JAPANESE REASONING
Iron Wall of Keiretsu
This story is based on an actual happening in a small corner of Japan.
Once upon a time, there were a big company called Company Big, Company Keiretsu, a subsidiary of the said, and Company New, a 100% independent small business seeking a business opportunity.
One day, Company Big, who had had long-held dissatisfaction toward the performance of Company Keiretsu, decided to hold a contest between their keiretsu and others. To do that, the former invited Company New and one more company to join in their bid on a large project. The competition comprised five subprojects, and participants had to present their ideas for each. Chances were supposed to be equal, and only the best would win the project.
It was a massive opportunity for Company New, so they worked day and night, day after day. Working hours easily exceeded 12 hours a day, and the presentation deck amounted to over 150 pages. They even had a presentation rehearsal at a rental hall, where all speakers actively engaged in the simulation.
Finally, the D-day came. Thanks to all-out effort and preparation, Company New competed very well. They received intensive attention and remarkably positive reactions from the audience at Company Big. Though the result announcement had to wait until the following day, the complete victory of Company New was evident to everyone in the scene. Filled with a sense of fulfilment, joy, and satisfaction, the Company New team savoured the taste of upcoming victory over a toast. Beer especially tasted good on that day.
The following day, the result came in. But it was shocking and discouraging to Company New. Though they excelled in all of the five project plans, they won only two of them. Among the remaining three, Company Keiretsu took two, and the other took one.
Asked for an explanation, Company Big said the entire audience agreed that Company New was the best in every subproject, but they had to consider other factors than that. For example, some sympathy votes for Company Keiretsu or sense of responsibility that they had to take care of their affiliated one.
Company Big didn’t want to give their keiretsu an impact that would jeopardize its business. In other words, despite its poor performance, closing a subsidiary would usually be the last thing to do, in fear of the public opinion that the parent company is ruthless and heartless, which may eventually affect their corporate image.
Therefore, when big Japanese companies invite non-related new subcontractors to competitions, it may be simply a gesture of stimulating encouragement to their poorly-operating affiliates, just like parents spank their son out of love.
Nowadays, things may be changing. But even so, such parental or big brotherhood emotion is common to many big companies in Japan, and this particular feeling may get in their decision-making. However, when it comes to a decision made by Company Big in this story, for example, the general public in Japan will still support it as a wise one made after considering various factors and balancing the rational and emotional aspects of all parties.
Since March 2006. Last update July 31, 2021. Copyright (C) Tuben. All rights reserved.
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