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By Hidemasa Morikawa

This booklet analyzes the pinnacle administration of prime jap companies. Drawing at the paintings of Alfred Chandler, Morikawa demonstrates the adaptation among family-owned businesses and professionally controlled firms.

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Additional resources for A History of Top Management in Japan: Managerial Enterprises and Family Enterprises

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As mentioned earlier, the overemphasis on the importance of blood relations can be regarded as harmful to a family enterprise and, as such, cannot go on indefinitely. Also, the idea that a family enterprise is an un- 22 History of Top Management in Japan fragmented, united body is problematic since there are any number of cases where the founder’s family is divided into several groups, which often results in the breakup of the original family enterprise into pieces with ownership and management of different sections of the company going to one group or another.

30 In order to understand variations in the formation of managerial enterprises, it is necessary to take a more indepth look. Managerial hierarchies are not always formed because of the need for vertical integration. There are many forms of cooperation between the founder’s family and top salaried managers, and managerial enterprises are not the de facto result when a founder’s family totally populates its top-management positions with salaried managers. In some cases, the family and the salaried managers run the business cooperatively.

Bad luck, of course, sometimes comes into play and this bad luck usually takes the form of an incompetent or untrustworthy heir. Efforts to Preserve Family Enterprises Needless to say, key factors in management environments, such as the market and technologies, are constantly changing. This is also true of the life cycles of the products and services offered by companies. Even if the goal of the company is not to grow but simply to maintain its status quo, managers of family enterprises must be sensitive to the changing world, changing markets, new information, and the latest trends.

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