Mitsubishi Corporation

Mitsubishi Corporation – Story of the Largest Trading Company in Japan Providing a Variety of Services.

Mitsubishi Corporation is the largest multinational Japanese trading company and also a member of the Mitsubishi Group. The company, Mitsubishi Corporation has ten different business segments to date and approximately employs 86,000 people worldwide. The main services provided by the company are energy, metal, food, consumer goods, financial services, construction, chemical, and machinery. Mitsubishi’s current headquarters are based in Chiyoda, Tokyo, Japan and it has a subsidiary, Lawson Inc which is a chain of convenience store franchises. So, let’s have a look at the history of the company and its predecessor.

History of Mitsubishi Corporation

The foundation of the Mitsubishi Corporation originally dates back to the time when Yataro Iwasaki founded Mitsubishi Group and eventually expanded the business. Yataro Iwasaki didn’t originally build the company but his responsibilities in the Tosa clan’s trading operation eventually made him the head of the business. The story of Mitsubishi dates back to the time when Iwasaki was employed by the Tosa clan and got his posting in Nagasaki. After he started working in the trading sector of Tsukumo Shokai, the company’s name was changed to Mitsukawa Shokai followed by Mitsubishi Shokai. In the early 1870s, the company’s name again changed to Mitsubishi Steamship Company which received government sponsorship to start a mail service between Yokohama and Shanghai.

Iwasaki, after working for a few years in the company, started to lead it in the late 1800s. His main goal was to diversify the business and thus entered the insurance, mining, and shipbuilding sector. In 1885, the unfortunate event of Iwasaki’s death took place and the responsibility of the company fell on the shoulders of Yanosuke Iwasaki, his successor. The new leader wanted to focus more on the coal and mining business and thus decided to merge the shipbuilding business with Nippon Yusen Kaisha, a rival company. In 1918, the international trading business of Mitsubishi formed another company, Mitsubishi Shoji Kaisha. Mitsubishi played a very active role during World War II as the company’s heavy industry sector was responsible for producing ships, aircraft, and heavy machinery.

Dissolution of the Company

After the end of World War II, the Allied Occupation of Japan wanted the dissolution of all existing zaibatsu (large conglomerates who had significant dominating power in the Japanese economic market). Mitsubishi was one of those zaibatsu and though the company showed resistance initially, the rules were eventually implemented. The dissolution eventually took place in 1947 and Mitsubishi Shoji got rebranded into 100 different companies. But, after three years the re-consolidation was possible and Mitsubishi once again coalesced into three companies. This merger was finally completed in 1954 and it represents the present-day Mitsubishi Corporation. The company eventually listed itself in Tokyo Stock Exchange and Osaka Stock Exchange. By 1960, Mitsubishi had over fifty international offices and also established a US subsidiary, Mitsubishi International Corporation.

Two subsidiaries of Mitsubishi Corporation along with Mitsubishi Corporation became very prominent in Japan during the post-war scenario. Those two subsidiaries are Mitsubishi Heavy Industries and Mitsubishi Motor Company. In the late 1960s, Mitsubishi became the largest general trading company in Japan and eventually stepped out to acquire a lot of international companies and together formed Mitsubishi Group. Last year, a company called Berkshire Hathaway acquired 5 percent stock in Mitsubishi Corporation along with a few other Japanese trading houses.

About Mitsubishi Group

The history of Mitsubishi Group and Mitsubishi Corporation dates back to the same time as Yataro Iwasaki is the founder of both of these businesses. Dissolution of the company followed by re-consolidation has kept the brand name of Mitsubishi intact and one of the best in its sector. Mitsubishi Corporation is one of the four companies under the Mitsubishi Group. The other three being MUFG Bank, Mitsubishi Electric, and Mitsubishi Heavy Industries. MUFG Bank became the largest bank in Japan after it merged with the Bank of Tokyo and UFJ Holdings. The business of Mitsubishi Group is massive as there are more than these four main companies under the shadow of Mitsubishi Group.

About the Founder

Iwasaki Yataro was one of the most successful industrialists and financiers of Japan. Iwasaki’s exposure to modernization and scope in the industry was possible when he became an employee of the Tosa clan. Seeing his contributions in diversifying the business of Mitsubishi, he was contracted by the Japanese government during World War II to send supplies. Iwasaki’s demise was due to stomach cancer in 1885.

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The Japanese Multinational Conglomerate Mitsubishi Group completes more than 150 years of its journey.

Leave a Comment / Founder, Story, Tech Story / By Annasha

Mitsubishi group is one of the biggest multinational conglomerates based in Tokyo, Japan. The Mitsubishi Group has subsidiaries in various industries from oil and gas to automotive companies. The company was founded by Yataro Iwasaki back in the 1870s. Though the company has a lot of members spreading wings in different industries, the three main core members also known as the “Three Great Houses” comprise MUFG Bank, Mitsubishi Corporation, and Mitsubishi Heavy Industries.

The origin of the Mitsubishi Group dates back to 1870 when Iwasaki started the company with others. family members. But, a lot changes in the post-world war situation. So, let’s have a better look at the history of the company which is carrying its legacy for the past 150 years.

The Beginning of the Mitsubishi Group

Iwasaki initially worked for the Tosa Clan which was one of the most dominant merchants in Japan during the 1800s. While the clan business was thriving in Japan, the Meiji government created a new policy banning the clan-led businesses which led two powerful members of the Tosa Clan to establish a new company called Tsukumo Shokai in 1870. In 1873, Yataro was completely in charge of the company who then founded Mitsubishi Shokai. The company’s headquarters eventually moved to Tokyo and the business was renamed Mitsubishi Jokisen Kaisha.

The company started working very closely with the government as the Mitsubishi ships were used to transfer troops to Taiwan and Satsuma in 1877. Mitsubishi’s financial base became very strong after this operation and the company started flourishing under Iwasaki’s leadership. In the next few years, Iwasaki invested in new mining technology thus helping his brother’s business, and later acquired a few mines in Japan. In 1884, Mitsubishi purchased the Nagasaki shipyard from the Japanese government.

In 1885, Yanosuke Iwasaki took the place of Yataro Iwasaki as he passed away. Yanosuke was the younger brother of Yataro and the second president of the Mitsubishi Group. The new president played a major role in expanding and diversifying the company into new fields. But soon as promised to his elder brother, the reins of power were transferred to the next generation and Hisaya Iwasaki at 28 became the new president.

Entering into a new era

The young Iwasaki went to Wharton school and his leadership brought some new perspective in both business and management. The entire Mitsubishi group was then divided into various sectors like mining, banking, shipbuilding, etc and the cost and responsibility were divided accordingly. In the 1910s the company was going through great economic growth and Hisaya stepped down, passing the reins to Koyata Iwasaki. Koyata was in charge of the company during the economic depression in the early 20th century. Even in these difficult times, Koyata was committed to quality and fair business. His main idea was to shape a profitable and sustainable business which became the most important principles of the company.

While the company became one of the most powerful conglomerates in Japan, post world war II, the Mitsubishi group was forced to re-launch as independent companies. But in 1954 the companies again merged and became a single entity. In the second half of the 1900s, Mitsubishi Electric Corporation was booming. In 1969, Mitsubishi Foundation was formed which supports social welfare and research programs.

One of the most important reasons behind the success of Mitsubishi Group is its leadership. Every president that served the company embedded some strong principles in the work ethic and evolved by bringing western ideas of business and architecture into the game. The company stood strong even during the economic turmoil and during and after the world wars. Currently, the company is embarking on a new journey exploring beyond our planet.

About the Founder: Yataro Iwasaki

Born in 1835, Yataro Iwasaki understood and valued the importance of education highly. Yataro received the kind of education only a few fortunate people could afford during the time. He was born and brought up in a small village of Japan called Tosa and eventually started working for the Tosa Clan which marked the onset of his remarkable journey. While he was the president of the Mitsubishi group he introduced many new modern technologies which eventually led to uncovering some valuable mines for the company. He was the one who expanded Mitsubishi into other fields like warehousing and finance.