Reengineering & Restructuring at Canon
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Case Code: BSTR091 Case Length: 19 Pages Period: 1990 - 2003 Pub Date: 2004 Teaching Note: Available |
Price: Rs.500 Organization: Canon Inc Industry: Office Equipment, Countries : Japan Themes: Corporate Restructuring |
Abstract Case Intro 1 Case Intro 2 Excerpts
"We didn't diversify into everything from fans to refrigerators the way others did. That's why today we make more money than a lot of Japanese electronics and technology companies."
- Fujio Mitarai, President in 1998.
"We still have to build a new technology pillar for the future. I feel we are entering a tough period."
- Ichiro Endo, Head - Canon Product Development Initiative in 1998.
The Rising Sun
In the mid-1990s, Japan's leading photocopier and camera manufacturer - Canon Inc (Canon) - embarked upon a massive reengineering program to turn itself into a truly global corporation. Fujio Mitarai, who took over as president in 1995, introduced many changes in the company's manufacturing and management processes. These changes were implemented in two phases - Excellent Global Corporation-Phase I and Phase II. By reengineering its business processes, Canon was able to revive itself without adopting painful strategies like retrenchment. In 2002, Canon's total sales were ¥ 2,940,128 million, an increase of ¥ 381,901 million from 1996. Its net income increased from ¥ 94,177 million to ¥ 190,737 million during the same period. Analysts attributed the success of Canon to the farsightedness of its management led by Fujio Mitarai. Commented Hiroshi Kato, analyst at Tkegin Investment Management Co. (Japan-based investment firm), "Mitarai is taking Canon in the right direction."...
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