JVC 2011 Annual Report Download - page 7

JVC KENWOOD Corporation 5
We would like to extend our heartfelt sympathy to those
affected by the recent Great East Japan Earthquake, typhoons,
and flooding, and we sincerely hope that the affected areas are
restored and reconstructed as soon as possible.
The JVC KENWOOD Group was established on October 1,
2008 through the integration of the managements of Victor
Company of Japan, Limited (JVC) and Kenwood Corporation
(Kenwood). Three years later, JVC KENWOOD merged its
subsidiaries, JVC, Kenwood and J&K Car Electronics, which are
operating companies of the JVC KENWOOD Group.
After our establishment, we suffered from the worldwide
economic crisis and had to make adjustments to our previous
earnings results. Under such circumstances, we implemented
structural reforms and focused on businesses in which we
have a competitive advantage so as to ensure our survival. The
planned structural reforms were completed in the fiscal year
ended March 2011, and thanks to the fact that the business
endeavors we focused on went as planned, earnings and
financial conditions improved rapidly. We were also able to
procure funds used to promote new growth strategies and
to continue our medium- and long-term plans to stimulate
profitable growth. This was achieved entirely thanks to your
support. We are extremely grateful.
Through the management integration of Victor Company
of Japan, Limited (JVC) and Kenwood Corporation (Kenwood),
the JVC KENWOOD Group was able to reconstruct its
corporate structure to achieve new growth and emerge from a
long tunnel of challenges. Under this corporate structure, the
JVC KENWOOD Group will concentrate on businesses backed
by its competitive advantage and realize profitable growth.
By using procured funds, we will establish a position as a
specialized manufacturer that will lead the world - the original
purpose for which we integrated the management of the two
long-established companies. Lastly, we will do our utmost to
become a corporation that is widely trusted by society.
The mergers purpose and its effects
－ Using integrated company management to
further trust and unification, and to stimulate
profitable growth
Prior to the merger, we had deepened management integration
by appointing Directors of the holding company to serve
as Presidents of the operating companies, reorganizing the
Head Office and other offices, and converting the operating
companies into companies without a Board of Directors or
a Board of Auditors. In May 2011, the centrally managed
structure of the Chairman, President and Chief Executive
Officer (CEO) shifted to a new management structure in
which the Chairman focuses on establishing the framework
for management integration through the merger, while
the President and CEO directs the operations, in order to
promote growth strategies. Alongside this, we established
four business groups corresponding to four business segments
by restructuring the separate management structures of the
operating companies.The Chief Operating Officer (COO)
of each business group, who reports to the CEO, manages
operations of the business group.
After the merger, in addition to conducting operations as
mentioned above, we will increase managerial transparency
and reliability by centralizing corporate management, and
accelerate profitable growth by establishing a strong corporate
structure as a unified company.
First, we will centralize governance and internal control
to reduce the overall hierarchy, centralize and expedite
the decision-making process, and improve managerial
transparency and reliability, as well as centralize organizational
management to promote business innovation and make
business management speedier. Second, we will centralize the
use of funds to improve the freedom and efficiency of fund
usage. Third, we will centralize internal systems to promote
personnel exchanges, make the best use of personnel and
align the awareness of employees so that the vitalities of the
organization and employees will be significantly enhanced.
Through these efforts, we will promptly and flexibly
respond to changes in the business environment, and as the
newly born JVC KENWOOD that maximizes the effects of
integration, focus on corporate-wide growth strategies. In the
medium to long term, we will also strive to enhance the global
competitiveness of the Japanese specialized manufacturer
by focusing on strategic alliances and M&As so that we may
realize growth that comes about through multiple avenues.
Create excitement and peace of mind
as a global manufacturer specializing in
electronic and entertainment products
－
Realize profitable growth by concentrating on
strong business
With regard to business operations, we will focus on our
strengths of image technologies, acoustic technologies, radio
equipment, and audio and visual software, using these as the
core of our aims to become a business group whose sound,
images, and radio communications products and drivers make
communication a reality for the people of the world.
In order to do this, we plan to implement a growth-
oriented investment strategy in the respective domains of car
electronics, radio equipment, cameras, imaging equipment,
sound equipment, and audio and visual software. In addition,
Management Message