BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Chapter 1A Value-GeneratingCorporation Looking Towardthe21stCenturySection 1 Becoming a Value-Generating Corporation1 Establishment of a New Management StructureOn June 28, 1989, Toyota Tsusho announced a new management structure inwhich President Seizo Ezaki was appointed chairman and Vice President KeijiNogami was appointed president.In changing the president, the new management team emphasized stablemanagement and profitability as management policies. While focusing on longtermmanagement stability, two strategies were defined: market expansion andcost reduction to increase profits.In terms of market expansion, in addition to strengthening existing businessesToyota Tsusho decided to develop new businesses and seek new markets overseas.As for cost reductions, the company decided to strengthen its business structure byimproving the organizational structure for efficiency in business operations and todevelop human resources capable of consulting.In the turbulent era of the bursting of the bubble economy and subsequentrecession, Toyota Tsusho renewed its management structure, and Toyota Tsushoand the Toyota Tsusho Group worked as one to achieve the company’s aim ofbeing an international company.Chairman Ezaki (seated) and President Nogami2 Formulation of the 21st-Century Management PlanIn November 1989, the“21st Century Management Plan”was created witha view to the 21st century, which would begin 12 years later. The creation of amanagement plan for the 21st century had been proposed at the Board of Directorsmeeting in December the previous year, and the Vision Review Group, composedof Toyota Tsusho corporate officers, had examined the formulation method andschedule. Based on this, a working group consisting mainly of young sectionmanagers was organized, and the 21st Century Management Plan was formulated.The content was exciting, namely,“Are we full of vitality now?”“Are wewilling to take on challenges with initiative?”“Can we demonstrate our collectivepower under a unified consciousness?”These questions reflected the need forinnovation, reform consciousness, and reform of business structure for the 21stcentury. The philosophy and management policy explained the importance ofrespect for people (vitality), the creation of business for the next generation(originality), the necessity of coexistence and co-prosperity (harmony), and theneed for organizational activation and reform.“Leaping into the World of Innovation 21”(January1989)First Executive Workshop (November 1991)History87