WIN"G"21 is a basic plan for the development and growth of a
leading Japanese industrial corporation during the next
ten years. It sets the objective position and structure
of Asahi Chemical in 2005 and the course for their attainment.
It will guide the progress of the corporation through
a time of rapid and profound economic and social changes
in Japan and throughout the world.
The WIN"G"21 concept
has been conceived and formulated in deliberations at
the top management level during the past year. It is
being publicly announced for the first time today, and
preparations are underway to begin its implementation.
Its three fundamental components are its delineation
of the corporate philosophy, the corporate structure
and position to be attained, and the basic mid- to long-range
corporate strategy. It is designed for the growth and
development of a corporate configuration marked by high
earning power and consolidated-base annual sales of
two trillion yen in 2005.
Background
- The current position of Asahi Chemical,
as one of Japan's leading industrial corporations, is
the result of a longstanding policy of business expansion
in accordance with the domestic and overseas business
environment, led by an effective strategy of lateral diversification
and resulting in a broad base for balanced growth and
strong long-range earning power.
- During the past two years Asahi Chemical
has been engaged in a deep restructuring of its business
and earnings base, to meet the challenge brought by the
collapse of the economic "bubble" and the structural weaknesses
of the Japanese economy that it has laid bare.
- In the course of formulating and implementing
this policy, and in the light of the dramatic social and
economic changes that are yet to come, the corporate management
determined that the effort must go beyond increased efficiency
and restructuring. It must also include the development
and growth of new businesses highly viable and profitable
under the new rules of intensifying international competition.
During the past year, this realization has led to the
development and establishment of the WIN"G"21 conceptual framework for corporate operations during the
next ten years, and the objectives to be attained by 2005.
The term WIN"G"21
The term WIN"G"21 represents
the spirit of winning through innovation, enterprise, and
growth that will build the corporate base for the early
years of the 21st century. It represents a "win-win" configuration
that will benefit company and customer, society and the
environment. It means the attainment of these objectives
through a concerted, corporate-wide effort for Growth of
the Asahi Group, with Great Technology, as a "Geo-Enterprise"
- globally oriented, globally competitive, and globally
protective of the environment.
Concept and implementation
- WIN"G"21 delineates
the basic tenets of the Asahi Chemical corporate philosophy,
a model of the corporate business structure 10 years from
now, and the basic mid- and long-range strategy for its
achievement. It describes the future corporate configuration
in terms of its business sectors, product sectors, and
consolidated sales of two trillion yen in the year 2005.
- The corporate-wide effort and program
of WIN"G"21 implementation will begin
in fiscal 1996, following the formulation of key strategies
and programs for the development of next-generation businesses,
overseas businesses, and decentralized, division-based
management. The top-level corporate management will open
a series of discussions at all major facilities this month,
to begin the movement toward understanding, concord, and
commitment to the concept and objectives of WIN"G"21 at all levels of management and personnel, throughout
Asahi Chemical.
Corporate Philosophy
1. Domain of corporate activities and operations
The central focus of Asahi Chemical is
the future of the earth and humankind. Its central role
as a corporation in the 21st century is the contribution
to human happiness and welfare with technology that serves
life and everyday living.
2. Corporate mission
- Contribution to people and society,
in harmony with both.
- Preservation of the environment.
- Creation of new value through innovation.
3. Key management precepts
- Maintenance of customer trust and satisfaction.
- Maintenance of environmentally sound,
safe operations.
- Creation of new markets through technological
innovation.
- Development and growth of internationally
competitive, leading businesses.
- Management marked by speed, energy,
and vitality.
- Synergistic diversification and group
management.
The WIN"G"21 business configuration
1. The WIN"G"21 three-point policy for business restructuring
- A shift to electronics, health care,
and housing-related products and operations, as the
key sectors of corporate growth in the 21st century.
- A shift to the functional materials,
system components and end product sectors, from the
basic and commodity materials sectors.
- An increasing ratio of overseas production,
to meet the challenges of emerging era of intense international
competition.
2. WIN"G"21 target results of operations in fiscal 2005
Sales, consolidated-base
(overseas production, 10%) |
2,000
billion yen |
| Sales, parent |
1,500 billion yen |
| Ordinary profit, parent |
100 billion yen |
| Net profit, parent |
50 billion yen |
3. WIN"G"21 target sales composition in fiscal 2005
By end-use category (consolidated-base)
| |
1995 |
2005 |
| Housing and construction |
34% |
30% |
| Daily life (Apparel, foods, liquors,
materials, etc.) |
35% |
30% |
| Electronics, health care |
16% |
30% |
| Other end-use sectors |
15% |
10% |
By industrial & business sector (consolidated-base)
| |
1995 |
2005 |
| Basic and commodity materials |
39% |
28% |
| Functional materials, system components |
19% |
24% |
| End products (domestic demand-specific) |
42% |
48% |
Key elements in the mid- and long-range
strategy of WIN"G"21
- Establishment of decentralized, division-based
management authority and responsibility, for fast, flexible,
responsive operations and innovation.
- Concentration on expansion of core businesses
and development and growth of new businesses.
- Refocusing and enhancing corporate R&D
and production technologies.
- Strengthening international competitiveness
and aggressive development of overseas businesses.
|
