Toyota Group (Keiretsu)
and Keiretsu is a group of Japanese companies interconnected, centered on the bank, which lends money to member companies and holds a stake in these companies. By combining forces, these companies are able to reduce costs and risks, and facilitate better communications, and ensure confidence and reliability insulation from foreign competition and provide. There are two types of Keiretsu, horizontal and vertical. Horizontal, Keiretsu things the market and the diversification of large corporate networks. These three grandchildren mentioned above and included by the World War II zaibatsu. Keiretsu vertical industry and distribution networks and asymmetric dominated sectors where a small company by wide sectors.
The Toyota Group to be the largest of the groups Keiretsu vertically integrated. The United States seemed to most Western countries negatively Keiretsu because they interpret such a plan work to have it banned from the monopoly or organization.
Toyota Group is a great example of a highly successful, complex and high-profile Keiretsu in Japan. It is a member of the Mitsui Company, which is one of the major banks, but very independent and functions of the Bank. In the past two decades, Toyota was on the top of the list locally in the United States as well as abroad in terms of sales and profits. The parent company generates, on average, $ 72 billion a year in sales with 72,000 employees. The equivalent of $ million in sales per employee, which is nearly six times that of a rival, General Motors. The car was Toyota's best-selling in Japan for more than twenty-four years. This shows the unity of the influence and power of Keiretsu in Japanese.
This company is the largest industrial combine in Japan and one of the largest Keiretsu in the country. Another amazing fact is that Toyota is much more than just the auto industry. In fact, Toyota is one of the key participants in the three telecommunications companies. Is the main investor in the development of the computer system company. And it owns stakes in an insurance company specializing in automobile insurance. Moreover, Toyota operates four real estate companies, two financial companies are also exploring opportunities in the aviation sector.
due to the emergence of Keiretsu in the post-World War II Japan, benefited only those employees who have worked in the company's core sectors. Those who were forced to work in small companies suffer from low wages, limited mobility and career and job insecurity. A lot can be said about the Keiretsu system, which, as we have seen in the case study on the Toyota Group, can yield a lot of power and success.
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