.
At the end of this course, the students will be able to:
1) Summarize the key features of current Japanese economy and society utilizing statistical data such as GDP, population, yen-dollar exchange rate, prices of gasoline and other consumer products, central government debts accumulated and so on.
2) Understand and explain the basic concepts and terminologies of economics and business strategies such as supply and demand, trade-off, theory of currency exchange rate, mechanism of governmentspending policy, etc.
3) Develop practical skills to analyze industry and business cases such as SWOT, Five-Forces Model, Value Net, Blue Ocean Strategy, etc.
4) Incorporate basic economic concepts and analytical approaches aforementioned into finding out critical problems in the industry and company the student choose.
5) Present new directions and construct solutions for problems the industry or company faces.
6) Develop 10-15 page business report writing along with 1- page executive summary, which will be very helpful and practical in the real business scene.
7) Demonstrate business presentation skills in 10-minute oral presentation, utilizing business presentation software such as Power Point or Keynote.
8) Develop self-confidence as an economic analyst and a business communicator by completing the assignment of business report and oral presentation aforementioned.
9) Incorporate diversity and global awareness acquired by understanding Japanese economy and society into appreciating US economy, industry, and companies.
Lectures, discussions, oral presentation, and field study. A lecture note, mainly Power Point handouts will be distributed in each class meeting. Depending upon different academic backgrounds and interests of the students, supplementary materials will be handed out. In this course, students are also expected to develop skills of presentation, basic academic research, and report-writing, utilizing various information sources. IES Moodle will be utilized for making class activities more efficient.
1) ENTERTAIMENT INDUSTRY---“AVEX”, J-pop record label” (Oct 17, 2011, Fixed)
The class will visit AVEX, one of the largest record labels in Japan and learn about the structure of J- Pop music and entertainment industry
2) BUSINESS OFFICE DESIGN & STATIONARY INDUSTRY (Nov 7, 2001, Fixed)
The class will visit a show room of KOKUYO, one of the largest business office design & stationary companies in Japan to learn about their marketing strategy combining Japanese craftsmanship, advanced technology & universal design concept. There is some possibility that KOKUYO will conduct renovation for their show room for that period. In that case, this field trip will be canceled. New field trip plan will be arranged by Dr. Sugimoto.
3) TWO FIELD STUDY REPORTS
Students are required to submit a 1-2 page report on each field study, focusing on major findings, comparison with US company and industry, and some lessons for US businesses in relation to class discussions and each student’s interest. Each report is due the next class after the field trip.
4) TOKYO MOTOR SHOW (Dec 5, 2011, Spare Plan)
If a field trip to Kokuyo aforementioned is canceled due to their show room renovation, we will take this plan. The class will visit TOKYO MOTOR SHOW 2011 to learn a cutting-edge technology including green tech, business strategy and new direction of Japanese auto manufacturers such as Toyota, Honda and Nissan.
1) 10-Minute Oral Presentation (20% =20%*1). See below for the detailed information.
2) Two Field Study Reports (20% =10%*2). Students are required to submit a 1-2 page report on each field study excursion. The due date is the next class after the field study.
3) 15-Minute Short Quizzes (20% =5%*4). Questions consist of multiple-choice ones. The content of
quizzes basically comes from the preceding class discussions, required readings and other reading assignments. At the end of every session assignments for the next session will be announced/
confirmed. A sample for 15-Minute Short Quiz (which is not counted for students’ grade) will be shown to students at the 2nd session.
4) Mid-Term Exam (20%). Questions consist of multiple-choice ones. Please review all sets of the
15-minute short quizzes.
5) Final Report (20%). The due date is the final session. The 1-page outline of the final report (or an executive summary of your oral presentation) due the fifth session counts 1/4 of 20%. See below for the detailed information.
6) Mid-term Grade Report. Mid-term grade for students will be individually given by the instructor.
1) Overview of the Current Japanese Economy
The overall picture of the current Japanese economy will be sketched out by utilizing various economic statistics. Simultaneously in this session, the course structure, schedule, assignments
and grade assessment policy will be explained to the students. (The content of following sessions
might be fine-tuned, depending upon the students’ individual interests.) Additionally some key concepts of Japanese management system will be discussed. Criteria of students’10-minute oral
presentation will be also explained and a demonstration of 10-minute oral presentation will be given to students by the instructor.
*Reading Assignment: None
2) Government Sector and Political System
*Short Quiz Trial (This is trial one and not counted for students’ grade)
In this session, the students will study the government sector, the political system and public policy making processes in Japan. The government has historically played a principal role in Japan’s economy. Even in the 1990s, when Japan suffered severe economic recession, the
Japanese government had sought to control almost all aspects of its economy, despite the worldwide trend toward the small or efficient government. We shall discuss a kind of paradox found in this policy. On top of that, Japan had a historical disaster of earthquake and nuclear
crisis on March 11, 2011. Taking into account the impact of the earthquake, tsunami and nuclear crisis, Japanese government and businesses have to change the traditional approach dramatically including rebuilding and recovery policy of Tohoku area (Eastern Japan), spending policy with government financing (tax increase), energy policy, business channel strategy (logistics &
distribution), new business strategy based on consumers’ psychological aspect affected by natural disaster, etc. The whole new picture of Japanese economy and society will be described. The topic of the presentation should be decided in consultation with the instructor.
*Assignment for a 10-minute oral presentation:
Please select the topic for a 10-minute oral presentation related to Japanese economy and businesses.
*Reading Assignment:
Paul Krugman et al. (2007) economics (European Edition) Worth Publishers, Ch.2 Appendix: Graphics in Economics, pp.41-55
N. Gregory Mankiw (2007) Essentials of Economics, Fourth Edition Thomson-Southwestern, Chapter 1
Ten principles of Economics pp.3-17
Ulrike Schaede (2008) CHOOSE AND FOCUS, Cornell University Press, Chapter 2 JAPAN’S STRATEGIC INFLECTION POINT, 1998-2006 pp.21-46
David Magee (2007), HOW TOYOTA BECAME #1, Portfolio (Penguin Group), Chapter 2 Strive for
Continuous Improvement, pp.25-45
3 ) The Recovering Banking Sector in Japan
*Student Oral Presentation#1
*Short Quiz #1
In this session, firstly we discuss the weakened banking industry and its adverse impact on the
Japanese economy during the Lost Decade. In the late 1980s, the banking sector in Japan was very confident of its economy, and provided the real estate industry with too much credit. As soon as the bubble burst took place, however, this has precipitated the banking sector to accumulate huge bad loans. In order to streamline its operation, the banking sector has stopped providing the industries with sufficient loans. This has led to the credit crunch. Consequently, many small and middle sized companies went bankrupt. Some of big financial institutions also
went bankrupt, an event quite unimaginable in Japan before the bursting of the bubble economy. Secondly, we shall see that several mega banks have recently become “profitable” due to
“extremely low interest rate” monetary policy. Thirdly, we shall see the status quo of the banking sector, taking into account the economic impact caused by American sub-prime shock.
*Reading Assignment:
Pankaj Ghemawat (2001) Strategy and the Business Landscape, core concepts, Prentice Hall, Inc. Ch.2
Mapping the Business Landscape, pp.24-35
James C. Abegglen (2006), 21st –Century Japanese Management, Palgrave Macmillan Chapter 4
Japanese Style Management pp.73-90
John B. Taylor (2007) Economics 5th edition, Houghton Mifflin Company, Ch.3 The Supply and Demand
Model, pp.50-75
4) Field Study (1) Entertainment Industry: AVEX (Not Fixed & Under Negotiation)
A 1-2 page field study report is due the next session.
*Reading Assignment: None
See the below for the detailed information on AVEX field trip.
5) Guest Speaker Session- Strategy of Japanese Fashion Model Agency and role of fashion models in advertisement business
*Reading Assignment: None
*The Due Date: Field Study Report (1)
*The Due Date: A 1 page outline of the final report
6) Post-Bubble Economy to the Present Recession---Fiscal and Monetary Policy
*Student Oral Presentation#2
*Short Quiz#2
After giving them an overview of Japan’s post-bubble economy, we shall examine a series of government economic packages against the recession. In the course of today’s lecture, we shall learn that these economic packages have led to soaring national debt, and that it has enormous bearings upon on currently contested public policies like pension reform program and privatization initiatives. The role played by the Ministry of Finance in the policy making process of the 1990s will also be touched upon, compared with the former Koizumi administration’s policy making process. Simultaneously, we will see how some aspects of structural economic reform will be changed after March 11 earthquake.
*Reading Assignment:
Robert J. Schiller (2008) The Subprime Solution, Princeton University Press, Chapter 2 Housing in History pp.29-38
Bill Emmott (2009) RIVALS, PENGUIN BOOKS, Chapter 4 Japan: Powerful, Vulnerable, Ageing pp.87-120
Robert B. Reich (2007) SUPERCAPITALISM, Vintage Books, Chapter 1 The Not Quiet Golden Age, pp.15-49
7) Field Study (2): Business Office Design & Stationary Industry: KOKUYO
A 1-2 page field study report is due the next session.
*Reading Assignment: None
See the below for the detailed information on KOKUYO field trip.
8) Japanese Pop Culture---Japanese Amine , music and Keitai industries
*Mid-term Examination
*Student Oral Presentation#3
*The Due Date: Field Study Report (2)
In this session the students will study the basic structure of Japan’s anime and music industries. About 60% of the “Animation” films and TV programs watched by children worldwide are said to be Japanese. The number of the anime production companies in Japan is around 400 and approximately 80% of those are located in Tokyo area. Presently, the Japanese anime industry is facing some threats such as lack of the creative and skilled workers, falling behind the world-wide digital technology trend, complicated commercial practices regarding patents, and shortage of mega hit films in the world market. However, overall, Japanese Animation Films are still regarded as one of the very few “soft powers” that Japan now has. On top of that, we will see the Japanese music industry which has had a huge impact on Asian youths. Unique direction of the
Japanese Keitai (Cellular Phone) business collaborating with Japanese entertainment industry will be also confirmed, compared with US.
*Reading Assignment:
Joseph S. Nye Jr. (2008) The Powers to Lead, Oxford University Press, Chapter 2 Leadership and Power, pp.27-52
Roland Kelts (2007) JAPANAMEIRCA-HOW JAPANESE POP CULTURE HAS INVADE THE U.S., Palgrave Macmillan, Chapter 1 may the g-force be with you, pp.9-34
James Day Hodgson et al. (2008), DOING BUSINESS WITH THE NEW JAPAN, Rowman & Littlefield Publishers, Inc., Chapter 4 The Japanese Negotiation Style, pp.39-54
W. Chan Kim and Renee Mauborgne (2005), BLUE OCEAN STRATEGY, Harvard Business School Press, Chapter 1 Creating Blue Oceans, pp.3-22
9) Competitive Industry and Technology---Automobile, “Does anyone have a Japanese car?”
*Student Oral Presentaion#4
*Short Quiz#3
The Japanese auto industry has been highly competitive in the U.S. market. More people in the U.S. drive Japanese cars, such as Toyota, Honda and Nissan, sometimes without knowing it. Now the U.S. and Japanese auto makers are competing to develop new-generation models such as plug-in hybrid, electric vehicles, fuel cell vehicles and hydrogen vehicles. Both Japanese and American administrations have been supportive of auto makers’ efforts to bring new-generation cars into use. By discussing the R&D activities for the fuel cell vehicles, the students will appreciate competitive factors in the Japanese automobile industry. Other technology issues, e.g. nanotechnology, will be also discussed.
*Reading Assignment: None
10) Distribution System in Japan: Why is everything so expensive in Japan, compared to the U.S.?
*Student Oral Presentation#5
*Short Quiz#4
When living in Japan, students may suffer from high costs of living. Everything from food (even Coke and hamburgers at McDonald’s) to clothing is considerably more expensive than is the case in the United States. One reason for this is that the typical Japanese distribution system has a number of stages within its channel. Simultaneously Japan has the most advanced Convenience Store System such as Seven-Eleven. In this session, the students will learn about the basic structure of Japanese distribution system and new distribution models such as the one employed by “convenience stores.” E-commerce in Japan will also be discussed.
*Reading Assignment:
Roy Larke and Michael Causton (2005), Japan – A Modern Retail Superpower, Palgrave Macmillan
Chapter 8 Convenience Stores pp.137-162
Chris Andersen (2006), The Long Tail, Hyperion, Chapter 1 The Long Tail pp.15-26
11) Housing, Transportation, and Urban Development
*The Due Date: Field Study Report (2)
*Student Oral Presentation#6
This session will guide the students to comprehend the infrastructure issues in Japan. Along with strengths symbolized by the train network of JR, Tokyo Metro, and other private rail companies, some negative aspects of Japan’s transportation system, which is known for its efficiency and precision, will be discussed in relation to Japan’s overall infrastructure development. We shall discuss, for instance, poor housing conditions for city dwellers, and contrast them with the efficient networks of city transportation and recent inner city development projects.
*Reading Assignment:
Reading materials will be handed out in advance.
12) Consumption Trends among the Younger Generation in Japan
*Student Oral Presentation#7
*The Due Date: Student’s Final Paper
The students are likely to be interested in their Japanese counterparts. On arriving in Japan they will soon notice that the Japanese youths dress differently. How and on what do they spend their money? Clothes, cellular phones, and CDs & DVDs might be their main consumption items. They usually love the U.S. professional sports, music, clothes and Hollywood movies. What do Japanese students think of U.S. economy and culture? By discussing their varied consumption patterns, the similarities and differences between the Japanese and American young generations will be sketched out. It is very important to understand the ways of thinking for both sides because individuals belonging to the young generation are bound to play a major role in the Japan-US economic future relationship and the 21st world economy. And finally, we study consumer behavior characteristics and changes in satisfaction mechanism of Japanese consumers. Some interesting aspects of “conspicuous consumption” in Japan along with bandwagon, snob, and Veblen effects will be discussed. Finally we survey several contested issues of Japan’s public policy making taking into account impacts from March 11 earthquake. Such issues include environmental policy along with the global warming issue, soaring government’s debt, the nearly defaulted national pension program along with the coming aging society and Kakusa Shakai with sever economic recession. In addition, the Japan’s future in the 21st century in relation to the U.S. will be discussed.
*Reading Assignment:
David Flath (2005) The Japanese Economy, Oxford University Press, Chapter 1 Incomes and Welfare of the Japanese Today, pp.10-20
10-MINUTE ORAL PRESENTATION: In each class session, two or three students are asked to make a
10-minite oral presentation on an aspect of the Japanese economy. A student may choose any topic related to Japanese economy, industry and business, based on his or her interest. Topic examples would include: the strengths, weaknesses, opportunities of, and threats to, the current Japanese economy; the Japanese anime industry as a “soft power; the relationship between Japan and U.S. economy in the 21st century; and recommendations for reviving the Japan’s economy directed to the Japanese policy-makers, Competitive advantages of Japanese automobile industry, Japanese music industry, Comparison between Japanese and American computer industries, etc. Students are supposed to do secondary research for the presentation. The presentation should be well-organized and equipped with qualitative and quantitative proofs. Utilizing visual aids, such as POWER POINT are strongly recommended, and a one-page executive summary of the presentation should be handed out to the class for the audience’s convenience. A five-minute question and answer session should follow the presentation. A 10-minute oral presentation with an executive summary will be demonstrated by the instructor at the first session. The presentation schedule will be negotiated at the second session. Presentation topics should be decided by the second session, and students assume the primary responsibility for choosing their topic. (Tentative registration will be admitted.). Regarding the topic, keeping consistency between your 10- minute presentation and the final report is strongly recommended.
FINAL REPORT: Every student is required to submit the final report with around 10-15 pages. The due date will be the final session. Students may choose any topic regarding the Japanese economy. In selecting a topic, please refer to the examples given in the 10-minute oral presentation explanation. Choosing an identical topic, or closely related topics, for10-minute presentation and final report is strongly recommended to make effective use of your time. Students are required to submit a 1-page outline of the final report in the mid term. If necessary, the instructor and the student will have an individual meeting based on the outline, and recommendations will be given to the student. The outline accounts for 1/4 of 20% for the final report assessment. Contents of the final reports should include the title, abstract or executive summary, purpose, company and industry background, propositions, analysis of industries or companies strategies with quantitative and qualitative proofs, conclusion, and future direction, footnotes, and bibliography. The due date is the final session.
For the secondary research some useful information sources on the Internet could be utilized as follows:
-Japan Times (www.japantimes.co.jp)
-Nihon Keizai Shinbun (www.nikkei.co.jp)
-Asahi Shinbun (www.asahi.com)
-Yomiuri Shinbun (www.yomiuri.co.jp)
-Mainichi Shinbun (www.mainichi-msn.co.jp)
-Ministry of Finance (www.mof.go.jp)
-Ministry of Economy, Trade and Industry (www.meti.go.jp)
-Statistics Bureau, Ministry of Internal Affairs and Communication
(www.stat.go.jp/english/index.html)
Dr. Yuzo Sugimoto holds Doctor of Philosophy in Economics, Yokohama National University, Japan and Master of Business Administration in Finance, Graziadio School of Business and Management, Pepperdine University, California. He worked for Japan Highway Governmental Corporation more than 10 years, mainly specializing in public finance and privatization for infrastructure. Recent research areas focus on business strategies of eco-friendly vehicles, Japanese fast-fashion (apparel industry), and Japanese entertainment industry. Since 2001 at the request of Sangyo-Nouritsu University he has been consulting for Japanese large corporations regarding human resource development. His clients include Toyota Motor Corporation, Toyota Trading Corporation, NEC Soft(ware), AEON etc. He teaches marketing and economics at Kanda Institute of Foreign Language and IES spring and fall area study courses (“Key Features of Japanese Marketing Strategy” & “The Contemporary Economy of Japan). His recent books include “What A Pop Diva Lady Gaga Teaches Us About Business”(Garyusha, 2011), “Invited To Victoria’s Secret”(Garyusha, 2010), “President Obama and Hybrid Vehicle” (Garyusha, 2010), and “Public-Private Partnership and Public Policy Making in Japan”(co-author, Nihon-keizai-hyouron-sha, 2008).
July 28, 2011