Keiretsu

A keiretsu is system, series, grouping of enterprises, regularise of succession) is a set of companies with net business relationships and sh areholdings. It is a type of business group. Keiretsu in Japan The archetypical keiretsu are those which appeared in Japan during the economic miracle following sphere War II. Before Japans surrender, Japanese industry was controlled by large family-controlled vertical monopolies called zaibatsu. During the occupation of Japan, under the Supreme commandant of the Allied Powers, General Douglas MacArthur, a partially successful cause was made to dissolve the zaibatsu in the late 1940s. Sixteen zaibatsu were targeted for know dissolution, and twenty six more for reorganization after dissolution. However, the companies wreak from the dismantling of the zaibatsu were later reintegrated. The dispersed corporations were re-interlinked through share purchases to form swimmingly-integrated alliances across many industries. Where possible, keiretsu companies would also supply one another, qualification the alliances vertically integrated as well. In this period, official establishment policy promoted the creation of robust trade corporations which could withstand minacious pressures from intensified world trade competition.

The major keiretsu were each focus on around one bank, which lent money to the keiretsus member companies and held beauteousness positions in the companies. Each bank had great control over the companies in the keiretsu and acted as a monitoring entity and as an emergency brake bail-out entity. One effect of this structure was to minimize the presence of unconnected takeovers in Japan, because no entities could challenge the power of the banks. There are two types of keiretsu: vertical and horizontal. Vertical keiretsu illustrates the organization and relationships within a company (for example all factors of production of a sure product will be connected), while a horizontal keiretsu shows relationships between entities... If you want to get a full essay, order it on our website: Orderessay

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