Features of Japanese Corporate Star Performers
Executive and Management Development and Mentoring, Moravec and Associates Consultants to Management
According to Goldman Sachs, the share price of only 61 of the 1,400 companies listed on the first section of the Tokyo Stock Exchange (TSE) had risen at all since 1990. TOPIX, the index that tracks these shares, fell by 70% during this time frame. However, shares in the top stock on the list, Rohm, the biggest specialist manufacturer of custom-made integrated circuits, jumped sevenfold. Nidec, the second-best performer and the world's largest producer of precision motors for hard-disk drives, saw its share price quadruple.
What sets Japanese distinguished performers apart from the others?
- Many high performers are industry leaders, including Hoya, Bandai, Aderans, Toyota, Secom, Orix, Yamato Transport, Nippon Television Network, Honda, Seven-Eleven, Takeda Chemicals, Kao Corporation, Mabuchi Motors, Disco, Olympus Optical, Suzuki Motors, Nidec, and Nintendo.
- Top-ranked Japanese firms are increasing the sales and profits gap between themselves and competitors.
- Another feature common to some top performers is their superior international strategy and execution.
- Not surprisingly, many are from export industries, such as high tech and cars.
- Many also have good and growing standards of corporate governance.
- Most striking, almost none of the best performers belong to "keiretsu," the corporate families bound together by cross-shareholdings that traditionally dominate industries. Because the outsiders - outstanding financial performers - fend for themselves, they are exposed full force to market pressures, and so sharpened their understanding of regulations and political and economic conditions in various parts of the world, governance, management, structure, technology, organization culture, core processes, products and services, and workforce for success.
- Nearly half the best performers are based outside Tokyo. Lacking the connections that rivals in Tokyo earned, they went global to develop new markets and create value.
- Many Japanese exceptional performers on the list were also quick to build production facilities abroad and to cultivate foreign markets.
- All 1,400 Japanese companies listed on the first section of the Tokyo Stock Exchange (TSE) and those appearing on the NYSE, BOLSA, BOVESPA, Toronto Stock Exchange, DAX, FTSE and CACA are under more pressure than ever to be profitable - while at the same time, many are facing new challenges to achieve increased profitability.
- Many Japanese high performers used consulting to develop the capacity to implement successful l business and organizational renewal. Executive Development programs and consultant-arranged business tours of USA companies as prepared by Moravec and Associates were used to develop durable business strategies as well as management resilience and organizational agility.
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