【正文】
capital investmentIndustries involve possession of scarce resources220。Hong Kong business environment: more concentratedDominated by five large Hongs Hutchison Whampoa* CITIC PacificSwire Pacific New World Development Jardine Matheson220。Concentrate on core business220。Reduce dependence on group panies Misubishi Motor joint venture with DialmerChyrslerSourcing decision based on cost than relationship220。Father dead, son dead syndromeBank of Tokyo, Mitsubishi Bank as the risk taker220。Bad debtInsufficient credit review220。Business groups in many other countries found to be associated with higher performance.220。Common characteristics of business groups :Have many individual businessesBusinesses pete in multiple industries:w automotivesw electronicsw servicesSome form of mon administration and control across businesses in a business group– weaker in case of keiretsu in Japan– stronger in case of familycentered industrial groups in IndiaBusiness Groups220。220。Business groups— a mon feature in many countries around the world.Hongs in Hongkongw Hutchison Whampoa, CITIC Pacific, Swire Pacific, New World DevelopmentChaebol in South Koreaw Samsung, DaewooFamilycentered industrial groups in Indiaw Tata Group, Escorts GroupKeiretsu in Japanw Toyota, Nissan, NTTBusiness GroupsBusiness Groups220。Business groups similar in form to conglomeratesConglomerates out of favor in many countries?220。Major question: What is rationale for a business group?What value does a business group provide?日本Keiretsue. g.1. Financing? Intragroup low cost financing by Nucleus Bank, especially for capital intensive industries ? Protection from takeover threats by crossholding of sharesAdvantages of KeiretsuBank of Tokyo, MitsubishiMitsubishi ConstructionNippon Mitsubish