keiretsu, (Japanese: “series”) large clusters of companies that dominated the Japanese economy between the 1950s and the early 2000s, characterized by cross-shareholding and long-term transactional relationships among their constituents, such as those between assemblers and suppliers.
What is keiretsu examples?
Vertical keiretsu (also known as industrial keiretsu) are used to link suppliers, manufacturers, and distributors of one industry. Examples of this type include Toyota, Toshiba, and Nissan. One or more sub-companies are created to benefit the parent company (for example, Toyota or Honda).
What are Japanese corporations called?
The term zaibatsu has been used often in books, comics, games, and films, referring to large and usually sinister Japanese corporations, who are often involved in shady dealings and/or have connections to the yakuza.
Does Japan have chaebol?
Chaebol and zaibatsu are business groups found in South Korea and Japan, respectively. They are known for their strong family ownership, management, diversified businesses, and close relationship with their respective governments. … “Keiretsu” refers to business groups that are managed by professional business managers.
What are the distinguishing feature of governance of a keiretsu?
Keiretsu holds each other’s shares through cross-shareholding, which prevents the threat of hostile takeovers. The sharing of information within the keiretsu has the potential to increase efficiency.
Does keiretsu exist?
The Keiretsu Model
Vertical integration is still a part of the more massive horizontal structure of today’s keiretsu. For example, each of Japan’s six car companies belongs to one of the big six keiretsus, as does each one of Japan’s major electronics companies.
How many keiretsu are in Japan?
Japan once had six major keiretsu—Mitsui, Mitsubishi, Sumitomo, Fuyo, Sanwa, and Dai-Ichi Kangyō Bank (DKB) Group—known as the “Big Six.” They developed in the second half of the 20th century from different historical origins.
Is Mitsubishi a keiretsu?
The Mitsubishi Group (三菱グループ, Mitsubishi Gurūpu, informally known as the Mitsubishi Keiretsu) is a group of autonomous Japanese multinational companies in a variety of industries. … The former constituents of the company continue to share the Mitsubishi brand and trademark.
Is Honda a keiretsu?
The Honda company has not developed the normal keiretsu form, but because of its size as the number three automobile company in Japan and the number one motorcycle company in the world it has extensive operations and qualifies as a vertical keiretsu.
Is Toshiba a keiretsu?
Today Toshiba is a member of the Mitsui keiretsu (a set of companies with interlocking business relationships and shareholdings), and still has preferential arrangements with Mitsui Bank and the other members of the keiretsu.
What is Korean chaebol?
chaebol, any of the more than two dozen family-controlled conglomerates that dominate South Korea’s economy. While the founding families do not necessarily own majority stakes in the companies, the descendents of the founders often retain control by virtue of long association with the businesses.
What is chaebol rich?
A chaebol (/ˈtʃeɪbɒl, ˈdʒɛbəl/, Korean: 재벌; lit. “rich family”; Korean pronunciation: [tɕɛ̝.bʌl]) is a large industrial conglomerate that is run and controlled by a person or family in South Korea. … Chaebols have also played a significant role in South Korean politics.
How do chaebols work?
Chaebols represent roughly half of the value of the country’s stock market. They are generally industrial conglomerates that are made up of different affiliates. Chaebols are owned, controlled, and/or managed by the same family dynasty, generally that of the group’s founder.
Which of the following is a characteristic of a keiretsu?
Which of the following is a characteristic of a Keiretsu? It is Korean. It is a set of independent companies within a region.
Are there monopolies in Japan?
Already, a price war has broken out among many of the more than 260 companies that will be allowed to sell electricity in Japan’s $70 billion retail market. …