Reviving Sanyo: Experimenting with an Inexperienced CEO



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Code : LDS0014

Year :
2005

Industry :Home Appliances and Personal Care Products

Region : Japan

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Sanyo Electric Company, Japan's third-largest consumer electronics maker witnessed the company's biggest financial decline in its 58-years of history for the year ended March 31 st 2005, as it reported a loss of $1.1 billion. The grave financial position in turn spurred a change in the top management. Tomoyo Nonaka, a former TV journalist, with little knowledge about electronics and no management experience was appointed as the new chairman and chief executive officer (CEO), while Toshimasa Iue, grandson of Sanyo's founder and son of the current chairman Satoshi Iue was appointed as the president. The new appointments came as a surprise to many’.

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Pedagogical Objectives:

  • To discuss the revival prospects of Sanyo, with an inexperienced CEO at the helm.

    Keywords :Sanyo Electrical Company; Consumer electronics; Corporate governance; Chief executive office (CEO); Management reshuffle; Leadership; Corporate Strategies Case Study; Tomoyo Nonaka; Toshimasa Lue; Succession planning; Change management; Turnaround; Restructuring strategies; Sales decline; Original equipment manufacturer; Sluggish economic conditions

    Contents :
    » Sanyo’s New Chiefs
    » The Debate


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