企业集团HKUST讲座

企业集团HKUST讲座Businessgroups—acommonfeatureinmanycountriesaroundtheworld.HongsinHongkongHutchisonWhoa,CITICPacific,SwirePacific,NewWorldDevelopmentChaebolinSouthKoreaSamsung,DaewooFamily-centeredindustrialgroupsinIndiaTataGroup,EscortsGroupKeiretsuinJapanToyota,Nissan,NTTBusinessGroupsBusinessGroupsCommoncharacteristicsofbusinessgroups:HavemanyindividualbusinessesBusinessescompeteinmultipleindustries:automotiveselectronicsservicesSomeformofcommonadministrationandcontrolacrossbusinessesinabusinessgroupweakerincaseofkeiretsuinJapanstrongerincaseoffamily-centeredindustrialgroupsinIndiaBusinessGroupsBusinessgroupssimilarinformtoconglomeratesConglomeratesoutoffavorinmanycountries?Businessgroupsinmanyothercountriesfoundtobeassociatedwithhigherperformance.Majorquestion:Whatisrationaleforabusinessgroup?Whatvaluedoesabusinessgroupprovide?日本Keiretsue.g.1.FinancingIntra-grouplowcostfinancingbyNucleusBank,especiallyforcapitalintensiveindustries

Protectionfromtakeoverthreatsbycross-holdingofsharesAdvantagesofKeiretsuBankofTokyo,MitsubishiMitsubishiConstructionNipponMitsubishiOiMitsubishiHeavyIndustry

Safetynetforsalesfigures,e.g.MitsubishiSteelforMitsubishiConstructionTokioMarine&FireInsurance,MitsubishiResearchforwholegroupAvoidbeingundercutbycompetitorsCross-sellingbusinessopportunityfromgroupmembers’clientbase/staffDifferentservicesunderoneroof=>LargerbusinessopportunitiesAccesstoforeignmarketsviageneraltradingcompaniesJointdevelopmentefforts=>innovation2.BusinessIndustry-wideexpertisee.g.industrialknowledgehelpmerchantbankinassessingnewinvestmentsopportunityEfficientflowofmarketinformation/customerpreferenceforproduct/servicedesign12,000professionals,42officesinJapan,118officesandsubsidiariesin73locationsoverseasLeverageonthegroup’sreputation=>reduceimagebuildingcostDifferentservicesunderoneroof=>LargerbusinessopportunitiesL-TgrowthratherthanS-TprofitSharingofmanagementexpertiseExchangedirectorsPresident’sClub,FridayClub3.ManagementDisadvantagesofKeiretsuBaddebtInsufficientcreditreviewHindrancetoopenmarketTransferpricingratherthancompetitivemarketpriceFailtoexplorenewopportunitiesoutsideFatherdead,sondeadsyndromeBankofTokyo,MitsubishiBankastherisktakerInflexibilityFacesavingslowdowndecisionmakingOutlookforKeiretsuReducedependenceongroupcompaniesMisubishiMotorjointventurewithDialmer-ChyrslerSourcingdecisionbasedoncostthanrelationshipMoreopentoglobaleconomyConcentrateoncorebusinessBigbandfinancialreformmakingiteasierforfirmstoraisemoneywithoutgoingtokeiretsubanksBusinessGroupinHongKong:HongsHongsinHongKongHongKongbusinessenvironment:moreconcentratedDominatedbyfivelargeHongs HutchisonWhoa* CITICPacific SwirePacific NewWorldDevelopment JardineMathesonHongsareaformofbusinessgroupCompeteinmultiplebusinesses,typicallylandandpropertymanagementconstructionretailandotherservices*HutchisonWhoa*HutchisonWhoaHongs:CompetitionHongsoccupypreferredpositionsinmanyindustriesinHongKong.IndustriestendtoinvolvehighcapitalinvestmentIndustriesinvolvepossessionofscarceresourcesHongsoperateinmostlyoligopolisticormonopolisticindustries:fewcompetitorscoordinatedactionamongcompetitorsHongs:CompetitionandPerformanceHongshavedifficultymovingintointernationalmarketsStrongpositionwithinHongKongMajormovesbeingmadeintoChinaHongsamongbestperformersinHongKong:leadingconstituentsofHangSengIndex(HongKongstockexchange)FirstPacificalsopartofHangSengIndexamongleadingperformersin1990sNetworkinginJapan:Keiretsu

JapaneseGroupsofCompaniesDomesticBusinessKeiretsu:IndustrialgroupsofcompaniesTwoforms:VerticalkeiretsuHorizontalkeiretsu6majorgroups2minorgroupsInternationalBusinessIntegrationamongcompaniesWithingroupintegrationCross-industryintegration

HorizontalKeiretsuHorizontalKeiretsuAuniquelyJapaneseformofcorporateorganizationDefinitionofHorizontalKeiretsu：groupoffirmsoperatingindifferentindustriesCharacteristicscross-holdingofsharescross-personnelappointmentsintra-groupfinancingbycorebankformationofPresident’scouncilsgeneraltradingcompaniesintra-groupcompanyjointventuresTheBankofTokyoMitsubishiTokioMarine&FireInsuranceMitsubishiCorp.MitsubishiHeavyIndustriesUnit:%ofpaid-upcapitalAsofMarch19961.44.54.13.06.13.13.61.62.31.82.04.6CrossholdingofShares

(MitsubishiGroup)e.g.,FourMajorMitsubishiGroupFirms8HorizontalKeiretsu三菱三井住友三洋三和第一劝业KeiretsushowingInterlockingandInterloansMitsubishiCorporationFoundedin1870Classifiedastradingfirm,leaderininternationaltradePioneerinthefieldof“Sogo-Shosha”merchantbanking27membercompaniesemploying230,000people(Year1999)Sixmajorbusinessareas:InformationSystems&ServicesFuelsMetalsMachineryChemicalsLivingEssentialsMitsubishiHeavyInds.MitsubishiCorp.MitsubishiBankMitsubishiTrust&BankingMeijiMutualLifeInsuranceTokioMarine&FireInsuranceMitsubishiWarehouse&TranspMitsubishiMotorsNipponYusenMitsubishiKakokiMitsubishiRayonMitsubishiConst.MitsubishiEstateAsahiGlassMitsubishiResearchInstituteMitsubishiElectricNikonMitsubishiSteelMitsubishiMaterialsMitsubishiAluminumMitsubishiCableMitsubishiShindohMitsubishiPlasticIndsMitsubishiGasChemicalMitsubishiKaseiMitsubishiPetrochemicalMitsubishiPaperMillsKirinBreseryMitsubishiOilMembersoftheMitsubishiIndustrialStructureofMatsushitaGroupMatsushitaElectricIndustrialELECTRICAL20companiesHOUSING1companyBICYCLES2companiesCDs/TAPES1companyMACHINERY1companyREALESTATE1companyFINANCE3companiesLIGHTING1companyInnerGroupofCompaniesinMitsubishiMitsubishiCorp.MitsubishiBankMitsubishiHeavyIndustriesMetalsChemicalsRealEstateGlassTextilesPaperVerticalKeiretsuDefinitionofVerticalKeiretsusimilarsetofconnectionssupplieranddistributornetworksinsameindustryAveragesizeof35VerticalgroupsAssets=3.3trillionyenParentfirmaccountedforhalfthesizeSales=4trillionyen20%ofgroupshadsales>10trillionyen22%ofsalesfromsubsidiaries/affiliateswenttoparent13%ofparentsaleswenttosubsidiaries/affiliatesKeytypesofVerticalKeiretsuProductionKeiretsuCenteredaroundmajorautomotivemanufacturersToyotaHondaSales&DistributionKeiretsuVerticalintegrationofproductdistributionfromfactorytoretailoutlets MatsushitaHitachiSonyAeonCharacteristicsofVerticalKeiretsuHighequityshareholdinginsubsidiary/affiliates91%onsubsidiary;35%inaffiliatesIntra-groupcommercialtransactions,includingfinancing&supplychainCrossmovementofpersonnelStrategicco-ordinationJapaneseJointVenturesJointVenturesIntegrateactionsofJapanesesubsidiariesacrossregionslinkfirmswithinagrouplinkfirmsacrossgroupsJointventureshelpreplicatedomesticpatternsfromJapantointernationalmarketsJVs:acriticalpartofinvestmentstrategyinAsiaWithinAsia,significantinvestmentbyJapan (Japanleadingcompetitors)JapaneseForeignDirectInvestmentForeignSubsidiaryExitJapaneseInvestmentbyRegionJapaneseInvestmentbyModeJapaneseInvestment

byModeandRegionEntryModeandPerformanceNumberinfinancialperformancecolumnrepresentspercentageofsubsidiariesreportingprofitableoperationsintheyear.

TypesofJointVenturesInternationalJointVentureBetweenJapanesecompanyandloca