Management of India and JAPAN

Rai Anod Kumar

anod.rai@gmail.com
 Japan History

Showa
period
(1926-
1989)
:Period of
Enlightened
Taisho prdpeace
Meiji Prd (1912-1926)
(1868-1912) Time of
Edo prd:
Started liberal
(1603-
Azuchi-momoyam1868 ) :Pre modernizatio movement
prd (1568-1600) modern Era, n and
Military become
Artistic
reunification & world power
Kamakura prd single political development
(1185-1333) : ruler status
Transistion to
Japanese
Nara prd Medieval era.
(710-794)
:Emergence
of strong
Japanese
state.
 Indian History
Since
1990 India
has
emerged
as one of
the
fastest-
1900 - 1925: 1990: growing
Rise of IndianEconomic economie
British Rule: liberalizatio
s
business
India's share n
1700: Mughal of the world conglomerate
Emperor s like Tata
income went
Aurangzeb's to 3.8% in and Godrej.
exchequer
600: GDP of exceeded £100 1952.
Mughal India in million
1600 was
estimated at
1st century about 22.6% the
to 11th world economy.
century, with
a 32.9% .
 Economic history of India and Japan
Particulars Japan
GDP (PPP) Ranking 3rd
GDP per capita -real GDP $38,599
(2008):
GDP by sector Agriculture: (1.6%)
industry: (25.3%) services:
(73.1%) (2006 est.)
Labor force 66.44 million (2006 est.)
Main industries Motor vehicles, industrial
and transportation
equipment, electronics,
chemicals, steel, machine
tools, processed foods,
nonferrous metals
INDIA
4th
$1016
Agriculture: 17.2%,
industry: 29.1%, services:
53.7% (2008 est.)
523.5 million (2008 est.)
Textiles, chemicals, food
processing, steel,
transportation equipment,
cement, mining,
petroleum, machinery,
software
 Economy Japan and India
30

25

20

15 Japan
India

10

0
GDP (PPP) (trillion) GDP growth Inflation Population below Unemployment
poverty line
 Japanese Societal Culture
Ringi
Enterprise System
base union Nemawashi

Seniority
based
system Ringi Seido

Lifetime
Employment Ringi Sho

Wa :
Collective
Mentality JSC Harmony
Understanding Japanese Management
Underlying Factors Management Practices
Commitment to sufficient time to manage.
Diligence in implementation of plan.
Discipline and order in work .
Long Run Sufficient time to implement concepts and system.
Planning
Development of integrated Organizational philosophy
Growth of implicit control system
Articulation of company philosophy
Investment in employee training and development
Commitment Socializing process in hiring and integration
to lifetime Reduced turnover and high loyalty
Employment
Non specialized career path
Development of internal labor market.
Emphasis on S’s : Staff, Skills, Style
Emphasis on team work and cooperation
Consensus decision making
Collective
Participative management
Responsibility
Trust and Interdependence
Quality Circles
 Indian Societal Culture
Hierarchical
Family system Individualism
business and collectivism
Attitude
Gender Status
distinctions Conscious

Spirituality Lack of
entrepreneurs
hip activity

Materialistic
ISC Corruption
Understanding Indian Culture
value growth
opportunitie
s
long-term
More
relationship tolerant
s

Leader –
Low cost Follower
champions system
Indian
culture

Superior-
Relationship
Subordinate
influence
Relationship

Never
Flexible
Say “No”
Company Analysis
Seven-Eleven Japan
Pantaloon India
 Economic History of 7-Eleven
• 1927:John Jefferson Green and Joe C. Thompson establish Southland Ice Company and the first known convenience store.
• 1928:Southland stores begin operating as 'Tote'm Stores.'
• 1933:Following the repeal of Prohibition, ice and beer sales surge.
• 1946:The stores are rebranded '7-Eleven' to emphasize their long operations hours--7 a.m. to 11 p.m.
• 1961:The Southland Corporation is incorporated;
• 1963:Company begins franchising.
• 1965:The Slurpee makes its debut in 7-Eleven stores, which now number 1,159.
• 1969:Company expands to the East Coast and into Canada; store count reaches 3,537.
• 1971:Sales reach $1 billion.
• 1973:Area license for Japan is granted to Ito-Yokado Co., Ltd.
• 1974:The 5,000th 7-Eleven opens at site of the company's original ice dock.
• 1983:Citgo Petroleum Corporation is acquired for $780 million.
• 1986:Company sells 50 percent interest in Citgo to the Venezuelan state-owned oil company.
• 1987:The Thompson brothers complete an LBO of Southland.
• 1988:Company completes series of divestitures to streamline operations and reduce debt.
• 1990:After defaulting on $1.8 billion in publicly traded debt, Southland files for bankruptcy.
• 1991:Company emerges from bankruptcy with debt restructured and with IYG Holding Company of Japan owning 70 percent
of its common stock.
• 1992:To focus on core 7-Eleven business, company exits from the distribution and food processing businesses.
• 1996:Most extensive store remodeling program in company history is completed.
• 1999:Company changes its name to 7-Eleven, Inc.
• 2000: 20,000th store opens (Tokyo)
• 2002: 7-Eleven achieves $10,000,000,000 in revenue
• 2008: Wine Enthusiast magazine award 7-Eleven stores’ proprietary Sonoma Crest line of wines a “Best Buy” rating.
 Economic History of Pantaloon
• 1987 : Company incorporated as Mans Wear Private Limited. Launch of Pantaloons trouser, India’s
first formal trouser brand.
• 1991 : Launch of BARE, the Indian jeans brand.
• 1992: Initial public offer (IPO) was made in the month of May.
• 1994 : The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the
nation. The company starts the distribution of branded garments through multi-brand retail outlets
across the nation.
• 1995: John Miller – Formal shirt brand launched.
• 1997: Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in
Kolkata.
• 2001: Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.
• 2002: Food Bazaar, the supermarket chain is launched.
• 2004: Central - India’s first seamless mall is launched in Bangalore.
• 2005: Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing
and Planet Retail.
• 2006: Forms joint ventures with US office stationery retailer, Staples.
• 2007: Future Group crosses $1 billion turnover mark.
• 2008: Future Capital Holdings becomes the second group company to make a successful Initial
Public Offering in the Indian capital markets.
• R – Recognition I CARE
• E – Excellent Execution
• I– Integrity I CARE
• C – Customer Focus
• A – Accountability
• Capacity: What you can do to lead. Three “Cs.”
• Commitment: What you want to do to lead.
• Character: What you will do to lead. 
Corporate Culture of 7-Eleven
• Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
• Adaptability: to be flexible and adaptable, to meet challenges.
• Openness: to be open and receptive to new ideas, knowledge and information.
• Valuing and Nurturing Relationships: to build long term relationships.
• Respect & Humility: to respect every individual and be humble in our conduct.
• Introspection: leading to purposeful thinking.
• Indianness: confidence in ourselves.
• Leadership: to be a leader, both in thought and business.
Corporate Culture of Pantaloon
 Conclusion
Impossible to implement 100% Japanese
management system to India but if Japanese
management style can be molded according to
Indian societal structure it can be implemented
up to some degree.
Discussion Time !!!