David Oks on Japanese companies:
And that basic impulse toward survival is why Japanese companies are so insistent on diversification. If you’ve made a commitment to keep people employed for life, then you need to create jobs for them if their current jobs stop making sense: indeed, you might need to keep them employed even if you can’t find anything for them to do. If you’re not very worried about profitability, and have lots of well-trained generalist employees, then it makes perfect sense to reinvest your company’s earnings by expanding into new industries: doing so not only allows your company to survive longer—your company’s portfolio of bets is now more diversified and thus lower-risk—but also ensures that you’re able to keep your surplus workers busy in one way or another.