Global Vision in an Era of Constant Change
Youthful CEOs may be grabbing headlines these days, but the best perspective on today’s business trends comes from the most experienced voices. No one in Japan has seen more changes in the business environment than Yuzaburo Mogi, the Chairman and Honorary CEO of Kikkoman Corporation.
Mogi is a true internationalist, the first Japanese to receive an MBA from Columbia Business School (1961), and the driving force behind his company’s early expansion into overseas markets. His perspective on both domestic and global issues continues to command great respect in the Tokyo business community.
CEO’s Job: To Steer Through the Fog How does Mogi see the challenges facing today’s executives?
“I think this is a very difficult situation. Now more than ever it is critical for top management to have a clear grasp of the global business environment and an ability to see ahead. In a sense, that was always the case, but now I think it is even more essential. Essential but increasingly difficult! Management has so many options… there is so much to analyze! We need to pay close attention not only to global business trends, but to geopolitical shifts as well.”
“Of course, management skills are still important, but I think foresight is more important. Things are much more complicated now than they were 30 years ago. Back then, there was much less risk, whereas now there are risks everywhere. And the future will be even more complicated. This is why I say that an ability to see ahead is one of the key requirements for corporate leaders.”
Research, Experience, and Instinct Yield Strategic Action
Few executives have the foresight that Mogi displayed back in 1973 when, as a young manager, he convinced his company to set up a plant to produce soy sauce in the U.S. At that time no Japanese company had a full-scale plant in America, and soy sauce was all but unknown. However, Mogi had conducted his own market research while still a student in New York, and his instincts told him that Kikkoman’s business would succeed in America. He didn’t rely on instincts alone: “I analyzed the risks from a dozen different perspectives. I had data and graphs and projections, but underlying it all I had my own experience, which told me that if we set up in the US everything would ultimately work out.”
His hunch proved correct, and that first overseas plant became a springboard, launching Kikkoman as a global force in the food business.
“Kikkoman is sold in over 100 countries,” Mogi says, “But we have so much room to grow! Even in the U.S. and Europe, our two biggest markets, there is still plenty of room for growth.”
Continuing to Grow Globally and Strategically What other markets is he looking at?
“My vision for our international business is to keep expanding in Asia, then gradually expand in India, South America, and in the next decade, Africa.”
That is an ambitious plan for any company, but Mogi insists that soy sauce is an all-purpose seasoning that can be enjoyed anywhere, in any culture and with any kind of cuisine. He is convinced that bottles of Kikkoman soy sauce will ultimately grace dining tables around the world.
“We will continue to grow globally and strategically, as we always have—examining risks carefully, localizing our products and our operations appropriately, then meeting challenges flexibly.”
Considering today’s geopolitical instability, economic insecurity, and rapidly changing business environment, isn’t planning for two decades of future expansion a bit risky?
Mogi smiles knowingly. “Yes—calculated risk! Without risk, there is no growth.”
“Now more than ever it is critical for top management to have a clear grasp of the global business environment and an ability to see ahead.”