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Asahi

In: Business and Management

Submitted By vivianauni
Words 11661
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9-205-030

OCTOBER 5, 2004

MIHIR A. DESAI
MASAKO EGAWA

op yo The Continuing Transformation of Asahi Glass:
Implementing EVA

Toshiya Iwasaki, who founded our company in 1907, succeeded in Japan’s first commercial manufacturing of flat glass after numerous failures. He used to say, “Never take the easy way out, but confront difficulties.” He built the corporate culture to challenge the most difficult problems.
— Shinya Ishizu, President and CEO
Shinya Ishizu was in a difficult situation of his own devising. As president and CEO of Asahi Glass
Company (AGC), he presided over a Japan-based multinational manufacturer of flat glass, chemicals, and electronics and displays, with annual sales of •1.3 trillion and the largest global market share in most of its product categories. Worldwide, AGC controlled a network of over 200 subsidiaries and affiliates in 25 countries, generating •52.4 billion in overseas operating profits in FY2003—sixth largest among all
Japanese companies.1 (See Exhibit 1 for financial information and Exhibit 2 for AGC’s global presence.)

tC

After he was appointed president and CEO in 1998, Ishizu began implementing a number of drastic changes to the company’s structure and corporate culture in order to create a truly international enterprise. In 2002, he split AGC into four business units on a global basis which were dubbed “in-house companies” and appointed two non-Japanese executives to manage the glass business, which, at 53% of total sales and 56% of operating profits, was the core of the company. Many Japanese employees working for the company in Japan were placed under non-Japanese bosses for the first time, and many had to learn
English.

Do

No

This reorganization was accompanied by equally drastic reforms in corporate governance and the introduction of new management system for resource

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