Reviving Sanyo: Experimenting with an Inexperienced CEO
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Code : LDS0014
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Region : Japan |
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Sanyo’s New Chiefs In response to amassive net loss, the company decided to go in for amanagement reshuffle.Nonaka, a former news anchorwas decided upon to replace the outgoing 72-year old chairman, Satoshi Iue. Sanyo also appointed Toshimasa Iue, a vice president, to succeed Yukinori Kuwano (Kuwano) as president. At a press conference called tomake the announcement about the new appointments, Satoshi Iue, said, “Ms.Nonaka has brought us voices of consumers as an outside director.We would like to reinvigorate our company by having young people on the board.”12 Nonaka, 50, had her education from Sophia University in Japan and the University of Missouri at Columbia in US.... The Debate Reacting to these appointments, John Yang, an equity analyst for Standard & Poor, Tokyo, said, “I wasn’t surprised at this appointment – Iwas amazed.Given the lack of a track record, I’mnot sure how Nonaka’s going to turn Sanyo around.”14 Even though, Nonaka had held several board positions earlier, critics say that she has relatively no experience in senior management position to run the day-to-day activities on a company. Moreover, they pointed out that she has very little experience in the electronics field. Critics also questioned the appointment of Iue, as he is amember of the founding family. Hewas holding a keymanagement position during the company’s recent downturn butwith no results.Yuki Sugi, an analyst at Lehman Brothers Inc. Tokyo, said, “He proved that he could operate a difficult division. The question is, can they transfer that success to the rest of Sanyo?”... |
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