What Is a Keiretsu and How Is It an Example

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The Answer is A virtual organization is an organization that attempts to maximize its fluidity, flatness, and "integratedness" with the environment. Outsourcing, networking and shedding non-core functions are three ways organizations can become more 'virtual'. Typically, a keiretsu involves a large bank or financial institution, a large industrial organization, and a number of smaller firms, where the integrated network of relationships allows the large industrial organization to produce the product with financial assistance from the bank. The role of the smaller firms may be to supply parts to the manufacturer, conduct research, or perhaps distribute the final product. What we observe in virtual organizations are only those activities that are central-they are kept in-house, so to speak, and all other functions are outsourced to separate companies or individuals who are typically coordinated by a small head office. Or as in this case, each company is simply involved in some kind of network where each brings its own expertise to the collection of companies.

What Is a Keiretsu and How Is It an Example

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