Question

According to the Tiwana and colleagues article based on their study in Toshiba, IBM, Fujitsu, Hitachi, and

Mitsubishi Electric, Japanese companies manage risk predominantly by which of the following technique(s).
options:
A. They use stronger, legally-enforced contracts. (As a side note, this is not really surprising given how much global experience companies like Toyota and Honda have gained from their success outside Japan.)
B. Bowing in that awesome Japanese way to team members in the vendor firms.
C. Using a Japanese adaptation of PMBOK framework (unofficially called PMBOK-J), adding a few additional elements to the 9 PMBOK areas discussed in this course.
D. They decompose an outsourced project into smaller pieces that are outsourced to different vendors in a way that only the client can piece them back together. It's kind of like knowing the secret to putting Humpty Dumpty back together again. If the vendors collusively got together, they would not be able to piece them together and steal intellectual property from Japanese firms.
E. They perform more risk analysis than their US counterparts. This is consistent with the more risk averse, precision-liking, collectivist Japanese culture.

Answer 1

The correct answer is option E. They perform more risk analysis than their US counterparts. This is consistent with the more risk averse, precision-liking, collectivist Japanese culture.

Step-by-step explanation:

According to the article by Tiwana and colleagues on risk management techniques in Japanese companies like Toshiba, IBM, Fujitsu, Hitachi, and Mitsubishi Electric, the predominant method is to decompose an outsourced project into smaller components and outsource them to different vendors. This strategic move ensures that only the client has the full understanding and ability to integrate all the pieces back together, safeguarding their intellectual property. This risk management approach prevents the possibility of vendors colluding to replicate a project or steal proprietary information.

This technique is based on an environment characterized by careful planning and precision, a reflection of Japan's collectivist culture that values meticulousness and aversion to risk. Japanese companies have become adept at using globalization and trade agreements to their advantage while ensuring their operations remain secure and competitive in the global market.

Juxtaposed with just-in-time delivery and subcontracting strategies that have been adopted by these companies, their approach to risk management mirrors their innovative strategies in global production and operations management, contributing to Japan's status as an economic superpower in Asia.