Bridgestone 2008 Annual Report Download - page 32

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From the beginning of the fourth quarter of scal 2008, the economic problems that began
in the United States have spread to markets around the world at a rapid pace, signicantly
affecting the operations and results of the Bridgestone Group. At Bridgestone, however, we
operate on the assumption that operating conditions are constantly subject to change, and
that management value is determined by the extent to which those changes are incorporated
into management activities and the manner in which they are used to trigger a process of
internal reform. This approach will drive our response not only to those changes we are now
facing but also to changes that may occur in the years ahead.
We aim for the optimum management for the Group utilizing the MTP, a mid-term group
management tool used to realize an organization that can respond appropriately to changes in
operating conditions, and through the use of this tool, we can respond accurately and swiftly
to various dramatic changes in operating conditions. Accordingly, even in the challenging
business environment that we currently face, we will not change our ultimate direction or our
management policies formulated in our MTP. Our basic approach is to implement initiatives
in accordance with the fundamental “Lean and Strategic” stance. Furthermore, we will
implement some MTP measures ahead of schedule, utilizing them, in effect, as urgent
countermeasures. We will also implement necessary short-term countermeasures.
SHORT-TERM URGENT COUNTERMEASURES
We will implement the following urgent countermeasures, as well as additional
countermeasures as needed.
1. Adjust production in order to achieve appropriate inventory levels
We expect to reduce planned tire rubber production weight in scal 2009 by 0.4 million tons
year over year, to 1.46 million tons.
2. Reduce capital investment by prioritizing initiatives
Current plans for capital investment in scal 2009 call for a reduction of about ¥80.0 billion
from the previously planned level for 2009, which was announced in October 2008.
3. Reduce fixed costs
Current plans for xed costs in scal 2009 include a reduction of expenses and an increase
in efciency in motorsports activities, combined with our continuing focus on enhancing
safety and quality. In addition, reductions will be made in travel and other business expenses
and in personnel expenses for directors, corporate ofcers, and managers.
INITIATIVES SELECTED FOR ACCELERATED PROGRESS
1. Enhance eco-friendly products and businesses
In particular, eco-friendly products and businesses will be a focus of further development
initiatives. We will move ahead with a full-edged global rollout of eco-friendly ECOPIA brand
tires, including the start of sales in North America in 2009.
In addition, the market for EVA lm for solar modules continues to record growth, and
accordingly we will aggressively bolster our supply system.
COUNTERMEASURES TO
RAPID CHANGES IN BUSINESS
ENVIRONMENT
30