JVC 2007 Annual Report Download - page 9

7
Action Plan 2007
Display Business
Audio Business
ILA Business
Components &
Devices/Recordable
Media Businesses
Camcorder
Business
Car Electronics
Business
Entertainment
Business*
Professional
Electronics
Business
Employment
Structural Reform
Manufacturing
Site Reform
Additional
Measures
Increase cost competitiveness and improve income
Reconstruction Plan
(Announced in May 2007) Action Plan 2007 (Announced in July 2007)
Emphasize selectivity and focus in business portfolio and work to contain earnings erosion
Expand sales at businesses that are sources of consolidated earnings
Achieve consistent profitability via systematic advancement of reconstruction plan
• Discontinue the production and sales of unprofitable models in domestic and
European markets
•Supply the U.K. market with products made at plants in the United Kingdom;
accelerate our use of an electronics manufacturing service (EMS) to supply the
continental European market
• Bolster the four-region management system—the Americas, Europe, Japan, and
Asia and Other Areas—through the unification of regional production and sales
• Rebuild our sales strategies, especially for Japan and the United States
• Step up cost-cutting efforts through collaboration between the Malaysian
manufacturing site and our business segments
• Foster growth of front projectors aimed at consumers in Japan and elsewhere
as the mainstay of the ILA business
• Review the basic strategy for rear projection TVs, including the development
of next-generation models
• Review each business segment, including the sale or transfer of each business
• Further boost already strong sales in Japan and elsewhere through the early
launch of models originally planned for release in fiscal 2008 by dedicating
development resources to this product category
• Strive to foster sales of aftermarket products in emerging markets and
strengthen efforts in the OEM business
• Bolster competitive strength in software development and manufacturing
costs through collaboration with Kenwood Corporation
• Aim to improve corporate value by improving management synergies derived from strategic realignment and consolidation of
overall operations
• Establish a fulfillment structure aimed at achieving synergies, from content development through delivery
• Concentrate on security products and professional audio equipment; strengthen collaboration between the professional
camcorder and consumer camcorder businesses
• Strengthen overseas businesses, especially in security and professional creation products
• Increase the planned employment structural reduction for non-consolidated
employees to 1,150 from about 1,000 currently
•Transfer around 800 non-consolidated employees to affiliates, as originally planned
• Study the reorganization of production sites, with a view to reducing the num-
ber by half as a medium-term measure, while putting a renewed emphasis on
selectivity and focus with the aim of reinforcing cost competitiveness
• Implement structural reforms at headquarters to halve the number of current
departments for the purpose of streamlining Head Office functions
• Consider taking additional emergency measures, including the review of
wages and benefits for a specified period
Bolster business structural reforms
Bolster management
structural reforms
• Set ourselves apart from our competitors
with superior technologies
• Work to lower costs
• Strengthen our marketing strategy
• Restructure product strategies, including
those for home theater systems and micro
component systems with built-in memory
• Reassess basic strategy
• Take the next step in assessing whether
to remain in or spin off each business
• Aim to be a global leader in new media
by pulling away from our rivals in hard disk
camcorders
• Maintain and strengthen our presence in
existing fields (CD receivers)
• Accelerate shift into new fields such as
visual / navigation systems
• Expand scale
• Reassess basic strategy
Return to
positive operating
income
in fiscal 2008
Build a strong
management
foundation
in fiscal 2009
Switch to
a growth strategy
in fiscal 2010
Further reinforce reforms first
laid out in the reconstruction
plan to ensure the following
steps are attained
* From fiscal 2007, the Software & Media segment has been reorganized and the classification revised to the Entertainment segment. This reclassification clearly identifies the Entertainment
segment as a key segment in the place of the former Software & Media segment. As a result of this reclassification, we have transferred the recordable media business, which had been
included in the Software & Media segment, to the Other segment.