compare and contrast business systems within Japan and China
The following essay will compare and contrast business systems within Japan and China. To begin with a short theoretical description of a business system will be given as well as stating key elements in Japan and Chinas business systems. Relevant theories and use of comparative country and corporate examples will be used for support throughout the essay. One will use 3 areas for contrasting and comparing the different business systems, firstly the nature of the economic agents such as firm ownership, shareholder control and corporate governance will be analysed, secondly the way in which firms connect and develop relationships with each other within the same markets or industry’s and thirdly the coordination within the firm, how the activities are coordinated and controlled these areas clearly distinguish between business system.
To begin with one must understand the theoretical understanding of a business system, which according to Whitley, (2000) business systems are distinctive configuration of firms and markets, which have become established in particular institutional context as the dominant ways of structuring economic activities. Whitley describes the main theme of a business system as an approach that differences in societal institutions that encourage particular kinds of economic organization and discourage others.
The Japanese economy is one of the strongest in the world home to some of the most famous names in business such as Mitsubishi, Toyota, Nissan, Honda and many more. Throughout Japan there is no standard type of firm but the variance is much smaller to that of western countries. The major firm type in Japan is the Keiretsu, which literally means “a series of affiliations” which in fact resembles that of a super mega firm, excluding outsiders, allowing for no new completion and essentially creating a monopoly (Japanese123, 2010) A Keiretsu comes in two different forms vertical and horizontal, but this will focus more on the vertical as it
To begin with one must understand the theoretical understanding of a business system, which according to Whitley, (2000) business systems are distinctive configuration of firms and markets, which have become established in particular institutional context as the dominant ways of structuring economic activities. Whitley describes the main theme of a business system as an approach that differences in societal institutions that encourage particular kinds of economic organization and discourage others.
The Japanese economy is one of the strongest in the world home to some of the most famous names in business such as Mitsubishi, Toyota, Nissan, Honda and many more. Throughout Japan there is no standard type of firm but the variance is much smaller to that of western countries. The major firm type in Japan is the Keiretsu, which literally means “a series of affiliations” which in fact resembles that of a super mega firm, excluding outsiders, allowing for no new completion and essentially creating a monopoly (Japanese123, 2010) A Keiretsu comes in two different forms vertical and horizontal, but this will focus more on the vertical as it
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