President Message



   10/08/2004


                                                                                  

August 2004

Recently I have read the book "The Discipline of Market Leaders". 
In this book, the author analyzed the existing excellent companies in the U.S. on 
"How to be a market leader" and "How to maintain this position".
There are three Operating Models explained in the book.

The first Model is "Operational Excellence".
This is providing goods to customers at a low price in a very smart way.
Wal-Mart Stores Inc., Costco Wholesale Corporation, Southwest Airlines Co., 
Dell Inc. etc. have succeeded in this area.
Walmart has realized a large sales volume retailing method at low prices without much fanfare.
Southwest Airlines does not serve meals, does not handle baggage services, does not
even have first or business class, but they offer inexpensive airfares. 
When one becomes a Hertz Number 1 Club Gold Member, all your necessary information
are placed in their system so that there is no need for you to join a queue in the airport for a
shuttle bus to your rent-a-car and when returning a rental, it is hassle free such that even 
payments are already automatically charged for your convenience.

The second model is "Product Leadership".
In this case, merchandise with the most advanced performance are always offered.
Intel Corporation, Sony Corporation, Hewlett-Packard Company, Microsoft Corporation,
Glaxo-SmithKline are some of the current leaders in this trade.
In 1989, when Intel launched the newest and powerful chip 486 at that time, their 
development team were already starting their development of the 5th generation microchip
"Pentium". Furthermore, other teams were already tackling with the development of 
7th generation microchip the "P-7" microchip. 
Saying, " The company superior than Intel should be Intel."

The third model is "Customer Intimacy".
This is continued pursuit in offering a close nature with customers by giving the supreme solutions.
IBM, Roadway Reverse Logistics Inc., The Home Depot Inc., Airborne Express, etc. 
are realizing this.
In the 70's up to the 80's, it was impossible to work on a computer room without IBM's support. 
They have continued this support by giving us new business softwares, staff educational support, 
system maintenance services, data control methods, and even IBM gave us an advise how to 
persuade the manager and get the budget for applications.
Airborne Express has constructed a highly effective packing delivery and logistics system 
specifically for Xerox that even help raise the market evaluation of Xerox.

For each model, there are advantages and also shortcomings. 
Acquiring the top market share will become a reality by deciding on the company's core 
competence, reorganization, and developing one's own operating model that suits best for 
the organization.
I have learned much from this one high-spirited book.

Yamashin has three major business plans.
The long-range 5 year plan, the fiscal year plan/policies, and the working plans by each division. 
During the summer holidays in August, it has become my custom to make the long-range plan 
and the following year's plan alone. 
However, this year I want to try to change a little on this method.

I would like to make the long term and short term business plans not only by my own thoughts,
but also by asking the proposals and drafts from the company's management staffs.
From their business plan drafts, I will select the way Yamashin will pursue with our business.
I intend to make decisions after collecting the wisdoms of many internally or externally.

I hope for your continued patronage and support for the Yamashin Filter Group.
Thank you.

Atsuhiko Yamazaki
President 
Yamashin Filter Mfg.,Corp