Category: Leadership

  • Japan’s future. Bill Emmott and Gerhard Fasol, a discussion.

    Japan’s future. Bill Emmott and Gerhard Fasol, a discussion.

    Japan’s future: Bill Emmott and Gerhard Fasol

    Bill Emmott is an independent writer and consultant on international affairs, board director, and from 1993 until 2006 was editor of The Economist. http://www.billemmott.com

    Gerhard Fasol is physicist, board director, entrepreneur, M&A advisor in Tokyo. https://fasol.com/

    Japan’s future: A conversation

    Bill Emmott:

    I came first to Japan in 1983 as Economist Tokyo Bureau Chief, staying until 1986. Then in 1988 I came back on sabbatical leave and wrote “The sun also sets: why Japan will not be number one”, which against my expectation when it was published in 1989 found big resonance in Japan. The stock market was plunging, and mine was the most immediately available explanation. Ever since, journalists have constantly asked me what the sun is doing now! It also meant that even when I became editor in chief of The Economist in 1993 I spent much more time focused on Japan than I had expected, visiting as often as I could to keep track of the post-bubble developments, and wrote a book that appeared only in Japanese translation called “Kanrio no Taizai”, or the bureaucrats’ deadly sins. But later, with Prime Minister Koizumi consolidating reforms, and the banking system at last getting cleared up, I sent myself back in 2005 to research and wrote a much more optimistic special supplement for The Economist which became a book, “The sun also rises”.

    Throughout the 35 years since I first came to Japan, I have both been fascinated and struck by the fact that although this is in so many ways an inward-looking self-contained nation, foreign observers are listened to and even have a chance of having a positive impact.

    One element that had featured consistently in my writings ever since the 1980s had been observations and expectations for a growing role for women in employment and power. This seemed logical given that, at least before the bubble burst, Japan was heading for a labour shortage, but also the Equal Employment Law of 1986 had led to more females being recruited by major organisations. Japan’s excellent education surely meant that the underused half (= women) of the adult population would soon be used more productively.

    Of course, this has developed a lot more slowly than I expected or hoped, partly for cultural reasons but also because Japan has not in fact had a labour shortage, until now.

    I wanted to meet you, Gerhard tonight because we both are fascinated by the role Japanese women have in making Japan such a fascinating country, and how the many really strong Japanese women could have key roles in bringing growth and dynamic change back to Japan.

    • Could Japanese women have bigger roles for the development of Japan?
    • What is holding women back in Japan?
    • Who are the role models?

    I am making interviews with high-achieving Japanese women to try to find answers, and plan to compile them into a book later this year. What would you say, Gerhard? And anyway, how did you end up here?

    Gerhard Fasol:

    My path to Japan is quite different than yours, Bill. I came to Japan first in 1984 as Fellow of Trinity College Cambridge, and scientist at the Max-Planck-Institute in Stuttgart, part of a project to build a research cooperation with NTT’s R&D labs. I saw that Japan was very important in technology and weakly linked to the outside – and still is today, I think. So in 1984 I decided to make Japan my second professional focus in addition to physics and electronics. Like you – the deeper I get into Japan, the more I learn about Japan, the greater my fascination, and my motivation to contribute.

    Now I am working on many different projects, working on international technology M&A projects, and I am also one of a microscopic number of foreigners on the Board of Directors of a stock market listed Japanese corporation – reforming Japanese corporate governance hands-on.

    Could Japanese women have bigger roles for the development of Japan?

    Gerhard Fasol:

    I think that the equal participation of women in leadership is directly linked to the population issue, ie the number of children born.

    According to the Inter-Parliamentary Union in 2016 http://data.worldbank.org/indicator/SG.GEN.PARL.ZS

    • in Japan 10% of Members of Parliament were women,
    • while in Sweden 44% of Members of Parliament are women,
    • 37% in Germany and
    • 26% in France –
    • the world average is 23% women in Parliaments.

    In Japan the ratio of women in Parliament has increased from 1% in 1990 to 10% in 2016, so there is progress. If we extrapolate, and if the trend continues, then it might take another 30 years or so until Japan reaches world average in terms of women bringing women’s views into Parliament, and taking part in making the laws. And it might take Japan 100 years to reach Scandinavian standards of women’s participation in making the laws of the land – unless there is some acceleration in Japan.

    Japan’s most powerful Ministry, the Ministry of Finance, did not hire any women into career positions for a period of about 10 years!

    At the 2015 New Year event of Kyoto Bank, Keidanren Chairman Mr Sadayuki Sakakibara showed that Japan’s spending on aged people is dramatically higher than spending on children, and that this ratio is increasing with time, Japan spends more and more on aged people and less and less on children. There are two ways to look at this situation:

    • one way is to say: we have an aging society, therefore its only natural to spend more on

      the aged, and less for children
    • the opposite way to look at the same situation is to say: we are spending less and less for children, no wonder we have fewer and fewer children. If we did more for young people, maybe people will have more children….

    Actually most Japanese women I talk to want 2-3 children, but many cannot for financial reasons.

    By nature, women give birth to children, not men, so more women in decision making positions including Government and Parliament will bring children’s issues into decision making.

    As an example, child birth costs in Japan are not covered by health insurance, while they are everywhere in Europe. There are many other open and hidden costs of having children in Japan compared to Europe.

    We discussed some of these issues at the recent Ludwig Boltzmann Forum on women’s development and leadership, which I organized here in Tokyo https://www.boltzmann.com/2016/05/ludwig-boltzmann-forum-women-leadership-2016/

    What is holding women back in Japan?

    Gerhard Fasol:

    The most important factor are mindsets. The key to give more power to women in Japan is to change mindsets, to change the way of thinking.

    As an example, the Prefecture of Kanagawa in 2015 created the “woman act” committee, under the slogan “women, step by step, take more responsibility”, however this committee both in 2015 and also in 2016 consisted of 11 men – not one single woman leader – here with original photographs archived on the wayback-machine / internet archive

    https://web.archive.org/web/20160119091535/http://www.pref.kanagawa.jp/osirase/0050/womanact/#top


    Why not create a committee of 11 women leaders to lead efforts on gender equality in Kanagawa Prefecture? Why not promote women to leadership positions in Kanagawa Prefecture?

    Another factor holding women back are the very long working hours common in Japan. As an example, at a recent EU-Japan gender equality conference, the Danish polician Astrid Krag, who was Minister for Health and Prevention at the age of 29 – 32 years, and who has two children, explaned that in the Parliament of Denmark the decision was taken not to take any vote after 4pm, so that Members of Parliament can be back home by 5pm, collect children from daycare centers in time etc. So in the Parliament of Denmark it is guaranteed that Members of Parliament can leave at 4pm. In today’s Japan such action is unthinkable, age 29 – with young children – would be unbelievably young for a Government Minister in Japan. https://en.wikipedia.org/wiki/Astrid_Krag

    Late-night or overnight sessions at work, including Parliament, makes life incredibly difficult in Japan for parents with young children, doubtlessly contributing to the small number of women in top positions in Japan.

    Who are the role models?

    Gerhard Fasol:

    Despite these difficulties, there is a substantial number of very strong women in Japan, who have worked their way up into leadership positions.

    Examples are the Mayor of Yokohama, Ms Fumiko Hayashi, who succeeded in a very distinguished business career, and the Governor of Tokyo, Ms Yuriko Koike, who won the election on her own as an independent candidate, because she did not receive the backing of her party.

    Bill Emmott:

    That is great, as I have now interviewed Koike-san and plan to interview Hayashi-san during my next visit. Personally, as well as admiring women who have made it to the top in the tough political world I also admire and am interested in women succeeding as entrepreneurs and as executives in entrepreneurial companies. By starting and building their own companies, women can really create new realities, showing that new organisational cultures are possible in a Japanese context. Do you agree?

    Gerhard Fasol:

    Japan has quite a number of women entrepreneurs and business leaders, Ms Tomoko Namba, Founder of Japan’s Internet company DeNA come to mind,
    https://ja.wikipedia.org/wiki/南場智子
    as well as Ms Fujiyo Ishiguro, Founder and CEO of the NetYear Group:
    http://www.bloomberg.com/research/stocks/people/person.asp?personId=867078&privcapId=717286

    Science is also an interesting area. We have women leaders in Japanese medicine, I invited some for the Ludwig Boltzmann Forum on women’s development and leadership https://www.boltzmann.com/2016/05/ludwig-boltzmann-forum-women-leadership-2016/

    Kyushu University has one single full Professor of Medicine Professor Kiyoko Kato, she explains the situation of women in Japanese Obstetrics and Gynecology here https://www.boltzmann.com/2016/05/kiyoko-kato/
    while Professor Kyoko Nomura has built a center to support women medical doctors and women medical researchers at Teikyo University. She spoke about the situation facing women in medicine in Japan here: https://www.boltzmann.com/2016/02/kyoko-nomura-2/

    Towards the future

    Gerhard Fasol:

    The tantalizing issue is that the key is to change mindsets, and thats at the same time superficially easy, but at the same time incredibly hard. Thus outstanding strong Japanese women – and there are many of them – have a choice either to work their way up to the top in Japan, start their own company in Japan, or on the other hand to move to Europe, elsewhere in Asia, or to the USA – I know several strong Japanese women, including several Japanese medical doctors, who have moved to Europe or USA. They might of course come back to Japan at a later stage bringing global views and experiences to leadership positions in Japan in the future. I am very optimistic for the future of Japan – sometimes I wish things were moving faster.

    Bill Emmott:

    I agree entirely. I see Japanese women as both victims of the slow speed of change and as solutions to it. They really could make the Japan of 2030 look quite different, in all sorts of ways. It will be fascinating to watch.

    Bill Emmott and Gerhard Fasol met at the restaurant MusMus in Tokyo

    left to right: Gerhard Fasol, Ms Atsuko Konta (Manager of the restaurant MusMus), Bill Emmott
    left to right: Gerhard Fasol, Ms Atsuko Konta (Manager of the restaurant MusMus), Bill Emmott at the restaurant MusMus in Tokyo.

    Copyright (c) 2017 by Bill Emmott and Gerhard Fasol. All Rights Reserved.

  • 9th Ludwig Boltzmann Forum Tokyo 2017

    9th Ludwig Boltzmann Forum Tokyo 2017

    Energy. Entropy. Leadership.

    9th Ludwig Boltzmann Forum, 16 February 2017, at the Embassy of Austria in Tokyo

    Gerhard Fasol, Chair

    9th Ludwig Boltzmann Forum Tokyo 2017
    9th Ludwig Boltzmann Forum Tokyo 2017

    Program

  • Corporate governance reforms in Japan – talk given at the Embassy of Sweden in Tokyo on 6 October 2016

    Corporate governance reforms in Japan – talk given at the Embassy of Sweden in Tokyo on 6 October 2016

    Corporate governance reforms in Japan

    Changing the way Japanese corporations are managed: Can it make Japanese iconic corporations great again?

    A talk by Gerhard Fasol at the Embassy of Sweden organized by the Embassy of Sweden, The Swedish Chamber of Commerce in Japan (SCCJ), and the Stockholm School of Economics

    Abstract: Changing the way Japanese corporations are managed

    The Executive Management Board and the Supervisory Board are normally independent and composed of different people – except in Japan. In Japan traditionally Executive Management Board and the Supervisory Board are one and the same, ie the Executives of traditional Japanese companies supervise themselves – no surprise that the CEO seldom fires himself!

    It is obvious that such self-supervision has big disadvantages, and may be one of the major reasons for Japan’s weak economic growth, and several recent corporate scandals. Companies in basically all other countries are managed by an Executive Management Board, which is supervised by a Supervisory Board, which approves or vetoes all major decisions of the company, and evaluates the performance of the Executive Manager, including the Chief Executive/CEO, and if necessary fires executives including the CEO, and selects and approves the new CEO.

    To remedy this problem with the governance of Japanese corporations, Japan’s Government, the Tokyo Stock Exchange, and the Financial Services Agency have been changing the rules to improve the supervision of Japanese companies.

    Speaker profile

    Dr. Gerhard Fasol is one of a microscopic number of foreigners who is an independent Director on the Management and Supervisory Board, and also a Member of the Audit Board of a stock market listed Japanese corporation, and he will talk from several years of first-hand experience of how Japanese companies are supervised, which changes are on the way, and which further improvements are necessary to improve the management and supervision of Japanese corporations.

    Date: Thursday October 6th, 2016, 18:30

    Place: Alfred Nobel Auditorium, Embassy of Sweden, 10-3-400 Roppongi 1-chome, Minato-ku, Tokyo 106-0032

    Details and registration

    Further details here.

    To register please contact the Swedish Chamber of Commerce in Japan.

    Gerhard Fasol "Corporate governance reforms in Japan" Embassy of Sweden on 6 October 2016
    Gerhard Fasol “Corporate governance reforms in Japan” Embassy of Sweden on 6 October 2016
    Gerhard Fasol "Corporate governance reforms in Japan" Embassy of Sweden on 6 October 2016
    Gerhard Fasol “Corporate governance reforms in Japan” Embassy of Sweden on 6 October 2016
    Gerhard Fasol "Corporate governance reforms in Japan" Embassy of Sweden on 6 October 2016
    Gerhard Fasol “Corporate governance reforms in Japan” Embassy of Sweden on 6 October 2016
    Gerhard Fasol "Corporate governance reforms in Japan" Embassy of Sweden on 6 October 2016
    Gerhard Fasol “Corporate governance reforms in Japan” Embassy of Sweden on 6 October 2016
    Gerhard Fasol "Corporate governance reforms in Japan" Embassy of Sweden on 6 October 2016
    Gerhard Fasol “Corporate governance reforms in Japan” Embassy of Sweden on 6 October 2016

    Copyright 2016 Eurotechnology Japan KK All Rights Reserved

  • Japan’s globalization paradox: is Japan global? or struggling to globalize?

    Japan’s globalization paradox: is Japan global? or struggling to globalize?

    Japan’s globalization puzzle: intriguing questions by one of my great European friends, a great European banking sector leader

    How do you explain Japan’s lack of internationalization with so many big Japanese holdings managing successfully businesses abroad (e.g. Toyota, Toshiba, Mitsubishi, etc.)

    Japan’s globalization paradox – a closer look

    Its not so simple: Japan is a huge country, third globally, and there are 3500 Japanese companies listed on the Stock Exchanges – they are all different. Some Japanese companies are very excellent and successful and global leaders or even No. 1 in their fields – e.g. you mention Toyota and there are many more.

    On the other hand, Japan is the only major country who’s economy has not grown for 20 years, and for example, Japan’s electronics sector dominated the world 20 years ago, but since then there is no growth and essentially no profits, see: http://www.eurotechnology.com/2015/06/18/japanese-electronics/

    There are two main factors limiting Japan’s growth

    • decreasing and aging population. few babies and no immigration.
    • structural reasons (slow growth by traditional established corporations, and too few new high-growth industries), corporate governance issues, addressed by Prime-Minister Abe’s “third arrow”, however most people agree that Prime Minister Abe’s “third arrow” reforms have been more words than action. Maybe the most or only successful “third arrow” reform are Japan’s corporate governance reforms

    I’ll give a talk on 6 October 2016 for the Swedish Chamber of Commerce in Japan, Stockholm School of Economics, at the Swedish Embassy in Tokyo:
    “Changing the way Japanese corporations are managed”

    Exhibit – Toshiba and its scandal

    You mention Toshiba – Toshiba is a famous global brand in many sectors, and Toshiba has developed many important technologies in many areas from medical technology (Toshiba’s medical sector has been sold to Canon as a result of Toshiba’s accounting scandal), semiconductors (especially flash memory), but Toshiba’s profits/income averaged over 20 years is close to zero, ant Toshiba did not grow for 20 years, and went through a series of accounting scandals etc. Now as a consequence of these scandals, Toshiba has to sell off several important growth divisions, e.g. their very valuable medical technology sector to Canon. Read comments on Toshiba here:
    http://www.eurotechnology.com/2015/07/21/toshiba-income-restatement/
    or read in Wall Street Journal about Toshiba here 2 days ago
    http://www.wsj.com/articles/toshibas-turnaround-needs-more-work-1471007429

    Toshiba’s accounting issues are the result of a combination of mainly two factors:

    • 20 years no growth and essentially no profits, compounded by financial problems in the nuclear industry segment as a consequence of the Fukushima Dai-Ichi nuclear disaster (Toshiba had acquired the nuclear manufacturer Westinghouse, and thus is a major nuclear industry manufacturer and contractor)
    • corporate governance

    Companies such as Toshiba, benefit from their globally famous brand, therefore I am quite optimistic that Toshiba and other Japanese companies in similar situations can recover, if the correct management decisions are taken, and if corporate governance is improved – and this is exactly the reason why the current Japanese government sees corporate governance reforms in Japan as a major priority.

    There is no doubt in my mind, that if corporate governance, management and other factors are improved, companies like Toshiba can be transformed into iconic companies, but these will be different companies than today.

    As an example, both SONY and HITACHI are quite successful in their revival efforts.

    Japan’s electronic sector

    Japan’s whole electrical sector is in huge trouble – again caused largely by corporate governance – read: http://www.eurotechnology.com/2015/06/18/japanese-electronics/

    Here are some of my interviews on CNBC, BBC etc about these issues, e.g. http://www.bbc.com/news/business-20335272
    and
    http://www.bbc.co.uk/search?q=gerhard+fasol
    http://www.bbc.com/news/world-asia-21992700

    Mitsubishi – there is no Mitsubishi Holding Company, but 1000s of companies with Mitsubishi in their name…

    As another example you mention is Mitsubishi. There is no single company with the name “Mitsubishi” in Japan. There are 1000s of companies with Mitsubishi in their name, and most are loosely grouped into the Mitsubishi Group – which is not a legal entity, and at their core is Mitsubishi Trading Company, and Tokyo Mitsubishi UFJ Bank etc. In some cases there are cross-shareholdings within the Mitsubishi Group, but these have been reduced much over the recent years. There is no “Mitsubishi Holding Company”. Most companies with Mitsubishi in their name are independent companies, many independently on the stock exchange.

    Together the Mitsubishi ‘Group’ is a big part of Japan’s economy – maybe 10-15%, but the ‘Mitsubishi Group’ is not a corporate group in the Western sense. Some of these companies are very successful and very strong – some are very good, but some have difficulties – which can also be overcome. An example is Mitsubishi Motors, an automobile maker, which was acquired around 2001 and then divested again in 2004-2005 by Daimler (then Daimler-Chrysler), and is currently being reformed by Nissan under the guidance of Nissan/Renault CEO Carlos Ghosn.

    Read this analysis in Wall Street Journal a few days ago – this is exactly what I will talk about in my talk at the Swedish Embassy
    http://www.wsj.com/articles/mitsubishi-motors-probe-finds-weak-governance-at-root-of-scandal-1470141587

    The whole picture is quite detailed and differentiated.

    “Toyota, Mitsubishi, Toshiba are great companies” … Yes and no. The devil is in the detail. More reading here:

    e.g. my talk at the American Chamber of Commerce in Japan: Japan’s Galapagos Effect

    My interviews on CNBC, BBC etc about these issues, e.g.:
    http://www.bbc.com/news/business-20335272

    Read also Masamoto Yashiro talk “Japanese management – why is it not global? asks Masamoto Yashiro at a Tokyo University brainstorming”

    (Masamoto Yashiro is my great friend and a legend in Japan’s banking and energy industry. He built Shinsei Bank from the ashes of the bankrupt Long Term Credit Bank of Japan, and served in leadership positions (Chairman, CEO, Board Member) in Esso, Exxon, Citibank, Shinsei Bank, and the China Construction Bank)

    Masamoto Yashiro also regularly attends the Ludwig Boltzmann Forum which I am developing into a global leadership platform, which I am organizing, you can see him in the photos here:
    8th Ludwig Boltzmann Forum 2016
    and here
    7th Ludwig Boltzmann Forum Tokyo 2015

    Japan’s economy overall and Abenomics

    My friend Takeo Hoshi, Professor of Finance at Stanford Graduate School of Business: “Abenomics success probability is 12%, 88% probability of failure”

    Download Gerhard Fasol’s Stanford University lecture “New opportunities vs old mistakes – foreign companies in Japan’s high-tech markets”

    Copyright (c) 2016-2019 Eurotechnology Japan KK All Rights Reserved

  • Ludwig Boltzmann Forum on Women’s development and leadership 2016

    Ludwig Boltzmann Forum on Women’s development and leadership 2016

    Women’s development and leadership

    Tokyo, Monday 16 May 2016, 9:00-11:00am

    Gerhard Fasol, Chair

    Program

    Ludwig Boltzmann Forum on Women’s development and leadership 2016
    Ludwig Boltzmann Forum on Women’s development and leadership 2016
  • Corporate governance in Japan – views of an Independent Board Director of a listed Japanese Company

    Corporate governance in Japan – views of an Independent Board Director of a listed Japanese Company

    Prime Minister Abe urges reform of corporate governance

    Slow but steady change…

    Reuters reports that Japan’s Prime Minister Abe urges company boards to reform corporate governance to include independent directors. I added the following comment.

    Corporate governance in Japan: exercise of shareholder power and emergency situations

    The question of independent Board Directors is often framed in terms of exercising shareholder power over the company, as is the main message of the article above. Another focus of discussions on the role of outside independent directors, is during emergencies, and here the Olympus case is often cited.

    Corporate governance Japan: steady state contributions of independent directors

    However, in my experience in Japan, including my work as a non-Japanese independent Board Director of a public Japanese company, enlightened companies will welcome independent Board Directors for their know-how and contributions to the company – in the end the market decides.

    Docomo vs SoftBank

    As an example, lets compare NTT-Docomo and SoftBank. NTT-Docomo has a homogeneous pure Japanese Board, while SoftBank has independent Directors from many different countries and from many different walks of life. SoftBank recently overtook NTT-Docomo in terms of market cap, revenues, operating income and net income.

    In the end regulations have limitations, regulations influence behavior of course, but regulations do not produce business results or grow new business (with the exception of the compliance industry), and the realities of the market decide, as is the case of SoftBank.

    SoftBank and SPRINT

    As another example, SoftBank appointed Marcelo Claure, CEO of Brightstar Corporation and of Bolivian origin, to the Board. Masayoshi Son announced the appointment with the following words: “Marcelo’s experience as an entrepreneur and businessman who created and successfully grew a global telecommunications company will bring an invaluable perspective to Sprint’s board.” Note that Masayoshi Son clearly states that Marcelo Claure is appointed to bring invaluable know-how and experience to SPRINT, Masayoshi Son does not seem to be motivated by “increasing the power of the shareholders over Sprint”.

    The “power of shareholders” is usually a matter of last resort, when all other methods fail.

    Usually, when you have to show your power, its too late.

    Copyright (c) 2014 Eurotechnology Japan KK All Rights Reserved

  • Japan’s electronics conglomerates: Whats the difference between Apple/IBM vs Sony/Panasonic/NEC?

    Japan’s electronics conglomerates: Whats the difference between Apple/IBM vs Sony/Panasonic/NEC?

    Why are Apple/IBM/Microsoft/Google so very different compared to SONY/Panasonic/NEC

    Need for corporate governance reforms in Japan

    Japan's electronics conglomerates: Whats the difference between Apple/IBM vs Sony/Panasonic/NEC?
    Japan’s electronics conglomerates: Whats the difference between Apple/IBM vs Sony/Panasonic/NEC?

    My friend’s question: Why are Apple/IBM/Microsoft/Google so very different compared to SONY/Panasonic/NEC

    Gerhard Fasol’s answer: Profit and growth. Apple and IBM grow and are highly profitable. Sony, Panosonic and NEC have no growth and no profit for 15 years – read here:
    http://www.eurotechnology.com/2013/05/20/japans-big-8-electronics-giants-fy2012-results-announced/
    for more detailed analysis, read our Report on Japan’s electronics sector

    My friend’s question: Gerhard, we know about the difference in profitability and growth. The question is, what made such a difference in profitability and growth

    Gerhard Fasol’s answer: there are many down-stream issues, e.g. acquisition of cloud startups, execution etc. Much of this is summarized in an excellent talk by Masamoto Yashiro, which I have written up here: http://www.fasol.com/2013/10/19/masamoto-yashiro/

    There are:

    1. superficial reasons, like YEN-rate, interest rate, global recession etc
    2. execution and management issues, the kind of stuff you learn at Business Schools
    3. the big underlying issues

    the big underlying issues are brains (=hardware) and education (=operating system and software for those brains).

    There are many fantastic Japanese companies. In a free market, its no surprise that companies are born and others die. Its called Schumpeter’s creative destruction. In a way its more surprising that companies can survive so long with a long-dead business model.

    Have you heard about the German company AEG? AEG built the electricity system for Tokyo a long time ago – thats why Tokyo has 50Hz and Osaka has 60Hz. AEG disappeared about 30-40 years ago. There are still some companies today licensing the AEG brand, which is still famous, however, the traditional AEG company disappeared with bankruptcy in 1980. You can read about this here: http://www.csmonitor.com/1982/0812/081250.html

    it says:
    “Plagued by bad management throughout the 1970s, West Germany’s 10th largest employer overextended itself and became involved in too many loss-making enterprises. It invested heavily in the wrong kind of nuclear technology and its domestic appliances business fell prey to growing competition in a stagnant market.
    In the last four years, it posted operating losses of 4 billion marks ($1.6 billion) and despite massive injections of credit from the banks in 1979 and again last year, it did not recover. Mr. Duerr partly blames the worldwide recession and high interest rates for the failure.”

    Sounds familiar? thats AEG in 1980.

    Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved

  • Foreign companies in Japan’s high-tech markets: new opportunities versus old mistakes (Lecture at Stanford University)

    Foreign companies in Japan’s high-tech markets: new opportunities versus old mistakes (Lecture at Stanford University)

    Success stories vs failure. Why some foreign companies succeed in Japan’s high tech sector, and why others fail.

    Stanford University Japan Technology Center lecture by Gerhard Fasol, given in 1999 – most still applies today!

    New opportunities vs old mistakes – foreign companies in Japan’s high-tech markets
    Stanford University lecture, given on October 28th, 1999 – most still applies to day as in 1999

    This lecture was given on October 28th, 1999 to an audience of Stanford University faculty, students, post-docs and alumni working in Silicon Valley firms. Although this lecture is now some time ago, much of what was said still is true today. As an example, our recognition of the interplay of “old Japan” vs “new Japan” is still extremely relevant today, with old traditional corporations coexisting with new venture start-ups, some of which, like SoftBank and Rakuten have grown to very large size even on a global scale.

    Stanford University Japan Technology Center lecture: outline

    (note that some statistical data have changed since this lecture was given, the main change is the growth of China, for example today Japan is not the second, but the third largest economy after China).

    • Why is Japan important?
      • Japan is the world’s second largest market
      • 60%-70% of Asia’s economy is in Japan
      • 10%-20% of the world’s internet/telecom/e-commerce markets are in Japan
      • Some important recent high-tech breakthroughs come from Japan, e.g. blue LED and lasers, mobile internet, high-speed train system, mobile payments and e-money
      • For US corporations Japan is in general the most important/largest foreign market & competitor & partner, eg Apple, Amazon.com, Starbucks…
    • “Old Japan” versus “New Japan”
      • The “old official Japan” may fade into irrelevance, large sections (60%) of Japanese society were excluded from equal access to the “old Japan”, e.g. women, Korean residents, foreign nationals, “half”-people….
      • A “new Japan” is emerging: e.g. Nichia, SoftBank, Don Quichote, etc
      • Education is a major problem
      • Foreign corporations should tune into the “new Japan” new
    • Opportunities which never existed before
      • Foreign corporations for the first time ever can hire top Japanese performers
      • For the first time ever foreign corporations can acquire Japanese corporations on a meaningful scale
    • Some typical mistakes of foreign companies in Japan
      • Manage Asia from Singapore or Hong-Kong (thats like managing All-Europe operations from Tel-Aviv or Reykjavik)
      • Hire the wrong people (wrong Japan-CEO, wrong peronnel, e.g. too much emphasis on English vs true performance or technical excellence)
      • Partnerships or joint ventures with wrong partners or wrong expectations
      • Enter Japan, build R&D labs etc without first planning strategy and aims
      • Forget to do the homework (there is Gigabytes of information you better learn about Japan before you start, training on the job increases risks)
      • Be too fascinated by cherry blossoms & be too optimistic or too pessimistic about Japan
      • Taking things for granted in Japan, which are not:
        • brand recognition
        • Japanese consumer & customer habits and needs
        • Assume global corporations have the same depth as you are used to elsewhere in the world

    Copyright (c) 1999-2019 Eurotechnology Japan KK All Rights Reserved