The historical study on the structure design of diversified electronic firms

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The purpose of this research in 2002 was to analyze the structural changes and its factors of Nippon Electric Co. (NEC) during the Post-War rapid growth. The divisional system of NEC, which was consisted with four divisions, started in 1961, and the president Koji Kobayashi subdivided NEC's business to the 12 divisions in 1965. At the same time the president Kobayashi reorganized the managing directors board, which was to discuss on strategic decisions and to control the 12 divisions. Because growing the communications business, the computers business, the semiconductors business, and the other various diversified businesses, it became necessary for NEC to make its strategy more clear. The business groups system, which controls the same business fields, consisted with some divisions was introduced in 1971, and strengthened the hierarchy system. Though the NEC's divisional system developed from 1960s' to 1970s', it included functional divisions, such as design divisions, manufacturing divisions, marketing divisions, etc. The functional divisions system, which Tadao Kagono called the feature of Japanese style, was the same as the NEC's divisional system. The case of NEC's functional divisions system didn't point out that the divisional system failed to function properly, but that functional divisions worked on relaxing the shortage of resources in NEC. Especially the flexibility of functional divisions contributed to effect on the synergy among the technical related business, such as semiconductors, computers, etc. It needs further consideration that the case of NEC will be compared with the case of Oki Electric Industry, which introduce divisional system falling behind NEC.