Analysis of Adoption Strategy at the Mitsubishi Corporation

Mitsubishi Corporation is an international oriented firm that grows and runs businesses across almost all industries, including industrial finance, energy, metals, machinery, chemicals, and essential daily living. With more than 200 offices and subsidiaries in some 90 countries and regions around the world, the business has expanded far beyond that and a network of about 1200 group companies. MC employs a multinational workforce of over 70,000 people.

Mitsubishi companies was founded by Iwasaki Yataro at year 1870, he is from the city of Kochi on Shikoki Island. It begins with a shipping company with three ageing steamships, and Yataro's brother son and nephew has expended the business in various areas. During the occupation of Japan after World War II, the company was dismantled. The company name also has changes several times including MItsukawa Shokai, Mitsubishi Shokai, Mitsubishi jokisen Kaisha (Mitsubishi steamship Company) Yubin Kisen Mitsubishi Kaisha (Mitsubishi Mail Steamship Company). His younger brother name of Yanosuke becoming president of Mitsubitshi after Yataro died because of cancer in 1885. The company bought the Yoshioka copper mine in Akita and the Takashima coal mine in Nagasaki as the competition at the sea is critical and they change strategy into the land by buying all this things. This is also to provide resources for Mitsubishi and growing Japanese Industry. Mitsubishi's management became more advanced when in 1916 Yanosuke's brother, Koyata became Mitsubishi's chairman. He wants Mitsubishi to become the top leader in sectors like machinery, electrical equipment and chemicals as he graduate from Cambridge University. The old Mitsubishi organization ended in 1946. And more than 100 companies became part of the Mitsubishi Corporation trading house merged in 1954 to restore the company.

There are three principle of Mitsubishi. The first one is “Shoki Hoko”, corporate Responsibility to society. Means that, aim to enhance society, both material and spiritual, while at the same time helping to maintaining the global environment. Second is “Shoji Komei”, Integrity and fairness. Maintain honestly and openness value, conduct business with dignity and fairness. Last one is “Ritsugyo Boeki”, global understanding through business. Expand business, based in an all-encompassing global perspective. Mitsubishi's name refers to the three diamonds. Mitsubishi is a combination of the words 'mitsu' meaning 'three' and 'hishi' means 'water chestnut,' which the Japanese used long ago to refer to a rhombus or diamond shape. Yataro Iwasaki chose the diamond symbol because it is reminiscent of the Tosa Clan's three-leaf crest, which is Yataro's first bosses, as well as the Iwasaki family crest's three stacked rhombuses.

Through their business model, the Mitsubishi Corporation realizes that there is an issue with project portfolio management in their organizations. The issues involved in the implementations of project portfolio management in Mitsubishi Corporation is the rapid growth of digital technologies, the world economy will be driven by these new businesses in the midst of the Fourth Industrial Revolution (IR 4.0). Such advances have also brought new obstacles, some of it faced by the general society, such as better security of personal information and others faced by organizations, such as integrating current business models. A crucial issue for Mitsubishi Corporation is the determination of the best approaches to digitization and platform market. The competitive environment is changing due to the spread of Artificial Intelligence.

Next, the ever-changing geopolitical dynamics of the world are another variable predicted by Mitsubishi Corporation. Trade tensions between the US and China don't really seem to ease for a while, but notwithstanding that, the world economy is improbable to enter a massive recession. Even with some barriers to China's exports to the US, China's domestic demand will remain robust and its economic influence on other countries could continue to expand. The likelihood of a major slowdown as low. In addition, demand in the US and around the world is safe and the transition in production from China to other countries is probably to stimulate those economies. Looking forward to changing supply chains creating opportunities and eventually improving the global economy. There are doubts that the conflict generated by the conflicting political and economic systems in the US and China may eventually intensify into a geopolitical confrontation, but Mitsubishi Corporation sees very little possibility of it happening in the foreseeable future and expects the global economy to continue to expand at its current rate.

Further, creating the portfolio envisioned to changes in the operating environment of the Mitsubishi Corporation. New business groups will be formed by Mitsubishi Corporation. This new group of companies will represent the core business of Mitsubishi Corporation. All such groups should aim to identify potential sources of growth and also to generate growth through the integration of business from slightly different perspective. Furthermore, developing highly skilled and qualified management. Mitsubishi Corporation needs to tighten up the future development management professionals through a variety of viewpoints, be even more meritocratic and make sure the right positions. Also, rapid growth in emerging markets and rising prices of resources. this issue is affected by both overseas and Japanese economic trends. For example, a drop on energy and metal resource prices could have a huge impact in corporate resource-related import exchanges and profit from corporate investment. In addition, the global economic downturn could affect the entire export-related business, including parts of construction equipment, vehicles, steel and other goods.

Another issue faced by Mitsubishi Corp. is to be engaged in the management of Mitsubishi Corp’s business investments. To be actively engaged in the management reaps great benefit to the organization. This allows Mitsubishi corporation to strategize conceptions through mulit-dimensional portfolio analysis such as allowing the corporation to analyse the companies business through different point of view such as region, industry presence and management engagement. Apart from that, engaging in the management of business allows the corporation to enhance the exiting business values by using the corporations collective capabilities which enables a holistic view of the industry, utilizing the corporation’s conception skills in order to identify potential growth sources in the business industry and finally, able to implement the corporations well known execution skills which in return will grow the corporate value as Mitsubishi Corporation actively manages the business. Other than corporate value, another benefits reaped will be the ability to generate sufficient returns as capital gains by enhancing the value of the businesses.

Mitsubishi companies are initially aware of the business lifestyle and the factors that influence their company. Without wasting their time, they studied the issues that occurred and implemented the strategy. Mitsubishi companies will implement business strategies and market strategies. They use this method to entice customers to become interested in Mitsubishi products. The business strategy used is to market and promote Mitsubishi products. Promotional methods are implemented on a monthly basis to introduce new products and encourage consumers to use Mitsubishi products. The most popular methods of promoting are television, radio, banners and pictures. Through this method customers will know that the Mitsubishi brand is popular in Japan. The Japanese government is also taking another initiative to make Mitsubishi companies more famous. The marketing strategies used by the company will be implemented so that they can convince customers of Mitsubishi brand goods. This will advance the name of the company and raise the name of the Japanese government worldwide. In the coming year, the company will further strengthen its strategy to raise the name of the company and the Japanese nation. Consumer use of Mitsubishi products will also increase if the promotion is implemented effectively.

Next, geopolitics is one of the sources of mutual understanding. The strategy used by the Mitsubishi Company in Japan is that the Mitsubishi Company has just lost control of China. This dispute arises because of geopolitical problems in business. Foreign countries can only take their rights in Japan. For them geopolitics is not a good fit for Mitsubishi's business. However, disputes were resolved as they discussed one another. Discussions took place on both sides. Communication between them can be reconciled and the global economy will continue to grow in the future. By 2021, the Mitsubishi Company will develop another strategy to avoid business competition. They will implement it to develop Japanese companies and countries.

In addition, a management framework was developed by Mitsubishi Company. The management framework is the result of discussions between CEOs and employees to ensure the company's objectives are met. This is to ensure that everything planned is successful and results are productive. This framework also needs to be prepared before the program date. This is to avoid problems occurring in the business. Advanced business will achieve its goals quickly. Business plans also need to be properly organized and organized. This makes it easier for the authorities to manage the business. The Mitsubishi Company exercises responsibility for each other so that each task can be easily completed. Issues raised can be resolved. Their success in the company in Japan has been Mitsubishi's focus. In the coming year, Mitsubishi Company will implement the management framework well and early on to avoid any inconvenience. The strategies adopted will also be practiced in the future.

Last point is Mitsubishi companies have also released their products worldwide especially Japan. Japan is famous for this company. Most Japanese people have used Mitsubishi products to this day. The finance of the Mitsubishi Company is increasing daily as the marketing methods used are effective and successful. The capital and finances they earn are worth it. Demand for these goods is increasing and a large amount of money at the same time can bring huge profits. Mitsubishi Company will also increase the number of options in the capital allocation policy outside its business boundaries by maintaining a fixed percentage. Mitsubishi Company intends to set financial targets and capital policies. Targeted financial targets are their financial target by 2021. The brand expects their financial growth to increase to 650 billion related businesses and 250 billion market-related. This will raise the name of Mitsubishi and Japanese companies worldwide.

The adoption of the strategies has produced some positive outcomes towards achieving the company’s objective. Firstly, the marketing strategy that the company implemented has managed to give a good rise in the number of total orders received. It is reported that the total orders received has increased from 1,711.3 billion yen to 1,852 billion yen in that year alone. Even though the initial target is 1,950 billion yen, it still show the effectiveness of the marketing strategy. This also indicated that the marketing strategy has managed to attracted more customer to choose their products and might as well getting more loyal customer. Aside from that, the brand reputation also has improved globally as the brand Mitsubishi has shown to be quite popular around the globe. This not just give a good reputation to the company but as well to the nation Japan. Next, through the strategy of achieving balance portfolio, the company are able to better manage the risk related to the business. The risk can be controlled through rebalancing. When there is a balance portfolio, it provides easier management and rebalancing of the business portfolio itself. The company are able to mitigate the risk of decreased in revenue and avoid unexpected loss due to the market correction. Besides helping in reducing the risks, a balance portfolio also help increase returns for a long term. According the Mitsubishi’s final year report of 2018, there is a significance increase in the profit from business activities which is reported an increase of 1.5% of profits compare to previous year. It is reported also that the revenue received was 7.8 billion yen above the initial target. This show that the strategy has given a very good impact on the company’s revenue and profit on that year.

Reducing the risks of geopolitics issue is one of a good long-term strategy for the company. It is a brilliant strategy by locating the large-scale business in the region with low geopolitical risk impact. Geopolitical risk will affect the business negatively such as there will be import barrier issues that can give more problems in the future. Thus, by mitigating this risk, the company can focus on getting more profits in the business without having to face any geopolitical issue which can only affect the business progress. Resolving disputes will only take more times and only interfere with the company’s progress as it involves so many procedures. Thus this strategy is very effective for a long-term business success.

The results from the adoption of management framework also has gave a significant impact on the company. With the implementation of management framework, there is a clear direction towards achieving the company’s objective. Management framework helps to reduce and mitigate the risk that might affected the projects involved. When the chances of risks are reduced, the chances of project success is improved. Thus, the company are able to achieve the objectives and avoid any severe issues that might affected the project progress. It also increased the company profitability and better efficiency.

Overall, the strategy of making their products to be available worldwide has shown a positive impact on the company’s value. One of them is the growth of investment in the business. This strategy has managed to attracted more investors to invest in the companies. More investors means more capital for the company. Aside from that, there is a significance increase in the demand for the brand’s product. This is shown from the significance rise in the total consumers’ orders of the products. By changing the capital allocation policy, the company is able to push the growth of the company above the business area boundaries. This give more opportunities for the company on expanding their business to different areas and to gain more profits in different business sectors.

References

• Kakiuchi, T. (2017). Midterm Corporate Strategy 2018. Japan: Mitsubishi Corporation.
• Kimura, K. (2017). Industry & Infrastructure Domain Business Plan. Japan: Mitusbishi Heavy Industry, Ltd.
• Kimura, K. (2018). Industry & Infrastructure Business Plan. Japan: Mitsubishi Heavy Industries, Ltd.