Olympus 2012 Annual Report Download - page 24

>>> Addressing Current Issues
To achieve these targets, we must recognize and address the issues that Olympus faces. Broadly stated, we
recognize four problems. The first is excessive investment in non-core business domains. This refers to the
equity investments that were the cause of the scandal and excessive investment in non-strategic fields and
unprofitable domains. The second problem is decline in profitability. In the Imaging Business and life science
business, a slow response to visible changes in the operating environment has led to a decline in profitability.
These problems have resulted in the third problem, the current vulnerable financial position, which must be
urgently improved. The fourth problem is an insufficient governance system, the framework that controls all
corporate activities. In recognizing these issues, we have set out to address them by formulating concrete
corporate management policies and strategies.
>>> Corporate Management Policies
The new management has set out the following corporate management policies; Back to Basics,
One Olympus, and Profitable Growth.
The first policy, Back to Basics, is also the motto for the medium-term vision. The cause of the recent
scandals was the pursuit of profits from equity investments in areas that are not our core business domains
to begin with and the attempt to dispose of losses on those investments by illegal methods.
Olympus was originally founded on the drive to fulfill a mission—to contribute to the development of
society through products and solutions. This was the desire to contribute to the health of the Japanese
people through epidemiology by manufacturing microscopes in Japan. The Olympus PEN, the world’s first
half-frame film camera, the OM-1, the world’s lightest single-lens reflex camera, the gastrocamera, and
waterproof endoscopes are all world-first, world-class products developed through meticulous attention to
customer needs. With the same sense of mission, we will restore the corporate culture that originally
characterized Olympus: a culture that values freedom of spirit and integrity and enables employees to say
what needs to be said.
The second policy is One Olympus. The days when it was acceptable for each business to pursue
individual optimization have passed. To overcome the current crisis, Olympus employees around the world
must unite behind a common business strategy and demonstrate teamwork.
The third policy, Profitable Growth, goes without saying. The mission of a company is to grow while
earning profits. We will abandon the management approach that prioritizes sales turnover and company size,
rigorously review cost structures, and aim for profitable growth.
Q3
Please discuss the corporate
management policies the new
management has adopted and the
basic strategies of the medium-
term vision.
Back to Basics
One Olympus
Profitable Growth
Corporate Management Policies
A
• Excessive investment in non-core business domains
• Decline in profitability
• Vulnerable financial position
• Insufficient governance system
Current Issues
President Hiroyuki Sasa Discusses the Medium-Term Vision: Back to Basics
OLYMPUS 󱚈 Annual Report 2012
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