I believe that the design or reorganization of a corporate organization
should be discussed from the perspective of the supplyand-
demand equilibrium in the market. In reality, bankruptcies of
individual companies due to overproduction or lack of demand and
imbalance between supply and demand in the industry always occur,
and, in Japan, recession lasted for more than 10 years starting from
the 1990s. Although the tendency of attaching great importance to
the stock market is not challenged in merger-and-acquisition (M&A)
business circles and in the so-called global standards, in some cases,
the stock market goes out of control because it is a speculative market.
In Japan, the economic bubble reached a peak by the beginning
of the 1990s, after which the bubble suddenly collapsed. The collapse
of the bubble set off a recession that lasted as long as 15 years.
As just described, it is quite difficult to balance supply and
demand by relying on the price mechanism of the market.
It is my position that the supply-and-demand equilibrium should
be attained by means of an organization. As an antithesis to today’s
predominance of market fundamentalism espoused by economists
from Adam Smith to Hayek and Milton Friedman, I would like to
propose a new institutional fundamentalism keeping the merits of
market competition. An essential matter is that the mechanism of
synchronizing the product supply from one’s own company with the