BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Chapter 4Response to Trade FrictionSection 1 Strengthening the Corporate Structure1 Formulation of a Medium-Term Management PlanTojiro Okamoto, who led Toyota Tsusho from its founding to the expansionaryperiod as its first president, became the company’s chairman in 1959. TomiyasuKambara and Kiyoshi Miyairi then steered management as the second and thirdpresidents, respectively. In June 1977, Yasuo Shibata, who was appointed thefourth president, established a medium-term management plan amid the harshsituation of the second oil crisis in order to break out of the General TradingCompany Depression.The plan was to establish a structure as the Toyota Group’s general tradingcompany to serve as a driver and strengthen the general trading company functionsforlong-termgrowth.Specifically,thefollowingfourdirectivesweregiven:1. Establish a comprehensive management structure and strengthen the businessstructure with the Toyota Group.2.Promoteamoreproactivesalesstrategyasageneraltradingcompany.3. Implement business streamlining and administrative streamlining, such ascost reductions.4. Develop human resources suited to a general trading company.President ShibataWhile Toyoda Tsusho was forced to carry out measures for reinforcing itsbusiness foundation in a harsh environment, it decided to nonetheless implementthorough cost consciousness, expand its domestic branch network, develop newmarkets, and establish overseas joint ventures.In August 1980, Seizo Ezaki, who took the baton from President Shibata andbecame the company’s fifth president, called for steady execution of this mediumtermmanagement plan.2 Achievement of Two Trillion Yen in SalesIn the fiscal year ending March 1981, Toyoda Tsusho achieved net sales of atrillion yen for the first time and net income that exceeded that of the previousfiscal year. But due to the worsening environment surrounding management,exports declined, sales to the Toyota Group declined, and the machinery and fuelbusinesses peaked. To overcome this, President Ezaki set“Dynamic Toyotsu”asa slogan and introduced a new medium-term plan. The plan actively promotedjoint ventures and the improvement of the corporate structure as a general tradingcompany. It also sought to enhance the company’s development functions bystrengthening collaboration with Toyota Central R&D Labs, Inc., OkazakiNational Research Institutes, and Japan Fine Ceramics Center.President EzakiHistory77