Pest Analysis Marketing free essay sample

The Emperor has little power since the decision making process is adopted by the Prime Minister (Yoshihiko Noda) and his elected National Diet (CIA World Factbook-Japan, 20011). The Prime Minister is elected by the Emperor for the term of 4 years (MIEPA, 2009). However, due to the large amount of political turbulence, it is common to have an incomplete term. Yoshihiko Noda, became Japan’s sixth premier in five years in early  September of this year. (The Irish Times 2011). This turbulence indicates that there is political instability that is unfavourable from an investing perspective. In fact, in 2009, there was a change in the leading governmental party. After 54 years of ruling, the Social Liberal Democratic Party has lost their power to the Conservative Democratic Party (MIEPA, 2009). This indicates that there will be profound changes in the conduct of Japanese politics. Since these changes are recent and currently unpredictable, Tayto should be wary of political instability if entering the market. We will write a custom essay sample on Pest Analysis Marketing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page According to the Corruption Perceptions Index in 2010, Japan is tied with the USA at 18th in the world. There has been a Political Funds Control Law implemented in order to decrease corruption. This intervention displays the efforts of the government to decrease corruption which makes it more favourable for Tayto from an investment perspective. Legal System The Japanese legal system is largely based on the Civil Law of Europe with English-American influence (MIEPA, 2009). Their law is based on a collection called the ‘Six Codes’ (MIEPA, 2009). †¢ Their constitution encompasses equality and democracy which is similar to that of Irelands and thus is somewhat familiar to Tayto. Japan also has many labour laws in place similar to those in Ireland that make the country a favourable place for investment in terms of being ethical (MIEPA, 2009). Economic Analysis Since World War II Japan has become the third largest economy in the world with a GDP of over $4. 3 trillion US. Mainly due to Government-Industry co-operation, mastery of high technology, strong work ethic and only spending 1% of their GDP on defence this allowed money to be spent elsewhere. These factors contributed to the growth that Japan experienced between 1960 and 1990 (MIEPA,2009). Tayto must acknowledge this and ensure that our product enhances its good name by respecting the environment. In order for Tayto to be successful, it is imperative to understand that Japan is a high-context culture. They place huge value on building a relationship before entering into negotiations and as a result they take a lot longer to make decisions. Tayto must comply with the formal greetings (handshakes and bows), business card formality as well as the conservative dress. It is also important to remain patient throughout the negotiations and avoid frustration/conflict.