JR East faced hard budget constraint after establishment. Then, the executive board of JR East tended to increase the transportation revenue and promoted the expense curtailment. That is, ]R East raised the productivity of a railroad section and advan...
JR East faced hard budget constraint after establishment. Then, the executive board of JR East tended to increase the transportation revenue and promoted the expense curtailment. That is, ]R East raised the productivity of a railroad section and advanced diversification with the surplus resources obtained by it at the same tìme. The rationalization of railroad sector progressed. Management achievements have been improved greatly. However, diversification did not obtain the expected result
But, because of influence of long-term depression and aging, railroad transpor tation stagnated and revenue decreased. Therefcπe enterprise diversification ame more 1m∞rtant. Then, JR East established the life-style business develop ment headquarters, and strengthened group nagemen t. Consequently, JR East
showed the performance that was excellent even if compared with the private rail ways. In this ‘way, JR East succeeded in organizational transforrnation
As mentioned above, it is very important fl이 public enterprise reform to create a management system which is adapted for the changing outside environrnent