The Mitsubishi Group (三菱グループ) is a Japanese multinational conglomerate.
Founded by Iwasaki Yatarō in 1870, the Mitsubishi Group traces its origins to the Mitsubishi zaibatsu, a unified company that existed from 1870 to 1946. The company, along with other major zaibatsu, was disbanded during the occupation of Japan following World War II by the order of the Allies. Despite the dissolution, the former constituent companies continue to share the Mitsubishi brand and trademark.
While the group of companies engages in limited business cooperation, most notably through monthly "Friday Conference" executive meetings, they remain formally independent and are not under common control. The three main entities (gosanke) are MUFG (the largest bank in Japan), Mitsubishi Corporation (a general trading company), and Mitsubishi Heavy Industries (a diversified manufacturing company).[3] A 2020 estimate concluded that all the Mitsubishi companies combined generate 7.7% of the total revenue of all publicly traded companies in Japan, and the group's assets amount to 433 trillion yen.[4]
History
The Mitsubishi company was established as a shipping firm by Iwasaki Yatarō (1834–1885) in 1870 under the name "Tsukumo Shokai" (九十九商会).[5] In 1873, its name was changed to Mitsubishi Shokai; Mitsubishi consists of two parts: "mitsu" (三) meaning "three" (as in the three oak leaves from the crest of the Yamauchi or Tosa family that ruled over Yatarō's birthplace and employed him) and "hishi" (菱, which becomes "bishi" under rendaku) meaning "water caltrop", and hence "rhombus", which is reflected in the company's logo. It is also translated as "three diamonds".[6]
Mitsubishi was established in 1870, two years after the Meiji Restoration, with shipping as its core business. Its diversification was mostly into related fields. It entered into coal-mining to gain the coal needed for ships, bought a shipbuilding yard from the government to repair the ships it used, founded an iron mill to supply iron to the shipbuilding yard, started a marine insurance business to cater for its shipping business, and so forth. Later, the managerial resources and technological capabilities acquired through the operation of shipbuilding were used to expand the business further into the manufacture of aircraft and equipment. The experience of overseas shipping led the firm to enter into a trading business.[7]
Companies
Business form
The Mitsubishi Group is made up of about 40 individual companies without a controlling parent company. Each of the Mitsubishi companies owns substantial (but usually not controlling) portions of the shares of the others.
Twenty-nine of the group companies participate in the Friday Conference (金曜会), a luncheon meeting of their most senior executives held on the second Friday of each month. The group began its tradition of monthly executive meetings in 1952, and over time the meetings became a venue for coordinating policy between the group companies. By the 1990s, this practice was criticized (particularly by non-Japanese investors) as a possible violation of antitrust law. Since 1993, the Friday Conference has officially been held as a social function, and not for the purpose of discussing or coordinating business strategy. Despite this, the Friday Conference has been a venue for informal cooperation and coordination between the group companies, most notably in bailing out Mitsubishi Motors during the mid-2000s.[30]
In addition to the Friday Conference, the group companies' heads of general affairs hold a meeting on the third Monday of each month, and the group companies' legal and IP departments hold a trademark policy coordination meeting on the first Friday of each month.[30]
See also
- Mitsubishi Pencil Company, which has never been part of the Mitsubishi Group despite its name
External links
References
- Origin on Mitsubishi.com website^
- Overview of Mitsubishi Group retrieved 2022-05-31^
- 三菱グループ御三家による「三菱自救済」から、重工が足抜けできた理由 ダイヤモンド・オンライン, 2020-08-21, retrieved 2024-07-10^