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Weird Letter, page-72

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    The functions of keiretsu

    There are several functions of a keiretsu which decided that it has a big advantage over other competitors and contributed to the big success of Japanese group companies on the world market. Some authors argue that the one of the most important function of a keiretsu is minimizing transaction cost (Shimotani, 1995:54). But according to Kensy (2001: 222) there are seven tasks performed by a keiretsu on behalf of the members of its group:

    • organization of overall business procedures,
    • risk-distribution function,
    • information function,
    • internal financial market functions
    • strategic group coordination functions,
    • symbolic functions,
    • forward-looking structural changes functions.
    http://www.polska-azja.pl/what-are-the-major-characteristics-and-functions-of-the-japanese-keiretsu-%E7%B3%BB%E5%88%97-how-and-why-are-these-changing-today/
 
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