Group Japan Report – MUTIAH Testimony Batch6, The International Joint Seminar & Visit to Clean Authority of Tokyo, 1519 May 2017 – Program MM FE Unpad
THE INTERNATIONAL JOINT SEMINAR
AND
VISIT TO FP CORPORATION
Tokyo, Japan 31 January – 4 February 2017
Indonesia and Japan
Arranged by
Sut Mutiah
120820160033
Master of Management Program Faculty of Economics and Business
University of Padjadjaran
2017
PESTEL ANALYSIS
A PESTEL analysis is a way to identify all the macro (external) factors that can affect business. The macro factor is
consisting of Political, Economic, Social, Technological, Environmental and Legal. PESTLE's analysis of Japan is as
follows:
POLITIC FACTOR
Japan as a constitutional monarchy is in the power of the elected Prime Minister and Member of
Parliament. The Japanese people are the major holders of the sovereignty. Japan was the first country to introduce
and implement a policy of dumping politics. The political dumping policy is the policy by which the Government
determines that domestic sales are expensive than abroad. Political dumping aims to (1) dominate the world
market share, (2) achieve marketing targets, and (3) spend inventories, increase market share, and increase sales
and profit.
Japan also set a rule of 8% tax for every item buys in Japan. Daiso, Harajuku Street, Asakusa Temple, and
many more, implement tax policy, but for any store they also have a different decision to satisfy their customer by
giving free tax if the customer buying for more than 1000 Yen.
The government of Japan very concerned with the infrastructure and government services. Public
transportation is very clean, fast, cheap, comfort, and the schedule is always on time. The government of Japan
also makes the strict rule that getting driving license must join the training for 3 months. Based on the story from
our tour guide, to get driving license is not easy. The price of making the driving license is so expensive. Driving
license can contain many points. If the driver breaks the traffic rule, the police will cut down the driving license
point. Even, parking attendant must be trained before do their job. Japanese people like using public transportation
than private transportation because of the cost. Using private transportation in Japan is so expensive.
2
ECONOMICAL FACTORS
The beginning of the peak of the Japanese economy expanded in the start of the cabinet PM Ikeda. PM
Ikeda emphasizes tolerance and patience. However, PM Ikeda overrides the issue of the Japanese law reform. It is
because at that time the applicable Japanese law is still the provisions of Japanese law according to American
regulations. The main policy of PM Ikeda in the economic field is to increase people's income, reform, and the
increase of domestic production. The Japanese government in its economic policy, opening up improvements in
engineering, investment, and
supply from America. Salary
payment agreement was
held in 1955 in the company.
Employee and labor's income
increase, consumption levels
increase too. The domestic
market
is
increasingly
needed and continues to
grow so that the Japanese
economy
continues
to
advance.
Increased
consumption occurs on
television,
refrigerator,
washing machine, household
electronic appliance needs.
Internationally Japan continued to grow primarily into a member of the IMF and in 1965 the Japanese
currency including international currency exchange. Japan as a group of industrialized countries and is a member of
the OECD international economic body. For the early politicians, Japan's economic progress was a big boost, but
the growing Japanese economy of the democratic-liberal party continued to decline. This is because the
democratic-liberal parties are guided by conservative ideals that uphold the customs and habits of the ancestors.
As a result of the rapidly changing economy, the culture of the rural and urban society is changing, so that the
customs of the ancestors faded. Farmers and villagers moved to the city to find work and a better life than in the
village. On the other hand, the socialist party has benefited greatly through the development of large numbers of
corporate workers, especially in big cities.
Since the Meiji period (1868-1912), Japan began to embrace the free market economy and adopted the
capitalism of British and US models. The western education system is applied in Japan, and thousands of Japanese
are sent to the United States and Europe to study. More than 3,000 Europeans and Americans were brought in as
faculty in Japan. At the beginning of the Meiji period, the government built railroads, highways, and initiated land
tenure reforms. The government builds factories and shipyards for sale to private with low prices. Some of the
companies established in the Meiji period developed into zaibatsu, and some of them are still operating today.
Japan is one of the most developed industrialized countries in the world. The economic system adopted by Japan is
a free market and industrial market system. The Japanese economy is supported by the good relations between
Japan and other countries that ultimately assist Japan in its foreign trade.
Japan is the most developed country in the world after the United States and China which are very
efficient and compete in international trade, especially in industry field. But Japan has weaknesses in productivity
of agriculture, distribution and lower services. Although Japan's natural resources are few and limited, Japan has
qualified human resources. Therefore industry and trade in Japan became the economic supporting of Japan. Japan
is a unique and very creative country. Japan is currently also optimizing the tourism sector. Many foreign tourists
come to Japan because of Japan's strangeness/uniqueness/creativity. Kompas.com announces Indonesian tourists
3
who visit Japan during the period of 2016 as many as 270,000. This number increased 32 percent from last year's
visit.
The characteristics of the Japanese economy include the close cooperation between firms operating in
refineries, supplies, distribution, and banks (this cooperation group is called keiretsu), wage negotiations between
private companies and trade unions (shunto), good relations With government bureaucracy, and lifelong career
guarantees (shushin koyo) for nearly a third of the city's workforce, as well as employment contracts for workers.
THE SPENDING POWER OF THE JAPANESE CONSUMER
Spending power of the Japanese consumer is high. Japanese very appreciate for high quality product that
comes from many countries in their country such as from USA, China, and Taiwan. Japanese is selective person and
brand person. When the author went to Japan, the author saw that Japanese people have good lifestyle. Many
stores in Japan sell diverse and high quality product that comes from many countries.
SOCIAL FACTORS
Japanese employees work long hours and hectic. Education in Japan is very advanced and produces skilled
and critical graduates.
TECHNOLOGICAL FACTORS
The company in Japan running their activities very well with sophisticated technology. Japan is very
meticulous and mature in making decisions. Japan strongly supports the research and development of technology.
Almost company in Japan makes the burden of the company is really through good planning, allocated and used
appropriately, and evaluated continuously.
The technology development make Japan always update and innovate lunching their product in local and
global market. It gives good impact for Japan Gross National Income.
LEGAL FACTORS
One way to supervise the quality of goods, The Japanese government imposes the rules refers to the
national interest. Therefore those goods exported to Japan must follow regulation rules, among others:
ü
The Plant Protection Law which regulates the quarantine system of fruits, vegetables, and plants which
prohibited in Japan
4
ü
ü
ü
ü
ü
The Consumer Product Safety Law which regulates the procedure to import and sell consumption goods in
Japan
Measurement Law which regulates product packaging system with label description of contents, name,
and address importer
Quarantine Law which regulates the quarantine system of import goods
Law For Promotion Of Sorted And Recycling Containers And Packaging which regulates recycle packaging
system
Industrial Standardization Law which regulates the standard system of industry product quality
All these regulations are challenges and barriers for Indonesian businessmen in particular small and medium
entrepreneurs to enter the Japanese market
ENVIRONMENT FACTORS
Japanese practice healthy habit. They are very cleanly. Their healthy habit influences their decision for
buying product. Japan also has a strong culture. The author saw all the road in Japan are clean. The air is fresh.
Developed country (Japan) and developing country (Indonesia) have differences in many aspects. But Indonesia can
learn much from Japan and adopt their practical policy to increase their capabilities of managing country. Here are
the recommendations:
1.
2.
For business owner in Indonesia
§ The business owner must be concerned with the impact of their business operation. The pollution
from plant, the product packaging must environmentally.
§ The business owner must have a high quality standard for their product.
§ The business owner in Indonesia could export their product to increase the revenue by entrance
global market and deliver the value for more customers outside.
§ The company must build and design research and development department.
For Government in Indonesia
§ The local government and the government in Indonesia must be concerned with excellent service
for society.
§ Safety and comfortable public transportation must be a priority to reduce the traffic jam.
§ The education quality must be increase by provide many books and journal free online. So,
everybody easy to access the knowledge. The education system must be redesign.
§ The policy maker must evaluate the implementation of the policy continuously.
§ The policy must working/implement well.
§ The state and local budget must prioritize the social needs.
§ State and local government revenue from tax and other source must be organized well.
5
CROSS CULTURAL ANALYSIS
Marketing Analysis
Before entrance the new market, business must analyze cross cultural customer to determine to what extent the
consumers of two or more nations are similar or different.
The differences between Indonesian and Japanese Customer
One of the successful tips to penetrate the Japanese market is through the understanding of market
structure, distribution system, and behavior of Japanese society. The Japanese market is one market that is difficult
to penetrate by outside marketers. The Japanese have a habit of buying cheap goods for everyday purposes. While
wanting to buy durable products to improve the status, they bid the selling price. The Japanese have unique
characteristics. Japanese consumers are very concerned about the quality of the product including for small things,
such as clothes in addition to views of models, materials, sizes, colors, ways of washing, the quality of the stitching
will also be noticed. Price is the decisive factor. Japanese consumers are very concerned about fashion and always
looking for something new.
About
Indonesians
people, there are 10 Indonesia
consumer characters unique. The
first character is Indonesian
consumers who have a short
memory. They are more focused
consumers with short-term
product products. They are bored
and forgetful consumers. The
second
character
is
the
Indonesian consumer who has no
planning. The third character is
Indonesian consumers who tend
to group and like to gather. The
fourth Characters are consumers
who are not adaptive to new
technologies. The fifth Characters
are consumers who are
interested in context but not content. The sixth character is Indonesian consumers who like overseas products. The
seventh character is consumers who are increasingly concerned with religious issues. The eighth character is a
consumer who likes to show off and prestige. The ninth characters are Indonesian consumers who are heavily
influenced by subcultures. Indonesia consumers will increase in terms of similarities than the differences the tribe
and geography. The tenth character, the Indonesian consumers who do not care about the environment.
Based on the observation, the author gives recommendation:
1. For business owner in Indonesia
§ The business owner must do research and / or study about Indonesia consumer needs and wants.
Many products which sell in Indonesia are not durable compare with other countries.
§ The business owner must creative
2. For Government in Indonesia
§ Local and state government can make a program and activity to campaign local product
§ State government must stimulate trading activity with controlling the stability price and interest
rate
6
Cultural Analysis
Use of gesture/gestures to give respect and compassion
Ø
Ojigi
One interesting topic to discuss is how to use body language to express respect. Japan and Indonesia have
different ways of expressing gratitude, apology, etc. Ojigi In Japanese culture ojigi is a way of honoring by
bowing, for example when giving thanks, apology, giving a diploma at graduation, etc. There are two types
of ojigi: ritsurei and zarei. Ritsurei is ojigi performed while standing. When doojigi, for men usually while
pressing the butt to keep the balance, while women usually put both hands in front of the body. While
zarei is ojigi which is done while sitting. Based on the intensity, ojigi is divided into 3: saikeirei, keirei,
eshaku. The longer and deeper the body is bent indicating the intensity of feeling to be conveyed. Saikeirei
is the highest level, the body is bent about 45 degrees or more. Keirei about 30-45 degrees, while eshaku
about 15-30 degrees. Saikeirei is very rarely done in everyday life because it is used when expressing a
deep apology or to perform a prayer. To be warmer, ojigi done repeatedly. For example when you want to
convey a deep feeling of forgiveness. As for Indonesian culture, it is not known ojigi.
Ø Handshake.
The handshake tradition is done both in Indonesia and in Japan symbolizing hospitality and warmth. But in
Indonesia sometimes handshake is done by wrapping both hands. If done by two different people, there
are times when their hands are not touching. The location of the hand after the handshake is done, also
different. There are some people who then put a hand on the chest, there is also placed on the forehead,
as the expression that it is not only outwardly, but also from the mind. Kiss hand Tradition kissing hand is
commonly done as a form of respect from a child to parents, from a layman to a community / religious
leader, from a disciple to his teacher. It is not clear where this tradition originated. But there are
allegations derived from the influence of Arab culture. In old Europe, the tradition of kissing hands is also
known, but as a man's respect for a woman of equal dignity or higher. In Roman Catholicism kissing hands
is a tradition also carried out from a people to its leader (Pope, Cardinal). Japan doesn't recognize culture
kiss hand. Kiss on the cheek Kissing cheeks is usually done in Indonesia when two friends or relatives meet
or as an expression of a child's love for his parents and vice versa. This tradition is not found in Japan.
Ø
Sungkem
Sungkem tradition is prevalent in Javanese society, but may not be prevalent in other tribes. Sungkem
performed as a sign of a child's devotion to his parents, a disciple of his teacher. Sungkem is usually done if
a child will be married, or during Idul Fitri (for Muslim), as an expression of apology to the parents, and ask
for his blessing. Both Japanese and Indonesian cultures have their own uniqueness in expressing respect,
apology. The handshake is the only tradition that applies in both Japan and Indonesia. Mistakes that often
occur if an Indonesian new Japanese culture is known when doing ojigi, face not subdued but look at the
other person. This may occur because of the usual handshake style influenced while seeing each other's
eyes. Another common mistake is to mix ojigi and handshake. It is also less precise in terms of Japanese
tradition.
7
COMPANY VISIT ANALYSIS
About Company
Company Name
FP Corporation
Founded
July 1962
Paid in Capital
13,150 million yen
Number of Employees
Employees: 807
FPCO Group Employees: 4,513 employees
Main business
FPCO Philosophy
-
Manufacture disposable bottle and food containers which made
of polystyrene and other resin compounds
-
Marketing disposable bottle and food containers polystyrene and
other resin compounds
-
Marketing other product which related with packaging materials
Creating superior products at competitive prices and delivering them
to our clients when they needed
FPCO Group's medium-to-long term Maximization of value of the company
company strategy
Headquarter and branch office
FPCO headquarter located in Fukuyama and Tokyo
FPCO branch located in Osaka
Sales Office
Number of Shares Issued
FPCO has 10 sales office where located in:
1. Sapporo
2. Sendai
3. Nagoya
4. Shizuo
5. Nigata
6. Hokuriku
7. Hiroshima
8. Shikoku, and
9. Fukuoka
44.284.212
Japan is one of the developed countries who are very attentive to meeting society needs by producing
products that are environmentally friendly and beneficial. Environmentally friendly products such as food
containers (food tray) are produced from used tray and used bottles. Generally, food packaging in Indonesia use
styrofoam that is harmful to health and the environment because nonrecycable and contains carcinogenic.
Indonesia has not been able to detach himself from using styrofoam in packaging food. But for foreign fast-food
restaurants in Indonesia, such as Mc Donald's and KFC have been using environmentally-friendly food containers
8
that food packaging is made of paper. But for food sellers in Indonesia has not been able to implement it. In Japan,
for the matter, FP Corporation (FPCO) has been thinking about the concept of food container products (eco tray).
An environmentally friendly is a commitment of the company towards their products. The company is 54
years old which was established on July 24, 1962. In manufacturing, operations management is very important.
Operations management emphasizes on the quality of the desired product in order to meet customer needs. FPCO
transforms inputs into outputs by recycling process. Inputs used by its processes using garbage (used bottle and
used tray) as materials, besides energy, information, management, technology, and labor. Used trays and
transparent containers produced by FP Corporation are collected at 8,400 locations, such as supermarkets. FPCO
converting waste materials such used bottle and used tray into the eco tray.
FPCO implements a
supply chain management (SCM)
system to its core business that
connects
development,
capabilities, purchasing power,
production capacity, warehousing,
power distribution, recycling, and
information
networks.
The
strength of technology, discipline,
and commitment make FPCO
maintain the existence and the
company long life.
Concerned
for
the
environment makes FPCO recycles
garbage since September 1990.
FPCO designed and recycled
styrofoam container waste by involving
consumers, supermarkets and distributors to collaborate and work together. Recycling methods involves many
parties, such as consumers, supermarkets, and packaging distributors. It’s helpful to governments to push the cost
of transporting government waste trucks.
Each party independently and committed collect and give garbage for FPCO officer. After the garbage is
obtained, FPCO officers will sort the styrofoam garbage based on the color: white, transparent, and patterned. The
recycling process will be carried out by color to become a styrofoam sheet. Furthermore, officers coat the
styrofoam sheet with a plastic film made of polystyrene into a food container.
FPCO is not only concerned about the environment by doing the waste cycle, but also against the
disability. As of March 2014 FPCO employs 372 disabilities or about 16% of the total employee to sort recycling
waste and construct transparent containers. It proves that the disabilities can be productive and work well in
accordance with FPCO directives and desires. FP Corporation provides employment opportunities for disabled
individuals.
FPCO received awards from various parties namely the Global 100 Eco-Tech Award from the Japan
Association in September 2005, the award for the product excellence of the Ministry of the Environment from
9
container and packaging 3R-reuses, reduce, recycle in April 2007, and Gold Prize at Eco Mark Awards 2010 on
waste recycling method conducted by FPCO in February 2011.
Because of the easy to recycle, environmental benefits of Styrofoam food tray are consisting of:
1. Tray use negligible amounts of petroleum as a raw material (helping to conserve resources)
2. Tray account for a tiny percentage of garbage
3. Trays contain no CFCs
4. Trays can be recycled using very little energy
Eco tray is their valuable products that ready to deliver to the consumer. Food containers (eco tray)
provide low-profile support that helps supermarkets, convenience stores and other retailers to offer safe, secure
food to consumers. The quality standards are maintained too. Every FPCO food container has the FPCO Mark
stamped on the back. This mark guarantees peace of mind of users of FPCO containers which have food, vital for
sustaining health, inside.
Swink et all state that Operations managers must look beyond the “four walls” of the firm and take an
integrated supply chain perspective of operations. Capacity and process activity must be designed well to manage
operation.
Good managing in operation, can impact the sales productivity. It can be shown on the chart above that FP
Corp net sales always increase year to year.
10
Last month of fiscal year
Net sales (Millions of yen)
March
2012
March
2013
March
2014
March
2015
March
2016
March
2017
(forecast)
155,681
158,192
161,121
164,918
170,292
176,000
Product sales
113,090
115,085
118,406
122,237
126,289
131,000
Merchandise sales
42,591
43,106
42,714
42,681
44,003
45,000
FPCO implement inventory management very well:
1.
The company eliminates the risk of delayed the goods / materials needed by the company. Therefore, the
company has made hauling schedule for getting bottled and food tray waste from customer, supermarkets
and others.
2.
The company eliminates the risk of waste materials by selecting the good bottle and food tray waste from
the bad ones.
3.
The company preserves the stability of operations or ensuring the expeditious flow of production. Layout
management can impact the expeditious flow of the company's production. The layout is the location of
the company's operational facilities both inside and outside the building. The better layout shows the
reconcilement between the location of asset and . Companies can achieve cost savings and short time
through good layout management. Therefore, the company has developed and designed the layout of
operational facilities wisely. For example, when food packaging waste is transported from various sources,
the waste is moved to a sorting site equipped with sorting facilities such as sorting machines and sorting
tables. The sorting machines and sorting table are in the first place. Garbage bottles and food packaging
are manually sorted by laborers that take a long time. The crusher is second. The crusher breaks the bottle
trash and food packaging into raw materials that will be used to produce the food tray. The crushed
washing machine was fourth. This machine will clean the raw material so that the condition of raw
11
materials in a clean and ready to use. The fifth order is the rinsing and drying machine. The machine will
rinse the raw material and then dry it. After the raw material is drained, raw materials are destroyed again
to be the smallest part. Raw material that becomes small and dry is called dry chips. The sixth sequence is
a freezer and a dry chip converter into a pellet, Pellet is the product of the machine used to produce an
eco tray.
The purpose of planning a good layout / layout:
• Maximize the utilization of plant equipment
• Minimize labor requirements
• Ensuring the flow of materials and products smoothly
• Minimize barriers to health
• Minimize the effort of carrying materials
• Shorten the processing time of the production process
FPCO in deciding the layout strategy seems to have noticed;
• Maximum utilization strategy of the room or place, machinery and equipment, and workers.
• Knowledge and Development of information flow, raw materials, and sources of labor.
• Flexibility of machinery and equipment
4.
Company Achieve optimal machine usage. The machines used by the company are machines maintained /
cared for with adequate maintenance costs. The machine used is a sophisticated machine and optimally
utilized, there is no machine idle. Machine is a tool that helps the company to maximize and effective in
providing services to subscribers with the best, by giving guarantee availability of finished goods. The
company has a high commitment to retain customers and meet customer needs.
The optimal use of machinery by the Company is capable of delivering adequate production output. All
tools are well utilized and no one is unemployed. Optimal use of the machine can also increase sales
results because the machine works very well in processing customer demand.
Organizational Culture “Kaizen”
Japanese society has a strong character, good management of all things not only done in the company, but
also in the household. Japan is excellent in its management character who has the philosophy of "cost-savings and"
hi-quality. Kaizen Culture in Japan is very ingrained. Kaizen can be interpreted as a continuous improvement. This
improvement is not only in the business environment and government but also in Society.
The core of Kaizen is the realization that management must maximize the company value by
manufacturing and deliver a superior product if the company wants to exist, earn the profit, and grow. The purpose
of Kaizen is for accomplishing quality, processes, systems, procedures, equipment costs, and scheduling to fulfill
customer satisfaction. In applying the value, FPCO applies the method:
1. changing the way to empower employees to be more productive, more efficient and safe
2. Repair the equipment
3. Improve the procedure
FPCO implement Kaizen very well. FPCO focus on management orientation. FPCO management generally
believes that a manager must use 50% of his time for improvement. FPCO identify improvident and inefficiency
employee activity. FPCO also aware the quality control group and small group activity orientation to identify the
cause of the problem, analyze, execute, try new actions, and set new standards / procedures. Third, FPCO focus on
individual orientation, reflected in the form of employee skills in conveying thoughts and suggestions, as an effort
to self-development employees.
12
The key success of Japan Kaizen -> every employee of all levels must improve their skills and develop their
talents continuously, which can improve job satisfaction.
One of the most important and controversial Kaizen philosophies is that the process of improvement is
cultivated primarily in order to efficiencies and economies. Kaizen focuses on the elimination of improvident,
unnecessary processes, and prevent fails by design the quality of results from the beginning of the process. The
application of the principles of simplification of work in process improvement is an illustration of the application of
Kaizen philosophy. Application of the principles of simplification of work in process improvement is a description of
the application of Kaizen philosophy (Hardjosoedarmo:2004)
There are four steps in the simplification principle, which the sequence needs to be followed:
Ø Step One: Remove all unnecessary steps which not giving value added
Ø Step Two: Conduct an analysis, combining, consolidating and implementing the steps of the process into
the outcome
Ø Step Three: Changing the processes to rearrange the sequence.
Ø Step Four: Add resources or make the replacement step in the process.
Based on the observation, the author gives recommendation:
1. For business owner in Indonesia
§ The business owner in Indonesia must have a good skill and knowledge of managing operation.
Without skill and knowledge about managing operation, it’s difficult to achieve efficiency and
effectiveness. The business owner must push the cost production with many ways besides by
retire their employee.
§ The perspective of local focus must be changed as global focus.
§ The business owner in Indonesia can implement Kaizen continuously
2. For government in Indonesia
§ The local and state government must evaluate their expense in their operating activities.
§ The local and state government must design waste management and build some incineration
plant
§ The local and state government must design operational facilities layout
§ The local and state government must implement Kaizen continuously
References:
http://www.japan-guide.com/e/e2206.html
https://www.gov.mb.ca/agriculture/market-prices-and-statistics/tradestatistics/pubs/japan_consumer_report_en.pdf
https://www.yudairawan.com/analisa-pestle/
http://atlas.media.mit.edu/en/profile/country/jpn/
http://www.kansaigaidai.ac.jp/asp/pdf/current_students/01_student_handbook/Drug_Laws_In_Japan.pdf
https://en.wikipedia.org/wiki/Economy_of_Japan#Law_and_government
http://www.azocleantech.com/article.aspx?ArticleID=539
13
AND
VISIT TO FP CORPORATION
Tokyo, Japan 31 January – 4 February 2017
Indonesia and Japan
Arranged by
Sut Mutiah
120820160033
Master of Management Program Faculty of Economics and Business
University of Padjadjaran
2017
PESTEL ANALYSIS
A PESTEL analysis is a way to identify all the macro (external) factors that can affect business. The macro factor is
consisting of Political, Economic, Social, Technological, Environmental and Legal. PESTLE's analysis of Japan is as
follows:
POLITIC FACTOR
Japan as a constitutional monarchy is in the power of the elected Prime Minister and Member of
Parliament. The Japanese people are the major holders of the sovereignty. Japan was the first country to introduce
and implement a policy of dumping politics. The political dumping policy is the policy by which the Government
determines that domestic sales are expensive than abroad. Political dumping aims to (1) dominate the world
market share, (2) achieve marketing targets, and (3) spend inventories, increase market share, and increase sales
and profit.
Japan also set a rule of 8% tax for every item buys in Japan. Daiso, Harajuku Street, Asakusa Temple, and
many more, implement tax policy, but for any store they also have a different decision to satisfy their customer by
giving free tax if the customer buying for more than 1000 Yen.
The government of Japan very concerned with the infrastructure and government services. Public
transportation is very clean, fast, cheap, comfort, and the schedule is always on time. The government of Japan
also makes the strict rule that getting driving license must join the training for 3 months. Based on the story from
our tour guide, to get driving license is not easy. The price of making the driving license is so expensive. Driving
license can contain many points. If the driver breaks the traffic rule, the police will cut down the driving license
point. Even, parking attendant must be trained before do their job. Japanese people like using public transportation
than private transportation because of the cost. Using private transportation in Japan is so expensive.
2
ECONOMICAL FACTORS
The beginning of the peak of the Japanese economy expanded in the start of the cabinet PM Ikeda. PM
Ikeda emphasizes tolerance and patience. However, PM Ikeda overrides the issue of the Japanese law reform. It is
because at that time the applicable Japanese law is still the provisions of Japanese law according to American
regulations. The main policy of PM Ikeda in the economic field is to increase people's income, reform, and the
increase of domestic production. The Japanese government in its economic policy, opening up improvements in
engineering, investment, and
supply from America. Salary
payment agreement was
held in 1955 in the company.
Employee and labor's income
increase, consumption levels
increase too. The domestic
market
is
increasingly
needed and continues to
grow so that the Japanese
economy
continues
to
advance.
Increased
consumption occurs on
television,
refrigerator,
washing machine, household
electronic appliance needs.
Internationally Japan continued to grow primarily into a member of the IMF and in 1965 the Japanese
currency including international currency exchange. Japan as a group of industrialized countries and is a member of
the OECD international economic body. For the early politicians, Japan's economic progress was a big boost, but
the growing Japanese economy of the democratic-liberal party continued to decline. This is because the
democratic-liberal parties are guided by conservative ideals that uphold the customs and habits of the ancestors.
As a result of the rapidly changing economy, the culture of the rural and urban society is changing, so that the
customs of the ancestors faded. Farmers and villagers moved to the city to find work and a better life than in the
village. On the other hand, the socialist party has benefited greatly through the development of large numbers of
corporate workers, especially in big cities.
Since the Meiji period (1868-1912), Japan began to embrace the free market economy and adopted the
capitalism of British and US models. The western education system is applied in Japan, and thousands of Japanese
are sent to the United States and Europe to study. More than 3,000 Europeans and Americans were brought in as
faculty in Japan. At the beginning of the Meiji period, the government built railroads, highways, and initiated land
tenure reforms. The government builds factories and shipyards for sale to private with low prices. Some of the
companies established in the Meiji period developed into zaibatsu, and some of them are still operating today.
Japan is one of the most developed industrialized countries in the world. The economic system adopted by Japan is
a free market and industrial market system. The Japanese economy is supported by the good relations between
Japan and other countries that ultimately assist Japan in its foreign trade.
Japan is the most developed country in the world after the United States and China which are very
efficient and compete in international trade, especially in industry field. But Japan has weaknesses in productivity
of agriculture, distribution and lower services. Although Japan's natural resources are few and limited, Japan has
qualified human resources. Therefore industry and trade in Japan became the economic supporting of Japan. Japan
is a unique and very creative country. Japan is currently also optimizing the tourism sector. Many foreign tourists
come to Japan because of Japan's strangeness/uniqueness/creativity. Kompas.com announces Indonesian tourists
3
who visit Japan during the period of 2016 as many as 270,000. This number increased 32 percent from last year's
visit.
The characteristics of the Japanese economy include the close cooperation between firms operating in
refineries, supplies, distribution, and banks (this cooperation group is called keiretsu), wage negotiations between
private companies and trade unions (shunto), good relations With government bureaucracy, and lifelong career
guarantees (shushin koyo) for nearly a third of the city's workforce, as well as employment contracts for workers.
THE SPENDING POWER OF THE JAPANESE CONSUMER
Spending power of the Japanese consumer is high. Japanese very appreciate for high quality product that
comes from many countries in their country such as from USA, China, and Taiwan. Japanese is selective person and
brand person. When the author went to Japan, the author saw that Japanese people have good lifestyle. Many
stores in Japan sell diverse and high quality product that comes from many countries.
SOCIAL FACTORS
Japanese employees work long hours and hectic. Education in Japan is very advanced and produces skilled
and critical graduates.
TECHNOLOGICAL FACTORS
The company in Japan running their activities very well with sophisticated technology. Japan is very
meticulous and mature in making decisions. Japan strongly supports the research and development of technology.
Almost company in Japan makes the burden of the company is really through good planning, allocated and used
appropriately, and evaluated continuously.
The technology development make Japan always update and innovate lunching their product in local and
global market. It gives good impact for Japan Gross National Income.
LEGAL FACTORS
One way to supervise the quality of goods, The Japanese government imposes the rules refers to the
national interest. Therefore those goods exported to Japan must follow regulation rules, among others:
ü
The Plant Protection Law which regulates the quarantine system of fruits, vegetables, and plants which
prohibited in Japan
4
ü
ü
ü
ü
ü
The Consumer Product Safety Law which regulates the procedure to import and sell consumption goods in
Japan
Measurement Law which regulates product packaging system with label description of contents, name,
and address importer
Quarantine Law which regulates the quarantine system of import goods
Law For Promotion Of Sorted And Recycling Containers And Packaging which regulates recycle packaging
system
Industrial Standardization Law which regulates the standard system of industry product quality
All these regulations are challenges and barriers for Indonesian businessmen in particular small and medium
entrepreneurs to enter the Japanese market
ENVIRONMENT FACTORS
Japanese practice healthy habit. They are very cleanly. Their healthy habit influences their decision for
buying product. Japan also has a strong culture. The author saw all the road in Japan are clean. The air is fresh.
Developed country (Japan) and developing country (Indonesia) have differences in many aspects. But Indonesia can
learn much from Japan and adopt their practical policy to increase their capabilities of managing country. Here are
the recommendations:
1.
2.
For business owner in Indonesia
§ The business owner must be concerned with the impact of their business operation. The pollution
from plant, the product packaging must environmentally.
§ The business owner must have a high quality standard for their product.
§ The business owner in Indonesia could export their product to increase the revenue by entrance
global market and deliver the value for more customers outside.
§ The company must build and design research and development department.
For Government in Indonesia
§ The local government and the government in Indonesia must be concerned with excellent service
for society.
§ Safety and comfortable public transportation must be a priority to reduce the traffic jam.
§ The education quality must be increase by provide many books and journal free online. So,
everybody easy to access the knowledge. The education system must be redesign.
§ The policy maker must evaluate the implementation of the policy continuously.
§ The policy must working/implement well.
§ The state and local budget must prioritize the social needs.
§ State and local government revenue from tax and other source must be organized well.
5
CROSS CULTURAL ANALYSIS
Marketing Analysis
Before entrance the new market, business must analyze cross cultural customer to determine to what extent the
consumers of two or more nations are similar or different.
The differences between Indonesian and Japanese Customer
One of the successful tips to penetrate the Japanese market is through the understanding of market
structure, distribution system, and behavior of Japanese society. The Japanese market is one market that is difficult
to penetrate by outside marketers. The Japanese have a habit of buying cheap goods for everyday purposes. While
wanting to buy durable products to improve the status, they bid the selling price. The Japanese have unique
characteristics. Japanese consumers are very concerned about the quality of the product including for small things,
such as clothes in addition to views of models, materials, sizes, colors, ways of washing, the quality of the stitching
will also be noticed. Price is the decisive factor. Japanese consumers are very concerned about fashion and always
looking for something new.
About
Indonesians
people, there are 10 Indonesia
consumer characters unique. The
first character is Indonesian
consumers who have a short
memory. They are more focused
consumers with short-term
product products. They are bored
and forgetful consumers. The
second
character
is
the
Indonesian consumer who has no
planning. The third character is
Indonesian consumers who tend
to group and like to gather. The
fourth Characters are consumers
who are not adaptive to new
technologies. The fifth Characters
are consumers who are
interested in context but not content. The sixth character is Indonesian consumers who like overseas products. The
seventh character is consumers who are increasingly concerned with religious issues. The eighth character is a
consumer who likes to show off and prestige. The ninth characters are Indonesian consumers who are heavily
influenced by subcultures. Indonesia consumers will increase in terms of similarities than the differences the tribe
and geography. The tenth character, the Indonesian consumers who do not care about the environment.
Based on the observation, the author gives recommendation:
1. For business owner in Indonesia
§ The business owner must do research and / or study about Indonesia consumer needs and wants.
Many products which sell in Indonesia are not durable compare with other countries.
§ The business owner must creative
2. For Government in Indonesia
§ Local and state government can make a program and activity to campaign local product
§ State government must stimulate trading activity with controlling the stability price and interest
rate
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Cultural Analysis
Use of gesture/gestures to give respect and compassion
Ø
Ojigi
One interesting topic to discuss is how to use body language to express respect. Japan and Indonesia have
different ways of expressing gratitude, apology, etc. Ojigi In Japanese culture ojigi is a way of honoring by
bowing, for example when giving thanks, apology, giving a diploma at graduation, etc. There are two types
of ojigi: ritsurei and zarei. Ritsurei is ojigi performed while standing. When doojigi, for men usually while
pressing the butt to keep the balance, while women usually put both hands in front of the body. While
zarei is ojigi which is done while sitting. Based on the intensity, ojigi is divided into 3: saikeirei, keirei,
eshaku. The longer and deeper the body is bent indicating the intensity of feeling to be conveyed. Saikeirei
is the highest level, the body is bent about 45 degrees or more. Keirei about 30-45 degrees, while eshaku
about 15-30 degrees. Saikeirei is very rarely done in everyday life because it is used when expressing a
deep apology or to perform a prayer. To be warmer, ojigi done repeatedly. For example when you want to
convey a deep feeling of forgiveness. As for Indonesian culture, it is not known ojigi.
Ø Handshake.
The handshake tradition is done both in Indonesia and in Japan symbolizing hospitality and warmth. But in
Indonesia sometimes handshake is done by wrapping both hands. If done by two different people, there
are times when their hands are not touching. The location of the hand after the handshake is done, also
different. There are some people who then put a hand on the chest, there is also placed on the forehead,
as the expression that it is not only outwardly, but also from the mind. Kiss hand Tradition kissing hand is
commonly done as a form of respect from a child to parents, from a layman to a community / religious
leader, from a disciple to his teacher. It is not clear where this tradition originated. But there are
allegations derived from the influence of Arab culture. In old Europe, the tradition of kissing hands is also
known, but as a man's respect for a woman of equal dignity or higher. In Roman Catholicism kissing hands
is a tradition also carried out from a people to its leader (Pope, Cardinal). Japan doesn't recognize culture
kiss hand. Kiss on the cheek Kissing cheeks is usually done in Indonesia when two friends or relatives meet
or as an expression of a child's love for his parents and vice versa. This tradition is not found in Japan.
Ø
Sungkem
Sungkem tradition is prevalent in Javanese society, but may not be prevalent in other tribes. Sungkem
performed as a sign of a child's devotion to his parents, a disciple of his teacher. Sungkem is usually done if
a child will be married, or during Idul Fitri (for Muslim), as an expression of apology to the parents, and ask
for his blessing. Both Japanese and Indonesian cultures have their own uniqueness in expressing respect,
apology. The handshake is the only tradition that applies in both Japan and Indonesia. Mistakes that often
occur if an Indonesian new Japanese culture is known when doing ojigi, face not subdued but look at the
other person. This may occur because of the usual handshake style influenced while seeing each other's
eyes. Another common mistake is to mix ojigi and handshake. It is also less precise in terms of Japanese
tradition.
7
COMPANY VISIT ANALYSIS
About Company
Company Name
FP Corporation
Founded
July 1962
Paid in Capital
13,150 million yen
Number of Employees
Employees: 807
FPCO Group Employees: 4,513 employees
Main business
FPCO Philosophy
-
Manufacture disposable bottle and food containers which made
of polystyrene and other resin compounds
-
Marketing disposable bottle and food containers polystyrene and
other resin compounds
-
Marketing other product which related with packaging materials
Creating superior products at competitive prices and delivering them
to our clients when they needed
FPCO Group's medium-to-long term Maximization of value of the company
company strategy
Headquarter and branch office
FPCO headquarter located in Fukuyama and Tokyo
FPCO branch located in Osaka
Sales Office
Number of Shares Issued
FPCO has 10 sales office where located in:
1. Sapporo
2. Sendai
3. Nagoya
4. Shizuo
5. Nigata
6. Hokuriku
7. Hiroshima
8. Shikoku, and
9. Fukuoka
44.284.212
Japan is one of the developed countries who are very attentive to meeting society needs by producing
products that are environmentally friendly and beneficial. Environmentally friendly products such as food
containers (food tray) are produced from used tray and used bottles. Generally, food packaging in Indonesia use
styrofoam that is harmful to health and the environment because nonrecycable and contains carcinogenic.
Indonesia has not been able to detach himself from using styrofoam in packaging food. But for foreign fast-food
restaurants in Indonesia, such as Mc Donald's and KFC have been using environmentally-friendly food containers
8
that food packaging is made of paper. But for food sellers in Indonesia has not been able to implement it. In Japan,
for the matter, FP Corporation (FPCO) has been thinking about the concept of food container products (eco tray).
An environmentally friendly is a commitment of the company towards their products. The company is 54
years old which was established on July 24, 1962. In manufacturing, operations management is very important.
Operations management emphasizes on the quality of the desired product in order to meet customer needs. FPCO
transforms inputs into outputs by recycling process. Inputs used by its processes using garbage (used bottle and
used tray) as materials, besides energy, information, management, technology, and labor. Used trays and
transparent containers produced by FP Corporation are collected at 8,400 locations, such as supermarkets. FPCO
converting waste materials such used bottle and used tray into the eco tray.
FPCO implements a
supply chain management (SCM)
system to its core business that
connects
development,
capabilities, purchasing power,
production capacity, warehousing,
power distribution, recycling, and
information
networks.
The
strength of technology, discipline,
and commitment make FPCO
maintain the existence and the
company long life.
Concerned
for
the
environment makes FPCO recycles
garbage since September 1990.
FPCO designed and recycled
styrofoam container waste by involving
consumers, supermarkets and distributors to collaborate and work together. Recycling methods involves many
parties, such as consumers, supermarkets, and packaging distributors. It’s helpful to governments to push the cost
of transporting government waste trucks.
Each party independently and committed collect and give garbage for FPCO officer. After the garbage is
obtained, FPCO officers will sort the styrofoam garbage based on the color: white, transparent, and patterned. The
recycling process will be carried out by color to become a styrofoam sheet. Furthermore, officers coat the
styrofoam sheet with a plastic film made of polystyrene into a food container.
FPCO is not only concerned about the environment by doing the waste cycle, but also against the
disability. As of March 2014 FPCO employs 372 disabilities or about 16% of the total employee to sort recycling
waste and construct transparent containers. It proves that the disabilities can be productive and work well in
accordance with FPCO directives and desires. FP Corporation provides employment opportunities for disabled
individuals.
FPCO received awards from various parties namely the Global 100 Eco-Tech Award from the Japan
Association in September 2005, the award for the product excellence of the Ministry of the Environment from
9
container and packaging 3R-reuses, reduce, recycle in April 2007, and Gold Prize at Eco Mark Awards 2010 on
waste recycling method conducted by FPCO in February 2011.
Because of the easy to recycle, environmental benefits of Styrofoam food tray are consisting of:
1. Tray use negligible amounts of petroleum as a raw material (helping to conserve resources)
2. Tray account for a tiny percentage of garbage
3. Trays contain no CFCs
4. Trays can be recycled using very little energy
Eco tray is their valuable products that ready to deliver to the consumer. Food containers (eco tray)
provide low-profile support that helps supermarkets, convenience stores and other retailers to offer safe, secure
food to consumers. The quality standards are maintained too. Every FPCO food container has the FPCO Mark
stamped on the back. This mark guarantees peace of mind of users of FPCO containers which have food, vital for
sustaining health, inside.
Swink et all state that Operations managers must look beyond the “four walls” of the firm and take an
integrated supply chain perspective of operations. Capacity and process activity must be designed well to manage
operation.
Good managing in operation, can impact the sales productivity. It can be shown on the chart above that FP
Corp net sales always increase year to year.
10
Last month of fiscal year
Net sales (Millions of yen)
March
2012
March
2013
March
2014
March
2015
March
2016
March
2017
(forecast)
155,681
158,192
161,121
164,918
170,292
176,000
Product sales
113,090
115,085
118,406
122,237
126,289
131,000
Merchandise sales
42,591
43,106
42,714
42,681
44,003
45,000
FPCO implement inventory management very well:
1.
The company eliminates the risk of delayed the goods / materials needed by the company. Therefore, the
company has made hauling schedule for getting bottled and food tray waste from customer, supermarkets
and others.
2.
The company eliminates the risk of waste materials by selecting the good bottle and food tray waste from
the bad ones.
3.
The company preserves the stability of operations or ensuring the expeditious flow of production. Layout
management can impact the expeditious flow of the company's production. The layout is the location of
the company's operational facilities both inside and outside the building. The better layout shows the
reconcilement between the location of asset and . Companies can achieve cost savings and short time
through good layout management. Therefore, the company has developed and designed the layout of
operational facilities wisely. For example, when food packaging waste is transported from various sources,
the waste is moved to a sorting site equipped with sorting facilities such as sorting machines and sorting
tables. The sorting machines and sorting table are in the first place. Garbage bottles and food packaging
are manually sorted by laborers that take a long time. The crusher is second. The crusher breaks the bottle
trash and food packaging into raw materials that will be used to produce the food tray. The crushed
washing machine was fourth. This machine will clean the raw material so that the condition of raw
11
materials in a clean and ready to use. The fifth order is the rinsing and drying machine. The machine will
rinse the raw material and then dry it. After the raw material is drained, raw materials are destroyed again
to be the smallest part. Raw material that becomes small and dry is called dry chips. The sixth sequence is
a freezer and a dry chip converter into a pellet, Pellet is the product of the machine used to produce an
eco tray.
The purpose of planning a good layout / layout:
• Maximize the utilization of plant equipment
• Minimize labor requirements
• Ensuring the flow of materials and products smoothly
• Minimize barriers to health
• Minimize the effort of carrying materials
• Shorten the processing time of the production process
FPCO in deciding the layout strategy seems to have noticed;
• Maximum utilization strategy of the room or place, machinery and equipment, and workers.
• Knowledge and Development of information flow, raw materials, and sources of labor.
• Flexibility of machinery and equipment
4.
Company Achieve optimal machine usage. The machines used by the company are machines maintained /
cared for with adequate maintenance costs. The machine used is a sophisticated machine and optimally
utilized, there is no machine idle. Machine is a tool that helps the company to maximize and effective in
providing services to subscribers with the best, by giving guarantee availability of finished goods. The
company has a high commitment to retain customers and meet customer needs.
The optimal use of machinery by the Company is capable of delivering adequate production output. All
tools are well utilized and no one is unemployed. Optimal use of the machine can also increase sales
results because the machine works very well in processing customer demand.
Organizational Culture “Kaizen”
Japanese society has a strong character, good management of all things not only done in the company, but
also in the household. Japan is excellent in its management character who has the philosophy of "cost-savings and"
hi-quality. Kaizen Culture in Japan is very ingrained. Kaizen can be interpreted as a continuous improvement. This
improvement is not only in the business environment and government but also in Society.
The core of Kaizen is the realization that management must maximize the company value by
manufacturing and deliver a superior product if the company wants to exist, earn the profit, and grow. The purpose
of Kaizen is for accomplishing quality, processes, systems, procedures, equipment costs, and scheduling to fulfill
customer satisfaction. In applying the value, FPCO applies the method:
1. changing the way to empower employees to be more productive, more efficient and safe
2. Repair the equipment
3. Improve the procedure
FPCO implement Kaizen very well. FPCO focus on management orientation. FPCO management generally
believes that a manager must use 50% of his time for improvement. FPCO identify improvident and inefficiency
employee activity. FPCO also aware the quality control group and small group activity orientation to identify the
cause of the problem, analyze, execute, try new actions, and set new standards / procedures. Third, FPCO focus on
individual orientation, reflected in the form of employee skills in conveying thoughts and suggestions, as an effort
to self-development employees.
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The key success of Japan Kaizen -> every employee of all levels must improve their skills and develop their
talents continuously, which can improve job satisfaction.
One of the most important and controversial Kaizen philosophies is that the process of improvement is
cultivated primarily in order to efficiencies and economies. Kaizen focuses on the elimination of improvident,
unnecessary processes, and prevent fails by design the quality of results from the beginning of the process. The
application of the principles of simplification of work in process improvement is an illustration of the application of
Kaizen philosophy. Application of the principles of simplification of work in process improvement is a description of
the application of Kaizen philosophy (Hardjosoedarmo:2004)
There are four steps in the simplification principle, which the sequence needs to be followed:
Ø Step One: Remove all unnecessary steps which not giving value added
Ø Step Two: Conduct an analysis, combining, consolidating and implementing the steps of the process into
the outcome
Ø Step Three: Changing the processes to rearrange the sequence.
Ø Step Four: Add resources or make the replacement step in the process.
Based on the observation, the author gives recommendation:
1. For business owner in Indonesia
§ The business owner in Indonesia must have a good skill and knowledge of managing operation.
Without skill and knowledge about managing operation, it’s difficult to achieve efficiency and
effectiveness. The business owner must push the cost production with many ways besides by
retire their employee.
§ The perspective of local focus must be changed as global focus.
§ The business owner in Indonesia can implement Kaizen continuously
2. For government in Indonesia
§ The local and state government must evaluate their expense in their operating activities.
§ The local and state government must design waste management and build some incineration
plant
§ The local and state government must design operational facilities layout
§ The local and state government must implement Kaizen continuously
References:
http://www.japan-guide.com/e/e2206.html
https://www.gov.mb.ca/agriculture/market-prices-and-statistics/tradestatistics/pubs/japan_consumer_report_en.pdf
https://www.yudairawan.com/analisa-pestle/
http://atlas.media.mit.edu/en/profile/country/jpn/
http://www.kansaigaidai.ac.jp/asp/pdf/current_students/01_student_handbook/Drug_Laws_In_Japan.pdf
https://en.wikipedia.org/wiki/Economy_of_Japan#Law_and_government
http://www.azocleantech.com/article.aspx?ArticleID=539
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