PANASONIC

INTRODUCTION & HISTORY

 Production started with a staff of three

Panasonic starts with a desire to create things of value. As hard work and dedication result in one
innovative product after another, the fledgling company takes its first steps towards becoming
the electronics giant of today.
The company that was to become Panasonic was started on March 7,1918, when Konosuke
Matsushita moved from his tiny dwelling to a larger two-story house, and set up Matsushita
Electric Housewares Manufacturing Works. The staff consisted of three people: the 23-year-old
Matsushita, 22-year-old Mumeno and her brother Toshio lue, then just 15.
They converted the three rooms on the ground floor into a workshop, and installed two hand-
operated presses for molding insulation. Although production started with fan insulator plates,
Matsushita was convinced that there was a huge untapped market for convenient, high quality
household electrical fixtures. He stayed up late at night refining his designs, ultimately choosing
to manufacture two new products-an attachment plug and a two-way socket. They proved
popular as they were of higher quality than other products on the market, and were 30% to 50%
cheaper. By the end of 1918, the company employed 20 people.
The fixtures were initially sold through a single wholesale outlet, but this arrangement broke
down when sales fell due to heavy price cutting by other manufacturers. However, as Matsushita
began dealing directly with other wholesalers, sales grew and the company found itself on firm
footing.

 From a household business to a small enterprise

In February 1920, Matsushita designed a trademark for the company consisting of the letter M
overlaid with an arrow and surrounded by a wide diamond. To him it symbolized reaching a
target, overcoming whatever obstacles might be encountered along the way.
In March, he sent Toshio lue, then 17, to Tokyo to expand the company's sales there. Though the
economy worsened, the company continued to grow as sales of its products increased.
The company had rented the neighboring house to expand production, but was unable to keep
pace with demand. So, in 1922, Matsushita leased a 230m2 site nearby, completing construction
of a factory and office in July. By the end of the year, employees numbered more than 50.
In the four years since the company's inception, it had become a full-fledged business with its
own factory.

 Electrical appliances for the masses

In 1927, the company moved into electro thermal products. Like the radio, appliances that
produced heat electrically were luxury items at the time, and were financially out of reach of
most households. Matsushita believed it possible to produce these products, meeting high
Annualreport2018
http//www.panasonic.com
standards of quality, at prices the average household could afford. In January 1927, he set up an
electrical heater division, and placed Tetsujiro Nakao in charge of developing a mass-market
iron. The iron was to equal the quality of existing products with a price tag at least 30% lower.
After three months, Nakao came up with a new design, in which the heating element was
sandwiched between steel plates. Commercial irons selling for ¥4 to ¥5 were very pricey,
considering that an elementary school teacher had a starting salary of about ¥50 a year at the
time. Matsushita decided to set the price for the new iron at ¥3.2, but in order to do so, the
company had to make 10,000 units per month, more than the combined production of all other
Japanese electrical manufacturers. There was no guarantee that the market would absorb this
volume, yet Matsushita was convinced that the masses would embrace a high-quality, affordable
product. And he was right-the product was successful.

 Matsushita announces the true mission of the company

Matsushita spent a day visiting the head temple of a popular religious sect on the invitation of an
acquaintance. He was struck by the sight of many followers energetically at work. As he thought
over his impressions, he saw a parallel between the services that religion and business offer to
humanity.

"Human beings need both physical and spiritual prosperity. Religion is a holy pursuit that
guides people out of suffering toward happiness and peace of mind. Business, too, can be
sacred in that it can provide the physical necessities required for human happiness. This
should be the primary mission of business. "

He decided he had to run the company in accordance with this perception. On May 5, 1932,
Matsushita assembled employees to announce the company's new mission.

"The mission of a manufacturer is to overcome poverty by producing an abundant supply

of goods. Even though water from a tap is a processed product with a price, no one objects
if a passerby drinks from a roadside tap. That is because the supply of water is plentiful
and its price is low. The mission of a manufacturer is to create material abundance by
providing goods as plentiful and inexpensive as tap water. This is how we can banish
poverty, bring happiness to people's lives and make this world into a paradise."

He then announced a 250-year plan for the company to fulfill its mission. This period would
consist of ten 25-year periods, each divided into three phases, a ten-year construction phase,
followed by a ten-year fully active phase, and then a five-year fulfillment phase.

 The introduction of modern facilities

The pace of activity builds and the company constructs a large, modern factory complex at
Kadoma. The foundation of the company is firmly established as the Management Objective
takes shape, and the divisional system and other management innovations are born.
Panasonic already had more than 1,200 employees and manufactured more than 200 products at
the time Matsushita announced the company's corporate mission in 1932, but this was only a
beginning. The factories were expanding their operations, and growth was accelerating.
Annualreport2018
http//www.panasonic.com
Matsushita decided the company needed a new Head Office and factory complex to meet its
future needs. He eventually selected a site northeast of Osaka in rural Kadoma and began
construction.
When the company moved into the new 70,000m2 facility in July 1933, Matsushita reminded the
employees that over expansion could lead to a company's demise, and that the responsibility for
the success or failure of the company at that crucial juncture lay on their shoulders.

 Development of an innovative export structure

The company began printing English catalog for its products in 1931, and in April 1932,
Konosuke Matsushita set up an export department to research and develop the company's
international sales potential. This represented a significant innovation in an industry where
exports were traditionally left to large trading houses and foreign trading concerns. With a
unified policy for domestic and export markets, the company could now actively expand its
export business.
Exports grew, and in August 1935, Matsushita set up Matsushita Electric Trading Co.(MET) - a
unique move for an electrical manufacturer. MET's efforts bore fruit as Panasonic products were
exported throughout Southeast Asia.
In March 1938, MET set up an import department that brought in raw materials needed for
electrical goods production, supplying Panasonic and other electrical manufacturers.

 Company Name Change

The company was established as Matsushita Electric Housewares Manufacturing Works in 1918,
renamed Matsushita Electric Manufacturing Works in 1929, and then incorporated under the new
name Matsushita Electric Industrial Co., Ltd. in 1935. This was the first change since that time.
The company name change was announced in January 2008 and the decision formalized by a
resolution of the general shareholders' meeting in June. Upon the resolution of the company
name change and brand unification, President Fumio Ohtsubo declared his resolve by saying,

"We will steadily strengthen the power of Panasonic brand in the global arena by bringing
together all activities of Panasonic Group employees and all the fruits under the name of
Panasonic." In addition, he emphasized that the management philosophy of the founder
Konosuke Matsushita would be unfailingly shared among and practiced by all employees."

 Commemorating the 100th Anniversary of Our Founding

In 2018, the significant milestone of our 100th anniversary, a wide variety of efforts are now in
progress to show our determination to take a new step forward by following in the footsteps of
our founder. At 2018 International CES, one of the world's largest consumer electronics shows
held in Las Vegas, United States from January 9 to 12, 2018, Panasonic introduced its 100-year
history, notable products, and future vision.

Annualreport2018
http//www.panasonic.com
Annualreport2018
http//www.panasonic.com
 MISSION
“We strive for the creation of new values, by pursuing user-friendliness and
accomplishing high-tech mindset, driven by challenging spirits and full speed of
actions”

CRITREIA FOR ASSESSING MISSION STATEMENT

1. Flexibility: In mission statement the word “user-friendliness” were define the

flexibility of the company.

Explanation: The products of Panasonic were user friendly and easy to handle and
they change their products according to the customer wants and the environment.

Evidence: Panasonic implement a “Champion and Challenger” model. At Panasonic

there are many champion businesses such as the consumer electronics & electrical
construction materials businesses. At the same time Panasonic possess various challenger
business in the area of automotive (lithium-ion) batteries and consumer electronics
evolve with IoT and AI.
 Panasonic Environmental Vision 2050, in which they will create more energy than
its uses, aiming for a society with clean energy and a more comfortable living.
 In 2013 Panasonic introduce air purifiers in China and India.

2. Distinctive Advantage: In mission statement the word “high-tech mindset” were

define the distinctive advantage of the company.

Explanation: Panasonic have a competitive advantage in technology, they changing

their business model and deliver better products and services. Panasonic were adopt
innovation strategies and work on the technological development.

Evidence: Panasonic brand slogan indicates that they were promoting innovation “A
Better Life, A Better World” the technology sector formulated its R&D 10-year vision.
They promoting two major fields, the IoT/Robotics and Energy field. Panasonic have
diverse technological capabilities:
i. Visual/Imaging
ii. Heat (thermal control)
iii. Mechatronics
Annualreport2018
http//www.panasonic.com
 iv. IoT and AI
 In 2017 Panasonic develops facial recognition gate, put into operation at Tokyo
International Airport.
 Electricity can be saved simply by using home appliances based on Panasonic proprietary
‘ECONAVI’ technology, which capable of detecting waste electricity and automatically
saving electricity.

3. Specificity: In mission statement the word “driven by challenging spirits” were

define the specificity of the company.

Explanation: The specificity of Panasonic is to strive for the creation of new values to
our customers in the sense of delivering good quality, low cost, highly innovative
products, easy to handle and environmental friendly goods and services all this is cause
of a great team that works hard to achieve the company goals.

Evidence: Panasonic draws on the advanced and specialized technologies as well as the
manufacturing capabilities of its business division in combination with the strength of
external business partners to create new values, they work on the creation of new ideas
such as in Smart Energy System, Laundry System and vacuum cleaner, Home
Entertainment, Panasonic Ecology System (smart town concept), Security System,
Panasonic Automotive.
 In 2014 Fujisawa Sustainable Smart Town established for eco-conscious and
comfortable lifestyle while ensuring safety and security.
 In April 2017 they established “Gemba Process Innovation”. This includes
bringing innovation to their supply-chain for a speedy response to diverse
consumer need as well as innovating their products and service.

4. Attainable: In mission statement the word “user-friendly & high-tech mindset” were
define the attainability of the company.

Explanation: Panasonic were attaining their goals and objectives by using innovative
technology in their manufacturing products. They produce those goods which are eco-
friendly and easy to handle that may enhance the efficiency of the people and improve
their lifestyle.

Evidence: Changing in the business environment will become increasingly drastic. For
Panasonic to grow in the medium-to-long term it is vital for us to keep insights into
changes in society such as urbanization, the aging population and diversified values. To
address the significant changes in society it is also necessary to place oneself in the
middle of intense environment change.
 Panasonic newly established in April 2017 the Business Innovation Division aims
not only to develop technologies but also to lunch new businesses itself. For
Annualreport2018
http//www.panasonic.com
 which the world changing dramatically from an industrial society and information
society to a Super Smart-Society.
 In July 2018 they establish Panasonic β in Silicon Valley, its purpose is to test the
innovation creations. With a sense of urgency its talented employees are
promoting diverse project that is Home X project to create the future of living of
spaces is ongoing.

Annualreport2018
http//www.panasonic.com