Assignment on Business Report and Country Analysis

RUNNING HEAD: BUSINESS REPORT AND COUNTRY ANALYSIS
BUSINESS REPORT AND COUNTRY ANALYSIS
Name of the Student:
Name of the University:
Author’s Note:

BUSINESS REPORT AND COUNTRY ANALYSIS1
Executive summary:
Manulife is one of the most promising international financial services group in Canada. This business
organization provides insurance, solution for asset management, financial advice, and wealth management
advice for individuals or institutions. This business organization, headquartered in Canada, operates in Europe
and Asia. Roy Gori, the CEO of Manulife, is interested to expand its business in Japan and provide financial
services in the new venture (Corporate, 2020). As an executive of this business organization, the responsible
person has a responsibility to analyze the macro environment of Japan. The responsible employee of this
organization has to analyze the endowment factors for expanding the business in Japan. The CEO of this
organization needs a report and summary of the total analysis as it will help him to decide whether expanding
business in Japan will be beneficial for this company or not. At the end of this report, there will be some
recommendations for the CEO which can be followed by the CEO while expanding the business. The aim of
this report is to analyze the macro-environment factors and endowment factors of Japan. Before expanding
business in new ventures, the macro environment analysis and endowment factor analysis is important as this
part will help the management team to develop the right strategy for the expansion.
Macro environment of Japan:
The third-largest economy of this world is Japan, which is very much influenced by the external factors
because of its dependence on exports (Data.worldbank.org, 2020). This country is affected by the global
economic slowdown. In 2018, the economy of this country grew by 1.1%. The economic growth of this country
driven by mainly foreign trade and domestic consumption (Data.worldbank.org, 2020). In 2018, the GDP of
Japan was 4.971 trillion. In 2018, the GNI of this country was 41,310 thousand (Data.worldbank.org, 2020).
According to Statista, in 2018, the inflation rate of this country was 0.98 % compared to the previous year
(Statista, 2020). According to the data of OECD, in 2017, the government of this country expanded a total of
3.2% of its GDP (the OECD, 2020). So it can be said that this country is interested to implement the technical
improvement. The government of this country is interested to make a technology-based country. Developed
information and communication are available in this country. In 2017, the number of broadband subscribers in
Japan was 189 million (Data.worldbank.org, 2020). The government of this country is interested to focus on the
manufacturing industry and high-tech products like robotics, hybrid vehicles, and optical instruments. In the
field of technological development, Japan is the leader because of various products like semiconductors, optical
fibers, copy machines, optical media, automobile manufacturing, facsimile, consumer electronics,
optoelectronics, mining, and petroleum exploration. Trading partners of Japan are East Asia, China, the USA,
Europe, the Republic of Korea, Hong Kong, Taiwan, Australia, New Zealand, and ASEAN countries
(Chiappini, 2016). According to the report of the 2019 UNCTAD World Investment Report, the FDI flows of
Japan are relatively low and unstable in comparison with other developed countries (Unctad.org, 2014). In
2018, the FDI flows were USD 9.9 billion. This country secures the 39th position out of 190nations in the World
Bank’s 2019 Doing Business report (Doingbusiness.org, 2019). Innovative technology and R&D are the main

BUSINESS REPORT AND COUNTRY ANALYSIS2
attraction for doing business in this country. According to the data of the World Bank, Japan has scored 27
points out of 100 points in the ‘Corruption Perceptions Index’ (Data.worldbank.org, 2020).
In this part, the macro-environmental factors of Japan will be discussed. The decision making
procedure, business strategy and business performance of a business organization can be influenced by some
major external factors, which are known as macro-environmental factors (Khan, Alam, & Alam, 2015).
Political factors, economic factors, social factors, technical factories, legal factors, and environmental factors
must be analyzed to understand the macro-environment factors of Japan (Ho, J. 2014).
Political factors:
Naruhito is the 126th monarch of this country. However, the emperor of Japan, a figurehead of this
country, has very little involvement in the political development of Japan. The politics of this country are
controlled by five political parties of Japan which are Democratic Party of Japan, The People’s New Party,
Liberal Democratic Party, The Social Democratic Party, and The New Clean Government Party (Steiner,
Krauss & Flanagan, 2014). The prime minister of this country elected by the majority of the Japanese citizen
controls the country. Shinzo Abe, the prime minister of this country has the responsibility to manage the
political issues and economic issues of Japan. This country is associated with G8 and ASEAN. The capital of
this country is Tokyo. An appreciable role is maintained by this country in the international community.
However, Japan has political disagreements and territorial disagreements with its neighboring countries like
South Korea, Russia, North Korea, and China. However, this country has a good relationship with the USA.
Japan is successful to maintain its good relationships with India, Australia, the UK, and France. The character
of Japan’s constitution is a post-war pacifist.
Economic factors:
The economic condition of Japan is strong. At present this country is the third-largest in the world by
nominal GDP. In the purchasing power parity, the economy of Japan is fourth-largest. This country is the
second-largest developed country in this world. According to the report of the World Bank, the GDP of Japan
was 4.971trillion. Japan is a member of G7, ASEAN, G20, and APEC. A mixed economy is followed in this
country. The government of this country works closely with industries to ensure the economic growth of Japan.
Major industries of Japan are motor vehicles, steel, electronic equipment, processed food, textiles, chemicals,
machine tools and ships. The automobile industry of this country is very much well known. Several automobile
business organizations like Toyota, Mitsubishi, Mazda, Honda, Nissan, and Suzuki are from this country
(Lockwood, 2015). The foreign business organization doing business in Japan taxes only in the income these
organizations generate in Japan. A business organization has to pay four types of corporate taxes which are
special local corporate tax, enterprise tax, corporate inhabitant tax, and corporate tax. According to the report of
Statista, the unemployment rate was 2.45 percent in 2018. It can be said that the unemployment rate in this
country is low in comparison with other developed countries.