■ASIA FORUM 　　English／Japanese

Information Report Vol.3.No.2
Special Edition

Management Strategy Reflecting Severely the Business climate
Outline of Management Capability Research in the Printing Industry for FY1998
Table 1-1 Average evaluation scores by sectors

	Total score		Profitability score		Growth score
	responding number	Average score	responding number	Average score	responding number	Average score
Total	254	5.00	255	2.50	254	2.50
Publication printing	31	4.90	31	2.61	31	2.28
Commercial printing	109	5.21	110	2.57	109	2.63
Business forms	27	5.40	27	2.70	27	2.70
Securities printing	1	3.62	1	2.45	1	1.17
Packaging and other specific printing	15	5.10	15	2.63	15	2.47
Software service	3	5.16	3	2.09	3	3.07
Trade shop	10	4.96	10	2.28	10	2.67
Printing related equipment /materials sales	0	0.00	0	0.00	0	0.00
General printing	58	4.48	58	2.23	58	2.25

Table 1-2 Average scores by region

	Total score		Profitability score		Growth score
	responding number	Average score	responding number	Average score	responding number	Average score
Total	254	5.00	255	2.50	254	2.50
Tokyo	82	5.31	83	2.75	82	2.56
Other regions	172	4.86	172	2.38	172	2.47

Table 1-3 Average scores by scale

	Total score		Profitability score		Growth score
	responding number	Average score	responding number	Average score	responding number	Average score
Total	254	5.00	255	2.50	254	2.50
19 employees or less	9	5.27	9	2.60	9	2.67
20 to 29	23	4.65	23	2.31	23	2.34
30 to 49	38	4.98	39	2.54	38	2.42
50 to 99	82	4.86	82	2.35	82	2.51
100 to 299	78	5.18	78	2.63	78	2.55
300 or more	24	5.20	24	2.68	24	2.51

Table 2 Distribution of the top 40 companies achieving high scores in each criterion

		The number of responding companies	Total score			Profitability score		Growth score
			The number of companies	ratio of total score(%)	Percentage of the companies selected within the top 40(%)	responding number	ratio of profitability score(%)	responding number	ratio of growth score(%)
Classifi cation	Total	271	40	100.0		40	100.0	40	100.0
By business types
Publication printing		31	6	15.0	19.4	6	15.0	2	5.0
Commercial printing		118	19	47.5	16.1	19	47.5	22	55.0
Business forms		28	4	10.0	14.3	5	12.5	4	10.0
Securities printing		1	0	0.0	0.0	0	0.0	0	0.0
Packaging and other specific printing		15	2	5.0	13.3	2	5.0	3	7.5
Software service		3	1	2.5	33.3	0	0.0	1	2.5
Trade shop		11	2	5.0	18.2	2	5.0	3	7.5
Printing related equipment/materials sales		1	0	0.0	0.0	0	0.0	0	0.0
General printing		63	6	15.0	9.5	6	15.0	5	12.5
By regions	Tokyo	94	20	50.0	21.3	18	45.0	15	37.5
	Other regions	177	20	50.0	11.3	22	55.0	25	62.5
By scale	1 to 49	75	9	22.5	12.0	14	35.0	11	27.5
	50 to 99	84	11	27.5	13.1	7	17.5	14	35.0
	100 or more	112	20	50.0	17.9	19	47.5	15	37.5

Table 3 Present Management Goals

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	270	100	5.01	2.51	2.50
To expand printing related businesses (upstream and downstream)	46	17.0	4.87	2.36	2.50
To develop other types of businesses	3	1.1	4.14	1.82	2.32
To specialize in some specific product	21	7.8	5.25	2.61	2.65
To diversify types of products handled	23	8.5	5.16	2.56	2.60
To reinforce marketing capability within existing operations	124	45.9	4.94	2.47	2.47
To try to enhance productivity within the framework of present business operations	23	8.5	5.83	3.13	2.70
To strengthen the financial structure	28	10.4	4.74	2.36	2.38
Others	2	0.7	4.15	2.21	1.94

Table 4 How to Strengthen the Company's Structure

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	270	100	5.01	2.51	2.50
To strengthen products and technical development capabilities	36	13.3	4.97	2.36	2.61
To strengthen production equipment	30	11.1	5.09	2.57	2.52
To improve the financial situation	33	12.2	4.85	2.45	2.39
To strengthen market development (including deepening the current market)	127	47.0	5.08	2.56	2.52
To strengthen the development of human resources	39	14.4	4.70	2.33	2.37
Others	5	1.9	6.45	3.57	2.89

Table 5 The Company’s Sales Point

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	269	100	5.01	2.51	2.50
We have high capabilities in designing and planning.	32	11.9	5.36	2.57	2.79
We can properly advise on printing, and can provide the appropriate information.	62	23.0	4.61	2.32	2.29
We are handling a variety of products.	25	9.3	5.31	2.50	2.80
We have high capabilities in electronic data processing and applications.	49	18.2	5.11	2.48	2.63
We produce high quality products that cannot be made by our competitors.	24	8.9	5.25	2.70	2.55
We can meet the requirement of a short lead-time.	46	17.1	4.85	2.56	2.29
Our production capacity is remarkable.	12	4.5	5.04	2.69	2.35
We provide additional services in addition to printing	11	4.1	5.72	2.66	3.06
Others	8	3.0	4.51	2.42	2.09

Table 6 Measures to Strengthen Sales Points

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	268	100	5.00	2.50	2.50
To utilize outside specialists or organizations	14	5.2	4.93	2.20	2.73
To utilize subcontractors	4	1.5	5.59	2.64	2.95
To expand and strengthen our software department	61	22.8	5.22	2.53	2.68
To develop marketing capabilities	93	34.7	4.82	2.41	2.41
To develop production personnel capabilities	16	6.0	4.96	2.40	2.56
To introduce new equipment	12	4.5	4.41	2.49	1.92
To increase the number of sales personnel	5	1.9	4.80	2.50	2.30
To increase the number of manufacturing personnel	0	0.0	0.00	0.00	0.00
To strengthen customer management	7	2.6	5.15	2.62	2.52
To strengthen quality control	37	13.8	5.42	2.75	2.67
To strengthen process control	15	5.6	4.56	2.49	2.07
Others	4	1.5	5.51	2.74	2.78

Table 7 Marketing Strategies

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	270	100	5.01	2.51	2.50
To strengthen marketing activities, and to flexibly respond to changing conditions	84	31.1	4.99	2.54	2.45
To ensure trust from existing clients	112	41.5	5.15	2.62	2.53
To concentrate on customers within a specific types of business	7	2.6	5.21	2.55	2.66
To try to expand local market share	22	8.1	4.54	2.12	2.42
To try to expand the market outside our local marketplace.	7	2.6	5.03	1.85	3.18
To increase job orders which are appropriate for our equipment	23	8.5	4.58	2.18	2.40
To increase all jobs without considering our equipment	11	4.1	5.64	2.83	2.81
To sell as a group company member	2	0.7	4.64	2.44	2.21
Others	2	0.7	3.98	2.18	1.81

Table 8 Strategies to Ensure Orders

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	270	100	5.01	2.51	2.50
To strengthen customer management	49	18.1	5.04	2.66	2.38
To try to enhance customer service quality	138	51.1	5.13	2.48	2.65
To try to enhance individual sales personnel marketing capabilities	64	23.7	4.76	2.38	2.38
To establish a new organization to expand into new business areas and to gain a new customer base	13	4.8	5.20	2.85	2.35
To propagate the company's name through active advertisement and publicity activities	4	1.5	3.29	1.85	1.44
Others	2	0.7	5.78	3.31	2.47

Table 9 Measures to Reduce Manufacturing Costs

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	271	100	5.00	2.50	2.50
To reduce the number of manufacturing personnel	12	4.4	4.20	2.03	2.17
To screen, integrate, and utilize subcontractors	20	7.4	4.30	2.27	2.04
To promote internal manufacturing	125	46.1	4.94	2.49	2.45
To try to standardize work processes	52	19.2	5.29	2.55	2.74
To expand facilities	33	12.2	4.99	2.61	2.38
Maintenance of machinery	2	0.7	4.69	2.70	2.00
To operate on a shift system	1	0.4	10.96	7.56	3.40
Optimize procurement of materials (e.g. bulk purchase, just-on-time procurement, etc.)	12	4.4	5.66	2.53	3.12
To select and procure economical materials without reducing the level of quality	13	4.8	4.95	2.39	2.56
Others	1	0.4	6.73	3.12	3.61

Table 10 Points to Introduce New Equipment

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	270	100	4.99	2.49	2.50
To try to reduce the reject ratio of products	11	4.1	4.83	2.40	2.43
To promote systematization and in-line systems	87	32.2	4.97	2.45	2.52
To expand business territories	24	8.9	5.62	2.82	2.79
To recruit young employees	2	0.7	4.79	2.61	2.18
To enhance productivity	121	44.8	5.06	2.58	2.48
To promote labor saving	21	7.8	4.15	1.87	2.28
Others	4	1.5	4.90	2.40	2.50

Table 11 Methods for Enhancement and Upgrade of Products

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	270	100	5.00	2.50	2.50
To try to enhance the knowledge and techniques of employees	176	65.2	4.89	2.42	2.47
To introduce new equipment	28	10.4	5.45	3.05	2.40
To enhance planning capabilities	52	19.3	5.10	2.45	2.65
To establish an R&D organization	10	3.7	5.04	2.58	2.45
To promote joint research with another company	3	1.1	5.54	3.27	2.27
Others	1	0.4	4.53	1.69	2.84

Table 12 Financial Measures Taken in the Past Three Years

Items for Answers	responding number	ratio(%)	Total score	Profitability score	Growth score
Total	266	100	5.00	2.50	2.50
Repayment of loans	74	27.8	5.28	2.72	2.56
Aggressive utilization of funds	22	8.3	4.76	2.38	2.38
Squeezing credit amounts to other companies	1	0.4	4.14	2.02	2.12
Change of payment conditions for credits and debts	5	1.9	6.52	3.47	3.06
Selling excessive assets	4	1.5	4.45	2.13	2.32
Reduction of inventory	18	6.8	4.92	2.44	2.48
Reduction of labor cost	44	16.5	4.50	2.15	2.35
Reduction of procurement from outside (subcontracting, materials costs, etc.)	94	35.3	5.10	2.52	2.58
Others	4	1.5	4.56	2.40	2.17

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