Head on this page.
Kazuhiro Tsuga was appointed as President of Panasonic Corporation at the Company's Ordinary General Meeting of Shareholders in June 2012. Here, Mr. Tsuga outlines the Group's direction and ideal image going forward.
What are your thoughts on the Company's current status?
I am filled with a strong sense of crisis.
Since April, I have visited as many business domains and divisions as possible. These visits allowed me to reconfirm the considerable strengths of our frontline. Panasonic is blessed with a large number of outstanding people. I do not believe that our technologies or our passion lag behind those of other companies.
Despite these attributes, we have failed to translate these qualities into concrete results. Accordingly, our current status is one of deep crisis. It is vital that we focus on profitability and return to being a normal company in terms of our financial footings and performance as quickly as possible. If we fail to act now, we will lose our standing in the eyes of the world.
What do believe is required to break free from these current circumstances?
Put simply, we must thoroughly pursue customer value.
Our most pressing priority must be to return the basics and thoroughly pursue customer value. Panasonic's DNA is to focus on its customers. Looking at our current performance, however, Panasonic is not always able to see the needs of customers and I am concerned that we are not able to serve them thoroughly.
At this point, we will therefore adhere strictly to the pursuit of customer value. As a first step, we will work to generate profits by eliminating anything that does not generate customer value.
Can you please explain to us in more specific terms exactly what you mean by pursue customer value?
In specific terms, we will energize individual businesses and reform head office functions.
Our notebook PC business undertaken by the AVC Networks Company and businesses in the Manufacturing Solutions Company are able to see their customer needs globally, and fully meet them. Their business operations are being vigorously carried out and they are realizing high performance. In moving forward, we will ensure that all of our businesses follow this model example.
As one step in this endeavor, we will reform Head Office functions. We will separate the business promotion support function from our Head Office and set up the Professional Business Support Sector to focus increasingly on the frontline. Working together with business domains and units engaged in individual activities, we will build a structure that gives its full and undivided attention to customers. The new Head Office function will therefore be streamlined, focusing on corporate strategy and investment. From this perspective, Head Office, dealing with capital markets, will formulate and promote Group strategy and carry out our business portfolio management.
What direction will business development take in the future?
We will provide Eco & Smart Solutions that focus entirely on customers.
We would like to pursue a dream with our customers. We will therefore pursue businesses that are useful to customers while promoting mutual growth. By serving and helping our customers we will aim to become a highly profitable company.
Panasonic handles a wide range of products. Rather than follow a product-based focus, I am confident that we will be better served by adopting a customer-based focus under which we clarify who our customers are and what usefulness we can bring by narrowing the spaces of our business activities. For example, I see the Company providing the most benefit in the four; residential space; non-residential space including offices, factories, stores and hospitals; mobility encompassing automobiles and aircraft; and personal. In this regard, we will make people, or in other words customers, central to all of our activities.
In each space emphasizing Eco & Smart solutions, we will work to find solutions to customers' problems in BtoB businesses, and provide a sense of security, comfort and excitement in BtoC businesses.
As we work toward thoroughly pursuing customer value, I am convinced that we will bring to fruition our overarching vision of becoming a Green Innovation Company in the lead up to our 100th anniversary of foundation in 2018.
We will do our utmost to rejuvenate the Company and ask for your continued support and understanding.
Return to Top