Case | HBS Case Collection | April 1991 (Revised July 1992)

Koito Manufacturing Ltd.

by W. Carl Kester and Robert W. Lightfoot

Abstract

Having acquired a 26% stake in Koito Manufacturing, a Japanese automotive parts supplier in the Toyota Group, T. Boone Pickens seeks a seat on Koito's board of directors. Koito's management resists, claiming Pickens is an unhelpful greenmailer, not a true long-term investor. The struggle between the two provides students with a chance to compare and contrast American and Japanese corporate governance practices. Debate centers on whether the Japanese system fosters efficiency or merely market power that reduces economic welfare.

Keywords: Acquisition; Debates; Corporate Governance; Production; Supply Chain; Performance Efficiency; Welfare or Wellbeing; Auto Industry; Japan; United States;

Citation:

Kester, W. Carl, and Robert W. Lightfoot. "Koito Manufacturing Ltd." Harvard Business School Case 291-027, April 1991. (Revised July 1992.)