Konica Minolta 2000 Annual Report Download - page 7

KONICA 5
KONICA INTRODUCED AN INTERNAL
COMPANY SYSTEM IN JUNE 1999.
HOW WILL YOU BENEFIT FROM THIS ORGANI-
ZATIONAL CHANGE?
In addition to increasing the speed of decision making, it will
help facilitate the allocation of management resources to high-
growth areas. To promote the principles of individual responsi-
bility and market competition, management must have the
freedom as well as the motivation to perform well. Establish-
ing truly independent business units will help us to develop
in step with the diverse markets in which we operate.
WHAT IS KONICA DOING TO STRENGTH-
EN CONSOLIDATED MANAGEMENT?
As I mentioned previously, requiring management to deliver
management results that meet the approval of investors is
the best way to improve shareholder value.
We have adopted an accounting system that will require
each internal company to produce consolidated accounts.
In line with this, the salaries of managers at each company will
be linked to quantitative targets.
At the head office level, we are rationalizing functions to
concentrate on formulating strategic plans and providing the
professional services necessary to facilitate the establishment
of independent internal companies.
From a regional perspective, our strategies are primarily
determined by the nature of the markets in each region. In the
United States, which leads the world in office networking, we
are focusing on high-growth digital products and leveraging
our expertise to capture larger shares of particular business
segments. In growing Asian markets, where we have high
market shares, our activities are weighted toward photographic
film, paper, and equipment as well as establishing a base from
which we can capitalize on the opportunities that further eco-
nomic development will bring.
A MESSAGE FROM THE PRESIDENT
Q
Q