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To Become a Corporate Group that can Contribute to Development of Society |
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The economic situation continues to be opaque. Therefore, we feel practice of the Kyocera Philosophy and Amoeba Management is of even greater importance in realization of Kyocera's management rationale.
During a speech titled "Recession as a springboard to the next stage of development," Kyocera founder Kazuo Inamori spoke of how even a deeply painful recession is an opportunity for taking the next step toward growth. He said that to use the opportunity, it was important for everyone to maintain a bright and positive attitude. All employees needed to unite in applying repeated creativity and effort to overcome the predicament.
Kyocera Group constantly aims for further growth and development, and to be a corporate group that contributes to the development of society. |
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 Surviving Recession: One Preventive Measure & Five Countermeasures |
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A preventive
measure in
preparation for
recession |
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The most important course of action for dealing with recession is to build a business structure with consistently high profits. Consistently high profit means the business is unlikely to run a loss even if sales fall during a recession. A high-profit corporation is also able to increase retained earnings. This will enable the corporation to endure a prolonged recession in which profits do not rise for an extended period. Additionally, the corporation can undertake bold capital investment, by using excess cash to buy facilities that are cheaper than usual during the recession. |
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Countermeasures
during recession |
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All employees engage in sales |
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All employees, certainly in sales, production and development, but also in indirect departments, unite in making proposals to customers and thereby increasing sales. |
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Putting maximum energy into new product development |
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This entails going to extra lengths to discover what customers want, and actively developing new products incorporating customer needs to the maximum extent. All sectors throughout the company cooperate in advancing development of new products. This means cooperation not just among engineering and R&D departments, but also sales, production and marketing. |
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Reduce costs thoroughly |
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"Is the present method truly appropriate? Can we cut costs even further?" Review current methods and implement drastic reform. |
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Sustain high productivity |
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As production volume falls, the people who are left idle on the production work floor are taken off the production line. They undertake other work in preparation for economic recovery. Work on the production floor thus continues as it would during the busiest times, with minimum personnel and the same degree of tension. Great effort has been put into improving productivity to its current level. Sustaining that level is extremely important. |
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Building good human relationships |
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A recession is a prime opportunity to review human relationships in the workplace. Effort must be put into restructuring as necessary to create an even better work environment. |
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| Note: |
The above material was extracted from the Seiwajuku Lecture by President, "Recession as a springboard to the next stage of development," printed in Seiwajuku Booklet, Edition No. 86. It summarizes a speech given by Dr. Inamori in May 2008 during the Seiwajuku Chubu Tokai District Regular Meeting. |
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| Related Information |
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