Sharp 2010 Annual Report Download - page 33

The fundamental principle of corporate management is to maximize corporate value. This
is a difficult thing to accomplish and brings numerous strategic options and challenges.
Today management has become far more complex and sophisticated than in the past,
involving manifold variables. Naturally, one important aspect is the executive capability
needed to view each variable in light of the business environment and implement the
best course of action. At the same time, an aspect that has become even more important
is the management capability needed to carry out optimal overall management taking the
balance of all of these variables.
In his recent book, “The Future of Management,” influential management theorist
Gary Hamel points out that while improving business operations is important, the real
power to win out against one’s competitors lies in the ability to also bring innovation
to management.
A key point in management systems of the future will be how to achieve both the
piece-wise strengthening of each business and the overall optimization of the entire com-
pany or group. I believe that a bold strategy to achieve both of these will further
strengthen the appeal of the Sharp brand. By continuing and indeed escalating its pursuit
of its “One-of-a-Kind” identity, Sharp will raise the value of its brand.
I hope that in my role as an outside director here at Sharp, I will be able to contribute
to making this kind of management innovation a reality.
Message from the Outside Director
Outside Director
Kunio Ito
Career overview
April 1992 Professor, Faculty of Commerce and Management,
Hitotsubashi University
August 2002 Dean, Graduate School of Commerce and Management,
Hitotsubashi University
December 2004 Vice President and Executive Staff of Hitotsubashi University
December 2006 Professor, Graduate School of Commerce and Management,
Hitotsubashi University (current position)
June 2009 Director, Sharp Corporation (current position)
The Plan provides rules for enabling shareholders to reach
a proper decision, by requiring large-scale purchasers of the
Company’s shares who intend to obtain 20% or more of the
voting rights of the Company to provide sufficient information
and give an adequate assessment period. If a large-scale pur-
chaser does not follow the rules, or although the large-scale
purchaser complies with these rules, the large-scale purchase
is deemed to be harmful to corporate value and common
interests of shareholders, Sharp may take countermeasures in
order to protect its corporate value and the common interests
of shareholders. The Board of Directors of Sharp will make the
final decision concerning the implementation of countermea-
sures after fully taking into consideration the advice and rec-
ommendations of a Special Committee consisting of three or
more persons who are independent of Sharp’s management.
A majority of shareholders present at the 116th Ordinary
General Meeting of Shareholders on June 23, 2010 approved
the continuation of the Plan. The effective term of the Plan is
up to the conclusion of the 117th Ordinary General Meeting of
Shareholders, which will be held by June 30, 2011.
The decision whether or not to continue the Plan will be
put to shareholders at the Ordinary General Meeting of Share-
holders held in June every year.
* For details of the Plan and profiles of the Special Committee members, please visit
Sharp’s website:
http://sharp-world.com/corporate/ir/topics/pdf/100427a.pdf
Corporate Governance
Annual Report 2010 31