Toyota vs Nissan

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TOYOTA VS. NISSAN – A CONTRAST IN CULTURE, CORPORATE GOVERNANCE, OPERATIONAL STRATEGY, AND FINANCIAL PERFORMANCE Mohamad R. Nayebpour Graduate Faculty of Business Administration Keller Graduate School of Management DeVry University 2000 West Loop South Houston, Texas 77027 (713) 212-3610 H H Akira Saito Visiting Research Fellow The Institute of Economic Research Chuo University Japan H H ABSTRACT Toyota Motor Corporation and Nissan Motor Corporation were established in 1937 and 1933 respectively. They have been facing the same global challenges as well as the same politicoeconomic changes domestically and globally. They have similar business resources such as work force, capital,…show more content…
The decision-making was shared by a Patriarch and a Family Council which served as a quasi-parliamentary function. Although these dynasties were in partial control of important products, they did not have access to large sources of capital to extend their control beyond a few commodities at best. The first significant expansion beyond traditional businesses by these families occurred in connection with Meiji government’s mass privatization program of 1880 (Morck and Nakamura, 2004). Due to extensive debt it had accumulated during prior decades of modernization, Meiji government sold many industrial factories such as steel, cement, coal, metals, machines, ships, and textile to deal with its fiscal problems. Although there was no clear rule for allocation of state-owned factories, each of the four main families ended up with some assets in key industries like mining, ship building, machinery, and textile and so on. Furthermore, the Meiji government introduced the institutions of capital markets into the economy by allowing public bond trading in 1870s and start of Tokyo and Osaka Stock Exchange in 1878. As a result of these significant developments, leading merchant families took 568 1998 2000 2002 2004 the opportunity and acquired privatized operations from government and paid for it by issuing stock. Many historians consider this era as the beginning of the Japanese Zaibatsu. “The Zaibatsu groups, with
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