controls - Japan, Sweden & a new IJV (International Joint Venture) [1 of 2]

            Abstract
   The presumed author of this document is a Japanese native representing his/her company. The document is a white paper addressing controls, monitoring and other structural concerns with an eye toward the creation of a new international (MNC) joint venture (IJV) in Sweden.

            Defining Terms
Defining the Players
   Any well-meaning designer of systems may forge forward from an abstract perspective, creating something wonderful and elegant that makes perfect sense, only to find that it does not work. One of the classic reasons for such a result is overlooking an aspect or all of a larger context. So let us take a quick review of actually whom we are dealing with.
   From a purely statistical perspective, both countries are relatively of similar size. The size of the country of Japan, compared to the world, ranked in at 61; and Sweden ranks at 55. However, in contrast, Japan ranks as 10th on population, while Sweden ranks 88th. So while both countries share similar landmasses, Japan is significantly more crowded (CIA - World Factbook, updated bi-weekly [retrieved Oct. 21, 2010]). This relative difference on crowding may be among the most significant of differences.
   Other outside looking in perspectives would also acknowledge that both countries share similar terrain and a significant relationship with water (with nearly half of Sweden's border facing the Baltic Sea, Japan, being an island nation). Both countries have also had historic adversarial relations with significantly larger nearby neighbors (Sweden and Russia, Japan and China) (the David M Kennedy Center for International Studies, 1997). Both countries appear relatively happy: Sweden, ranking second in the world, with 91% reportedly happy, Japan, ranking 19th, with 72% reportedly happy (the possibility remains that the crowding may account for some of the difference here) (Nation Master, 2010).

   The immediately preceding paragraphs, express, an acknowledgment of the relatively equitable context thus far. However, we are nonetheless comparing unique European and Asian cultures, and all that that implies. While the peoples of each country share a heightened seriousness and literacy, (this is also expressed with each country having fairly developed law), basic postures in relationship to the world are at times very different. A quick look at basic information from Hofstede reveals a most striking difference in the area of masculinity. Hofstede’s other measures are all significantly different as well (though nothing as extreme as the masculinity index) (Hofstede, 2009). When one factors in considerations as unique as “face”, what we ostensibly find is a minimal difference in the areas of the obvious, yet substantial differences when it comes to subtle nuance.
   For an expanded expression of how such subtleties play out the reader is referred to sites such as Executive Planet and Kwintessential (“Executive Planet“, 2010)(Kwintessential Ltd, 2010).

            Scope
Size and/or Nature of the enterprise
   The implication that our fictitious Japanese author is dealing with a multinational corporation finds a natural presumption of a business entity of some consequential size. Follow on implications would include this white paper, most likely, addressing lower upper management to middle management as the target audience.
   The nature of the product and/or service itself may have an impact on management structure, controls, etc.; yet, this would generally not be the case. This would be similar for important industry trends, and projected sales and profits (usually an initial three years).
   Conversations having to do with type of advertising / promotion make most sense to remain in the hands of professional counterparts in the country of audience; presumably, this would be Sweden.

            Environment
Trade established, barriers, etc.
   The MNC (multinational corporation) Sony Ericsson embodies an iconic real-life example of exactly that which we are speaking (Sony Ericsson Mobile Communications AB., 2010). Earlier in this decade, the Japanese company Sony, in a bid to leverage both market share and branding, teamed with the Swedish telephony company, Ericsson. Less than a decade later, it now hovers around a respectable fourth place ranking in the cellular market.
   As mentioned in the preceding passage considerations such as product and/or service likely make minimal inherent difference to the corporate structure. In addition, with each country having developed law, there is that structure to lean on. When speaking of such a significantly sized MNC, it is imagined that addressing questions of trade and barriers is an expertise that is already established (whether accessible internally or externally).
   While much of this may seem moot, it is nonetheless necessary to review all these moving pieces. Other considerations within this review would necessarily include demographic changes, legislative actions, technological changes and economic trends (see respective Census of the Populations, respective Economic Census, and various Business Conditions Digests.)

Other Environment
   Review that is more specific would include whether large or small firms dominate the industry, the failure rate of the industry, whether this industry is new or one that is well established. Further, weighing the typical profitability in the industry, the positive and negative trends occurring in the industry and the like are all significantly important. Standard locations for this information would include the RMA’s Annual Statement Studies, Dun and Bradstreet's Key Business Ratios, The Encyclopedia of Associations, and the U.S. Industrial Outlook (RMA (The Risk Management Association), 2010)(Dun and Bradstreet, n.d.)(The Encyclopedia of Associations, 2010)(US Census on allcountries.org, 2000).
   There is more to consider, of course. If this were an actual business plan type white paper, instead of this white paper sketch, weighing new versus existing businesses, information about the community where the business will be located, increasing or decreasing population, economic conditions of the community and how might the community feel about the business would come into play. For our broad-brush stroke consideration, it is enough to note these additional details.