Regarding Organizational Changes Taking Effect April 1, 2008
Tokyo, January 25, 2008 - SANYO Electric Co., Ltd. (SANYO), based on 'Challenge 1000', a challenge to achieve over 100 billion yen in operating profit by fiscal year (FY) 2010 outlined in the 'Midterm Business Strategy' or 'Master Plan' announced in November, and aiming to accomplish this goal, today announces company-wide organizational changes which will take effect as of April 1, 2008.
Outline of Organizational Changes
1. Reorganization guidelines for businesses
Based on the principles outlined in the 'Mid-term Business Strategy', or 'Master Plan', the organization structure for the currently operating business grouping system will be changed. Accompanying these changes, the business division organization structure will be modified, clarifying the responsibilities of each business in income and expenditure as well as sales and marketing, and will be switched to a management system wherein each individual business strategy will be assessed and implemented from a 'company' that will unify several business divisions under one whole.
As for the specifics on the changes for the organizational structure, in the 'Master Plan' announced previously, it outlined the management strategy for the business groupings, which will include two large business groups - the 'Component Business Group' and the 'Finished Goods Business Group'. Based on this strategy, the organization will be changed to match the grouping outlined previously.
Component Business Group: |
Rechargeable Battery Business, Solar Business, Device Business, and Semiconductor Business |
Finished Goods Business Group: |
Digital Business, Commercial Business, White Goods Business |
(1) Strengthening ties with company-wide strategies for the Component Business Group
Regarding each individual business comprising the Component Business Group, grounded on their respective established global market positioning and revenue base, the current operating structure will be maintained for each business organization with the view to further expand profit hereafter. However, as for the semiconductor business which critically requires company-wide support, backing and training to become a profitable business as well as the solar business which needs high-caliber management decisions, some reforms will be made to the company-wide organization, and will rearrange the businesses to be placed organizationally under the direct control of the parent company. Also, as for the device and rechargeable battery businesses which are pillars of company profitability, the business' abilities to deal with big accounts will be strengthened in order to further increase profitability, and cross-sectional sharing and effective use of resources will be further promoted.
(2) Further solidifying profitability of the Finished Goods Business Group Reforms to the market-in structure
The Finished Goods Business Group will undergo reforms in order to increase global profitability. Consideration will be given to the special characteristics of each individual business within the group, and the organizational structure will be transformed into a structure that will be able to support and implement measures to strengthen profitability for each business. In order to handle the digital business where there is rapid change, a new 'company', the 'Digital System Company', will be established, which will aim at improved profitability and strengthened product appeal as well as innovation to create new businesses. In the commercial business, along with maximizing the strengths inherent in the business model, a goal of improved profitability stemming from thorough management optimization will be set and the myriad of organizations that are related to the commercial business will be reorganized, resulting in a new 'Commercial Solutions Company'. Also, the commercial- and home-use washing machine businesses will be combined, and a new company, 'SANYO Aqua Co., Ltd.' will be established as of April 1, 2008.
Outline of SANYO Aqua Co., Ltd.
Company Name: |
SANYO Aqua Co., Ltd. (100% owned by SANYO Group) |
President: |
Shunichiro Oku |
Number of employees: |
Approx 250 |
Business contents: |
Development, Manufacturing and Sales of Commercial- and home-use washing machines |
As for the white goods business, the internal marketing as well as sales functions will be consolidated into a new company 'SANYO Consumer Electronics Co., Ltd.', to which name Tottori SANYO Electric Co., Ltd. will be renamed, as of April 1, 2008. The control of the home electronics business and the automotive electronic equipment business will all be transferred to this new company. Additionally, the control of the functions of the photonics business currently in Tottori SANYO Electric Co., Ltd. will be transferred to SANYO. Hereafter, the white goods business aims to improve the overall income and expenditures through improving the domestic white goods business as well as developing and expanding overseas market share simultaneously as the business reforms to optimize sales channel and product line-up strategies and speed up management decisions by combining the development, manufacturing and sales of products into one unified structure.
Outline of SANYO Consumer Electronics Co., Ltd.
Company Name: |
SANYO Consumer Electronics Co., Ltd. (Approx88% owned by SANYO) |
President: |
Nobuaki Matsuoka |
Number of employees: |
Approx 1800 |
Business contents: |
Development, manufacture and sales of white goods and automotive goods, as well as sales of consumer finished goods |
Regarding the sales function of the commercial finished goods business, the functions that had been carried out internally will be transferred to and continued by SANYO Electric Sales Co., Ltd.
Furthermore, in order to increase profitability of the finished goods business overseas, new ‘Overseas Sales & Marketing Headquarters’ will be established that will handle the functions for overseas sales, advancing the structure necessary to improve market-in structure with a focus on developing markets for increased profits.
In order to create a structure capable of adapting quickly to market changes at the local level overseas, SANYO will divide the areas of the world where it has businesses operating into 5 regions: Americas, Europe, Asia, China and Middle East/Africa/India. These regions will have a personnel assigned from the management class to be responsible for the region, and they will be performing duties related to the finished goods business at the local level through creating sales strategies and overseeing plan implementation.
Currently, the functions of design, advertising and marketing are separate entities within the parent company; however, hereafter a ‘Corporate Marketing Headquarters’ will be newly established, which will consolidate the separate functions into on entity. This new headquarters will have a close and cooperative relationship with the sales division, which will enable a synergistic approach to improved product appeal for the finished goods business.
As for the Business Development Headquarters, the OEM Sales Headquarters, and the Service Headquarters, their functions will be consolidated and moved under the control of the related parent company division or business division.
2. Function Reorganization
Administrative functions managed by the parent company and individual companies will be fortified and maximized, and the necessary management base needed to carry out and fulfill mid-term management goals will be formed.
A. The duties of strategic planning will be consolidated into the Corporate Planning Headquarters with the perspective of further strengthening functions related to the overall business strategy. This will allow each division within the parent company to devote their focus solely on their own missions, specializations and execution of their duties within the plan.
B. As for organizations responsible for administrative functions from an effective managing perspective, the consolidation of functions in SANYO at the company level rather than the local level will result in more efficient and robust functionality.
C. The new three year plan will define target amounts related to reducing materials costs within the parent company divisions.
D. The duties of the company presidents including their authority and areas of responsibility will be redefined, and establish guidelines from the perspective of business functions and operations. New evaluation standards for results are also being redefined.
E. A review of the current company system including each type of business management system will be conducted with the aim of making more robust management and administrative functions for the entire company on a consolidated basis. Also, emphasized and focused investments will be made based on the company-wide business strategy, as well as creating and maintaining the structure necessary for thorough and effective cash flow management.
3. About management placement
The new 'Mid-term Management Plan' (for FY 2008 through FY 2010) will outline that businesses which require high caliber decision making regarding management resources (such as Device Business, Solar Business, Semiconductor Business, Consumer Electronics Business) will have an upper management staff member assigned to them in addition to the Company President that directly has the responsibility of income and expenditures and implementation of business strategy to assist with plan and policy implementation and execution.
As these members of senior management are placed at a more local level, they will be better able to assist in the decision making process as the Members of the Board meet, offering advice and support by providing an the overall perspective of the business. This will create an even stronger Board of Directors which will be prepared to administer and decide upon group-wide management policies' in a smooth and efficient manner. This will also provide a more efficient and absolute way to reach the goals outlined in the upcoming new 'Mid-term Management Plan'.
About criterion for appointing senior management
Along with the above organizational changes, a new system for rewarding or reprimanding management with additional standards for retirement will be implemented in order to clarify and set standards for appointing directors and senior management.
Through adopting these standards, management responsibility will be made clearer, which will in turn tie directly into increased motivation to management staff and on to the entire organization. Also, by having management and administrative functions filled based on rules, supported by and encouraging systematic training, an organization capable of sustaining SANYO’s residual growth will be created
For Press Contact:(English Only)
- Global Communications Department
Corporate Communications Headquarters
SANYO Electric Co., Ltd.
Tel:+81-3-6414-8621 Fax: +81-3-6414-8720
E-mail: i_press.1014390@sanyo.co.jp
URL: http://www.sanyo.com
