Business Group Management in Japan

Contents......Page 10
Preface......Page 14
About the Volume Editor......Page 20
List of Contributors......Page 22
Part 1: Accounting Information for Group Management and Management Control System......Page 26
1. Introduction......Page 28
2.1. The importance of “management of dispersion and unification”......Page 29
2.2. The three types of group management and the roles of the group headquarters......Page 30
2.3. Functions of the group headquarters......Page 31
3.1. Group performance accounting......Page 32
3.2. Characteristics of performance accounting information that are useful for group management......Page 33
4. Example of Using a Performance Evaluation System for Group Management......Page 35
5. Using Management Accounting Information to Generate Synergies......Page 37
6. Summary and Conclusions......Page 39
References......Page 40
2. Significance and the Purpose of the Study......Page 42
3. The Meaning and the Purpose of a Pure HD System......Page 43
4.1. The pattern of organizational restructuring......Page 45
4.2. The purpose of organizational restructuring......Page 46
5. The Result of Field Study of Pure HD System......Page 48
5.1. Portfolio type......Page 50
5.3. Hybrid type......Page 51
6.1. The layered organizational structure......Page 52
6.2. Going public of a core business subsidiary, and the conglomerate discount......Page 53
6.3. Dividend policies to holding company and subsidiary’s earning retention place......Page 55
7. Summary and Future Tasks......Page 57
References......Page 59
Part 2: M&A Including MBO and Outsourcing for Group Reformation......Page 62
1. Introduction......Page 64
2. The Effects of M&A......Page 65
3. The Outline of the Verification Method and Questionnaire......Page 66
4. Creation of Analytic Models......Page 68
5. Characteristics of the Relationship Between Cost Reduction, Performance, and Financial Indicators in M&A......Page 69
6. Amended Model......Page 70
7. The Result of Verification......Page 72
8. Conclusion......Page 73
Appendix 1......Page 74
1. Introduction......Page 76
2. Financial Difficulties and Restructuring at Nissan Motor Company......Page 78
3. Corporate Governance and MBOs......Page 79
4. Vantec, a Logistics Company......Page 81
5. Zero, An Automobile Carrier2......Page 83
References......Page 86
1. Introduction......Page 88
2.2. Introduction of new services through outsourcing......Page 89
3.1. Source of the competition’s predominance turns from tangible assets to knowledge assets......Page 90
3.3. Streamlining the administrative body......Page 91
4.2. Value creation outsourcing......Page 92
4.3. Source of the competition’s predominance: from a thing to a person......Page 93
5.2. Customer satisfaction shifts from cost to quality......Page 94
7. Total Optimization Rather Than Partial Optimization is Important......Page 95
8. Summaries......Page 96
Further Readings......Page 97
1. Research Purpose: How Can the Purchase Price of M&A Function as Incentive to Merger?......Page 98
3. Control-Premium......Page 99
4. Allocation of Synergy Effect Based on the Purchase Price and Acquisition Premium......Page 101
5.1. Process of acquisition......Page 102
5.2. Calculation method of merger ratio......Page 103
6. Role of Stock Price in Calculating the Merger Ratio......Page 105
7. Formula for Synergy Effect Allocation and Determination of Acquisition Price......Page 106
8.1. M&A through market transaction......Page 109
9. Condition for Realizing M&A Agreement Under the Theory of Cooperative Game......Page 110
10. Conclusion: Other Factors in the Real World......Page 112
Endnotes......Page 113
References......Page 116
Part 3: Analysis of Accounting Information for Consolidated and Business Group and Segmental Business Units......Page 118
1. Introduction......Page 120
2.1. Scope of consolidation......Page 121
3.1. Consolidated financial statements by business......Page 122
3.2. Performance evaluation index......Page 124
4.2. Performance determination system for each consolidated operational headquarters......Page 125
5. Conclusion......Page 127
References......Page 128
2. Organizational Innovation and the Management Approach......Page 130
3. Measuring the Entire WACC......Page 131
4. Measuring the WACC of Each Business Segment......Page 133
5. The First Method of Measuring Each Segment’s Economic Profit......Page 137
6. The Second Method for Measuring Each Segment’s Economic Profit......Page 139
References......Page 142
Part 4: Management of Inter-Firm Relations......Page 144
1. Introduction......Page 146
2.1. The SCOR-model......Page 147
2.2. Inter-firm cost management......Page 148
3.1. Opportunism in supply chains......Page 149
3.2. Controlling supply chain opportunism......Page 150
4. Effects of Management Accounting on Goal Congruence in Supply Chains......Page 151
5. Effects of ABC on Supply Chain Integration......Page 153
6. Using the BSC System to Promote Goal Congruence......Page 154
7.1. Precedence in studies......Page 155
7.2. Revenue sharing based on ABC......Page 157
Endnotes......Page 158
References......Page 159
1. Introduction......Page 162
2. Framework: Production Quantity Budget and Sales Quantity Budget in Toyota......Page 163
3. Example Relating to Production Quantity Budget and Order Quantity Budget4......Page 166
4. Management of Toyota’s Distributors in Japan......Page 168
4.1.2. Franchise system......Page 169
4.1.3. One region, one distributor system......Page 170
4.2.1. Sales incentive......Page 171
4.2.2. Product allocation policy......Page 172
Endnotes......Page 173
References......Page 174
1. Introduction......Page 176
2.2. The bases of the royalty calculation......Page 177
3.1. Relationship between the cost of goods sold and the amount of loss......Page 178
4. Gross-Profit Sharing System for Convenience Stores......Page 179
4.1. Interpretation of the gross-profit sharing system......Page 180
4.2. Role of the franchisee......Page 181
5.1. Optimum sharing of disposal loss......Page 182
5.2. Risk sharing of disposal loss......Page 183
6. Conclusion......Page 185
References......Page 186
1. Introduction......Page 188
2. Conceptual Framework and Literature Review......Page 189
2.1. Transaction characteristics......Page 190
2.3. Control characteristics......Page 191
2.4. Research model and expectations......Page 192
3.2. Variable measurement......Page 193
4. Results and Discussion......Page 200
5. Concluding Remarks......Page 203
References......Page 204
1. Introduction......Page 208
2. Actual State of Inter-Firm Cooperation......Page 209
3. Relationship between Inter-Firm Cooperation and Performance......Page 214
4. Conclusion......Page 216
References......Page 217
1. The Purpose of This Paper......Page 218
2.1. Problem setting......Page 219
2.2. “Supply and demand equilibrium price” when the resource demand exceeds its supply......Page 221
2.3. “Incentive price” when the resource demand exceeds the resource supply......Page 223
2.5. “Incentive price” when the resource supply exceeds the resource demand......Page 227
3.1. Opportunity cost of the constrained resource and the transfer price......Page 228
3.2. “Shadow price” as the opportunity cost......Page 229
4.1. Merits of incentive pricing......Page 230
4.2. Forming the socially optimal organizational structure through the incentive price......Page 231
References......Page 232
Part 5: Inter-Organizational Learning and Autonomous Organizations......Page 234
1. Introduction......Page 236
2.1. Routine-based learning theory......Page 237
2.2. Competency traps and the exploration–exploitation problem......Page 238
2.3. Framework of population-level learning......Page 239
2.4. Research implication of population-level learning......Page 240
3.1. Brief overview of collective strategy......Page 241
3.2. Control of population-level learning......Page 242
4. A Case of Population-Level Learning in Japan......Page 244
4.1. Flexibility of fixed transaction relationships......Page 245
4.2. Collective strategies related to growth of local industry......Page 246
5. Discussion......Page 248
References......Page 249
1. Characteristics of Empowered Organizations Observed in Japanese Companies......Page 252
2.1. Significance of organizational learning......Page 253
2.3. Two-step model for organizational learning......Page 254
3. Cases of Empowered Organization......Page 255
3.1. The Toyota production system of Toyota......Page 256
3.2. The on-premise ordering system of Seven-Eleven Japan......Page 257
4.1. Traditional role of MCS......Page 259
4.2. Roles of MCS in an empowered organization......Page 260
References......Page 261
Index......Page 264