Dirección de Desarrollo de Negocios.

TSU en Desarrollo de Negocios Área

Mercadotecnia.

Nombre de alumno:
Pedro Angel Fisher Garza
Laysha Fabiola Moreno Guerrero
Julian Velez Duarte

Número de matrícula:
302010615
302010572
302010865

Grupo: 5A BIS DNAM.

Fecha de Entrega: 31/Julio/2022
Market to which you wish to export

The target market is Japan.

The Japanese territory is located in the region called Northeast Asia or East Asia,
to the east of the Eurasian continent. It is surrounded by the Pacific Ocean, the
Sea of Okhotsk, the Sea of Japan, and the East China Sea.
Mexico and Japan share a long history of friendship, trade, and cooperation.
In 1888 Mexico and Japan signed the Treaty of Friendship, Commerce, and
Navigation, which represented Japan its first Treaty on equal terms with a Western
country.
For Mexico, this Agreement was the first trade agreement with an Asian country.
At the beginning of the 20th century, Mexico and Japan strengthened their bilateral
economic relationship with the signing of a free trade agreement.

The official language is Japanese. English is the second language that is being
taught in schools, although it is not yet practiced throughout the country, so if you
leave the big cities, sign language will be what allows you to communicate with the
locals.

It's important to understand that observance of cultural norms varies from

individual to individual within a culture. Communication takes place between one
human being and another, and not, of course, between one culture and another.
So, when you consider Japanese etiquette rules, it's prudent to approach these as
guidelines rather than gospel. When in doubt, it pays to err on the side of
conservatism in matters of Japanese business culture.

Export documents and formalities

A series of eight essential requirements are established for exporting to Japan

Requirement 1: hygiene and sanitation control of the establishment

Importers must have documentary evidence from the Mexican authorities

specifying two important factors in relation to the producing establishment: first, in
the case of foodstuffs, that they are produced and processed in accordance with
the country's commercial and sanitary laws. In addition, the registrations and
authorizations to manufacture these products and the authorizations before
Mexican authorities to carry out such exports must be presented.
Secondly, it must be demonstrated that the establishments, facilities and
equipment of the factory that produces them comply with those established in
Japanese law.

Requirement 2: quality controls on raw material

Sanitary surveillance controls by the health authorities in Mexico must be

presented, since, if they present any parasite, pathogen, toxic substance or
decomposing matter, they will not be allowed access.

Requirement 3: hygienic conditions

In the case of food, it must be manufactured and processed under extreme

hygiene measures to avoid contamination or health risks. It is likely that the
Japanese authorities will conduct regular testing and inspections in this regard.

Requirement 4: storage, transport and distribution

When transported and stored, products must be temperature controlled and under
observation.

Requirement 5: jas certification

In order to enter the Japanese market, all food products, soft drinks and forestry
products from other countries must be certified by Japanese Agricultural Standards
by contacting the Ministry of Agriculture, Forestry and Fisheries of Japan.

Requirement 6: comply with maximum levels for chemicals

The Japanese authorities have a complete list of which chemical residues are
allowed to enter the country and are classified in: processed foods, crops, animals
and fish, as well as mineral waters.

Requirement 7: no prohibited additives

The Japanese authorities currently have a list of 345 additives authorized for use
as colorants, preservatives, for processing purposes or substances that do not
remain in the final products.

Requirement 8: traceability
This is a series of mechanisms that make it possible to know the process of a
product in each of its stages, which makes it possible to know its food safety. The
Food Health Law establishes that the conservation and maintenance of a product
must be complied with by means of a register and the objective is to make this
information known to the public.

In summary, we have the following points, which guarantee that our company
complies with the necessary standards for export to Japan.

 Certificate of free sale: its purpose is to guarantee to the authorities that the
products manufactured by the company comply with the sanitary legislation
in force in Mexico.
 Product analysis certificate: it is issued when the sanitary organisms of the
importing country (in this case Japan) request a document where the results
of a specific analysis performed on a specific product are revealed.
 Certificate of Conformity of Good Sanitary Practices: finally, this export
health certificate attests that the exporting company produces its goods in
strict compliance with sanitary rules and correctly applies the Hazard
Analysis, Identification and Control of Critical Control Points (HACCP).

Financial support for export

Our financial support will be provided by a business angel, who will provide us with
financial and knowledge support in the following phases of our performance: Pre-
launching, Finished Product, Selling, Covering expenses and Generating profits.

The initial financial support from the angel will be $100,000 to $5,000,000.

The sectors in which he/she has performed before and already has prior
knowledge available to us is as follows: Education and Training, Medical and
Pharmaceutical, Transportation, Agricultural and Agribusiness, Software, Media,
Business Services, Finance, Manufacturing and Engineering, Energy and Natural
Resources, Real Estate, Hospitality, Restaurants and Bars, Products and
Inventions, Retail, Sales and Marketing, Fashion and Beauty, Technology, Food
and Beverage, Leisure and Entertainment, Personal Services.

The characteristics both in terms of money and knowledge were fairly selected to
our needs in order to support us in the development of our company.
Business customs

a) Decision making

There is a generalized perception in the field of business regarding Japanese

companies. They are usually considered "slow" in the decision-making stage, but
once this is completed and, moving on to the execution stage, they are
characterized by being very "fast". And it is not that the Japanese are considered
"slow" people, but that this delay is a consequence of organizational and
commercial factors.

On the one hand, in Japanese companies, decision-making is the result of group

consensus, rather than individual authority, which is considered an advantage
because responsibility is shared, the sense of "belonging" is reinforced and it
facilitates the implementation. This occurs even in large corporations. However,
that takes time. On the other hand, in Japan, distribution networks are complex, for
historical reasons, due to the characteristics of households and due to the
excessive concentration of population in certain prefectures and cities.

Today, even for the Japanese themselves, decision-making is slow, so many

companies are delegating authority to make this stage more efficient.

In this regard, foreigners are advised:

● Keep in mind that this stage will take longer than in your country.
● Provide a good amount of detailed information to the partner or
counterparty.
● Demonstrate commitment and consistency throughout the process.
Patience can have its rewards.
● Try to find people who have influence and experience to make decisions
within the Japanese group.
● Maintain contact, formally and informally, to carry out permanent follow-ups.
● Avoid pressure to speed up decision-making.
● Maintain group unity against the counterpart.

b) Contracts

In a society of values, oriented toward harmonious relationships to avoid conflict,

such as the Japanese, contracts are not as important in business as in Western
culture. In this context, contracts have been seen as a piece of paper that
summarizes an agreement and is seen as an expression of the will to do business,
rather than a set of rights and obligations that are rigidly followed.

Conflicts are avoided in Japan. It is a society that has fewer litigations than those
registered in Western countries. Also, the legal process in Japan is slow and
expensive. In general, an agreement is attempted, and a lawyer is only called
when the facts are accomplished. Contracts are usually a summary of the
negotiation process. There is flexibility to renegotiate contracts when external
conditions change.

In this regard, foreigners are advised:

● Build a strong relationship with the counterparty, thinking of the business

relationship as a personal contract rather than a legal one.
● Meet with the Japanese partner immediately after learning that the partner
will not honor the contract, to understand the reasons and make
adjustments accordingly.
● Be willing to relax the terms of the contract.
● Translate all the terms of the contract into the Japanese language.
● Write all the terms concretely and directly, to be easily understood by the
Japanese partner.
● Evaluate the long-term repercussions of a literal short-term claim.

c) Detailed information

Unlike in the West, where the necessary information is selected to achieve the
objectives, in Japan, where the culture is oriented toward harmonious
relationships, the principles "Good to know" and "Need to know" prevail, so that
detailed information is valued.

In this regard, foreigners are advised:

When your Japanese partner asks for information:

● Provide as much information as possible upfront on your initiative.

● Find out what kind of information they require and why.
● Share even information that you consider “unnecessary”.
● Listening to a Japanese presentation that doesn't seem to get to the point:
● Do not interrupt the meeting to force the issue to be specified.
● Listen patiently and encourage the speaker by nodding occasionally and
avoiding prolonged or direct eye contact.
 ● To make it easier to reach an agreement, in a conversation, summarize,
confirm, and repeat what the other person has said.
● To get more attention from your Japanese partners:
● Pay attention to the hierarchy.
● Cultivate many informal contacts.
● Build relationships through frequent contacts and occasional socializing
after work hours.
● Politely ask for the same information more than once.

d) Customer relations

In Japan, there is a great desire to serve the customer. In order not to lose
customers and remain competitive, Japanese companies submit to the standards
set by the competition. They keep in mind that every effort to meet the exacting
demands of customers will pay off in the long run. An example of this is the desire
to meet quality standards that exceed the acceptable quality level in other
countries. Their reluctance to lead or guide customers through marketing
campaigns is changing. They have already realized that consumers can respond
better and better to marketing strategies. Therefore, the increase in interest in
foreign MBA programs.

Tips for foreigners in business situations:

● Demonstrate effort to meet demands, even if the demands are seemingly

impossible. This is a way of showing commitment.
● Avoid responding negatively to any request immediately after it has been
formulated. Respond to the negative message using a positive way, so as
not to damage the relationship.
● Understand the origin of customer requests. It may be that there is a very
important reason that no one analyzed it because it was assumed to be
obvious.
● Think of customer satisfaction as a strategic component of the business.
● If you decide not to grant the client's request, try alternatives and don't leave
the client abandoned.

e) Business meetings

The Japanese are characterized by being reserved. In a meeting, make only

official comments, and avoid personal opinions and feelings. Only when a good
relationship is achieved, is the personal side of the partners known.
Some of the reasons why the Japanese keep quiet during business meetings are
as follows: poor English speaking skills (even though many of them have a good
command of the language); they consider it wrong to interrupt; They are committed
to providing reliable and complete information (they consider that this takes time
and it is not feasible to do it during a meeting).

Tips for foreigners in business situations:

For Japanese people to comfortably and actively participate in meetings, it is

recommended:

● Send an agenda and relevant information well in advance.

● Invite the participants to express their opinions, taking care of the
hierarchical aspect.
● Wait patiently for an answer to an asked question, not pressing an
immediate response.
● Check the balance of the shares: invite each person to state their opinion or
idea.
● Record the main ideas expressed in the meeting.
● To guide the objectives and conclusions of the meetings:
● Clarify goals and expectations before and at the start of the meeting.
● Be sure to confirm agreements and define the immediate agenda.
● Confirm the results of the meeting with another mechanism or other
mechanism.
● Meet informally with each person.

f) Criticism and problem solving

In general, when the Japanese have a criticism, be it positive or negative, they look
for an indirect and private way to express it, considering that by acting in this way
they demonstrate their professionalism, maintain organizational harmony and avoid
confrontations or loss of prestige. Sometimes they resort to an intermediary to
deliver these observations. In addition, aspects to improve are more important than
opinions and compliments, even when the strengths are considerable.

As in the decision-making stage, the problem-solving stage is also characterized

by being slow; because all linked people are involved, it is analyzed and discussed
as a group.

Tips for foreigners in business situations:

 ● Provide confidence to receive criticism and be prepared to receive criticism
indirectly.
● Pay attention to who, when, and where you ask for criticism.
● Do not view criticism from the Japanese with a negative attitude.
● Wait patiently for constructive criticism that comes after general criticism.
● Consider that problem solving involves more people and takes time.
● Respond quickly to Japanese requests for help or information in situations
involving customers; contact them and inform them of the deadlines by
which you will send them the information.
● Identify with your counterpart in Japan mechanisms for effective
communication.

Logistic
Tariffs in Japan are among the lowest in the world. On average, their rate of
customs duty is only 3 %.

Japan uses the Harmonized Commodity Description and Coding System for
customs classification of goods. The system has about 5000 item groups and each
is identified by a 6-digit code. It was developed by the World Customs

Organization and is used in more than 200 countries.

In Japan, tariffs are paid from 10,000 Japanese yen (about 85 €). Citizens can pay
tariffs through an electronic payment system set up by the Central Bank of Japan.

To begin the logistic process, it is important to mention that once the product order
is placed and with the correct certifications, it is moved by land by the logistics
company to the port of Manzanillo, Colima.

The importance of Manzanillo as a commercial port stands out within the scheme
of the National Port System as an indispensable component in the movement of
cargo and goods in and out of Mexico in constant and endless activity.

The destination of the goods is the Port of Kobe, located in the Osaka metropolitan
area in the Hanshin industrial region.

The port is served by numerous shipping lines, including those from North
America, Europe, Southwest Asia and China, which provide regular service and
are in network with more than 500 ports and 135 countries worldwide, as it is the
largest port in Japan for handling containerized cargo.
Contracts
Payment methods

The type of payment FAJ Supplies uses when exporting to Japan is the letter of
credit.

This type of payment has been chosen because it has the same benefit for the
buyer and the seller and almost no risk for both parties.

In our case, working hand in hand with BBVA Bank and the fact that this bank has
a physical company in Japan, makes the interactions easier, since one of the
characteristics of this payment method is that it is made through the banks of the
buyers and sellers and not directly between people.

This gives more certainty to both parties that the financial transactions are secure
because once the terms of the international sale and purchase have been
confirmed, the buyer instructs his bank to pay the amount agreed upon by both
parties to the seller's bank.

The buyer's bank then sends a letter of credit to the seller's bank as proof that the
buyer has legitimate and sufficient funds.

Payment is only made once the conditions agreed by both parties have been
fulfilled and the goods have been shipped.

One of the advantages of this payment method for the buyer is the guarantee that
the goods are shipped before payment, the seller has the obligation to fulfill the
agreed conditions, while for us as sellers is the guarantee of solvency of the
international buyer before the shipment of the goods, the buyer has the obligation
to fulfill the agreed conditions, in case something goes wrong, the payment is
insured by the buyer's bank, representing a very low risk.