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What is Bunsha?
Bunsha means company division. In
practice in means routinely spinning off
companies from the core group.
Co-founder of one of Japan's
foremost high-tech manufacturing groups, Mr. Kuniyasu Sakai has spent nearly
half-a-century building more than forty stable and profitable companies.
 Sakai's experience as a successful manager of a large group of small
companies led to the development of his business philosophy known in Japan
as Bunsha, or "company division."
The Origin of Bunsha
Kuniyasu Sakai and his
partner, Hiroshi Sekiyama, are legendary managers in Japan. They
don't buy the "bigger is better" concept.
Kuniyasu Sakai and Hiroshi
Sekiyama started a business together in the aftermath of World War II.
Over
the next few decades they turned it into a highly profitable business.
Rather than build a single, giant firm, they divided it, and then kept on
dividing. Always keeping each of their firms at its optimum size.
In the process of creating a
prosperous Bunsha group of companies, they discovered how to keep their
companies on the cutting edge, their employees productive, and their clients
happy, all at the same time. Their method is what Mr. Sakai calls bunsha
(literally, 'dividing companies'), a system he and Mr. Sekiyama developed
over more than 40 years of real-world corporate management. They
created a group of more than 40 thriving, independent, high-tech
manufacturing companies through bunsha
(company division). Once a company is "successful," they fear that
bureaucracy and complacency will set in. What do they do? They divide it.
The Key to Bunsha
Philosophy...
Bunsha in Brief...
Give each company a full complement of
functions...
Pick capable
leaders, then stand back and let
them lead...
See bunsha as a means to alleviate
unemployment and promote
entrepreneurship...
Remember that small entities are more
likely to adapt and survive rather than expect the environment to
adapt to them...
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