Essay about "Machines and machinations Anonymous.The Economist; London Vol. 439, Iss. 9251, (Jun 26, 2021): 67-68."

 This review essay may contain some errors about the objective truth. Also, this review essay is completely written by myself. Therefore might have a biased opinion. Please tell me if this essay includes some errors about the objective truth. Also, I like to hear your idea about my opinion. Please leave them in the comment. 




The article mainly talks about Japan's company, Toshiba. The company is in chaos since the many internal problems and miscalculations were made until today.  
There were accounting fraud and the wrong investment on the abroad companies like nuclear energy facility in the U.S.A. Even though it is not in the article, I think more problems were behind since Toshiba is a conglomerate that had been made a long time ago. Therefore accumulated a lot of problems like offitics and silo effect. 
For all those reasons, foreign investors are reluctant to invest more in Toshiba. 
According to the article, Alicia Ogawa, a scholar of Japanese corporate governance at Columbia University in New York, said that the foreign investment community will no longer give their goodwill to Japan's controversial companies. '


I thought it is quite interesting since Japan's conglomerates' structure and system are similar to the conglomerates of the Republic of Korea. 
In my opinion, the biggest difference between Korea's and Japan's conglomerate is the period it existed. Therefore, we can suppose that the future of conglomerates of South Korea by learning the examples of conglomerates of Japan. 

In my opinion, the major problem that both Japan and South Korea share in that section is the culture. Even though many companies of Korea changed their culture after IMF, still many companies have a culture of family compare to the western business society. 

It leads its members, workers of the companies, belonged and be a part of the company themselves. Also, society pushes people to do so until now even though it changed a lot. 
Therefore, people who belonged to the older generations still hesitate to move their workplace. And this makes inefficiency and overheating of the political disputes like silo effects. 

Another cultural, but also a systematic problem is that the few major companies share a lot of percentage of the nation's business environment. Therefore, pushing small companies to share a lot of their profits with the bigger ones. 

It is true that when companies get bigger and older, they become inefficient and have more political disputes. Even though, I believe that we can solve those problems with many solutions including making many small businesses and having more competent entrepreneurs. 

Consequently, the lesson that we can gain from the article is that we have to try not to follow the sequence of the Japanese conglomerate, Toshiba. And also its cultural background. 

Thanks. 

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