¶ … maintain global growth and assure "Premier Global
Company status?
Streamline management and oversight-eliminate organizational complexity.
Improve coordination of research and development-acquire technology from outside sources.
Improve coordination among subsideraries.
How should Canon combat closing markets?
Increase manufacturing in unhospitable countries
How should Canon integrate new technology?
Canon dealer training
Parts/Manufacturing, piecemeal introduction of new technology.
Key Issue Justification
Since its formation, Canon has been a very successful company, growing every year. The company wants to become a "Premier Global Company." That is, they want company profits to make up at least 15% of revenues. In order to achieve this goal, the company must streamline its management, get rid of micromanagement and superfluous superstructure. In addition to that, the company must focus research and development more tightly on profitable technology as well as coordinating R&D spread out in a variety of places. Canon lacks communication between its manufacturing facilities.
3.Key Issue Resolution Options
3.1 Separate manufacturing/distribution worldwide.
3.1.1 This option will require that the manufacturers and the distributors worldwide.
This would entail each operating company build its own management and planning organization. The setup would be similar to that of a franchise, where the Canon holding company would manage and advertise the Canon brand name, much like McDonalds does for the franchises. This may be the best option to avoid the pitfalls of closing markets and governments that are unfriendly towards imports.
3.2 Maintain the status quo and seek minor, incremental improvements over a long period of time.
3.2.1 With this option, the structure is largely in place, with basic structures like manufacturing and R&D largely in place. The company is actively seeking improvements in communication and coordination.
Coordination.
3.3 Restructure key components and simplify oversight and management superstructures.
3.3.1 This plan would allow the basic structure of the company to remain, but R&D as well manufacturing would be centralized to increase coordination and focus. With R&D and manufacturing more condensed, oversight and unnecessary superstructure can be avoided.
4. Recommendation
4.1 Canon should implement Key issue Resolution Option 3.3 as soon as possible.
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