* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, September 04, 2011, Issue No. 628<br>
<br>+++ INDEX<br><br>- What's New -- McDonald's Food ATMs?<br>- News -- Hulu coming to Japan<br>- Candidate Roundup/Vacancies<br>- Upcoming Events<br>- Corrections/Feedback<br>- News Credits<br><br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br>
<a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br>
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<br>------------ PBXL is BUSINESS COMMUNICATIONS --------------<br><br><br>+++ WHAT'S NEW<br><br>Interesting article in the Nikkei this week about <br>McDonald's Japan considering changing its business model <br>somewhat so as to raise the efficiency and profitability of<br>
its workforce. In our minds, the issues confronting <br>McDonalds Japan are the same as for many other service firms <br>in the mature and now declining Japanese economy, and <br>their actions will be worth watching and learning from. <br>
<br>McDonald's Japan is a behemoth, with approximately 3,600 <br>restaurants generating JPY324bn in revenues and JPY24bn net<br>profit a year. The company says that compared to other <br>countries the Japan operation trails far behind in profitability and <br>
something has to be done about it. Basically Japan has a <br>profit margin of about 7% a year while Australia, for <br>example, enjoys margins of around 15% or more.<br><br>The Nikkei article says that this can mainly be put down to<br>
two things: the cost of labor and lower productivity of <br>Japanese staff. The article in particular seems to blame <br>both the part-time nature of staff and thus the need for <br>constant retraining and relearning of tasks (since about <br>
50% of its 150,000 part-timers turn over every year), and <br>also potentially the over-servicing of customers, when the <br>objective needs to be efficiency instead.<br><br>For sure, McDonalds has its work cut out. Not that many <br>
kids in today's pampered droves are interested in making a <br>career with a company where is it perceived that the pay is<br>low, the work is hard and often unpleasant, and the <br>opportunities limited. In addition, how do you beat out the<br>
culture of over-servicing a customer in favor of efficiency <br>when it is bred into most Japanese kids since they were <br>little?<br><br>[Continued below...]<br><br>-- NAGAMINE & MISHIMA - Securing Your Success in Japan ---<br>
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Our services help customers improve their operations and <br>bottom line results. <br><br>To find out more about our services and how we can help <br>your business in Japan succeed, please visit our website <br><a href="http://www.nagamine-mishima.com">www.nagamine-mishima.com</a> or reach us directly by telephone<br>
at 03-3581-1975 or by email at <a href="mailto:info@nagamine-mishima.com">info@nagamine-mishima.com</a>.<br><br>---------- YOUR BOTTOM LINE IS OUR TOP PRIORITY------------<br><br>[...Article continues]<br><br>In the manufacturing industry, versus services, one can <br>
simply decide to shutter a factory and start producing at a<br>low-cost destination off-shore. It may not be morally easy,<br>but more than 50% of Japanese manufacturers have already <br>taken this step or are about to do so. A services company <br>
on the other hand (perhaps McDonalds with its global supply<br>chain is a hybrid) is stuck with the staff it has, because <br>in most cases it is the presence of people at the customer <br>interface which makes it possible to do business -- and <br>
thus any further efficiency is necessarily focused on how <br>to get more output from those people for the same or lower <br>price. As a rule of thumb, in Japan, service businesses <br>count about 80% of their costs as the cost of people.<br>
<br>As far as we can see, the efficiency challenge for <br>McDonalds Japan can be boiled down to the following <br>solutions:<br>1. Use less people by making the production system more <br>efficient (IT, ergonomics, pre-preparation of materials, <br>
etc.)<br>2. Use less people by lowering service standards or by <br>having customers do some of the work themselves (think <br>airline kiosks replacing check-in counter staff).<br>3. Pay the people less (call upon staff to sacrifice for <br>
the company -- many Japanese firms are doing this).<br>4. Find people who are motivated to work as hard but accept<br>less pay, such as foreign workers.<br>5. Pay people with something other than cash (bring back <br>the post-war barter systems).<br>
6. Find a way to move people to a low-cost location and <br>still offer the same service as now (remote operations)<br><br>It seems that McDonalds Japan is going to try most of these<br>ideas for itself. For example, the company continues to <br>
invest hugely in IT and ergonomics, to ensure that kitchens<br>are fast, and that information is received at the right <br>place at the right time. Impressively, the company has <br>apparently spent about JPY30bn in the last 7 years to <br>
develop a 20m person database of customers who, in terms of<br>discounts and coupons, can now automate their business <br>experience using cell phones at the store.<br><br>The Nikkei article also hints that the company plans to try<br>
to assign some restaurant staff to overseas operations, so <br>as to let them see for themselves how a profitable store <br>should be run. However, we see this program presenting a <br>number of challenges. For example, efficiency abroad is <br>
probably traded for customer "feel-good" over-servicing, so<br>how will that translate back here in Japan? Also, given the <br>large number of people working in McDonalds and the high <br>turnover, will the few people the company can afford to <br>
send abroad make any noticeable difference? We suspect not.<br>Probably better that McDonalds start a company-wide <br>internal personal development course and use that to change<br>employee mindsets.<br><br>Another solution to get profits up is to "pay" employees <br>
with barter. Following on from a successful example in <br>Australia, McDonalds Japan appears to be looking to offer <br>employees certain rights and privileges that are designed <br>to supplement otherwise undesirable salaries. This is a <br>
good idea if they can pull it off. Apparently McDonalds <br>Australia has tied up with 300 other companies in a network<br>of merchants, to provide employee buying privileges, and <br>we're sure that McDonalds Japan can organize at least this <br>
number of collaborating firms here. Thus being an employee <br>of McDonald's will give you the right to buy at discounts <br>elsewhere -- but will that really be motivating? Perhaps if<br>you're poor enough, it might. But so would simply <br>
collecting the unemployment benefit and using an Internet <br>discounts tracking service.<br><br>In a way, this barter idea harks back to the 1950s and <br>1960's when Japanese companies still under earnings <br>pressure and paying out low salaries, would make life <br>
better for their people by offering very low-cost/no-cost <br>employee housing, insurance, health, and even arranged <br>marriages. McDonald's solution will be cheaper for the <br>company, since it will not need to lay out any upfront <br>
investment to arrange the privileges for employees. <br>However, we suspect that if they persist in this direction <br>the program may wind up feeding on itself. As other <br>companies follow suit, the competition will be on to start <br>
offering more meaningful barters/discounts, and that could <br>get a lot more expensive.<br><br>Another way to cut employee costs, which has been <br>successfully implemented by convenience stores around the <br>nation, has been to replace expensive Japanese employees <br>
with lower cost foreign ones. This is nothing new of <br>course, and long gone are the days when we were surprised <br>to find a foreign name tag on our server. But try as we <br>might, we can't find any data online about how many <br>
foreigners McDonalds Japan is employing, and our guess it <br>isn't many. This would seem an obvious way to reduce costs,<br>and one that is possible through the "trainee" visas still <br>widely available.<br>
<br>In the future, if one considers the end game of all this <br>efficiency effort, we can only conclude that McDonalds will<br>follow the same path that banks and airlines have. Your <br>server will be a McFood "ATM," with a Disney character to <br>
make it look friendly. The fact that it will offer free <br>character stickers and no queue will ensure people use it. <br>At the back end, and when things go wrong, the ATM will <br>offer you "error handling" service in a slightly foreign <br>
accent, and the person behind that accent will be located <br>in Dalian, China. That same person, in order to ensure <br>maximum efficiency, will probably also be working a <br>computer console checking that the Chicken McNuggets chute <br>
is clear of food jams and cross checking the temperature <br>and humidity of the restaurant to ensure customers don't <br>hang around inside the restaurant too long. <br><br><br>...The information janitors/<br><br>***------------------------****-------------------------***<br>
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-----------------------------------------------------------<br><br>+++ NEWS<br><br>- Hulu coming to Japan<br>- Tesco bested by Japanese competitors<br>- "Oh, we had enough power after all"<br>- Loan moratorium companies still going under<br>
- Who will ANZ buy in Japan?<br><br><br>-> Hulu coming to Japan<br><br>The popular online movies/tv streaming service, Hulu, is <br>apparently coming to Japan as its first overseas foray. <br>The company already has 1m paying subscribers to Hulu Plus <br>
in the USA, and is planning to offer the same service here as <br>well. It will cost around JPY1,480 per month and programs <br>are broadcast without advertising. ***Ed: One hopes that <br>they remember to put an English option on the Japanese <br>
product, for all the non-Japanese in town who are likely to<br>be early subscribers.** (Source: TT commentary from <br><a href="http://independent.co.uk">independent.co.uk</a>, Sep 3, 2011)<br><br><a href="http://ind.pn/oXz6Kd">http://ind.pn/oXz6Kd</a><br>
<br>-> Tesco bested by Japanese competitors<br><br>Sometimes being one of the biggest in the world just isn't <br>enough, especially when venturing into the bastion of <br>customer service and competition -- the Japanese market. <br>
Tesco has now decided after 8 years and JPY35bn of <br>investment that it has had enough and is looking to pull <br>out of Japan. ***Ed: Apparently Tesco is going to try to <br>sell the business, but with just 129 stores, most of which <br>
are small and under-performing, we doubt they will get much <br>for them.** (Source: TT commentary from <a href="http://smh.com.au">smh.com.au</a>, Sep 2, <br>2011)<br><br><a href="http://bit.ly/nyEPaD">http://bit.ly/nyEPaD</a><br>
<br>-> "Oh, we had enough power after all"<br><br>We're not sure whether it's cause for celebration of <br>Japan's ability to "gaman" or not, but in any case, <br>consumers and industry really rose to the call when told <br>
that they had to suffer for the sake of the country, by not<br>using air conditioners. We did our bit, sweating it out <br>many a day at the office. Now it turns out that TEPCO has <br>more than 35% power reserves and the power saving measures <br>
will be ended September 9th. (Source: TT commentary from <br><a href="http://e.nikkei.com">e.nikkei.com</a>, Sep 3, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110902D0209N04.htm">http://e.nikkei.com/e/ac/tnks/Nni20110902D0209N04.htm</a><br>
<br>-> Loan moratorium companies still going under<br><br>Thanks to one-time banking minister Shizuka Kamei's <br>brainwave to have the government guarantee loans to Japan's<br>many struggling SME companies, there are apparently now <br>
about 1.15m cases of companies who have received loan <br>repayment moratoriums since the end of 2009. Despite these <br>companies in most cases only repaying interest, still an <br>increasing number of them are going out of business <br>
according to debt research firm Tokyo Shoko Research. The <br>firm says that from Jan to Aug 83 such firms with <br>liabilities of JPY64.8bn went under, about double the <br>number of companies and double the debt from last year. <br>
***Ed: These loan guarantees are a huge hidden liability <br>for Japan, that many foreign economists are not aware of. <br>One can imagine that the total sum of guarantees is <br>probably around JPY1trn-JPY2trn.** (Source: TT commentary <br>
from <a href="http://e.nikkei.com">e.nikkei.com</a>, Sep 3, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110902D0209A19.htm">http://e.nikkei.com/e/ac/tnks/Nni20110902D0209A19.htm</a><br><br>-> Who will ANZ buy in Japan?<br>
<br>Based on media reports about ANZ being interested in buying<br>part or all of Aozora Bank here in Japan, the shares of <br>Aozora rose for a while, before falling back. However, a <br>report out of Australia says that ANZ is actually looking <br>
at more than one target in Japan, and is also considering <br>buying distressed Lone Star-owned Tokyo Star Bank. ANZ says<br>it wants an acquisition in Japan so that it can tap the <br>"massive liquidity pools" in Japan. ***Ed: Certainly going <br>
after Aozora would give ANZ access to savings of all the <br>member banks related to Aozora. Not sure that they would <br>get anywhere the same benefit from Tokyo Star Bank, though <br>-- although TSB will be a lot cheaper.** (Source: TT <br>
commentary from <a href="http://money-au.com.au">money-au.com.au</a>, Sep 1, 2011)<br><br><a href="http://bit.ly/mZfKzb">http://bit.ly/mZfKzb</a><br><br><br>NOTE: Broken links<br>Many online news sources remove their articles after just a<br>
few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br><br>+++ CANDIDATE ROUND UP/VACANCIES<br><br>=> BiOS, a Division of the LINC Media group, is actively<br>
marketing the following positions for customers setting up<br>or expanding in Japan, as well as other employers of<br>bilinguals.<br><br>** HIGHLIGHTED POSITION<br><br>BiOS is urgently looking for an Project Management Officer <br>
with experience managing overall processes of localizing <br>insurance-related software at our client’s office in the <br>Tokyo area. The candidate will be responsible for <br>implementing project scopes and workflows of software <br>
implementation and localization process, as well as working<br>closely with engineers, on-site managers, vendors, clients,<br>and other significant stakeholders to make the software as <br>a core resource which can be shared all office branches in <br>
Japan and possibly in APAC region.<br><br>You will also be responsible for preparing documentations <br>for internal/external use which relates to the projects in <br>terms of both technology and business side.<br><br>Due to the technical nature and demanding work environment,<br>
this position is suitable for someone with solid experience<br>of project management which relates to development of <br>insurance software. In addition, since this role requires <br>direct negotiations with both Japanese and international <br>
professionals from clients, business-level communication <br>skills in English and fluent-level communication skills in <br>Japanese will be required.<br><br>Remuneration is JPY9m – JPY14m depending on your experience<br>
and skill level.<br><br>** POSITIONS VACANT<br><br>- Field Engineer, BiOS, JPY4M – JPY5M<br>- IMAC Engineer, global ibank, JPY4M – JPY4.5M<br>- VoIP Engineer, global bank, JPY6M – JPY8M<br>- Service Manager, software co, JPY6M – JPY7M<br>
- MAC Coordinator, global ibank, JPY4M – JPY4.5M<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>** BiOS Job Mail<br><br>Every 2 weeks BiOS sends out a regular communication to its<br>
job seeking candidates, called BiOS Job Mail. Every edition<br>carries a list of BiOS's current and most up-to-date<br>vacancies, with each entry featuring a short job<br>description and a direct link to the main entry on the BiOS<br>
home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>to know if there is something out there that might suit you<br>better, the BiOS Job Mail newsletter is an easy and<br>
convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>please email <a href="mailto:kenji.sakota@biosjp.com">kenji.sakota@biosjp.com</a>.<br><br>Interested individuals may e-mail resumes to:<br>
<a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br>
<br>--------------- Mate Rock Charity Concert -----------------<br><br>Australian Rock Legends come together to help Tohoku<br><br>Featuring: Jimmy Barnes, the Angels, & Kevin Bloody Wilson!<br>Hakuba 47, 10th of September, 2011.<br>
<br>Mate Rock is a musical extravaganza to be held in Hakuba, a<br>beautiful mountain village in the Japan Alps, about 3 hours<br>from Tokyo. The concert will run from noon to early evening<br>at the base of the 47 Ski Resort. Bring a rug and a picnic<br>
and enjoy a day of classic Australian rock in a spectacular<br>natural setting.<br><br>All proceeds of the concert will go to charities in Tohoku<br>providing scholarships for children to study overseas.<br><br>For information and bookings; <a href="http://www.materock.com">www.materock.com</a><br>
-----------------------------------------------------------<br><br>--------------- ICA Event - September 15 ------------------<br><br>Speaker: Richard Rettig, Managing Director - Monoidics <br>Japan Ltd.<br>Title: Software - Friend or Foe<br>
<br>Details: Complete event details at <a href="http://www.icajapan.jp/">http://www.icajapan.jp/</a><br>(RSVP Required)<br><br>Date: Thursday, September 15, 2011<br>Time: 6:30 Doors open, Buffet Dinner included and cash bar<br>
Cost: JPY4,000(members), JPY6,000(non-members) Open to all.<br>Venue is The Foreign Correspondents' Club of Japan<br><br><a href="http://www.fccj.or.jp/aboutus/map">http://www.fccj.or.jp/aboutus/map</a><br>-----------------------------------------------------------<br>
<br>--------------- Tohoku is Still in Need -------------------<br><br>The Japan Emergency Team arrived within hours of the <br>disaster, at the Sendai City Office, and continues to <br>operate in Tohoku.<br> <br>The team has delivered nearly 20,000 hot meals, repaired <br>
nearly 200 homes, and provided around 1,200 daily <br>volunteers to help with the clean-up.<br> <br>The team is urgently in need of canned and instant food, <br>bottled water, towels, and soap -- to be given out from <br>
its Disaster Relief Vehicle.<br> <br>Volunteers able to spend a minimum of one day are also <br>urgently needed.<br> <br>Donations can be made via Post Office Furikae <br>00160 7 162438, Nihon Kinkyu Enjotai.<br> <br><a href="http://www.jhelp.com">www.jhelp.com</a> or <a href="mailto:info@jhelp.com">info@jhelp.com</a><br>
-----------------------------------------------------------<br><br><br>***------------------------****-------------------------***<br><br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>
by readers. We encourage you to spot our mistakes and<br>amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br><br>*** No feedback this issue.<br><br>***********************************************************<br>
END<br><br>SUBSCRIBERS: 8,836 members as of Sep 04, 2011<br>(We purge our list regularly.)<br><br>+++ ABOUT US<br><br>STAFF<br>Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br>
<br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>with the word 'help' in the subject or body (don't include<br>the quotes), and you will get back a message with<br>
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or, <a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br>Copyright 2011 Japan Inc. Communications Inc.<br><br>----------------- Japan Inc opens up Japan ----------------<br>
<br>J@pan Inc is Japan's only independently published English-<br>language business website. Authoritatively chronicling<br>online the business trends in Japan, each posting brings<br>you in-depth analysis of business, people and technology in<br>
the world's second largest economy.<br><br>Visit <a href="http://www.japaninc.com">www.japaninc.com</a> for the best business insight on<br>Japan available.<br>-----------------------------------------------------------<br>
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