Learn in the textbookOrganizational Structures
DefinitionA company system (カンパニー制) treats the organization for each business area inside one enterprise like an independent company, giving it broad authority and responsibility as a self-supporting unit.
ExplanationEach in-house company is often entrusted with a wider scope than under a divisional structure, extending to decisions on investment and how funds are used. Legally, however, the whole remains a single company.
AnalogyIt is like siblings under one roof who each manage their living from their own wallet. They still share the same home address.
Memory hookAn in-house company is exactly what the name says: a company that sits inside a company.