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:

1BUSINESS REPORT AND COUNTRY ANALYSIS
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

2BUSINESS REPORT AND COUNTRY ANALYSIS
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.

3BUSINESS REPORT AND COUNTRY ANALYSIS
Social factors:
Japan is the tenth most populated country in this world. The total population of this country is
126,529,000 million in 2018 (Data.worldbank.org, 2020). Two major religions of this country are Buddhism
and Shintoism. The main language of this country is Japanese. 99% of people in this country communicate with
this language. Though this organization is technologically advanced. However, several social challenges are
present in this country which are the ageing population, decreasing the birth rate (Norbury, 2019). The
patriarchal system is followed by the Japanese people. According to the data of the World Bank, the life
expectancy of Japan in 2016 was 83.98 years (Data.worldbank.org, 2020). As the birth rate of this country is
decreasing, so it can be said that the population of Japan will decrease in the future. It will create a negative
impact on this country. That is the reason the Japanese government implemented an integrated migration policy
to decline the skill gap. Japanese people prefer business organization from Japan. So it can be said that it will be
a difficult situation for Manulife to expand its business in this country. Before expanding its business Japan,
Manulife has to conduct detailed research and environmental scanning. It will help this business organization to
create strategic business planning for Japan.
Technical factors:
In this world, Japan is one of the most technically progressive countries. Citizen of this country is
extremely creative and interested to learn the use of modern technology. The government of this country is
interested to follow technological innovation and creativity. The technological innovation of this country is
present in various fields like airports, hospitals. The automation system is used in these areas. In the field of
robotics, this country is ahead of advanced countries. Industrial robots are used in this country. The contactless
payment system is has been using in this country for a long time. The research and development wing of this
country is very much active. The telecommunication system of this country is very much advanced.
So it can be said that for Manulife doing business in Japan can be beneficial. This country is a
developed and technologically advanced country. This organization can provide financial advice, service to the
business organization of Japan. But to do that this organization has to analyze the present scenario of Japan.
Legal factors:
Several laws and regulations of Japan are based on the European system which are labor laws and
corporation laws. People of this country work as employees, directors, dispatched workers and independent
contractors. Every employee gets the aids of employment rights and benefits. Maximum work hours, maternity
leaves, work breaks, holidays are those benefits for the employee. To do business in this country, every
business organization has to provide pension insurance, health insurance, accident compensation insurance and
unemployment insurance for the employee. Whether employees are from Japan or outside, those workers will
get these benefits.
So it can be said that to do business the management team of Manulife has to analyze the legal factors.
The management team has to ensure that the business operation follows the law and regulations of Japan.

4BUSINESS REPORT AND COUNTRY ANALYSIS
Environmental factors:
This country is an environmentally responsible and clean country. However, this country is facing
several problems like waste management. It is the largest environmental problem in this country. The trash
from modern technology is creating an adverse impact on the environment of Japan. The government of this
country is trying its best to manage the waste and manage the pollution (Fam et al., 2017). This country is
affected by natural calamities and disasters like volcanic eruptions, mudslides, floods, tsunamis, and cyclones.
Due to these natural calamities, this country is a less popular tourist destination. To manage the impact of these
natural calamities, the government of Japan has to spend billions of dollars.
Manulife provides financial advice and service to individuals and institutions. So it can be said that
doing business cannot be difficult for this business organization. The business operation of this organization
does not create much adverse impact on the environment. The management team of Manulife can do business
easily by managing the environmental factors of Japan.
Factor endowments:
Basic and advanced factors of production in Japan and the sorts of business opportunities that might be
beneficial for Manulife will be identified in this part. Porter’s Diamond model will be used to identify the
factors that can be a competitive advantage for a business organization (Riasi, 2015). In this part, the
endowment factors will be identified through Porter’s Diamond Model. Factor conditions, demand conditions,
firm structure, strategy and rivalry, and related and supporting industries will be discussed.
Factor conditions:
Several factors of this country must be addressed. It can be useful for the management team of the
business organization. A strong workforce of Japan can be a beneficial factor for a business organization
(Kiyota, 2013). n. In this country, there is an ample number of skilled employees. It can be beneficial for a
business organization. The government of this country spends a vast amount of money in the research and
development sector. This country is one of the most technically progressive countries. One of the most
attractive aspects of this country is its developed transport structure. So it can be said that Manulife can achieve
a competitive advantage by doing business in Japan.
Demand conditions:
Japan is one of the most technically progressive countries. It can be said that this country is a developed
country. 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. So it can be said doing business will be beneficial for Manulife. This business organization can provide
financial advice and service to several institutions and individuals of Japan (Fainshmidt, Smith & Judge, 2016).
This organization can several business clients in this country.

5BUSINESS REPORT AND COUNTRY ANALYSIS
Firm structure, strategy, and rivalry:
In Japan, the cross-functional employee is recruited various jobs in the company. A business
organization has to prepare a strategic plan for doing business in Japan. It can be said that to do business in
Japan, a business organization like Manulife has to conduct various research. Proper analysis of this country
can be beneficial for the management team of Manulife. There are several business organizations, who are
providing financial services in Japan. The Sakura Bank, Sumitomo Mitsui Financial Group, Sony Financial
Holdings, Sumitomo Mitsui Banking Corporation, and Shinsei Bank are the rival business group of this
organization (Parc, 2018).
Related and supporting industries:
In this part, related and supporting industries of the financial service provider will be discussed. The
telecommunication system in this country is very much developed. An appropriate internet system is available
in this country. This organization provides financial advice and service to individuals and institutions (Clesse et
al., 2016). So it can be said that not only individuals but also other business organization can take service from
this organization. To manage wealth and money, several business organizations and an individual person can
use this organization.
Analysis:
In this part, risks and benefits for doing business in Japan will be discussed. The benefits of doing
business in Japan is its economy. The economy of Japan is the third-largest. It is one of the most developed
countries. Well established infrastructure of this country can be benefits for a business organization. The
implication of the advanced technology of this country can be helpful for a business organization for doing
business in this country. The educated workforce of this country can be a good attraction for a business
organization. There are certain risks to doing business in this country. Cyber risk can be a threat for doing
business in this country. Though this country is technologically advanced yet the threat of cyber risk is always
present. A decrease in birth rate is a risk for this country. Because the workforce of this country is turning old.
Japanese people prefer doing business with Japanese companies. So it can be a risk for Manulife.
Recommendations:
In this part, there will be certain recommendations for Manulife for doing business in Japan. Before
entering in the market of Japan, the management tea of this company must research about the market trend of
this company, the culture of this country, and the business situation of Japan. The second recommendation for
Manulife is before expanding its business in Japan, this organization must have a clear idea about the rival
business organization. The third recommendation is the management team of Manulife has to prepare a separate
strategic plan. The strategic plan must be developed by following the Japanese culture. There are several
business organizations, who were failed to continue its business in Japan. The executive team of this
organization has to take an idea from these organizations. The last recommendation for Manulife is this

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organization has to take the benefits of the technological advancement of Japan. However, this organization has
to take precautions for the cyber hack.
Conclusion:
So this discussion can be concluded in this way that doing business in Japan can be difficult for
Manulife. Several business organizations were failed to run their successful business in Japan. They had to
close their business operation in Japan. Before expanding the business in Japan, Manulife must have a clear
idea about the Japanese culture, Japanese tradition, economic condition of Japan, the market trend of this
country. Developing the strategic plan for Japan by using every data and information, which will be derived
from research and analysis, can help this company to capture the market of Japan. This organization has to
maintain its good reputation to attract the Japanese people and other business organizations. It will help this
company to reach to the maximum Japanese people and companies.

7BUSINESS REPORT AND COUNTRY ANALYSIS
References:
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Chiappini, R. (2016). Do Overseas investments create or replace trade? New insights from a macro-sectoral
study on Japan. The Journal of International Trade & Economic Development, 25(3), 403-425.
Steiner, K., Krauss, E. S., & Flanagan, S. E. (Eds.). (2014). Political opposition and local politics in Japan.
Princeton University Press.
Norbury, P. (Ed.). (2019). Business In Japan: a Guide To Japanese Business Practice And Procedure--Fully
Revised Edition. Routledge.
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European academic
research, 2(5), 6478-6492.
Riasi, A. (2015). Competitive advantages of shadow banking industry: An analysis using Porter diamond
model. Business Management and Strategy, 6(2), 15-27.
Parc, J. (2018). Why has Japan’s economy been staggering? A competitiveness perspective. Competitiveness
Review: an International Business Journal.
Fainshmidt, S., Smith, A., & Judge, W. Q. (2016). National competitiveness and Porter's diamond model: The
role of MNE penetration and governance quality. Global Strategy Journal, 6(2), 81-104.
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Kiyota, K. (2013). Skills and changing comparative advantage: The case of Japan. Japan and the World
Economy, 28, 33-40.
Clesse, A., Inoguchi, T., Keehn, E. B., & Stockwin, J. A. A. (Eds.). (2016). The Vitality of Japan: Sources of
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statista-dossier/
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Unctad.org. (2014). Retrieved 8 February 2020, from
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