be unlearned due to the waste and disunity they encourage. Wherever
we recommend a course of action that is likely to prove troublesome in
the non-Japanese context we try to provide ways to ease into it, mitigating
at least some of the possible side effects.
This book, therefore, stands at the confluence of two influential streams
of management thought--the "Atlantic" stream, exemplified by Scientific
Management, Human Relations, Strategic Management, and the notion
of value, on the one hand, and the "Pacific" stream, best illustrated by
techniques such as JIT, TQC, cooperative vendor linkages, and employee
involvement, on the other. While some chapters are predominantly one
or the other (chapter 3, for instance, is more "Atlantic" in its emphasis
while chapter 4 leans toward the "Pacific") ideas and illustrations from
both streams are fairly evenly distributed throughout the book.
Japan's Ministry of International Trade and Industry (MITI) projects phenomenal growth in the market for composite materials, and companies such as Kyocera Corporation and Toray Industries are gearing up for the estimated $13
billion market in the year 2000. (See Business Week, November 11, 1991, pp. 168-
69.) Japan's venture into service businesses by adapting principles of manufacturing to the needs of service industries such as tourism, insurance, distribution,
and finance is outlined in The Economist, October 20, 1990, pp. 83-84.
As reported in Time, February 10, 1992, p. 17.
For a succinct review of the trade issues and emotions bedeviling relations
between the two countries, see Daniel Metraux, The Japanese Economy and the
American Businessman ( Lewiston, NY: Edwin Mellen Press, 1989), pp. 101-24
and Thomas K. McCraw, "From Partners to Competitors: An Overview of the
Period Since World War II," in
Thomas K. McCraw, ed., America Versus Japan
( Boston, Mass.: Harvard Business School Press, 1986).
While public enterprises are no doubt established for sound reasons, they
generally tend to constrain customers' options. An extreme example is India,
where they were established to help develop an industrial base but led in most
industries to the stifling of private producers. Their 1500-fold growth between 1951 and 1985 resulted in protectionist monopolies that are being dismantled,
albeit rather slowly, today. Francis Cherunilam Business and Government ( Bombay: Himalaya Publishing House, 1990) provides a broad overview of this and
other problems arising from governmental intervention. For an update on the
privatization of public enterprises in Russia, Eastern Europe, and Latin America,
see Business Week, October 21, 1991, pp. 49-56.
The value of the dollar fell from a rate of 357.60 yen in 1970 to 133.48 yen
in mid-1989. That is, the yen appreciated to nearly 250% of its 1970 value in the
course of about 20 years. ( Statistical Abstract of the United States, Washington,
D.C.: U.S. Bureau of the Census ( 110th ed.), 1990), p. 858. The depreciation in
the dollar's value was not, as one might expect, accompanied by an increase in U.S. exports to Japan and/or lower Japanese exports to the U.S. On the contrary,