Olympus has dismissed the head of the company because of a lack of understanding of Japanese culture!
Known for its photographic equipment, Olympus Japan is going through hard times, its operating profit for the year ended last March, has fallen by 41% compared with the previous year. If the medical equipment continues to be profitable, then the activity of the Digital Camera resulted in nearly $ 200 million loss.
To improve the situation in April of this year as executive director and the president appointed Michael Woodford (Michael Woodford), which 30 years he worked in the company and has successfully conducted a cost reduction of European division.
He became one of a handful of top executives of Japanese companies, non-Japanese nationality.
To Mr Woodford had high hopes foreign investors, who believed that he could reform the company and return it to the path of development.
However, a recent board of directors unanimously dismissed Michael Woodford from his post as president and chief executive, leaving behind him the post of director on the board of finding a suitable replacement to a vote at the upcoming annual meeting of shareholders. Learn more about Gucci phone!
The reason for removal were differences in corporate strategy. Chairman of the Board Kikukava Olympus Tsuyoshi (Tsuyoshi Kikukawa), which in addition to the post office received the representative director, president and head of the corporation Olympus, said on this occasion: “We had hoped that he [Michael Woodford] will do what it would be difficult for Japanese managers, but he could not understand what we need to maintain continuity in management style, which we followed for 92 years after the establishment of the company, and he was not ready to understand the Japanese culture. ”
In a direct statement, the board indicates that the Woodford strongly deviated from the rest of the leadership team in the direction and management practices, which caused problems in the decision making process.
Mr. Woodford himself admitted in an interview that his management style could cause confrontation, pointing to the obstacles in trying to change the Japanese corporate culture: “I understand why Japan is characterized by the word” unique “, this is one of the most impenetrable culture to outsiders. The status quo is still very strong in Japan. When you change something, or close, or move away from something, you will meet with resistance, caused by the decisions of its predecessor, especially when something is perceived as a ‘sacred cow’. ”
News of the dismissal of Michael Woodford was negatively perceived by the stock market, causing stock prices fell sharply on Olympus 17%. At the auction was put up and sold over 19 million shares, 10 times more than the entire previous month.