Canon 2011 Annual Report Download - page 8

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06
Please share with us the results of Phases I, II and III of Canon’s
Excellent Global Corporation Plan?
In Phase I, we worked to strengthen the Company’s financial standing
and succeeded in cutting our debt by more than half. In Phase II,
which focused on reinforcing product competitiveness, we completed the
digitization of our copying machines and cameras. And in Phase III, we
sought to expand Canon’s business scale while implementing M&A.
Back in September 1995, when I became president, Canon’s financial condi-
tion was weak and there was considerable waste stemming from
redundancies across the Company’s various businesses, because each busi-
ness focused solely on optimizing its own operations.
In Phase I, therefore, we concentrated on strengthening the Company’s
financial standing. Specifically, we significantly increased productivity
through the introduction of cash flow management, the cell production sys-
tem, and other measures. We also extensively eliminated waste by
transforming our focus from partial optimization to total optimization,
which reduced our debt by more than half.
During Phase II, we worked to reinforce Canon’s product competitiveness.
By fully digitizing our copying machines and cameras, we laid the ground-
work for the successes that we enjoy today, and created a debt-free company.
In Phase III, we sought to expand Canon’s business scope. Here, we
expanded our business in the printing and medical-equipment fields and
broadened our sales networks while actively carrying out M&A. Due to the
global financial crisis in 2008, however, the Company’s business suffered a
contraction in terms of scale.
Q
STRATEGY>INTERVIEW WITH THE CEO
INTERVIEW WITH THE CEO
A
THE EXCELLENT
GLOBAL CORPORATION PLAN
Phase I 1996–2000
Strengthened our financial
structure by thoroughly
eliminating wastefulness,
with production reforms
playing a major role, based
on changing our mindset
with a focus on total
optimization and profitability.
Recognized the need for
digitalization and raised
product competitiveness by
enhancing our development
infrastructure and
reinforcing key components.
Strove to achieve “Sound
Growth,” seeking high
growth levels by establish-
ing new businesses while
raising the profitability of
existing businesses. With
the global economy
plunging into the global
recession, shifted direction
towards “improving the
quality of management.”
Tackle again the challenge
of achieving “Sound
Growth” through timely
change in advance of
changes in the times.
Slogan:
“Aiming for the Summit
–Speed & Sound Growth”
Phase II 2001–2005 Phase III 2006–2010 Phase IV 2011–2015
Set up
an even stronger
financial structure
and increased
momentum
towards
a dramatic
leap forward
from now.