Corporate Management Program Learning outcomes – AOTS Japan

LeRoy J. Ebert Chartered Marketer

Manager Marketing & Sales

Hameedia Group

Ohayo Gozaimasu

Bowing is used in apologies or to show gratitude and can expressemotions such as humility, sincerity, remorse or deference. Ingeneral, the longer and deeper the bow, the more emotion that isexpressed

Corporate PhilosophyManagement philosophy is a way of lifeinfused in to an organization which as aresult gets all the staff to work towardsone direction. It generally gives adirection towards and a sense ofpurpose for the organization to existthat goes beyond profits.Companies that have a managementphilosophy performs better and recruitsbetter staff Konosuke Matsushita

“A company is a publicinstitution. Hence, it exists forthe society, is supported by thesociety and has to walk hand inhand with the society“Panasonic

The Corporate Philosophy should encompass“what is the reason for existence?”“The purpose and way of its management?”

Significance of a “Corporate Philosophy”

•Guideline for the company•Guideline for the employee•Guideline for activity and behavior•Identity and presence of the company in thesociety

The Meaning of doing business“Making profit is not the fundamental purpose forengaging in a business. One does business becausethere is a social need to do so. If you don’t clearlygrasp this sense of mission you will not succeed inbusiness”

Management Strategy

“Basic frame work in which a companycontinuously maintains the dominancyand develops an action plan forcontinuously generating profits” forwithout profits there won’t be abusiness. Its like fighting a duel with realswords

3 strategic levels• Company wide strategy• Business Strategy• Functional Strategy

•Brand Kagome is renownedfor tomato products.•In 1980 it decided to movefrom being a specialty foodmanufacturer into a generalfood manufacturer• Marginal salesincrease, profits dropped byhalf•By broadening its scope itdissociated with its customers

Environments• Internal (Micro) – 5m’s, Value chain•External (Macro) -PESTEL

Muji Keikaku : No frills, no brand, low cost

• Offer Substance only - Set a price of 30%lesser than national brands• Non Branding – Don’t put a brand name onproducts not even “Muji”• Unification of value – Don’tdiscount, replace only 15% of the productsper annum

Management StrategyM.E. Porter 3 generic strategy

Marketing Strategy

• Concept of marketing

– Production Orientation

– Sales Orientation

– Customer Orientation

Selling Marketing

Sell what is made Make what is needed

Tactical view Strategic view

Sell and forget Relationship

Self preferential Customer benefit preferential

• Customers don’t always say what theymean, sometime even customers don’tknow what they want. That’s where youdraw the line with research

Marketing Strategy

If customers are so consciousabout health food, then whyis fast food growing

Men were the No. 1customer due to selfconsciousness

MC Donald's Ezaki Glico – candy boxes Kinder Chocolates

In Japan it was noticedthat for valentines morewomen bought chocolatefor themselves

Financial Management• Corporate Accounting

– Financial Accounting – for externalstakeholders

– Managerial Accounting - Forinternal

• Reading P&L & Balance Sheets

• Ratio/GP/NP,ROI etc Calculations

• Breakeven analysis

• Type of costs (FC/VC)

• Individual PRODUCT Profitability – lossmaking products contribute to overalllosses

• Further breakdown of Pareto’s principal– 64% of the results come from 4% ofthe work

Cash flow is King

Look at business from a profitable &efficiency point of view

Production Management

5s, Improved moral and teamwork, HO-REN-SO

Profit Management

Standardization & Management, 5M

Productivity, Delivery, Quality, Cost, Safety

2S is more than enough for beginners

TMS

TDSTPS

TQMTQM

TQM

Tri-party activities based on TPS

Production Management

Production Management

Click image for video

Production Management

Kamban Card (JIT)

Kamban Card in action

Muda

Human Resource Management• The corporate or management philosophy

deeply influences and governs employeemotivation and HR practices

• Talent by nature prefers to work for MNC’s andlarge organizations, SME have to offer nonmonitory benefits to touch their heart andattract them

• This has been the success of life longemployment

Managers

Supervisors

Operators

AccountsSales

Example : Job rotation and cross functional training

Summary

Japanese Systems

of organizations purpose Company is a component of society, profit should not be the primary objective

Have a long term focus

Orderliness

Arigatho Gozaimazu