Changes in the business environment surrounding the SHOSHA
The Japanese economy is being exposed to the mega-trend of dramatic change sweeping Japan and the world, and the SHOSHA are no exception.
Change in domestic business circumstances
- Maturity of the Japanese economy
- Market saturation and diversification of consumer wants and needs, falling birthrate and population decline, demand stagnation, investment decline and sinking economic growth etc.
- Changes in the trade structure
- Decrease in exports, increase in imports, reduction of the trade surplus, depreciation of the yen
- Reform of the financial system
- Collapse of the bubble economy, disposal of bad loans, capping deposit protection guarantees, reorganization of financial industries
- Structural reform for the Japanese economic recovery
- Deregulation, market-opening, encouragement of free and fair competition, industrial reorganization
- Amendment of the commercial code
- Suits by shareholder representatives, revision of merger and partition provisions, reform of the board of directors and auditors system
- Introduction of international accounting standards
- Current-value accounting system, impairment accounting system, consolidated accounting and taxation system
- Movement to a recycling-based society
- Rising awareness of the "three Rs" (reduce, reuse, recycle)
Change in international business circumstances
- Liberalization of trade and investment, inauguration of the World Trade Organization (WTO), spread of regional and bilateral free trade agreements (FTA), penetration of global standards, economic advancement in developing countries, China's rise and admission to the WTO, the age of mega-competition
- IT revolution
- Diffusion of the internet, spread of high-speed broadband communication networks, restructuring of social and business systems
- Wave of technological innovation
- Advances in biotechnology, genomes, nano-technology, etc.
- Global environmental issues
- Movements for the preservation of the global environment drawn by The Earth Summit and The Kyoto Protocol, reduction of emissions of greenhouse gases, spreading efforts to gain ISO14001 certification, etc.
- Other changes
- Intensification of terrorism, anti-globalization movement, crude oil price rises, birth of the Euro, etc.