INTERNATIONAL RELATIONS

AND STRATEGY

COMPARATIVE ANALYSIS:

JAPAN AND AUSTRALIA

Shivam MallSCMS,Pune

Two Islands, One Nation

Focus

Important Facts

PEST analysis

Hofsted’s dimensions

SWOT analysis

Current News

Conclusion

THE TEMPLE OF THE GOLDEN PAVILION

MELBOURNE CRICKET GROUND

IMPORTANT FACTS

Topics Japan Australia

Continent Asia Australia

Location Small island chains Smallest continent

Primary Language Japanese English

Currency Yen Australian Dollar

Capital City Tokyo Canberra

Largest City Tokyo Sydney

GDP $4.7 Trillion $ 998 Billion

Growth Rate 2% 2.5%

Exchange rate Yen per (₹0.53) AUD per (₹52.96)

PEST ANALYSIS

POLITICAL OVERVIEW

POLITICAL FACTORS

Title Japan Australia

Country Name Japan Common wealth of Australia

Government Type Parliamentary

Government with a

constitutional monarchy

Federal parliamentary

democracy with a

constitutional realm

Capital Tokyo Canberra

Administrative

divisions

47 States 6 states and 2 territories

Independence 3rd May 1947 1st January 1901

Chief Executive Akihito Quentin Alice Louis Bryce

Second Chief Exec Shinzo Abe Tony Abbott

Next Elections December 2014 January 2017

Legislature size 722 members 150 members

National Holiday B’day of Emperor:

Akihito (23rd dec)

1st January

ECONOMY OVERVIEW

ECONOMIC OVERVIEW

Title Japan Australia

Currency Yen (₹0.53) Australian Dollar (₹52.96)

GDP $4.7 Trillion $998 Billion

GDP by sector Agriculture: 1.1%

Industry: 25.6%

Services: 73.2%

Agriculture: 3.2%

Industry:27.4%

Services:68.5%

Inflation Rate 0% 3%

Labor Force 65.68 Million 12.15 Million

Unemployment Rate 4.6% 5.7%

Agricultural Products Rice, vegetables, pork,

fish, dairy products, fruits

Wheat, barley, sugarcane,

cattle, sheep, poultry

Fiscal year 1st April- 30th march 1st July-30th June

GDP

FOREIGN TRADE AND RELATIONS

Title Japan Australia

Exports $697 Billion $250 Billion

Exports commodities Motor vehicles, semi

conductor, iron and

steel, auto parts,

plastic materials,

power generation

machinery

Coal, iron ore, gold,

wheat, alumina, meat,

machinery and

transport equipment

Export Partners China-18.5%

US-17%

S.Korea-7%

Thailand-5%

Hong Kong-5%

China-29%

Japan-19.3%

S.Korea-8%

India-4.9%

FOREIGN TRADE AND RELATIONS

Title Japan Australia

Imports $766 Billion $245.8 Billion

Import Commodities petroleum 15.5%; liquid

natural gas 5.7%; clothing

3.9%; semiconductors

3.5%; coal 3.5%; audio

and visual apparatus

2.7%

machinery and transport

equipment, computers

and office machines,

telecommunication

equipment and parts;

crude oil and petroleum

products

Import partners China 21.3%, US 8.8%,

Australia 6.4%, Saudi

Arabia 6.2%, UAE 5%,

South Korea 4.6%, Qatar

4%

China 18.4%, US 11.7%,

Japan 7.9%, Singapore

6%, Germany 4.6%,

Thailand 4.2%, South

Korea 4.1%

Current Account

Balance

$69 Billion $5 Billion

SOCIO-CULTURAL OVERVIEW

SOCIO-CULTURAL FACTORS

Title Japan Australia

Population 127 Million 22 Million

Density 337 per sq km 2 per sq km

Median Age 45.8 38.1

Average sex ration 0.9 males per female 1.01 males per females

Labor force 65 million 12 million

Birth rate 8 per 1000 people 12.3 per 1000

Population below

poverty line

16% 19%

Literacy rate 99% 99%

Life expectancy 84 years 81 years

CULTURAL DIVERSITY EXPLAINED BY

HOFESTEDE'S DIMENSIONS

1.Individualism versus collectivism. Japan scores high on

collectivism where Australia is among the most

individualistic cultures. For Japanese culture, this

means there is a partiality towards the common good. In

contrast, Australians expect to choose their own

affiliations and pursue their own goals.

2.Large versus small power distance. Power distance

refers to the extent to which a society accepts a

hierarchical order and how power within an

organisation is distributed. Japanese culture accepts a

large power distance where in Australia it is relatively

low.

CONTINUED…

3.Strong versus weak uncertainty avoidance. Japanese

culture ranks amongst the highest in this category. The

Japanese maintain rigid codes of belief and tend to

remain longer with their present employer. Conversely,

Australians maintain a more relaxed atmosphere in

both their professional and personal lives.

4. Masculinity versus femininity. Japan is considered by

Hofstede to be the most masculine culture. Masculinity

refers to a preference for 'achievement, heroism,

assertiveness and material success'. On the other hand,

Australia is considered to be more feminine with a

preference for relationships, modesty and quality of

life.

TECHNOLOGICAL OVERVIEW

SWOT ANALYSIS

STRENGTHS OF JAPAN

• Japanese society (Zen): selflessness, continuous

improvement - the Japanese always strive for

perfection and they try to show improvement in

the areas where they are lacking.

• Technology - Japan is the technology capital of

the world. They have all the new innovations

before anyone else does. Now they just need to

figure out how to properly market these ideas

and distribute them globally.

• Economy - right now the economy in Japan is

very strong and the Japanese need to use this to

their advantage.

WEAKNESS OF JAPAN

• Non-verbal communication practices - in the Japanese culture

non-verbal communication is practiced on a regular basis.

When companies start trying to negotiate and practice business

in other countries and other cultures, communication tends to

be misinterpreted.

• Quickness - the Japanese culture tends to be relaxed and based

on relationship building. Other cultures are very quick with

everything including communication. Many companies fear

doing business with Japanese companies because sometimes it

creates more work than is necessary with other countries and

cultures.

• Education - many Japanese go to other countries for extended

education. Many of these individuals tend to stay in the country

in which they study for different opportunities that Japan

cannot offer them.

OPPORTUNITIES OF JAPAN

• Environmental Issues (recycling, energy saving, etc.)

• World's Second Largest National Market

• Increase of Women in Business - the Japanese are

starting to see an increase in women in management

positions. This could create an opportunity for new

ideas and more creative ways for the businesses to be

organized.

• Foreign Influences becoming more welcome - with an

increase in education outside of the country, some

individuals return to Japan with new insights to their

own culture.

THREATS OF JAPAN

• Globalization - since Japan is an island they

tend to be far away from everyone else. This

has created problems with many corporations

trying to go global.

• Small proportion of foreign investment - the

Japanese feel they have great products within

the country and do not always support foreign

investment opportunities. This practice has

deterred some companies from trying to enter

the Japanese market or from trying to create

joint ventures with Japanese companies.

STRENGTHS OF AUSTRALIA

•Strong Economy with per capita GDP on par with the four

dominant West European economies.

•Strong emphasis on reforms, low inflation, a housing market

bloom, growing ties with china have led to its 16 years of

expansion.

•The budget has been in surplus since 2002 due to strong

revenue growth. •Major exporter of agricultural products,

minerals, metals, and fossil fuels. •Excellent domestic and

international telephone services.

•“The strength of Australia’s economy has been highlighted in

recent years by its ability to withstand a number of internal

and external events, including a major drought, a housing

boom and the Asian financial and economic crises.”(About

Australia)

WEAKNESS OF AUSTRALIA

•“Socially permissible systems for information

exchange, vertically and horizontally

(professional cross-sectoral committees are a

step in the right direction on the government

level).” (SWOT Analysis)

•Enforcement of environmental and economic laws

and regulations.

OPPORTUNITIES OF AUSTRALIA

•Australia has a business-friendly regulatory environment.

“According to the World Bank, Australia is the fastest place in

the world in which to start a business, with regulatory

procedures taking just two days”. (About Australia)

•Has the fewest restrictions on product markets of all of its 30

member countries, the lowest level of public ownership of

business and the least restrictive impact of business regulation

on economic behaviour

•“Australia recently partially deregulated the banking sector,

removing many interest rate limits and allowing the entry of 16

new foreign banks, five of which were U.S. banks. Chase

Manhattan and Citibank are moving rapidly into the retail

banking sector and beginning to provide competition for what

was a rather entrenched banking system.

THREATS OF AUSTRALIA

• Drought, robust import demand, and a strong

currency have pushed the trade deficit up in

recent years, while infrastructure bottlenecks

and a tight labour market are constraining

growth in export volumes and stoking inflation.

• Australia's budget has been in surplus since

2002 due to strong revenue growth.

RECENT NEWS

• In 2006, Australia and Japan celebrated the 30th

anniversary of the signing of the Basic Treaty

of Friendship and Cooperation between

Australia and Japan 1976 (Japan).

• Military technology deal.

• Whaling issues.

• Kyoto protocol.

QUOTING EX PRIME MINISTER HOWARD

'Australia has no greater friend in Asia than Japan'.

THANK YOU