Drivers of Change for American and Japanese Culture in Automobile Industry

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Business Management and strategic management
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1BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Drivers of change for American and Japanese culture
The case study indicates that automobile industry in America is more reliant towards
the innovation, while sustainability remains as a mere concern. However, the launch of SUVs
led to a significant growth in sales but economy in United States remains as a significant
driver, as it is found that economy was stable and oil price was consistently low in 90’s
compared to the previous years. The stable economy in the country increased the average
disposal income which influenced and increased consumers ‘demand towards innovative
products. In addition to this, it has also been identified that American culture is mostly
surrounded by the developing trends and convenience (Dunning 2014). On the other side, a
significant cultural characteristic supporting the development of automobile industry is the
establishment of United Auto Workers Union which acquired tremendous recognition in the
sector at the time of World War II by making the initiatives of developing the working
conditions. The initiatives include the plans of paid pensions, health insurance for employees
and their families. Such initiatives work as the motivation for employees towards their duties
and responsibilities (Form 2015). Consequently, the automobile sector in America is able to
produce more innovative and user-friendly vehicles.
On the contrary, Japanese culture in trade is more concerned the sustainability of
business and the environment. According to the case study, Toyota, Nissan and Honda are
always considered as the leading manufacturer of smaller more fuel-efficient vehicles as the
firms adequately comply with the principles of Clean Air Act in 1970. The manufacturers
developed the engines in a way that produce limited emission which is a significant way to
meet the principles of Clean Air Act (Bohnsack, Pinkse and Kolk 2014). Considering the
environmental sustainability as the path to lead the business further in US market, the leading
Japanese car manufacturer like Toyota was after the development of lower emission-based
vehicles. Another significant growth driver found in Japanese culture is the identification of