Keiretsu and Chaebols Keiretsu - a group of closely related Japanese companies‚ often with interlocking ownership. Traditionally‚ there have been both horizontal and vertical keiretsu. Horizontal keiretsu center on a main bank and their companies span various industries. Vertical keiretsu center on a major manufacturer‚ like Toyota‚ and include its various suppliers and wholesalers. The keiretsu encourage its members to award contracts to sister companies and cooperate with each other for the
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The essay below talks about two major business organisations of Korean Chaebols and Japanese Keiretsus. It will be discussed the differences and commonalities of Keiretsus and Chaebol; the structure‚ history‚ and how the business is run by each organisation. Also‚ it talks about these two business organisations after the 1997-1998 Asian Financial Crisis. How did Chaebols and Keiretsus change its management style to overcome the bankruptcy and still keep the traditional way of management. And as a
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Chaebol The “Chaebol” is native to Korea and is a unique form of a family-owned business conglomerate. The Chaebol has a centralised ownership structure where founding family members controls the business‚ where the chairman has power over all operations. Member firms are called Kyeyol and falls under the control of the central planning office‚ which is controlled by the chairman. Cross-equity holding by family members and complex systems of interlocking ownership of member firms enables control
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as ASIAN MARKETS | November 23 2011 | THIS REPORT TALKS ABOUT THE KEIRETSU CULTURE IN JAPAN AND HOW IT IS USED IN MARKETING‚ CAPITAL AND MANPOWER STRATEGIES. IT ASLO TALKS ABOUT THE AUTOMOBILE INDUSTRY IN THE GLOBALIZED WORLD. | BY: AFREEN KHAN | THE KEIRETSU CULTURE IN JAPAN "Keiretsu" is a Japanese term and translated as "Group". It also interpreted as "partnership" or "alliance". Keiretsu is the renowned Japanese co-operate grouping characterized by cross-share holdings
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address is the Chaebols and the corruption status of South Korea. The Chaebols and the Government The term Chaebol refers to big business group in South Korea. Chaebols are usually characterized by family control of ownership and management‚ diversified business areas‚ and their close relationship with government (1). The development of the Chaebols can be traced back to the period around 1950 to 1960 when South Korea gone through a very rapid industrialisation process led by the Chaebols within few
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Charlotte Marguerite Powers The Changing Role of Chaebol Multi-Conglomerates in South Korea’s National Economy The chaebol (財閥‚ 재벌) multi-conglomerates were instrumental in the development of the South Korean economy and will continue to be a source of great economic strength in the future. However‚ a weak system of corporate governance has exacerbated past financial failures in South Korea and leaves the Korean economy at future risk. To ensure Korea’s success in an increasingly globalized
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CASE: SAMSUNG ELECTRONIC CORPORATION: GOVERNANCE OF CHAEBOLS Copyright: Prof. Florencio Lopez-de-Silanes Professor Florencio Lopez-de-Silanes and Rakhi Kumar‚ Yale MBA02 prepared this case as the basis for class discussion rather than to illustrate the effective or ineffective governance of an organization. Prof. Florencio Lopez-de-Silanes INTRODUCTION Case: Samsung Electronics Prior to the Asian currency crises‚ South Korea was an investment destination for several institutional
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The downfall of many South Korean (will be referred to as Korean in the scope of this paper) business groups‚ namely the chaebols in 1997 was so devastating to the Korean economy that its government was forced to accept a US$58 billion bailout from the International Monetary Fund (IMF). However‚ the IMF fund was not provided unconditionally; Korean government had to improve its economic competitiveness in many areas to satisfy the demands required by the IMF‚ of which corporate governance was of
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Chaebol Reforms of South Korea: Developmental State and Beyond‚ Focusing on the Kim Administration (1998~2003) International Studies 1569095 Yun Gyoung Choi The unique Chaebol structure in South Korea could be said to be a vestige of the developmental state system in East Asia‚ in which the government provided almost unlimited support to emerging or prospective industries to achieve rapid economic growth. However‚ after the Asian Financial Crisis of 1997‚ suspicions arose that the ‘too big to fail’
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ESSAY Topic: Explain the Keiretsu inter-structure‚ and discuss why it is no longer the case that the keiretsus are a source of competitive advantage. This topic deserves our special attention on Asian business groups because they are closely identified with the region’s industrialisation and subsequent economic growth. They are well known by various names‚ such as Korea’s Chaebol‚ China’s Qiye Jituan‚ and especially Japan’s Kereitsu that we will explain according to its impact within inter-firm
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