JSC Business Week 4 part 1

Three Gods of Japanese Business

Doyoung ParkOsaka Gakuin University

World’s Most Respected Leaders

1. Bill Gates, Microsoft

2. Jack Welch, GE

3. Carlos Ghosn, Nissan

4. Warren Buffett, Berkshire Hathaway

5. Michael Dell, Dell

Financial Times 2008

Criteria of Top Leaders

•Skill to make a profit

•Business philosophy

•Role Model

Japan’s most respected CEO

1. Konosuke Matsushita, Panasonic2. Soichiro Honda, Honda3. Kazuo Inamori, Kyocera

Sumitomo Insurance Survery, 2007

Three Gods of Japanese Business

Konosuke Matsushita

1894-1989 Matsushita Electronics

Matsushita Panasonic JVC Victor Technics National

Konosuke Matsushita

God of management Japan’s most respected business leader Matsushita Leadership by John Paul Kot

ter, Simon and Schuster (1998)

Matsushita Management

“Matsushita makes the people and also produces electronics.”

Management of Human Resource

Matsushita Business 10 Lesson

1. Love Your Job To Do It Well2. Do What Common Sense Dictates3. Follow the Laws of Nature4. A Leader Should Have a Vision5. Dreams Should Be Shared6. Management Is Perpetual Creation7. Don't Assume That Something Is “Impossible“8. Transparent Management Fosters Growth9. Dam Management10. Bad Times Have Their Bright Side

Core Values of Matsushita Management

How to Manage Manpower Life-long employment Job sharing to keep employment during the

Great Depression 1930s Employees’ welfare

How to Prepare for future Crisis Strengthen the internal infra-structure Equipment dam, capital dam

Wind of Change in Employment

Part time laborers in manufacturing industry, 2002

Increasing part time laborers – Reducing employment cost

Economic crisis 2008 – massive lay-offs

Vanishing life-long employment tradition

Economic Malignant Cycle

Business slump-Lay-off – lower income – lower purchase power – business slump

Tent City for Jobless

Philip Kotler, Northwestern University Old Normality: Recession – Recovery New Normality: Age of Crisis Chaotics Model

Matsushita for Crisis

How to stable employment security

How to prepare the crisis Matsushita model again?

Soichiro Honda

1906-1991 Honda Motor Co.

Honda Management

Separation of ownership and management Famous retirement story No Hondas in the executive group Different from Toyota

Enthusiasm for cutting-edge technology Engineer CEO

Quick Communication No president’s room

Honda Motto

“Don’t be afraid of failure, be afraid of doing nothing.”

Honda Super Cub

World’s best selling motor cycle, 1958-1991, 27,460,000

Pursuing High Technology

Technology for Crisis

Competition with Toyota Sales slump

Join F-1 Power of Honda engine 11/16, 1987 15/16, 1988

Honda of Technology

Created Honda brand image Shokunin CEO Engineer paradise

Kazuo Inamori

1932- Kyocera KDDI

Electronics, sola battery, parts Ceramics 189 companies 66,496 employees No deficit for 49 years

Ameba management

Small groups in a whole company Independent accounts Individual management Inside sales 3000 amebas in Kyocera

Sony’s Attempt

Individual groups in the company Vertical communication Sharing information Internal competition

Failure Closed mind Lost communication Group egoism

Core of Ameba Management

Cooperation of an employer and employees

Everyone is a manager Company as an extended family Sharing the vision Management ethics Honor reward

Reality

Panasonic Massive deficit Laid off 15,000 employees Closed 27 factories

Honda Under the shade of Toyota Behind the hybrid vehicle Lost the market share in Japan

Return of the Japanese Value

Focusing on human resource Techonology Sharing the vision

Next Session

Discussion Personal opinions on Japanese

ways of business administration Early course evaluation Current grade report