Komatsu Case Analysis

1018 Words May 20th, 2016 5 Pages
1. How was Komatsu able to evolve from a $169 million company with low-quality products to become a real challenge to Caterpillar by the early 1980s? How would you evaluate Mr. Kawai's performance?
When Ryoichi Kawai assumed the presidency of Komatsu from his father in 1964, he built on the Total Quality Control (TQC) program that his father had started in 1961. Ryoichi Kawai’s strategy was straight to the point when he became President and that was to acquire and develop advanced technology, to raise quality and to increase efficiency to the level necessary to catch up and surpass Cat its main competitor. He decided to galvanize the company around this challenge and to focus management on his strategic priorities. He introduced a style
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Tanaka’s pricing and sales were controversial within the company because of the lower price but aggressive sales methods. But his philosophy prevailed.
He also pursued internationalization more aggressive than his predecessor. Katade was much of the driving force behind emerging strategy to push the company toward rationalizing production in Europe and the United States.
4. How e¬ffectively did Mr. Katada take charge? How would you assess his new vision for the company? His new strategy? His new cultural and behavioral objectives? What grade would you give him for his performance?
Katada placed self-defense above anything else and this management policy was necessary because of the persistent high-yen environment. He noted that the Soviet Union had their problems, China also had issues, so did south America and Africa. As a result, 90% the demand was in America, Japan, and Europe that alone was enough to focus their attention on those 3 countries. Katada also noted that the company could not rely solely on construction equipment. He proposed they take an objective look at the world economic situation and discuss future moves within the company based on that. He wanted everyone to stop concentrating simply on catching up with Caterpillar and focus on new trends. He didn’t believe so much in the top to down management style but rather engaged the company in a debate over the company’s future direction. He came up with a

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