The purpose of this paper is to consider profit planning models applying chance constrained programming and to analyze C-V-P relationship by using the optimal solution. By knowing the relationship, managers can understand the process of profit generation collectively and clarify the problems.

The relation between mathematical programming and C-V-P analysis is not direct; however, if managers do C-V-P analysis by the optimal solution, they can manage easily the problem of a multiproduct production company with several constraints. Also, the model can be applied to many situations by changing the formulation.

The author simplifies the model extremely to clarify the fundamental features and is working on the assumption that only the sales price is random. Using figures, the author investgates the features of profit planning models using two types of chance constrained programming. Besides, the affect of the optimal solution and the C-V-P relationship by changing the coefficients of model are considered in the figures.

This paper examines the characteristics of divisionalized management in Japanese companies based on a field study of management control systems. Many Japanese companies introduced decentralized management systems around 1960, when a now well known report, “Profit Control through Divisional Management Systems”, was published by MITI.

Many of the Japanese companies which “imported” the American-style divisional systems gradually modified and adapted them to their own business practices. While each company applied its own process to adjusting and modifying the systems, we found several common characteristics which could be called “Japanese MCS” as we examined fundamental aspects of the field study.

An important observation is that there were two types of adaptive processes by which Japanese companies modified their divisional MCS from American style to Japanese style. These are (a) modification of the “hardware” aspects of MCS, and (b) modification of the “software” aspects involved in the practical business and organizational behavior. The field study shows that the aspect indentified in (b) are more important because they are deeply related to the corporate culture.

The recent financial deregulation and internationalization have caused a great deal of financial risk to banking in Japan. Then financial risk management becomes very important, and banks need to manage not only profit, but also risk.

In this paper, the multi-goal and stochastic ALM model is proposed. It is the advanced model with both goal programming and stochastic programming with simple recourse, which is based on the idea of risk management (ALM). The features of this model are that the bank can make the plan both to manage assets and liabilities in the future and to achieve the goals, by using this model, and that it can show the trade-off relation between profit and risk, which are set as goals. In addition, the feature that three kinds of the stochastic constraints with simple recourse for liquidity risk, risk asset ratio, and market conditions are formulated with uncertainty, can be shown.

The method to solve this model is proposed, in which both goal constraints and stochastic constraints with simple recourse are simultaneously formulated. Then the usefulness of this model will be considered by representing the features and mathematical formulations.

Corporations often make joint investment decisions of equipment and personnel rather than making isolated equipment investment decisions. The paper discusses on relations between equipment investment performance and patterns of joint investment decisions for equipment and personnel made by Japanese 1,014 manufacturers during fifteen years from 1976 to 1991. Based on the same principle as that of calculating NFV, the net final value, for ex-ante evaluation of investments, ‘NFV’ was cal-culated as the equipment investment performance using data taken from Corporate Annual Securities Reports (CASRs). The surplus and deficit of ‘NFV’ is combined with positive and negative growth of operating income to produce four ‘Income-NFV Categories’ (‘INC’), which in turn were used to classify the manufacturers. Nine ‘Joint Investment Patterns’ (‘JIPs’) were established by combining fifteen years’ average increasing/decreasing rate of equipment and personnel which were calculated from their increase/decrease data from CASRs. Nine ‘JIPs’ were summarized into six ‘Joint Investment Groups’ (‘JIGs’). Manufacturers classified above were further distributed into nine ‘JIPs’ and six ‘JIGs’ to count the number of manufacturers fallen into 36 categories (4 ‘INCs’ multiplied by 9 ‘JIPs’) and 24 categories (4 ‘INCs’ multiplied by 6 ‘JIGs’). Through the analysis of the four tables obtained from the procedure, some overall and important relations were found to exist between investment patterns and investment performance.

In this study, experiments with numerical data are made to the multi-goal stochastic ALM model with simple recourse, which is based on the idea of risk management (ALM), and proposed by Hibiki and Fukukawa. The purpose of this experiments is to compare the stochastic model with deterministic model, and to investigate the features of this model with uncertainty, such as the trade-off relation between profit and risk, the computing technique for the solution, and so on. Three experiments are shown. Several cases are compared, which have (1) the different goals to the profit and interest rate risk, (2) the different ways of the linear approximation to the penalty function, (3) the different shapes of the probability function. Then the usefulness of this model in practice can be reported by representing the results of those experiments.

This paper presents a case study of the divisional management control and accounting systems of a Japanese manufacturer, S Chemical Company. The main purpose of this study is to explain the characteristics of S Chemical’s management controls and to identify the difference between Japanese and American management styles.

Section 1 presents an outline of the field study and the main purposes of this paper. Section 2 describes the background of the “1980 reformation,” the comprehensive restracturing of organizational and accounting systems at S Chemical Company in the early 1980s. Section 3 examines the essence of 1980 reformation, and Section 4 reviews the reactions against the changes that occurred during the reformation. The last section of this paper summarizes the characteristics of S Chemical’s divisional management style.

A function which shows the required improvement points on an Expert System which judges the customers’ creditability has already been proposed.

However, it has problems relating to the properties of the input and output date.

The purpose of this research is to propose a new method of showing the required improvement points, and which solves above problems and verifies its usefulness.

Since the input data are influenced by the subjectivity of the person, the data which the persons in charge input are not always all the same, even if they collect and analyze the information under the same consistent standards.

On the other hand, the output data which are obtained by an Expert System are feedback to the person in charge. These data must promote negotiation about his loan activity in as useful a manner as possible.

In order to solve these problems relating the properties of the input and output data, the following two methods are proposed:

One is a method of displaying top priority for improvements, which shows just one required improvement.

The other one is a method of displaying all points for improvements, which shows all required improvements.

These two representative methods are verified and clarified that the method of displaying all points for improvements is useful.