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With the announcement of another record-breaking year of
profits, Canon again finds itself in the investor spotlight. It
is nearly impossible to talk about Canon’s remarkable
performance without referring to the ideas of its president
and CEO, Fujio Mitarai. This article examines some of the
most important of those ideas and the direction they are
steering Canon.
“Think Globally, Act Locally”
Having spent years at the top of Canon U.S.A., Inc., Mr.
Mitarai knows that different cultures demand different
management styles. “You cannot ignore the national
traits and characteristics of the country [where Canon is
operating],” he points out. “It is necessary to employ a local
style of management from a global business perspective.”
The scale of Canon’s operations is enormous. As of
December 31, 2003, Canon comprised 198 consolidated
companies and over 100,000 employees worldwide,
meaning that Canon must adhere to many local styles of
management.
“We want to be a company that is welcomed and
respected in every country,” Mr. Mitarai adds. “So, in matters
where people are concerned, we take a local approach.”
Part of that local approach in Japan is lifetime employ-
ment. “If I were managing an American corporation,
naturally I would employ an American style of management,”
he says. “But managing a corporation in Japan, I cannot
help but consider the benefits of long-term employment.”
In the developing markets where Canon maintains
production operations, Mr. Mitarai aims to produce products
that will be marketed locally. He is vigorously pursuing this
strategy, especially in China, where he hopes to eventually
shift some aspects of product design for locally produced
and marketed goods.
Technology Is the Key
While many aspects of the business operations are managed
locally, the global strategies for maintaining Canon’s
foothold on the leading edge of technology are developed
centrally under the eye of Mr. Mitarai in Tokyo.
Mr. Mitarai has set Canon on course to increase research
and development investment to 10% of consolidated sales
in the near future. This research is intended not only for
Feature Story : Corporate Management
From a maverick corporate vision,
Canon reaches a higher plateau of success
“In every country and region where Canon operates,
we aim to be recognized for excellence.”
———
Fujio Mitarai
6