Harvard Case - Language and Globalization: "Englishnization" at Rakuten (A)
"Language and Globalization: "Englishnization" at Rakuten (A)" Harvard business case study is written by Tsedal Neeley. It deals with the challenges in the field of International Business. The case study is 15 page(s) long and it was first published on : Aug 29, 2011
At Fern Fort University, we recommend Rakuten to adopt a more nuanced approach to "Englishnization" that balances the benefits of global communication with the preservation of Rakuten's unique Japanese identity and culture. This recommendation involves a multi-pronged strategy that includes strategic language training, fostering a multicultural work environment, and leveraging technology to facilitate communication across language barriers.
2. Background
Rakuten, a Japanese e-commerce giant, embarked on a journey of global expansion, aiming to become a truly global player. The company's ambitious vision included acquiring international businesses, expanding into new markets, and attracting diverse talent. To facilitate this global expansion, Rakuten implemented a policy of "Englishnization," mandating English as the official language of internal communication. This decision, while seemingly pragmatic, sparked controversy within the company, particularly among Japanese employees who felt their language and culture were being marginalized. The case study highlights the challenges of navigating language and cultural differences in a globalized business environment.The main protagonists in this case are Hiroshi Mikitani, the visionary founder and CEO of Rakuten, and the Japanese employees who felt threatened by the 'Englishnization' policy. Mikitani's vision for global dominance clashed with the cultural sensitivities of his Japanese workforce.
3. Analysis of the Case Study
To analyze the situation at Rakuten, we can utilize the framework of Cross-Cultural Management. This framework helps us understand the complexities of managing a diverse workforce in a globalized environment.Cultural Dimensions: Hofstede's cultural dimensions theory provides valuable insights into the cultural differences between Japan and the West. Japan, characterized by high power distance, collectivism, and uncertainty avoidance, places a strong emphasis on tradition and group harmony. In contrast, Western cultures tend to be more individualistic, with lower power distance and a higher tolerance for risk. Rakuten's 'Englishnization' policy, without proper consideration for these cultural differences, inadvertently undermined the company's cultural identity and created a sense of alienation among Japanese employees.
Communication Barriers: Language is a fundamental aspect of culture. Mandating English as the official language, while seemingly practical for global communication, created communication barriers for Japanese employees who were not fluent in English. This led to misunderstandings, reduced employee engagement, and hindered knowledge sharing within the company.
Organizational Culture: Rakuten's organizational culture, deeply rooted in Japanese values, was challenged by the 'Englishnization' policy. The policy created a sense of cultural dissonance, where employees felt pressured to conform to a Westernized work environment, potentially leading to a loss of the unique aspects of Rakuten's Japanese identity.
Global Strategy: Rakuten's global strategy, while ambitious, lacked a comprehensive approach to managing cultural diversity. The company focused primarily on achieving operational efficiency through language standardization but overlooked the importance of cultural sensitivity and employee well-being.
4. Recommendations
To address the challenges faced by Rakuten, we recommend a multi-pronged approach:
1. Strategic Language Training: Rakuten should invest in comprehensive language training programs for all employees, tailored to their individual needs and proficiency levels. This includes providing English language training for Japanese employees and language training in Japanese for non-Japanese employees. The goal is to create a multilingual workforce that can communicate effectively across language barriers.
2. Foster a Multicultural Work Environment: Rakuten should actively promote a multicultural work environment where employees from different backgrounds feel valued and respected. This can be achieved through:* Cultural Awareness Training: Providing training programs that educate employees about different cultures, communication styles, and cultural sensitivities.* Diversity and Inclusion Initiatives: Implementing policies and programs that promote diversity and inclusion within the workplace.* Employee Resource Groups: Establishing employee resource groups for different cultural backgrounds to foster a sense of belonging and support.
3. Leverage Technology: Rakuten should leverage technology to facilitate communication across language barriers. This includes:* Real-time Translation Tools: Implementing real-time translation tools for meetings, presentations, and internal communication platforms.* Multilingual Content Management Systems: Creating multilingual content management systems for websites, marketing materials, and internal documentation.* Language Learning Apps: Providing access to language learning apps for employees to enhance their language skills.
5. Basis of Recommendations
These recommendations are based on the following considerations:
1. Core Competencies and Consistency with Mission: Rakuten's core competencies lie in its innovative technology and entrepreneurial spirit. The recommended approach aligns with these competencies by leveraging technology to facilitate communication and fostering a diverse and inclusive work environment that encourages innovation.
2. External Customers and Internal Clients: Rakuten's external customers are increasingly diverse, and its internal clients, the employees, are also becoming more diverse. By promoting cultural sensitivity and effective communication, Rakuten can better serve its customers and employees.
3. Competitors: Rakuten's competitors are also expanding globally, and many of them have already adopted strategies to manage cultural diversity effectively. Rakuten needs to stay competitive by implementing similar strategies.
4. Attractiveness ' Quantitative Measures: While quantifying the benefits of cultural sensitivity is challenging, the potential benefits include improved employee engagement, reduced turnover, enhanced innovation, and increased customer satisfaction.
5. Assumptions: These recommendations assume that Rakuten is committed to its global expansion strategy and is willing to invest in the necessary resources to implement these changes.
6. Conclusion
Rakuten's 'Englishnization' policy, while well-intentioned, failed to consider the cultural nuances and potential communication barriers it created. By adopting a more nuanced approach that balances the benefits of global communication with the preservation of Rakuten's unique Japanese identity and culture, Rakuten can achieve its global ambitions while fostering a more inclusive and productive work environment.
7. Discussion
Alternatives:
- Maintaining the status quo: Continuing with the 'Englishnization' policy would likely lead to continued employee dissatisfaction, reduced engagement, and potentially hinder Rakuten's global expansion efforts.
- Abandoning 'Englishnization' altogether: This would limit Rakuten's ability to communicate effectively with its global workforce and customers.
Risks and Key Assumptions:
- Resistance to change: Some employees may resist the proposed changes, particularly those who are comfortable with the existing culture.
- Cost of implementation: Implementing these changes will require significant investment in training, technology, and cultural awareness programs.
- Time to achieve results: It will take time to build a truly multicultural work environment and achieve the desired communication effectiveness.
Options Grid:
| Option | Benefits | Risks | Assumptions |
|---|---|---|---|
| Strategic Language Training | Improved communication, enhanced employee engagement | Cost of implementation, resistance to change | Commitment to global expansion, willingness to invest |
| Foster a Multicultural Work Environment | Increased diversity, improved employee morale, enhanced innovation | Cost of implementation, resistance to change | Commitment to diversity and inclusion, willingness to invest |
| Leverage Technology | Facilitated communication, improved efficiency | Cost of implementation, reliance on technology | Commitment to technological advancements, willingness to invest |
8. Next Steps
- Form a task force: Establish a task force to oversee the implementation of these recommendations.
- Develop a communication plan: Communicate the proposed changes to all employees and address any concerns.
- Pilot test programs: Pilot test language training programs and cultural awareness initiatives before rolling them out company-wide.
- Monitor progress: Regularly monitor the effectiveness of these initiatives and make adjustments as needed.
By taking these steps, Rakuten can navigate the complexities of language and culture in a globalized environment and achieve its ambitious goals while fostering a more inclusive and productive work environment.
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Case Description
Hiroshi Mikitani, the CEO of Rakuten, (Japan's largest online retailer), is at the helm of an organization that is rapidly expanding into global markets. In a critical stride toward becoming the world's No. 1 Internet services company, Mikitani announces Englishnization - a highly publicized aggressive two-year English proficiency mandate for all 7,100 of Rakuten's Japanese employees. Mikitani's goal is not only to ensure the success of the organization, but also to break down linguistic and cultural boundaries in Japanese society. At the time, only an estimated 10% of the Japanese staff could function in English. The stakes are high: those who do not reach their target score by the deadline risk being demoted. As Englishnization progresses, loss of productivity, lack of time to study, and conflicted views among managers impede staff success. Some employees even question the relevance of Englishnization, particularly for staff working exclusively in Japan. Fifteen months since the announcement, the vast majority had not yet reached their target English proficiency scores. With the deadline rapidly approaching, Mikitani must decide how to proceed to ensure the success of Englishnization, the continued global rise of his organization, and even the future of Japan.
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