JVC 2006 Annual Report Download - page 8

goals and progress to risks throughout the organization—due to the detrimental impact of the con-
ventional in-house company system’s multilayered structure and sectionalism.
Second, management anchored in autonomous responsibility has yet to be firmly established.
Since not all department managers were fully aware that they must take responsibility for their plans,
management was unable to successfully perform the critical task of ascertaining the status of front-
line operations and quickly responding to changes in operating conditions. We were not able to
break free from delays in new product development and respond to falling prices because we failed
to make speedy decisions linking development, production, and sales as well as take action.
Right now, the greatest challenge for JVC is to eliminate these two root causes of underperfor-
mance. If we are to accomplish this, we must shore up our communication skills, strengthen our
ability to respond to frontline needs, and create a new corporate culture that can keep pace in the
digital era. In addition, we must remain determined to clear our path of all obstacles.
Fiscal 2007 Issues and Objectives
Fiscal 2007 marks the final year of our medium-term plan Leap Ahead 21. However, with operations
in their present state of disarray, we recognize that our most pressing task is to figure out how to
recover from the fall that we took in fiscal 2006 and get back on our feet. Our ultimate goal is to
restore the market’s confidence in the Company by demonstrating that we are steadily making solid
progress toward recovery.
JVC will implement management reforms aimed at returning to profitability in fiscal 2007, building
a strong management foundation in fiscal 2008, and positioning the Company for growth in fiscal
2009. Reconstruction-oriented measures will focus on the following three objectives: (1) continuing
and strengthening operational reforms, (2) reinforcing product strategies rooted in establishing the
Company as a top niche player, and (3) overhauling operations from the perspective of core and
non-core businesses as well as developing new businesses.
1. Continuing and Bolstering Operational Reforms
Regarding organizations that were restructured via Companywide organizational reform implemented
in November 2005, JVC has launched initiatives to put in place a style of management that empha-
sizes autonomous responsibility to enhance management transparency and speed. We are already
starting to see the benefits of these efforts, and in fiscal 2007, we will go a step further by imple-
menting measures to bolster operational reforms to tie these benefits to actual results.
Specifically, we will put organizations newly established as a result of Companywide organizational
reform into full play to strengthen our capacity for technological innovation, bolster our procurement
strategies, revamp marketing initiatives, and overhaul production sites.
2. Reinforcing Product Strategies Rooted in Establishing the Company as a Top Niche Player
JVC’s brand statement, “The Perfect Experience,” embodies our commitment to deliver truly moving
experiences and total customer satisfaction through high-quality sound and images. To make this
ring true, we place more emphasis on the quality of our products and services than the scale of our
operations and are not working to be number one but to be recognized globally as a truly unique
company.
It is also critical that we find our niche, an area where we can build a strong presence as a manu-
facturer that is vital to the AV market. Once we have found a place that we can call home, we will bol-
ster our presence to become a top niche player by making the most of the technological prowess that
we have garnered over the years to create original products that set us apart from the competition.
6Victor Company of Japan, Limited