By J. Abegglen
Japan's economic climate and companies are stepping into the twenty-first century after a protracted and difficult 'lost decade' of corporation remodel. They emerge with new administration platforms in position, yet with their values unchanged. From the original point of view of the author's pioneering research of the Nineteen Fifties, the monetary structures, body of workers administration equipment and R&D services are re-assessed, as is the position of the company in eastern society. The ebook bargains a entire research of the monetary and commercial adjustments that experience taken position in Japan by means of one in every of its so much extremely popular commentators.
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Extra resources for 21st Century Japanese Management: New Systems, Lasting Values
The headquarters building, an overdone monument to past glories, was sold. The interest of NEC in Ando Electric was sold, as was its interest in Thomson SA of France, along with a refusal to participate in a refunding Redesign for a Competitive Future 35 of the ailing Bull SA of France where NEC was a 17 percent shareholder. NEC sold factories in Oregon, Brazil, and Scotland along with three factories in Japan. It sold its laser printer business to Fuji Xerox, and its electronic control units operations to Honda.
Dr Kobayashi had been wartime manager of the Kawasaki works of Nippon Electric and was made Director of the company as I began my studies. In 1964 he succeeded Mr Watanabe as President of the company, gaining special fame as author of the phrase “C and C,” computers and 34 21st-Century Japanese Management communication, used first in a speech at MIT. Dr Kobayashi, a dedicated engineer, avoided political circles with some care and devoted his entire energies to building NEC to a great company. He was rated in surveys as the most admired of Japanese businessmen of his time, and deserved the rating.
First, market share is the critical measure of success; loss of share to a competitor gives him immediate advantage; profits are a later result of successful high growth. In a high-growth economy, where demand may well be doubling annually and therefore capacity needs be doubled annually, very high rates of capital investment are required. For this investment to be cost effective it must depend on the heavy use of bank debt for funding; equity is more expensive than debt, and financing from earnings requires growth-destroying high prices.