Englishnization at Rakuten

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.This is a case study that touches on making sweeping changes to the corporate culture without engaging in proper communication with the stakeholders. The case is based on Rakuten which is the most successful Japanese online retailer. Its CEO who is also the founder, Hiroshi Mikitani, aspires to grow his company to the level of Amazon Inc. One way he feels this can be achieved is by introducing an English only policy in his firm. He therefore goes ahead to make an abrupt announcement to all 7,100 employees that an ‘Englishnization’ program will be rolled out and all employees must learn and become proficient in English within two years. At the present time, over 90 percent of the workforce cannot run official duties in English. The CEO has set some punitive measures for those who will