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see zaibatsuzaibatsu
[Jap.,=money clique], the great family-controlled banking and industrial combines of modern Japan. The leading zaibatsu (called keiretsu after World War II) are Mitsui, Mitsubishi, Dai Ichi Kangyo, Sumitomo, Sanwa, and Fuyo.
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In Japan, a strong alliance of related organizations that shares knowledge and cooperates to control its sector of the business, including the supply chain and distribution. Meaning "series," the "horizontal" Keiretsu are six major banks, such as the Mitsui Group and Sumitomo Group. "Vertical" Keiretsu are industry consortia, such as the Toyota Group, Honda Group, Hitachi and Toshiba. The Japanese government is involved and supportive. See interfirm network.
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References in periodicals archive ?
Keiretsu and Their Major Banks Source: Industrial Groupings of Japan (2000-2001) Mitsubishi Group Bank ofTokyo-Mitsubishi Mitsubishi Trust & Banking Nippon Trust Bank Mitsui Group Sakura Bank Mitsui Trust & Banking Sumitomo Group Sumitomo Bank Sumitomo Trust & Banking Fuyo Group Fuji Bank Yasuda Trust & Banking DKB Group Dai-Ichi Kangyo Bank Sanwa Group Sanwa Bank Toyo Trust & Banking Tokai Group Tokai Bank Chuo Trust & Banking Traditionally, the overall function of Japanese keiretsu is to provide support for industrial organization to group members (Gilson and Roe, 1993) and facilitate the pursuit of a desired mode of output distribution (Nakatani, 1984).
Government deregulation, the loosening of keiretsu ties, falls in distribution cost, improvement(s) in the availability of qualified personnel and changing consumer preferences have helped foreign investors.
In Japan big companies provide space and money for creativity and new product development.However this only happens in the traditional environment and strengthens the power of existing keiretsu the huge Japanese business conglomerates.
After the war, the old zaibatsu banks formed the core of new business associations called keiretsu, whose member companies hold equity stakes in each other's firms sharing voting rights and deciding policy in 'President's Assembly' (shacho-kai), regular meetings conducted confidentially among member chairmen, presidents and directors.
But recent studies suggest emergent American practices differ from traditional Japanese vertical keiretsu practices.
Alliance of Angels, Frontier Angels, Keiretsu Forum Northwest, Sand Hill Angels and Wings were the other investors in Cadence Biomedical.
The International Investment Forum (IIF) has been created through a partnership between BSPA, global communications giant Cisco and the Keiretsu Forum, the world's largest angel investment organisation.
Vogel's central conclusion is that pressure to liberalize the Japanese economy after its near collapse in the 1990s has been limited by the historical legacies of the main bank system, supplier-manufacturer loyalty, and the organization of industry through keiretsu networks.
This all brings to mind the Japanese concept of keiretsu, where groups of affiliated companies work in concert, in theory to their mutual advantage.
Suppliers to Weichai Power and Toyota Keiretsu (meaning a network of mutually supportive companies) such as Denso, Toyota Boshoku Aisin Seiki are also on the top ten buyer list, along with large, global European suppliers like ZF Friedrichshafen, SKF Group and BASF.