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Katada Analysis

In: Business and Management

Submitted By dhicks12
Words 554
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Katada Era
Tetsuya Katada took over as the new president in 1989. When Katada took the role as CEO, he was aware of the unrelenting challenges and demands faced by the company and knew the battle wasn't going to be easy. He realized that Komatsu current management practices were hindering profitability and other factors as result of the company’s main focus being to surpass Caterpillar. A new project was introduced to centralize the company’s new strategy, "Growth, Global, Group wide." He adopted an open organizational policy that required management and top-level executives to go into the work field and figure out the needs of the growing market. Turning toward a more groundbreaking approach, Katada induced a more creative methodology with the organization and centered towards the consistent advancements of products and services. Refocusing the company’s production on products other than construction equipment was one of the key steps in Katada’s resolution to double sales. His solution to revamp the company was to take the focus off Caterpillar and to grown the company into becoming a technological equipment entity.
By expanding global operations through localization and international enterprise, he was able to increase sales and profits by billions. Katada advertised that the organization would go for attaining a deals level of ¥1,400 billion by the mid-1990s. This level was about twofold the amount of its income level in 1989. The idea to localize management by consolidating Japanese and Western management practices made the Komatsu-Desser merger easier to manage. The combination of American marketing and management with Japanese technology forecasted a successful future in achieving localization. Expanding offshore operations allowed the company to raise its effectiveness in their respective geographical setting. Within the next three years, Komatsu…...

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