| Budget Amount *help |
¥3,400,000 (Direct Cost: ¥3,400,000)
Fiscal Year 2005: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 2004: ¥800,000 (Direct Cost: ¥800,000)
Fiscal Year 2003: ¥2,100,000 (Direct Cost: ¥2,100,000)
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| Research Abstract |
The main purpose of this research project was to identify turnaround strategies appropriate for Japanese companies. To do so, this project also looked into turnaround strategies of German and Korean firms which have tended to have external environments, especially employment system and social customs, similar to those of Japanese companies. Moreover, this research investigated U.S. firms' turnaround strategies because of the existence of extensive research on these companies.
According to extensive literature review on turnaround strategies, one of the most controversial issues was the importance of retrenchment in the turnaround processes. Some scholars insisted that firms facing declining performance should first do cost and asset retrenchment, and should then conduct recovery actions. Others persisted that retrenchment activities would not always lead to successful turnaround.
This research project undertook a study on the importance of early retrenchment actions for Japanese firms. Data were gathered on Japanese chemical companies. Results of the study indicated that early retrenchment activities were also crucial for successful turnaround for Japanese firms. Findings of this study were published in the Rikkyo Economic Journal, 2006.
Future studies will be conducted to find whether or not the same or similar patterns hold true for other Japanese industries such as electronics. Also, similar studies will be conducted on German, Korean, and U.S. firms.
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