Toshiba Essays - Accounting Scandals, Toshiba, Mitsui,

Toshiba Paula Dean April 27, 2000 Strategic Management Case Study Toshiba: The Future is Theirs In 1875 Hisashige Tanaka established Tanaka Seizo-sho, Japans first manufacturer of telegraphic equipment. The company thrived for over 60 years as an independent entity. In 1890, Hakunetsu-sha s first manufacturing facility of electric incandescent lamps. Then in 1939, the two companies merged to become Tokyo Shibaura Denki. They were now an electric equipment manufacturer. The companys reputation was established rapidly and they soon became known simply as Toshiba. They made this official with the name change to Toshiba in 1978. Throughout the companys long life there have been many major inventions that have guaranteed them a place in history. Among these are the following worlds firsts: 1. 1967first automatic zip code reader 2. 1970first color video phone 3. 1986first laptop personal computers 4. 1995developed high-density optical disc, DVD They have remained successful for many years because of their ability to stay on top of the world of technology. This is no small feat. Numerous companies have been lost because of a rapidly changing technology market that most were unable to keep up with the pace. With a resume of inventions spanning more than 120 years, a solid financial history and their status of being a multinational corporation, where does Toshiba go from here? Can they continue to keep up the pace of the past with the technology market changing more each and every day? What can they do to maintain their current level of success without compromising their values and commitment to the global society? To sum up all these questions: Whats next for Toshiba? Before looking at what the next step should be for Toshiba, it is necessary to examine what the driving forces behind the operation and all its decisions are. For them, The Basic Commitment is this force. In 1990 this Commitment was formulated as a statement of management philosophy. Every management decision made is done so by the guidance set forth in the Basic Commitment, which follows: We, the Toshiba Group companies, based on our total commitment to people and to the future, are determined to help create a higher quality of life for all people, and to do our part to help ensure that progress continues within the world community Commitment to People We endeavor to serve the needs of all people, especially our customers, shareholders, and employees, by implementing forward-looking corporate strategies while carrying out responsible and responsive business activities. As good corporate citizens, we actively contribute to further the goals of society. Commitment to the Future By continually developing innovative technologies center on the fields of electronics and energy, we strive to create products and services that enhance human life, and which lead to a thriving, healthy society. We constantly seek new approaches that help realize the goals of the world community, including ways to improve the global environment. When evaluating a mission statement, there are nine essential components that should be present to prove its effectiveness. Toshibas Basic Commitment includes all nine and then some; therefore, it is appropriate to say that Toshiba has a clear idea of who they are and what theyre doing. Another key factor in the business world today, is to know what your actual market is. Toshiba is active in diverse business fields, each with its own unique characteristics and markets. With this in mind, the markets referred to from this point on will be their two largest and most profitable: Energy and Electronics. For most large companies, domestic markets, while key to their establishment, are only a small piece of the picture. Globalization is the current trend and with technology the way it is, it is sure to be the way of the future. While many companies are just now beginning to expand into the global marketplace, Toshiba has already established itself worldwide. Toshiba has subsidiaries and joint ventures throughout the world. They have a strong presence in Europe, Asia and the Americas. For instance, in the United States alone, Toshiba America employs thousands of people and has eight separate divisions. When you consider that this is only one of the many countries that they are present in, this demonstrates their strong ability to compete and survive in the global marketplace. When you consider