Canon 2004 Annual Report Download - page 6

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Fiscal 2005 is the concluding year
for Phase II of the Excellent Global
Corporation Plan, which the Company
began to implement in fiscal 2001. The
theme of the next five-year plan, Phase III,
which will begin in 2006, will be “Toward
Healthy Growth,” while maintaining a
high margin structure.
Canon’s Approach to Management:
Our Management Strategy
Canon aims to create new technologies
and entire new genres of products,
and through their commercialization,
make new contributions to people and
communities around the world.
Moreover, our management stance
emphasizes fair and sincere business
operations conducted in full respect
of all laws.
The most important value of a busi-
ness is the pursuit of profit. This does not
mean, however, simply pursuit of financial
profits for the company. It includes profit
for the customer who benefits from using
our products, and profit for local com-
munities that benefit from job creation,
economic vitality, and payment of
taxes. Of course, generating sufficient
financial profit to return a portion to our
shareholders and to the community is
essential. This is the meaning of our
corporate philosophy, kyosei.
Based on this fundamental manage-
ment strategy, Canon has taken initiatives
under the Excellent Global Corporate Plan
Phase I, launched in 1996, to implement
management innovation. The objective
of this plan has been to become a corpo-
ration worthy of admiration and respect
worldwide. The plan addressed such key
issues as focusing on profitability and
overall optimization, leading us to
embark on innovation in production and
other areas. We believe this innovation will
lead to sustainable corporate growth, which
is essential for enhancing corporate value.
In 2001, we began to put Phase II into
action. Canon already has 184 consoli-
dated subsidiaries around the world and
employs more than 108,000 people. But,
to become a “Truly Excellent Global
Corporation,” we believe it is essential
“to secure the No.1 position worldwide
in all core business areas,” “build up
R&D strength capable of continually
creating new business,” “achieve a strong
financial position” and “foster a corpo-
rate culture wherein all employees work
CORPORATE MANAGEMENT
The most important value of a business is the pursuit of profit. It includes profit for the
customer who benefits from using our products and profit for local communities that benefit
from our job creation, economic vitality, and payment of taxes.
Excellent Global Corporation Plan
Canon Inc. Headquarters
Vision
In accordance with the kyosei philosophy,
Canon will continue contributing to
society through technological innovation,
aiming to be a corporation worthy of
admiration and respect worldwide.
Goals
1. Becoming No. 1 in the world in all of Canon’s major areas of business
2. Maintaining the R&D capability to continually create new business
3. Keeping a strong financial structure for the Group as a whole that can operate and handle long-term
investment without borrowed capital
4. Having all employees enthusiastically commited to achieving their ideals and taking pride in their work
Change in Thinking
●
Pursuit of overall
optimum results
●
Shift to profit focus
Production Reform
●
Upgrade to cell production
from belt conveyor system
●
Foster multi-skilled
production employees
●
Chie-tech (wisdom-tech):
Customize tools yourself
●
Implementation of the
just-in-time concept
●
100% implementation of
3D-CAD
●
Establish Color Technical
Center and Color Stadium
●
Undertake “no-prototype
production”
Sales Innovations New Diversification
●
Restructure and
consolidate marketing
subsidiaries
●
Emphasize solution
business
●
Construct Pan-European
business system
●
Strengthen business in
China and other parts of Asia
●
Development of new business
at headquarters
Enhancement of basic research
●
Group diversification
Individual Group companies
strengthen their own business
●
Global diversification
Establish a three-regional-headquarters
global management system
●
Implementation of the
Consolidation Planning and
Measurement System (1997)
●
Consolidated financial results
by Product Group Operation
●
Performance evaluations for
each Product Group Operation
●
Stability of livelihoods
of employees
●
Returns to shareholders
●
Contributions to
society
●
Investment for
continued existence
Advancement of
Consolidated Management
Four Purposes of
Companies Pursuit of Company Innovation Development Innovation
●
Cash-flow management
●
Withdrawal from
unprofitable business