Abstract
The purpose of this paper is to review some basic problems in administrative organization and management accounting information systems in recent group companies.
Given the severe competition existing on a worldwide scale, we must surely admit that in Japan only few attempts at administrative sciences have so far been made.
However a close point when a world scale premising severe competition, before turning to a close examination of business organizational changes occuring recently throughout the world would show the preponderance of diversification of business, geo-grapical expansion or spreading out as well as integration. It is now in the ordinary course of matters for companies to quickly make inroads into or promptly retreat from new businesses or markets to keep their companies profitable.
Changes in business organization now involves not merely the restructuring of divisions and departments in a parent company, but also include mergers and acquisitions while establishing subsidiaries or associated companies. In addition, business combinations or alliances have been attempted or achieved by capital participation, joint investments, joint ventures, sales tie-ups, and technical tie-ups.
The development of the science of logistics or information technology expedited the progress in forming group companies. Because of this tendency, we are now in the era of so-called “integrated decentralization.” In other words, at the same time that the management organiztion of group companies has moved toward decentralization of powers and responsibilities, management information in full, on time and at need has been centralized in the main or parent company.
The essencial question is getting information from not only operating units but also the surrounding market in order to catch up with changing circumstances and to take the necessary steps in response.
I would like to focus attention here on the segmentation and sub-consolidation of group businesses, because they are key factors in group management accounting.
