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0 Introduction
Panasonic Corporation is one of the largest electronic product manufacturers in the
world which comprised of over 634 companies. Their head office is located at Osaka, Japan
and lead by Kazuhiro Tsuga, current president of Panasonic Corporation. The history of
Panasonic goes back to when Konosuke Matsushita founded Matsushita Electric Housewares
Manufacturing Works in 1918. The company is operate from March 1918 and incorporated in
December 1935 and until today.
Panasonic Corporations Basic Management objective was formulated in 1929 by the
companys founder, Konosuke Matsushita. The objective is Recognizing our responsibilities
as industrialists, we will devote ourselves to the progress and development of society and the
well-being of people through our business activities, thereby enhancing the quality of life
throughout the world. It is Panasonics business philosophy that embodies their mission and
devotion to the progress of society and the well-being of the people worldwide through
business activities.
The vision of Panasonic is aim to be the No.1 Green Innovation Company in the
Electronics Industry in 2018, the 100 th anniversary of their founding. They will make the
environment central to all of their business activities and take the lead in promoting the
Green Revolution and bring forth innovation. They will work with two innovations to
realize their vision. They are Green Life Innovation which is offer better living by providing
people around the world with a sense of security, comfort and joy in a sustainable way. The
other one is Green Business Innovation which is a concept that the ideal goal of a
manufacturer is to realize zero cost, zero time, and zero inventory.
The Panasonic brand name was created in 1955. It is a combination of the words
Pan and Sonic sound and has a meaning of bringing sound their company creates to the
world. Since 2008, it is used as the corporate brand representing the company, products and
services. The Brand slogan is Panasonic, ideas for life and the Brand promise is Panasonic
generates ideas for lifetoday and tomorrow. Through innovative thinking, we are
committed to enriching people live around the world.
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2.0 Contents
2.1 Issue 1: October 2007 - Announcement of the Eco Ideas Declaration - Eco Mindset
In 2007, there are many issues relevant to the pollution of environment and the
problem of atmosphere due to over release of carbon dioxide, CO . Many company start
to do research and development to develop new product that environmental friendly. Hence,
Panasonic Corporate also work hard and put many effort to following the trend and create or
improve their product to attract consumer and increase profitability and growth of sales.
Hence, in October 2007, Panasonic Corporate announced the Eco Ideas Declaration
which bringing an Eco Mind-set to people of the world. They commit to the acceleration of
environmental management. The corporate announced that there would be a Group wide
commitment to the goals of accelerating countermeasures to prevent global warming and
the global promotion of environment management.
The most important goal of Eco Mind-set was the reduction of CO
manufacturing activities. The corporate has placed CO
emissions in
indicator along with sales, operating profits, inventory, CCM, and others. The first of multiple
environmental management tasks of the Eco Ideas Declaration is the reduction of CO
emissions.
The commitment of corporation to environmental management was far reaching and
included three approaches:
(i) Eco ideas in craftsmanship in manufacturing by reducing CO emissions and
saving resources through enhanced productivity, initiatives concerning waste materials.
(ii) Product related eco ideas by exhaustive efforts at coming up with more energysaving products, recycling initiatives.
(iii) Eco idea outreach by going eco with the local community, initiatives that goes
beyond national borders.
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The president Ohtsubo stated that he would like to see and every one of the member
of Panasonic awareness and pursue for reaching initiatives in order to realize environmental
management that is second to none.
2.2 Issue 2: February 2012 - Panasonic hit by huge losses
In February 2012, Panasonic is bracing up to a very difficult year after heavy losses
have been forecasted based on recent figures. The figures involved are indeed huge because
the corporate has forecast a loss of 780 billion yen ($10.2 billion dollars) based on figures
relating to March 2011. Panasonic is making it clear that the reasons behind the huge deficit
are based on the strong yen, major acquisition costs, and huge losses which were incurred
after the devastating floods in Thailand.
According to the chief executive in Tokyo at Fukoky Capital Management, Yuuki
Sakurai commented that We cant see the market for consumer electronics improving
anytime soon. and Theres a mismatch between the products they make and what
consumers want. The mismatch is a strong word and the changing nature of the electronics
sector means that companies can soon fall behind.
Therefore, the President of Panasonic, Fumio Ohtsubo, faces major restructuring
problems because core areas like rechargeable batteries and solar panels are very competitive.
He commented that Were in the midst of a transformation into an environmental innovation
company; well focus on carrying out reforms so that we can realize a V-shaped recovery.
However, workers at main office Osaka may face the brunt of restructuring because it is
apparent that Panasonic will further look to new initiatives outside of Japan.
Panasonic had stated in November 2011, that a new plant would be built in Malaysia
with regards to solar cells and modules. Also, the procurement base is going to shift from
Osaka to Singapore. Therefore, they are hoping to lay the foundation for greater stability and
revitalizing the company which faces stiff competition from companies. The company last
year began cutting its workforce, eliminating 17,000, or almost 5 per cent, of its staff. In
addition to the TV business, it is scaling back its semiconductor operation and shifting its
focus, from low-margin general-purpose chips to specialized products such as image sensors.
Like other Japanese groups, Panasonic has struggled to cope with disruptions caused
by severe flooding last year in Thailand, a country that has become a leading manufacturing
and parts-supply hub for Japans electronics and automobile companies. The floods,
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Thailands worst in decades, shut down factories and forced some groups to delay the launch
of new products. Panasonic estimated the adverse effect on its profits for the year at Y60bn.
Overall, Panasonic face major internal problems and issues like the floods in Thailand
should have been backed up by contingency plans. However, the strong yen is a different area
which was unforeseen by most forecasters several years ago.
2.3 Issue 3: February, 2013 - Panasonic's Superior Green Products Label Covers 316
Models this Financial Year
Panasonic, in line with its commitments to the environment, established its original
criteria according to five themes, there are global warming prevention, chemical substances
management, and effective use of resources, water and biodiversity. It has been
manufacturing and providing eco-conscious products and services with these themes in mind.
Of those, Panasonic accredits products that achieve particularly high environmental
performance as Superior Green Products (GP).
Since the launch of Superior GP in the financial year 2005 with 19 certified models,
the criteria have been enhanced to promote expansion of the scope of covered models. As a
result, the number of certified models has grown annually, and the total reached 316 products
worldwide for the financial year of 2013 as of December 2012. Panasonic strives to further
promote eco-conscious products by expanding the number of Superior GPs and providing
customers with a wider range of Green Products to select from.
Aiming for all their products to become GPs, they globally promote environmentally
conscious manufacturing which produce many type of green products such as eco-conscious
products, energy-saving products, energy-creating products, energy-storing products,
comprehensive energy solutions, resources recycling through products, water conservation
through products, management of chemical substances in products and factor X. In order to
reduce environmental impact from daily lives by having more customers use their products,
Panasonic is making efforts to convey information on the products environmental
performances in an easy-to-understand manner by environmental labels.
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3.0 Discussion
3.1 Sun Zis Art of War Theories, Concepts and Assumptions
Panasonic Corporate faced many issues in difference segment that either brings
benefits or losses to their corporate. The issues can be solve or improve by using Sun Zis Art
of War theories, concepts or assumptions. Sun zi said that the five factors which are moral
influence, the weather, terrain, generalship, and doctrine and law should be analyzed, study
and compare them carefully against so as to understand the changing conditions and
circumstances and to assess the chances of victory and success. These factors will be related
to SWOT analysis which will be discussed later.
For the first factor, Sun Zi said that moral influence refers to measures and policies
that align the people with the sovereign so as to be in complete agreement and harmony with
each other. In this way, the people will be prepared to co-exist with as well as die for the
sovereign without any fear of dangers. Nowadays, Panasonic Corporate as a largest electronic
product manufacturer in the world should continue to improve and maintains their
characteristics, character, ethics and the way they manage and take mention to their followers
and customers to influence their loyalty by respect and trust the products of Panasonic.
Panasonic should continue their effort to maintain their characteristic to reach their
vision as the No.1 Green Innovation Company in the Electronics Industry in 2018. The
corporate should manage their corporate in ethics way not only in external issues such as
environment problem and competitive, but also internal issues such as arrangement of
resources and capital and relationship with employees. For the environment issues, Panasonic
can continue their effort in Eco Ideas project and produce and extent their product lines for
Panasonic's Superior Green Products that environmental friendly.
For the second factor, Sun zi said that terrain refers to whether the route to be taken is
long or short, whether the ground is treacherous or safe, wide or narrow with regard to ease
of movement, and whether the ground will determine the death or survival. In this theory it
mainly discuss on four aspects that are land or ground which means raw material, destination
that stand for market or target market, situation or position and also environment place which
is place and market under control.
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From this theory, Panasonic should arrange and manage their raw material carefully.
They can continue have a new plant to be built in other country beside Malaysia with regards
to more solar cells and modules by increases the raw material by own manufacture. Besides,
to lay the foundation for greater stability and revitalizing of the company which faces stiff
competition from companies, the procurement base can shift from Osaka to Singapore and
also other countries.
For destination that stand for market or target market, Panasonic can improve their
product line of Superior Green Products by add on more segments beside in different product
category, superior Green Products category, regions sold and also product groups. They also
can extent the sub group in each of the segment to fulfil more market and target market that
different in nowadays.
For the situation or position, Panasonic must know their position either is position in
competitive situation, position of their resources and capital level and also their position and
role in consumer products. This will help corporate able to make planning, organizing,
leading and controlling in the external and internal situation with more specific and correct
decision. Further, it can prevent from huge losses that cant estimate which causes by the
strong yen, major acquisition costs, and the devastating floods in Thailand.
For the environment place which is place and market under control, Panasonic should
improve their management and controlling on their market which is already under their
control such as rechargeable batteries, solar panels, plasma TV and also Superior Green
Products. By this, it will overcome problem of competitive between competitors.
For the third factor, Sun Zi said that the general ship of a commander refers to his
qualities of wisdom, trustworthiness, benevolence, courage and discipline. As a leader, five
minimum requirements which a leader should have is wisdom IQ, trustworthiness trust,
benevolence - kind-hearted or humane, courage - brave to take risk and making decision and
discipline - strict to the rules and regulation or fairly. As a leader, one must know how to
reward your followers contribution and take care of them and willing to change.
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All the products of Panasonic have their own life cycle. Panasonic should be more
creative, innovative and continuous improvement in their products to enable origin product to
continue its life span and sales and old products will eventually be replaced by it.
Sun Zi also said that he (the general) who is adept in warfare does not require
additional conscription of soldiers or multiple replenishments of food and supplies. Capital
and financial are important sources for the organization. To sustain in the market, Panasonic
must have strong rolling capital and to reduce the payback period of any investment. A strong
capital and financial level will help Panasonic to survive in economic downturn. It also can
help the corporate to discover faster from losses. Panasonic can increase their shareholder and
extent their business in more country to increase their capital and financial status.
In the issues of changing trend of consumers behavior, Sun Zi said that the person
adept at warfare seeks victory from the battle situations and conditions and does not rely
solely on the efforts of his officers and men. As such, he is able to select the right men and
trust them to exploit the battle situations and conditions. When external environment change,
which is the changing nature of the electronics sector that will cause companies soon to fall
behind, Panasonic have to change their strategy and use their strength to sustain and survive
in the market and not to blame the market trend.
Sun Zis Art of War theory is very useful and important for all business organization
to improve their current status or help them to solve the problem or issues faced.
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Besides that, quality of the products it offers to the market is inconsistent is also one
of the weakness of Panasonic. The customers do not know what to expect that reducing the
confidence they have on companys product. There is a common complain that the electricity
offered by the Panasonic are not innovative, not diversified and low R&D in the market.
Other than that, the employee productivity also is a weakness of Panasonic. The total revenue
per employee is low compared to other competitors and the unfunded employee postretirement benefits which pensions costing more than projected for retired workers.
Panasonic also facing some weaknesses in ethics which is outsourcing labour to China
where work conditions are not as desirable. Furthermore, the brand also faces intense
competition from leaders and also faces trouble from fake replicas.
3.2.3 Opportunities
The opportunity of Panasonic Corporation is growing global consumer and industrial
electronics market. The need for electronics is never ending increasing. In Indian, the use of
household appliance market is showing strong growths. Panasonic commenced its operations
in India in the year 1972 and has shown a 200 per cent growth in the past three years and
visions to become Indias largest electronics and durables brand by 2018.
For developing countries, as the countries continue to develop the demand for these
electronics will increase. Panasonic have the change to improve and extent more products for
consumer and industrial user with difference types of segments and target market to grow and
increase the number of customer.
Nowadays is the age of technology, electronics never ending industry with endless
room for improvement and innovation. Current society portrays high tech electronics as
popular and trendy. In 2006, Panasonic announced that it would stop producing analogy
television, in order to concentrate on digital televisions. Panasonic keep going to improve
their product to fulfil the customer needs.
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Besides that, Panasonic also produce many types of electronic, such as airconditional, laptop, cell phone, LCD projector, Digital cameras and others. These electronics
are expensive and consumers are willing to pay high dollar to get them because electronic
become daily necessities for human being nowadays. Panasonic already build in the high
technology in their products but they still can make improvement on it and develop higher
technology in the products to reach their vision of become the No.1 Green Innovation
Company in the Electronics Industry in 2018.
Panasonic Corporation had produced the eco-line products and they will focus on it to
drive future growth. Panasonic produce the eco-line products with the concept of smart
energy and Smart Appliances. For smart energy, which helps save energy comfortably and
smartly is introduced together with compatible home appliances such as air conditioners, IH
cooking heaters, Eco Cute water heaters and energy creation-storage linked systems.
For smart appliances, that is the new functions and energy-saving features of
Panasonic's ECO NAVI technology are presented with a focus on the latest ECO NAVI-line
refrigerators, air conditioners, and washing machines. Panasonic can continue improve the
product line of their Panasonic's Superior Green Products.
Apart from that, Panasonic had emerging markets and expansion abroad, such as
India, United State, Singapore, etc. Panasonic funds that emerging markets of Asia and Latin
America presents business expansion opportunities. This action can increase the sales of the
electronic and gain more and more profit to the business because electronic is daily
necessities for human being nowadays.
3.2.4 Threats
Unfortunately, Panasonic Corporation has to face the problem of economic slowdown.
Current U.S. and global economic situations make it hard to see growth. Because of this,
more and more Americans prefer to buy the electronic from American based companies with
products made in America. This will decrease the sales of Panasonic products.
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Government Regulations also is the problem that Panasonic Corporation should face.
Human health and safety laws have to follow in this tough environment. Panasonic create the
activities that harmful to environment will only get a fine of more expensive and stricter
punish. Although the products of Panasonic most are environmental friendly, but some
negative effect also will occur by the higher technology of production.
This is cannot escaped that Panasonic should face with the some biggest competitors
such as Samsung, LG and Sony, etc. This is because these all electronic company are
providing the similar service and product to the consumer. Besides that, they are always
competing with each other through produce and promote a new product to attract the
consumer from all walk of live to win a place in the mind of them. They act like this
deliberately is because want to outstanding with each other.
Other than that, commodity prices also will have an impact on the operating costs of
the company. In addition, Panasonic may get affected by lower cost competitors or another
imports product. Because of this reason, there are many similar products in the market so that
it will course the consumer compare to each other. To cover this situation, Panasonic will
always produce the new product with cheaper price to attract more consumers.
Lastly, the customers tend to become price sensitive, and it has a great impact over of
the buying behaviour of the customers. Behaviour of customers always changes due to
influence of surrounding environment. Panasonic should take note on this and prepare and
planning well to face this problem.
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4.0 Recommendations
4.1 Strong Capital and Strong Financial Level
One of the weaknesses of Panasonic is poor financial performance. In the period from
April 2011 to March 2012, there were extremely harsh in economics of Japan and overseas.
This was attributable to a variety of factors including the strong yen, major acquisition costs,
and disruption in supply chain that affected by flooding in Thailand. The group sales for
fiscal 2012 had decreased by 10% to 7846.2 billion yen. To overcome this type of problem,
Panasonic should have a strong capital and strong financial level. They can increase their
distribution of share in market in whole the world. By this the capital of corporate will
increase and the level of financial will increase simultaneously. By having strong capital and
financial level, corporate are able to recover back to normal operation when they are facing
losses or deficit causes by changes in internal and external environment. Besides that, strong
capital and financial level enable the Panasonic to have more research and development in
producing new products because of large amount of resources
4.2 Eco Mindset
Nowadays, there are many issues relevant to the pollution of environment and the
problem of atmosphere due to over release of carbon dioxide, CO . Many company start
to do research and development to develop new product that environmental friendly. Hence,
Panasonic Corporate also should work hard and put much effort to following the trend and
create or improve their product to attract consumer and increase profitability and growth of
sales. Panasonic should put more effort in research and development activity to produce more
environmental friendly product to achieve their vision aim to be the No.1 Green Innovation
Company in the Electronics Industry in 2018. Panasonic should put more effort in reducing
CO
emissions and saving resources in their production activity and process through
enhanced productivity and initiatives concerning waste materials. They should also do some
exhaustive efforts at coming up with more energy- saving products and recycling initiatives.
Besides that, Eco idea should be reach to all member of Panasonic and also whole global by
going eco with the local community, initiatives that goes beyond national borders. By this,
environmental problem such as pollution can be reduce effectively and efficiency. By
following the current trend of eco mind-set, number of customers and users of Panasonic will
increase and corporate will gain more benefit.
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problem and maximize the stratifications of customers. Therefore, they will come back
purchase again their products and increase customers loyalty.
4.5 Expand the Resource Base
Panasonic faced the major restructuring problems because core areas like
rechargeable batteries and solar panels are very competitive. Many competitor are competing
in producing this type of product and this cause the resources also been compete by others.
Panasonic must take action in expanding the resources base to reduce the cost of production.
Panasonic should grow the labour force, which is one of the important resources in
production activity. This can be fostered through expanded numbers of workers, or
improvements in their productivity. Both the quantity and quality of the work force affect the
output and production process. Other strategies to grow the labour force is have more support
for education or on-the-job training programs to facilitate investment in human capital and
more efficient policies in areas such as health care and safety in the workplace for the
employees. The other resource that very important is capital which is a major avenue for
growth. To expand more capital, Panasonic should do their work in the way of saving.
Consuming less than their produce is saving, which allows resources to be channelled into
productive investment. Rapid investment boosts production possibilities in two ways. First,
more capital is available. Second, new capital usually embodies technology that is superior to
that embodied in older buildings and machinery. By increasing in the resources of corporate,
Panasonic are able to make more benefits and performance better.
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5.0 Conclusion
Sun Zis Art of War is an ancient Chinese military treatise attributed to Sun Tzu, a highranking military general, strategist and tactician, and it was believed to have been compiled
during the late spring and autumn period or early Warring States period. The text is composed
of 13 chapters, each of which is devoted to one aspect of warfare. It is commonly known to
be the definitive work on military strategy and tactics of its time. It has been the most famous
and influential of China's Seven Military Classics. It has had an influence on Eastern and
Western military thinking, business tactics, legal strategy and beyond.
Based on proposition, we found that Panasonic Corporation has the potential to
develop and comprise green practices and Eco-Idea. We discovered that the market
opportunity of Panasonic Corporation is wide and estimate it can make a higher profit in the
future. According to the SWOT analysis that we discovered, we suggest some
recommendations that how the Panasonic Corporation can comprises green practices and
Eco-Idea into their marketing mix and also effort to save the environment with the aim of
reducing operating costs, creating values, increasing sales and minimizing environmental
affects through marketing activities.
In the process, in order to get the information that we need, we have tried various ways
such as browse the internet, ask our friends around. We have faced many problems during the
process of doing the proposition. Fortunately, we can consult our lecturer, Mr. Tee when we
meet any problems.
After doing this project, we learned that a company is not easy to maintain for longterm business and success to gain high profits. For example, we need to do research to find
out the SWOT analysis of the company to realize it strength. Besides, we need to specify the
market opportunity in accordance the different perspectives such as the problems faced by
company, the trend in certain industry, the needs and wants of the consumers and other
factors. Ultimately, we contribute together and accomplish the proposition on time.
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