A central role not only in Asia but also in the world economy. The second largest economy. Global leader in electronics and precision engineering, etc Why is Japan competitive? Complaints against Japanese management features… Most of the time, they do not give us clear answers even when we ask direct questions. Why won’t they be frank with us? Why do they only tell us what they think three weeks later? Uncountable meaningless meetings, why?
Meetings are not where you discuss things but where you just agree? Why do they read presentations from a script instead of looking at us while they speak? Complaints from Japanese managers… Not attentive enough Why do you interrupt me while I am talking? Can you ‘think’ before you ask me MIRY’? Why do you ask so many questions? Can you understand how difficult it is for us to speak English? Have you learnt Arabic or Thai??? 2. State-business relations Industrialization commenced in the late 19 the century.
Heavy involvement of the state in the industrial policy. ‘Rich country, strong army Before WI, high concentration in the economy. Preference of the state: companies were willing to develop strategically important industries favored by government. Kibbutz: industrial and financial business conglomerates n the Empire of Japan; control over significant parts of the Japanese economy from the Meijer period until the end of World War II; under the control of family dominated holding companies.
The State Policies (after World War II) Key actors The American occupation Actions The Japanese Ministry Of Finance The Industrial Structure Council (industrial, academic, bureaucratic and trade union leaders) MIT (the Ministry of International Trade and Industry) Resolution of Subtask Continued collaboration of government and business Long term economic and industrial policy The State Policies Sunset
Reduction of industrial capacity Us nurse Strong potential The relocation of workers and subsidized retaining programmers Guidance in shifting resources to stronger economic sectors Use a combination of economic incentives such as R assistance Export subsidies Protect key domestic industries through protectionist measures Problems? A conspiratorial relationship The extent and scale of State planning: protectionist and inward looking If arms compete each other fiercely for favor The state intervention are contested 3.
Inter-firm relations Resolution of Subtask: Through re-distribution of hares, the purge of many business executives weakened the grip of a small number of powerful families. The companies formed from the dismantling of the subtask were later reintegrated – keiretsu. A keiretsu is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. Horizontal keiretsu- a diversified industrial group organized around two key institutions: a core bank and a general trading company.
Vertical keiretsu- is organized around a large parent company in a specific industry. Horizontally organized Keiretsu roping Mitosis, Mediumistic, Summit’s One-set principle: each includes a company from each large industrial sector including financial services, industrial producers and international trade companies. A large proportion of listed stocks are held by other corporations. Mutual stock holding. It intersect and overlap with personal relationships and interlocking directorates.
Effect of horizontal Keiretsu Inter-locking share-ownership Member companies maintain their equity in the troubled firm Directors are dispatched from the main bank and major trading partners to the board Groups suppliers and customers adjust their terms to favor the target firm and transfer technical personnel to the target firm. Group may increase its purchases from the troubled firm’s product line. Vertically organized Keiretsu Formed by a large parent company (e. G.
Toshiba, Sony, Toyota) Own networks of suppliers, distributors and affiliates Control inventories and production quality and reduce transaction costs Value of relationship rather than simply prices in competition Dedicate suppliers, more subcontractors than in the US Fostered to develop of small and medium sized enterprises, which gives the buyers the ability to assert detailed control. 4. Japanese manufacturing methods: The philosophy of SIT is simple: inventory is waste.
SIT (just in time) is an inventory strategy that strives to improve a business’s return on investment by reducing unprocessed inventory and associated carrying costs. SIT enables small stock inventories – developed at Toyota in the 1 sass and diffused in various forms to other plants in the asses and ass. Close and collaborative relations with suppliers. Lean production – little margin for error, little slack, fine tuned to ensure moth flow.
The effects offset Eventually, Toyota redesigned every part of its vehicles to widen tolerances, while simultaneously implementing careful statistical controls for quality control. The SIT eventually became the envy of the industrialized world, a competitive advantage Of many Japanese firms. It has been widely emulated, but not always with the expected results, as many firms fail to adopt the full system Japanese manufacturing methods: ETC and Kamikaze ETC: Total Quality Control. Since assemblers no longer had a choice of which part to use, every part had to fit perfectly.