Vison of SHOSHA - Corporate vision, management plans and future outlook

Corporate vision, management plans and future outlook

Amid the aforementioned rapid change, the SHOSHA are seeking to strengthen their earnings power and improve business performance so that they can continue to contribute to economic advancement in Japan and the world. To this end, the SHOSHA have each formulated a corporate vision and medium-term management plan, while reshaping their management and business structures.

The following are cited as the key words showing the direction of the reform incorporated in these visions and plans.

  1. Globalization
  2. Upgrading and combining inherent functions
  3. Selection and concentration of the business portfolio, and priority allocation of management resources
  4. Business alliance, consolidation, and reorganization
  5. Group-oriented management, nurturing and strengthening group affiliates and subsidiaries
  6. Adopting a cash flow management system, curtailing risk assets and interest-bearing debts
  7. Multi-functional SHOSHA, Enterprise creating SHOSHA, Strategic business group, Specialized SHOSHA

The terminology therein varies, but is marked by a strong feeling of challenge, which is commonly shared by all the SHOSHA. It means that their survival in the 21st century fully depends upon the outcome of their challenge to reform their management systems and business structures, and to renew and refine their unique functions. On the other hand, there is strong confidence that the SHOSHA can be reborn as "global business innovators" creating new value in the world economy by making maximum use of their global networks, a unique management resource particular to Japanese the SHOSHA.

The SHOSHA have established worldwide networks and developed their business from a global perspective. Their networks will give them fundamental advantages and extensive opportunities, however they must adapt to prevailing global standards in order to make the best use of these resources. This demands better achievement of good investor relations (IR) through positive disclosure of management strategy, business performance and financial statements, a stronger emphasis on corporate governance, establishment of better management monitoring systems visible from outside the company, and installment of a consolidated accounting system and cash flow basis management system. By harmonizing their management system with global standards, the SHOSHA will be better understood and appreciated by their investors and business partners in the international business community.

In addition, the SHOSHA must create new value-added for all of their "stakeholders" (all parties with a stake in their activities, meaning not only investors, but business partners, employees, consumers, and communities as well). The fundamental factor required to do so is to constantly innovate and add value to management resources. With these efforts the SHOSHA will reach an ever higher level of competitiveness, and better reliability and reputation.

To create new business models, the SHOSHA are moving ahead applying the concept of “Selection & Concentration” to their business portfolio, while maintaining their comprehensive but integrated functions derived from their wide-ranging business experiences.
At the same time, the SHOSHA are adopting various types of organizational reforms, such as “the division company system” and “the business unit management system”. These reforms make for more efficient management data for determining the restructuring needs for all division companies and business units.
Through this process, the future SHOSHA should be able to make the transition to such various models as the “multi-functional SHOSHA”, the “enterprise creating SHOSHA”, the “strategic business group” or the “specialized SHOSHA” and so on.