Compare and contrast business systems in Japan and China. Answer with Essay - 1

Compare and contrast business systems in Japan and China. Answer with reference to relevant theories and use comparative country - Essay Example As identified by Gordon Redding, who serves as a professor in the management department at the University of Hong Kong, the global arena can be categorized under five major cuisines and three of these cuisines which can act as a gateway to economic prosperity are Asian – namely Japanese, Chinese and Korean. By effectively integrating the cultural norms, values and traditions of the land of Asia which are characterized by the presence of collectivism rather than Western individualism, the aforementioned Asian nations have been able to develop a unique and admirable model that has enabled them to address the requirements of their cultural practices.The key element in this scenario however, is the finesse with which Japanese, Chinese and Korean business and management systems have been able comprehend the â€Å"hierarchy-sensitive and collectivist norms of Asian culture† to unite the organization as an energetic group. The Japanese economy emerged as a leading force on an international level as a consequence of events which occurred in the nation during the post-war period. The extensive expansion and growth which was experienced by the economy precisely took place from 1955 to 1990, thereby, permitting the living standards of Japanese citizens to coincide and eventually exceed those of their Western counterparts. An examination of the business systems in Japan can only be conducted effectively once the historical background of the development of state-business relations is assessed from multiple perspectives. In this regard, the implementation of state policies in Japan before World War II and after World War II must be highlighted and their association with the present scenario identified. Towards the departure of the 19th century, the process of industrialization was initiated in Japan amidst strong state intervention in the formulation of industrial policy which was characterized by the agenda of establishing a wealthy nation with unparalleled military strength. A fundamental feature of the economy during this time was that of high concentration with the focus of the government directed towards developing industries which could be termed as strategically significant to the state. In this case, the influence of the government in the entire process meant that industrialization was promoted for the purposes of fulfilling a particular political agenda rather than maximizing the well-being of citizens. While, the influence of the state on the economic affairs of the land remained constant in the period preceding World War II, the traditional forces of Japanese culture exercised similar power over business systems. Assessing the influence of such elements on the development of Japanese business and managerial practices, Chen outlines the role of large business groups that are termed as keiretsus who have been dominating the nation’s economy to the present day (4). A defi ning feature of keiretsus is their relationship with the zaibztsus which comprised of individuals belonging to the same family managing large-scale financial and industrial business