Panasonic and Japan’s Changing Culture
In this case study, or analysis of Panasonic, we see a company founded in the rich traditions of Japanese Culture. Panasonic was also torn between two worlds; doing business according to old traditions, or transforming its approach to commerce in the present-day Global business world. A cultural change in its business practices would in addition mean a change in the way Panasonic views its commitment to employees. That said, it means Japan is moving towards more individualism than collectivism, especially after the world-wide economic recession began in 2009, forcing Panasonic into yet another survival mode. Furthermore, this presents a good opportunity for Japan to conform to the Global business world, and be more competitive. Then, while the company may lose loyal employees in the process, their new approach will open up endless possibilities to hire people with wide-ranging experience. Finally, with modernization, come fresh brand new approaches to the way of doing business, and the flow of new ideas.
1. What were the triggers of cultural change in Japan during the 1990s? How is cultural change starting to affect traditional values in Japan?
In the case of Panasonic, we see that even Japanese culture can change. When the economic recession began in the 1990s, cultural change in Japan was triggered, leaving companies like Panasonic little choice but to change or go out of business. Whereas, Japanese companies, including Panasonic, instituted a “Cradle to Grave” work option, found their Company was no longer sustainable under those conditions. It was during the 1950s -1980s, that Panasonic could benefit from traditional Japanese culture, because the business could hold onto workers through a period of extreme growth, consequently preserving a knowledgeable workforce. That all changed, when the generation born after 1964 lacked the same dedication to traditional Japanese Culture as their parents. This newer...