Kyocera Case Study
B
CASE ANALYSIS
Kyocera Corporation
Preface According to the footnotes on the initial page of this case study, it was written by Nancy Rothbard of the Harvard Business School for the purpose of discussion rather than for analyzing the handling of an administrative problem. The format is generalized and it gives a broad spectrum of information from which a student can extract pieces relevant to his or her area of study for a specific class. Since this case analysis is for a class in Strategic Cost Management, the main area of interest for this paper will be in the area of “cost management”. However, given the broad spectrum of information, the analysis is not limited only to cost management facts and issues, but also includes information that that is relative to other management topics. Rather than looking for a group of existing administrative problems, the focus is strategic in nature and addresses issues that could be problems in the future based on the status of the company at the time the case was written. The analysis includes information for the time period covered in the case study with a few references to Kyocera in the period of time after this case was written and up to the present.
Introduction Kyocera Corporation was founded in Japan in 1959 as the Kyoto Ceramic Company., Ltd. by Dr. Kazuo Inamori and seven colleagues. With Dr.Inamori providing strategic direction, the company grew from a small niche market player to an international conglomerate in a relatively short period of time. Within 30 years Kyocera was a world-class leader in their core product (electronics packaging) market. In addition, through mergers and creation of new business units Kyocera was able to successfully diversify into other areas of technical expertise. Seven product groups accounted for ninety-nine percent of Kyocera Corporation’s sales of approximately $2.7 billion in 1990. (The additional 1%
CASE ANALYSIS
Kyocera Corporation
Preface According to the footnotes on the initial page of this case study, it was written by Nancy Rothbard of the Harvard Business School for the purpose of discussion rather than for analyzing the handling of an administrative problem. The format is generalized and it gives a broad spectrum of information from which a student can extract pieces relevant to his or her area of study for a specific class. Since this case analysis is for a class in Strategic Cost Management, the main area of interest for this paper will be in the area of “cost management”. However, given the broad spectrum of information, the analysis is not limited only to cost management facts and issues, but also includes information that that is relative to other management topics. Rather than looking for a group of existing administrative problems, the focus is strategic in nature and addresses issues that could be problems in the future based on the status of the company at the time the case was written. The analysis includes information for the time period covered in the case study with a few references to Kyocera in the period of time after this case was written and up to the present.
Introduction Kyocera Corporation was founded in Japan in 1959 as the Kyoto Ceramic Company., Ltd. by Dr. Kazuo Inamori and seven colleagues. With Dr.Inamori providing strategic direction, the company grew from a small niche market player to an international conglomerate in a relatively short period of time. Within 30 years Kyocera was a world-class leader in their core product (electronics packaging) market. In addition, through mergers and creation of new business units Kyocera was able to successfully diversify into other areas of technical expertise. Seven product groups accounted for ninety-nine percent of Kyocera Corporation’s sales of approximately $2.7 billion in 1990. (The additional 1%
Bibliography: Kyocera Corporation, Nancy Rothbard, Harvard Business School, Publishing Division. 1991. Document #9-491-078,. Revisioned July 1993.