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Notice:
This information is not public in English but just a translation of press release in Japanese for your reference.
Notice Regarding Organizational and Personnel Changes Effective April 1, 2004
Promote Strong Growth Strategy through 4-Profit Center Structure Aimed at Improved Business Capabilities
CE Division Split into OEM and Commercial, and Combined with HE Division to Form Consumer Business Group
This is to notify that effective April 1, 2004, KENWOOD Corporation (President and CEO: Haruo Kawahara; Head Office: Hachioji-shi, Tokyo; "KENWOOD" or "the Company") will be making several organizational and personnel changes. This move will help promote a strong growth strategy and enhance operational capabilities thus enabling the Company to achieve the goals set forth in the "Excellent KENWOOD Plan", the medium term management plan.
1. Intent of the Organizational and Personnel Changes Effective April 1, 2004
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After completing its managerial reforms in FY2002, the Company established a medium term management plan dubbed the "Excellent KENWOOD Plan." The implementation period for the Plan was set to be from May 2003 through FY2005 (77th Period). During the initial implementation period of FY2003 (75th Period), the Company carried out a variety of activities that brought forward the positive effects of the structural reforms carried out in previous fiscal years and the production innovation measures implemented in March 2003. The goal of these activities was to launch KENWOOD towards a new future.
However, the shrinking of the audio market in North America, Europe and Japan as well as the contrasting expansion of the digital/network and multimedia markets led to a greater diversification of technological innovation and user needs in the ever-changing consumer electronics market. For KENWOOD, this means that FY2004 would be an extremely important year not only to promote a strong growth strategy and enhance its business capabilities but also to remain compatible with the changing times.
In response to this, KENWOOD has made a decision to split the Car Electronics Division, the largest of the Company, into an OEM Division and a Consumer Division because of the large differences in the features of each segment. In addition, the two new groups will be matched alongside the Home Electronics and Communications Equipment Divisions to form a "4-Profit Center (Segment) Structure." This move is expected to allow the Company to develop new, more optimal growth strategies for each division. Furthermore, parts of the firm engaged in consumer electronics will be integrated to form a "Consumer Business Sector" to allow for a more concerted response to the ever-changing marketplace. More specifically, the new sector system will improve the Company's responsiveness to market changes, promote R&D for new technology and strategic joint development between segments so that new products and platforms can be developed, and improve the overall quality of products. The Consumer Business Sector will be comprised of three profit centers (Car Electronics Consumer Division, Car Electronics OEM Division and Home Electronics Division) and two new cost centers (Speaker System Division and Consumer Business Development Center).
New Organizational Structure
2. Main Organizational Changes
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(1) |
Promote Strong Growth Strategy through 4-Profit Center Structure
Currently, KENWOOD operates under a three-profit center structure comprised of the Car Electronics (CE), Communications Equipment (COM) and Home Electronics (HE) Divisions. The CE Division is further broken down into the two very distinct fields of Car Electronics Consumer and Car Electronics OEM. The large differences in the features of these two areas, coupled with the greater expansion of the OEM business market, led to the decision to form two new divisions; Car Electronics Consumer (CE Consumer) Division and Car Electronics OEM Division (CE OEM). As a result, KENWOOD will now operate under a four-profit center system, thus allowing each division to develop growth strategies that are optimal to their operations. |
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(2) |
Better Market Response, Stronger Products and Improved Quality through the Launch of the Consumer Business Sector
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Consumer Business Sector (Launch)
In order to improve the Company's operational capabilities in the ever-changing consumer electronics field, a decision was made to form the "Consumer Business Sector". This new Group is comprised of the three profit centers that directly engage in consumer-related business (i.e. CE Consumer, CE OEM, and HE Divisions) and two newly established cost centers (i.e. Speaker System Division and Consumer Business Development Center). The move is expected to improve the Company's responsiveness to market changes, promote R&D for new technology and strategic joint development between segments so that new products and platforms can be developed, and improve the overall quality of products. |
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Speaker System Division (Newly Established) --- Level 1
KENWOOD has continued to enhance its acoustics business with the objective being to improve sound quality to the greatest extent. The Company has upgraded and expanded its sound quality research functions and has succeeded in developing high-quality digital amplifiers for the consumer market. In the past, the HE and CE divisions separately carried out the functions of the acoustic business. However, the change in the organizational structure will result in the establishment of an independent "Speaker System Division", an important division common to the Consumer Business Sector that will engage in business development from the sole standpoint of speakers. The new division is expected not only contribute to the growth of the CE and HE Divisions but also strengthen the internal capabilities of the acoustic business. |
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Consumer Business Development Center (Newly Established) --- Level 1
The "Consumer Business Development Center" will be established to promote the development of new, highly-competitive products and product platforms for the Mobile & Home Multimedia System business, an area of consumer electronics that is particularly active when it comes to technological innovation. The Center will make company-made strategic investments, promote the development of basic technologies common to the divisions of the Company, and engage in advanced and strategic development. |
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(3) |
Overall Improvements to New Product Development Capabilities and Improvements to the Design and Quality of the Mass Production Model
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Product Management Operation for Each Division (Newly Established) --- Level 1.5
A Product Management Operation will be established in each division with its purpose being to improve the Company's ability to develop new products for the mature audio products market and the growth multimedia market that also cater to the regions they are going to ultimately be sold in. As sub-level, the Department will have personnel in various functions such as marketing, product planning, design, basic design, and profit/loss management. This structure will allow the Department to assume the role of managing each product process from conceptualization to commercialization and the profit/loss associated with the development of such products. |
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Product Design Operation for Each Division (Newly Established) --- Level 1.5
A Product Design Department will be established in each division with its purpose to design the mass production system for various products based on the basic design established by the Product Management Operation and to ensure quality control of such products. As a sub-level, the Department will have a development/design team for mass production models and a plant-based team that takes on the responsibilities associated with various functions including mass production design, production technology, component quality, manufacturing quality, and delivery time compliance. This structure will allow the Department to assume the role of managing the mass production model process from development to mass production. |
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Car Electronics Consumer Division: Car Multimedia System Development Project (Newly Established) --- Level 1.5
As part of the organizational changes, the Car Multimedia System Development Project will be established within the Car Electronics Consumer Division. The role of the new group will be to develop and commercialize new car multimedia systems (including car navigation systems) and improve on the activities carried out in the car electronics field ahead of the establishment of a "Mobile & Home Multimedia System" business. |
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(4) |
Improve Operational Capabilities through Final Completion of Production Innovation Measures
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Production Innovation System
KENWOOD is currently in the final stages of completing the production innovation activities that will improve overall operational capabilities. As part of this strategy, a stronger relationship between all divisions and manufacturing companies of the newly established four-profit center structure will be pursued. In addition, the three manufacturing companies that have already begun implementing production innovation measures (i.e. KENWOOD Yamagata Corporation, KENWOOD Nagano Corporation, and KENWOOD Electronics Technologies Singapore Pte. Ltd.) will be designated production innovation headquarters. Subsequently, these three companies will lead other manufacturing companies towards implementing various production innovation measures. Moreover, leaders trained in the various production innovation practices will be dispatched to each manufacturing company with a responsibility to develop such practices at their designated locations. The Production Innovation Division, which will be headed up by the CEO, will have control over all of these activities. |
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KAM HQ (KENWOOD Asian Manufacturing Headquarter) (Established as of February 1, 2004)
On February 1, 2004, KAM HQ (KENWOOD Asian Manufacturing Headquarters) was established within KENWOOD Electronics Technologies Singapore Pte. Ltd.. The purpose of this new group is to promote and enhance production innovation activities at manufacturing facilities in Singapore and Malaysia. |
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3. Major Personnel Changes
Name |
New Duties |
Previous Duties |
Hiroshi Komatsuzaki * |
Vice CEO (Consumer Business Sector - Overseas Market) |
General Executive, Car Electronics Division |
Haruo Kasuya * |
Vice CEO (Car Electronics Divisions - Domestic Customer Support)
General Manager, Consumer Satisfaction Division
President, KENWOOD Services Co., Ltd. |
Vice CEO (Domestic Sales and Marketing) |
Akio Ueda * Director |
General Executive, Procurement Division
General Manager, Environmental Management |
General Executive, Procurement Division
Assistant General Manager, Production Innovation Division
President, KENWOOD Service Co., Ltd. |
Masateru Ando * |
Vice CEO (Consumer Business Sector - Domestic Market) |
General Executive, Home Electronics Division |
Shoichiro Eguchi ** |
General Executive, Car Electronics Consumer Division
General Manager, Product Management Operation - Car Electronics Consumer Division
President, KENWOOD Electronics Europe B.V.
CEO, KENWOOD Europe Headquarters (KEHQ) |
President, KENWOOD Electronics Europe B.V.
CEO, KENWOOD Europe Headquarters (KEHQ) |
Sadaharu Kato *** |
General Executive, Speaker System Division |
General Manager, Speaker System Division Establishment Office - Strategic Business Planning Division |
Tanaka Shuntaro *** |
Car Multimedia System Development Project Leader - Commercial Car Electronics Division |
Assistant General Executive, Car Electronics Division |
Akira Seida |
General Executive, Car Electronics OEM Division |
General Manager, OEM Business Division - Car Electronics Division |
Junji Kobayashi |
General Executive, Home Electronics Division
General Manager, Product Management Operation - Home Electronics Division |
General Manager, Business Management Department - Home Electronics Division
General Manager, Product Management Department - Home Electronics Division |
Nobuyuki Narukawa |
Chief Engineer, Car Electronics OEM Division
Chief Engineer, Consumer Business Development Center |
Chief Engineer, Car Electronics Division
General Manager, Engineering Department, OEM Business Division - Car Electronics Division |
Yoshihito Arai |
Chief Specialist (Car Multimedia System Development Project Sub-Leader) |
Chief Engineer, Car Electronics Division |
Yukinori Ohtani |
Chief Specialist (Car Multimedia System Development Project Sub-Leader) |
General Manager, Strategic Technologies Development Center - Car Electronics Division
General Manager, Development Department 1, Strategic Technologies Development Center - Car Electronics Division |
Masachika Komiyama |
General Executive of Consumer Business Development Center
Chief Engineer, Home Electronics Division |
Assistant General Executive, Home Electronics Division
Assistant General Executive, Car Electronics Division |
Tomonari Miura |
Chief Engineer, Car Electronics Consumer Division
General Manager, Product Design Operation - Car Electronics Consumer Division
Chief Engineer, Consumer Business Development Center |
General Manager, Software Engineering Department - Car Electronics Division |
Hiromo Sasao |
General Manager, Product Design Operation - Home Electronics Division |
Chief Engineer, Home Electronics Division |
Eijiro Tamura |
Chief Specialist (Consumer Business Development Center) |
Chief Engineer, Home Electronics Division
Chief Engineer, Car Electronics Division |
Kazuya Koyama |
General Manager, Product Design Operation - Car Electronics OEM Division |
General Manager, Mechanism Design Department - Car Electronics Division |
Toshikazu Shimada |
General Manager, Product Management Operation - Car Electronics OEM Division |
General Manager, Product Planning Department, OEM Business Division - Car Electronics Division |
Ryohei Wada (As of February 1, 2004) |
President, KENWOOD Electronics Technologies Singapore Pte. Ltd.
CEO, KAM HQ (KENWOOD Asian Manufacturing Headquarters) |
President, KENWOOD Electronics Technologies Singapore Pte. Ltd. |
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* |
Executive Vice President & Executive Officer |
** |
Senior Vice President & Executive Officer |
*** |
Vice Executive |
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For queries regarding this article, please contact:
Public Relations Office
KENWOOD Corporation (Japan)
Tel: +81-426-46-6724
Fax: +81-426-46-1440
Email: pr.qa@pr.kenwood.co.jp
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Updated 04/03/31 (C) 2004 KENWOOD Corporation
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