A worthy salute to the late Victor Borge in the headline…
Japanese industrial giant Toshiba has announced it will divide into three companies, and that its governance needs a thorough overhaul. Toshiba itself will persist in the form of Toshiba Tec Corporation – a vendor of printers, barcode kit, and point of sale tech. The firm will also sell the 40 per cent stake it holds in memory …
At the risk of downvotes.
Mergers are cost synergies and spinouts are cost focus. End of the day it s just bad management and bad leadership.
I can only imagine (having lived through it myself) just the shear amount of middle management and paperwork to do anything never mind the very risk averse culture from Japan and their ranks of org chart structure.
Why should you be downvoted for making good points? Some shareholders have been agitating for this for years in Japan but, as with Olympus, the companies are good at resisting
In the end it often makes little difference, except when the reorganisation is a prelude to market concentration which means higher prices and fatter margins: the bane of our times.
This is very interesting. In the past couple of weeks, two US conglomerates decided to break themselves up: GE and Johnson & Johnson. It might be that the age of conglomerates is over.