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Matsushita makes an invisible contract with the masses
The Japanese economy recovered quickly throughout the 1950s despite continued fluctuations. As the standard of living improved, consumer demand for electrical conveniences grew steeply.
Matsushita sensed that the economy was about to enter a period of vigorous expansion. In his management policy address in 1956, he announced a five-year plan. He said that annual sales of ¥22 billion should rise to ¥80 billion, the number of employees from 11,000 to 18,000 and the company's capitalization from ¥3 billion to ¥10 billion.
The audience was astonished. No private enterprise had ever announced such long-term plans. The industry was surprised as well. Matsushita insisted that the plan would be feasible, despite economic fluctuations, or even a minor recession. These numbers actually represent the desires of the masses. Therefore, to achieve this goal, we need to make sure that we are not working for fame or profit. We are making an invisible contract with the masses. As long as we don't slack off in our endeavor, I think we shall certainly achieve this goal."
The plan was achieved in just over four years.
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