Compare and Contrast Business Systems in Japan and China. Answer with Reference to Relevant Theories and Use Comparative Country and/or Corporate Examples.

Introduction

Japan and China having to rule over the enterprises under family and government ties, slowly changed in its ownership structures and strategies in tackling the modern world. Constant improvement for both japan and china in product and services were much required. This report will be covering on the areas of Ownership Structure, Market Relations and Management of Japan and China Enterprise and doing a comparison to see how enterprises move towards economic growth and enterprise stability.

Ownership Structure

Japan

Zaibatsu conglomerates such as Mitsui, Mitsubishi, Sumitomo and Yasuda dominated the Japanese economy by specializing and operating in different sectors. Mitsui focused on textiles, Mitsubishi were banking, shipyards and metals such as gold, silver and coal, Sumitomo providing group strategies to Mitsubishi business models and Yasuda focused on marketing strategy in service sector. Overall, individual conglomerate appointed its leaders through family ties controlling the large industrial and financial sectors under centralization of a common holding company (Chapter 1).

After World War 2, to avoid another supplying of armaments from Japanese companies to Japanese army, U.S occupation stripped family of the conglomerates off their power, shares and moved towards decentralization. As such, U.S hoped to break conglomerates’ network and power, allowing companies to acquire independence. However, U.S did not managed to effectively dissolve the zaibatsu. (Chapter 1)

‘New’ Zaibatsu emerged and were Nissan, Nichitsu, Mori, Nisso and Riken. Comparing to old zaibatsu, these structures are disconnected to family zaibatsu and are guaranteed to require specific skills and knowledge to perform in the organization such as Mori and Nisso zaibatsu where owners are outstanding chemists. The only struggle that these organizations had to face was financial stability, which had to be outsourced. However the new Zaibatsu did not last long in the...