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On October 17, 1945, the board of directors
at Sumitomo Honsha (Head Office) was engaged in yet another lengthy day
of heated discussion. Following the end of the World War II in August, the
dissolution of the zaibatsu (financial giants) had been named alongside
agricultural-land and labor reforms as prerequisites for democratizing the
Japanese economy. By this time, some had already announced their dissolution
plans. Sumitomo too had not been idle during this troubled period; it foresaw
the inevitability of the dissolution order and had decided on its response
more than a month earlier. However, the management issue of whether to establish
a trading company remained.
There were also grounds for persistent internal opposition to the idea.
The sales outlet system that dates back to the Sumitomo Group’s first
copper sales outlet, which opened in Kobe in 1871, had developed into the
epitome of Sumitomo’s business activity that did not favor sale of
products other than its own, after a management decision to focus on the
Besshi Copper Mine and related industries. Further, another management decision
taken in 1920 strictly banned Sumitomo from entering a trading business.
It was in this time of crisis that Sumitomo made it an obligation to look
after talented and loyal employees who have long served the company. Discussions
progressed on the assumption that in moving into a new business, those seconded
to company-run sales outlets and returning from overseas affiliates, as
well as head office employees would be guaranteed employment. What was required
to realize this was a type of business that could maximize the head count
without the need for substantial capital, provide a workplace large enough
to accommodate every employee, and enable the utilization of accumulated
experience in managing sales outlets. Thus, Director General Shunnosuke
Furuta made the decision to establish a trading house. |
