Abstract

The case is about Keiretsu, a unique Japanese management and holding structure that was established after the World War II. The case examines what a Keiretsu is, how this unique structure emerged, the advantages that this structure provided to the Japanese companies and the contribution of Keiretsu to the growth of the Japanese economy. The case also explains the drawbacks of the Keiretsu system and the reasons for its decline in the 1990s. The case also looks carefully at the reasons for the burst of the Japanese stock market bubble’ and its effect on the Keiretsus, as well as the other reasons for the decline of Keiretsus.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• What Keiretsus are and how they operated in Japan.

Keywords

Keiretsu, Renault, Japanese Management System, World War II, Meiji Restoration, Mitsubishi Shipping, Zaibatsus, Nissan, Horizontal Keiretsu, Vertical Keiretsu, Cross-holding of shares, Long Term Credit Bank, Ripplewood, NTT DoCoMo, NEC