The first part of this investigation involves an evaluation of the strategies used by Canon and the key factors for success. In order to being this review, it is first necessary to consider how the company has performed in recent years. Table 1 provided below provides an overall review of the organization’s performance in recent years. The data clearly suggests that Canon has made notable progress toward developing market share, revenues and profitability. In addition to reducing its debt to asset ratio in 2008, the organization also increased its stockholder equity to assert ratio. Table 1: Key Performance Indicators for Canon, 2004-2008
Data courtesy of: http://www.canon.com/ir/annual/2008/report2008.pdf Other indicators of Canon’s success are provided in Figures 1 and 2 below. These illustrations provide a review of net sales and ROE/ROA for 2003-2007. Figure 1: Net Sales for CanonFigure 2: ROE/ROA for Canon
Data courtesy of: http://www.canon.com/ir/annual/2007/report2007.pdf
With the realization that Canon has performed so well in recent years, it is pertinent to consider the specific areas which have promulgated success for the organization. A crucial review of the case information provided on the organization suggests that there are a number of pertinent strategy elements which have been pertinent to the success of the organization. In particular the organization has worked to develop a mission and vision which it has incorporated on all levels of its operations. The development of a guiding mission for the organization is essential for success (Henry 2007). Missions provide the foundation for the development of actionable processes which can be used for moving the organization toward specific goals (Johnson, Scholes & Whittington, 2008). In addition to developing a mission and vision which provided the organization with a directive for action, Canon also developed a firm strategy focused on attainable goals for operations. Specifically, the organization set the specific goal of obtaining 30 percent of the world market by the 1980s. Research regarding the current state of achieving this objective suggests that even though Canon has not been able to maintain a 30 percent market share in the industry, it has overcome competitor Xerox to become second only to Hewlett Packard. Figure 3 below provides a review of global market share for companies competing in Canon’s industry. Figure 3: Global Market Share for Canon and Competitors
(Data courtesy of “Office electronics industry profile,” 2008, p. 12) The focus on a specific goal for the organization has clearly had an impact on outcomes for operations. By using this specific goal for development, Canon has been able to set clear, measurable objectives which can be evaluated by the organization to determine outcomes. Setting measurable goals is an important component of developing a strategic plan for the organization (Huang, 2009). Measurable goals are viewed as essential to the successful implementation of a strategic plan which provides significant results for the ongoing development of the organization. Another issue which appears to have had notable implications for the successful development of Canon is the use of specific core competencies to ensure the outcomes of operations. In addition to developing a strategic plan which provided clear and measurable objectives, the organization delineated specific core competencies which it has been able to optimize in order to coordinate its strategic objective and achieve its goals. A review of what has been noted regarding the use of core competencies suggests that core competencies can provide the organization with the ability to focus development in particular areas (Zook, 2007). This process, in turn, sets the stage for the development of management practice and shapes how the organization approaches the...