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Hitachi Essay

4145 words - 17 pages

5/19/2012

Report By Omar Sheriff (52111617) | Ritsumeikan Asia Pacific University |
Ritsumeikan Asia Pacific University | Strategic Analysis Report Hitachi LTD (4000 words) |

1.0 Introduction
This report will conduct a strategic analysis report on Hitachi Ltd. On a famous advertistment (advertisement) about Hitachi’s smart cities and its social innovation business it suggests the following: “Even apart, we are connected. Even in absence we are still joined. Past and present connect! thus; we see the future. IT connects with infrastructure to link the world to bring better quality of life, urban planning, transport, electricity, industry, the enviroment, Hitachi’s ...view middle of the document...

The purpose of the report is to analyze these dimension via writing a strategic analysis report on Hitaci Ltd. Strategic analysis involves the key word strategy that is defined as the long term direction of an organisation and it has 3 horizons including the extending and defending of business, building emerging business and creating viable options. These horizons of strategy will be analyzed using alternative theories from strategic management litreature from textbooks , Journal articles, annual reports and other secondary data from Hitachi Ltd to analyze Hitachi’s stratergies .
The report is comprised of five parts, the definition and significance of strategy in a corporation from a strategic management literature perspective is explained about in the "Introduction", then a brief description of the history and evolution of Hitachi is provided, showing the history and evolution of the company from its founders (1910) to present day. Then, through the analysis on the external environment and internal conditions of the company, the effect of global events and the company's resources and capabilities on the strategies of the corporation is presented, with the strategies assessed. In the fourth part, the corporate, business, and functional strategies of the company and their contribution are described. At the end of the report, recommendations of the strategies will be given and the next step the company should consider in the future will be suggested.

3.0 History and evolution of the company
Currently the company is ranked 473 in the forbes2000 list and is the'Big Five' sogo denki, or known as the General electric of Japan. The company has a mix of matrix, geographic and market oriented decentralized flatter structure and its organisational chart is depicted in appendix 1 of this report. Appendix 1 will also depict the current board members and executive board. The current corporate profile of the company is shown below in figure 1: (Hitachi, Hitachi ltd, 2012) (jewel, 2000) (Universe, 2000)

Figure 1 Corporate profile from 2011 to 2012 some key data about Hitachi (Wikipedia, 2012) (Hitachi, Hitachi ltd, 2012)
3.2 Historical evolution of the company
If we consider the historical evolution prior to the Hiroaki Nikashi era of presidency, the companies links go back to 1910 when the president Namihei Odaira opened the company. It was his belief of Odaira that a mark was necessary to win the trust and confidence of the people as a symbol of quality products. Namihei Odaira used the two Chinese characters hi, meaning "sun" and tachi, meaning "rise" to form the mark by superimposing one character on the other and enclosing them in a circle. The four barbs protruding at the four points of the compass signify the sun's rays. The mark was designed to establish Odaira's vision of a man standing before the rising sun, planning a better future for all (CA, 2009) . The first product made by Hitachi was three 5hp (3.6775 kW) electric motors. Since...

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