Japanese Titans of the 20th Century

Japan may have been the first Asian country to modernize in the 19th century, but products produced by this newly-opened nation back then were still subclass as compared to those produced elsewhere in the world. Unlike the Japan we know of today, Japan 100 years ago was only specialized in silk, textile and cotton production. A likely reason for this was the absence of competition due to the market regulation favoring state-owned businesses. As the 2nd World War erupted, factories throughout Japan were destroyed by the victorious Allied forces. With the defeat and surrender of this proud nation after the dropping of the atomic bomb, the Japanese nation had to once again rebuild. One valuable advantage the Japanese had was the aid given to them by the American nation in hopes that Japan would never enter into war again. This valuable American support came in the form of economic and humanitarian reforms. Still, as Japan was to take a new direction apart from it's past practices, it had to have a new generation of leaders to guide and provide example for others to follow. These leaders had to have a vision of leading Japan not only to cooperate with the international community, but also to create responsible citizens. These leaders who have risen out of the Japanese postwar crisis are entrepreneurs who were willing to learn from other cultures and would not settle for mediocre systems and products. They have won praise not just for innovative products, but also for the push to make the employees more involved, as well as, develop their potential. Therefore, it is only just that these men were able to build world-class industries that can be found in the different parts of the world providing consumers with quality goods and services at friendly prices.

Successful Japanese industries such as Matsushita Electric Co., Honda, and Hattori-Seiko were all built by Japanese entrepreneurs who have toiled and took time to think of new ideas not just in products, but also in employee-management relationships. These exceptional individuals had a keen eye for the future and a clear understanding that competition, innovation and total quality would make Japan one of the top industrial nations in the world.

Konosuke Matsushita

When one talks about Japanese entrepreneurs, the most prominent would be Konosuke Matsushita. Dubbed as Japan's "god of management", his life encompassed three key development phases in Japan: Meiji Period, Modern Period (postwar Japan) and Japan as a first-world country. Though he has passed away in April 27, 1989, Matsushita's teachings and management-style continue to be practiced today by the company he founded when he was only 23years old, Matsushita Electric Co. Well-known international brand names such as Panasonic, Technics and Quasar are managed by this company. Growing up in a work environment after his father lost the family fortune in speculative investment pushed the young boy to be a self-made man. "By the age of ten, Konosuke had to leave school to work in Osaka, first as an errand boy in a brazier shop, shortly thereafter, as an apprentice to a bicycle merchant. At fifteen, Matsushita transferred to Osaka Light Company as an electrician. (Cruitksbank, Jeffrey. HBSB p60). He later left the company because of the entrepreneurial desire to create new things which was not being satisfied by his then employer. Truly, Konosuke was a man who constantly pushed forward and wanted to improve everyday life. Thus, he established the Matsushita Electric Company.

One of Matsushita's first innovations after becoming an entrepreneur was the battery-powered lamp for bicycle riders which he proved to be practical and led to the success of the company in its early years. During the 1929 depression, he was able to clear his warehouse inventory without laying off any workers while other Japanese companies were stacked up with unsold goods and folding up. His key to survival was having factory workers work half the day in the factory while the other half was spent out in the streets selling the company's products. (Matsushita. As I See It p79) During the Allied occupation, worker unions were being formed throughout Japan according to the new Japanese constitution. While other Japanese employers were in protest over radical reforms such as increased worker privileges, Matsushita fully supported these reforms and was able get the trust and cooperation of his employees. Another bold move Matsushita did was to take a trip to the United States of America to study western industries. When he returned, he decided to focus his business efforts in establishing products in Japan then bringing them to America. This would require a strong product and a powerful image which can only be made possible with training employees and extensive marketing. In order to sustain his company expansion and continued drive for quality, an alliance with Philips in 1952 provided Matsushita Electric Co. with additional support in patenting and marketing new technologies.

Finally, Matsushita is known as the pioneer for the "medium term planning" consisting of 5 years where the management is more interested in product improvement and survival rather than in quick profits, in other words, long term planning and investments. By the 1960s, Matsushita Electric Company's success is seen in its capital of above 10 billion yen; in 1987, it became one of the World's greatest enterprises with 135,900 employees and a revenue of $26.4 billion. (Mirror p17)

Hideaki Moriya and Hattori-Seiko's Management

In the watch industry, the title of the world's largest watch producer belongs to Seiko. It owes this prestige to the management team of Hattori-Seiko. When this business was still in it's infant state, management had to cope with cost-reduction while keeping improvement constant; beginning with the production of watches that needed winding until digital watches were introduced. Hattori-Seiko's management was fortunate that Japan had very skilled technical laborers who would be employed in their factories at low wages as compared to elsewhere in the world. In order to make watch production more efficient, Seiko's management toured Europe and then the United States, after which they decided to adopt the use of the assembly-line to increase the productivity and the quality of their watches. (HBSP p11). Aside from this, Seiko promoted the concept of rivalries between its production plants when it came to product designs and models making Seiko's watches more competitive thanks to employee intrapreneurship. These improvements allowed this company to grow bigger and also gain majority share in Japan's watch markets. With this in mind, Seiko was now prepared to win