|Posted by thehrdiary on December 11, 2013 at 3:15 AM||comments (0)|
Why Foreign Companies Relocate to Singapore?
The global economy still shows no signs of significant recovery. According to the latest data from United Nations Conference on Trade & Development (UNCTAD), in 2012 the flow of foreign direct investments (FDIs) into developed countries fell dramatically to $550 billion, a level last seen almost ten years ago. On the other hand, FDI flows to developing economies remained resilient in 2012, declining by only 3%, to $680 billion – still the second-highest level ever recorded. Developing economies as a group absorbed an unprecedented $130 billion more than developed countries in foreign investment.
These figures crystalize the fact that businesses are seeking out regions of higher growth potential to satisfy the demands of their stakeholders. In particular, businesses and investors are zeroing on fast growing economies of Asia – including China, India and the Southeast Asian countries – due to their large lucrative markets.
China, long-heralded as the world’s next economic superpower, attracted a total of US$111.7 billion in FDIs in 2012. A recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010–2012. Nevertheless, China and India are not the only Asian countries drawing in global businesses. In fact, Southeast Asia is currently the favourite region. According to a recent report by HSBC Global Research entitled ‘The great migration – how FDI is moving to ASEAN and India’, an increasing number of companies are now investing in Thailand, Vietnam, the Philippines, Malaysia, Indonesia, and Myanmar due to their booming infrastructure, large populations, and cheap labor.
Singapore – Gateway to Asia
So how does Singapore fit into this picture? Singapore has established itself as a preferred jurisdiction for businesses of all sizes to headquarter their Asian operations. In this paper, we examine some of the key driving factors to Singapore’s success in attracting foreign companies and entrepreneurs to its shores.
Extensive double tax treaties
Singapore has an extensive network of double tax agreements (DTA) with more than 70 countries across the globe. The key benefits of a DTA are a) the avoidance of double taxes, b) lower withholding taxes, and c) preferential tax regime, all of which play an important role in minimizing the tax burden for a holding company structure.
This extensive DTA network, coupled with the absence of capital gains and dividends tax, makes Singapore a very attractive jurisdiction for business investments through a Singapore incorporated holding company.
Attractive tax regime
Singapore’s tax system is viewed as “simple and investor friendly”. The highest corporate tax rate on taxable income is 17%. The tax on capital gains and dividend income is 0%. No withholding tax is levied on post-tax dividends paid from Singapore. Equally important, all foreign-sourced income is tax exempt as long as the income has been subjected to tax in a country with a headline tax rate of at least 15%.
Singapore’s regulatory framework offers a level-playing field for foreign investors, with no foreign ownership restrictions and no foreign exchange controls.
Strategic location with superb connectivity
Singapore has a unique advantage in its geography. The country is strategically located at the crossroads of the main trade and shipping routes of the world, including the major sea route between India and China. Travel to most Southeast Asian countries consists of a short air flight.
Singapore is renowned as a transportation hub, being home to the award-winning Changi Airport and a sophisticated port infrastructure, which has also been consistently awarded the ‘Best Seaport in Asia’ (Asian Freight and Supply Chain Awards) for 24 years to date.
Singapore’s telecommunications infrastructure is also world-class. The country has been ranked by the World Economic Forum, in its Global Information Technology Report 2012, as one of the top economies in leveraging information and communications technologies to boost its country competitiveness. In fact, it is the only Asian country within the top 10 in the Report’s rankings of 142 countries worldwide.
Availability of skilled and multilingual workforce
Singapore’s business environment has proven to be highly attractive to skilled and ambitious workers from across the globe. The fast-paced innovative working environment, together with a large local pool of Singapore talent, has only served to reinforce the country’s reputation as having one of the most productive and motivated workforces in the region. This has been proven by rankings in the IMD World Competitiveness Yearbook.
The country is also renowned for being a multiracial society that is as diverse as it is cohesive. Its citizens originate from diverse racial backgrounds, giving it the capacity to offer workforce solutions requiring multilingual and multicultural sensitivities. The people are one of Singapore’s richest resource.
Smart immigration policies
Singapore provides a variety of immigration schemes for qualified entrepreneurs and working professionals. The government is always looking to attract foreign investments and augment its local workforce with high-level talent from across the globe, which is in line with the liberal immigration policies of Singapore.
Great place for relocation of senior management and their families
Singapore is one of the most prosperous and stable countries in Asia. The country’s stable political environment, public services convenience, diverse range of facilities, and cosmopolitan ambience makes Singapore an increasingly attractive destination for expatriates with families. The country offers a rich variety of dining and entertainment, tropical gardens, world-class hotels, highly-developed infrastructure, and – very important for ambitious families – a host of internationally recognised schools and universities. Singapore’s high quality of life has been consistently validated in various surveys such as the Mercer’s Quality of Living Survey. The friendliness and warmth of Asia, blended together with a vibrant modern lifestyle, makes Singapore a very good place to live, work and study.
Excellent IP protection regime
Singapore provides a robust intellectual property (IP) rights regime, backed by a trusted legal system and strong IP infrastructure. The government’s IP policy is attuned with the aim of encouraging innovation, creativity and growth of industry and commerce in Singapore. The IP regime has been recognised by the World Economic Forum’s Global Information Technology Report 2012 as the top Asian regime for the protection of IP. Despite the high international rankings, additional initiatives by the government are underway to improve the country’s IP landscape further and build it as Asia’s IP hub.
Efficient legal system
Singapore’s legal system, which was inherited from the British, has now evolved into a distinctive jurisdiction. The system continues to grow in order to maintain its relevance in the current cultural, economic and commercial climate, by absorbing the common law as well as best practices from other mature legal systems. The Singapore legal system has received global recognition for its efficiency and integrity, and the country is deemed to be the least bureaucratic one in Asia according to the IMD World Competitiveness Yearbook 2011. Businesses in Singapore are not burdened by red tape or the slowing down of operations due to bribery or slow legal process. The government regards access to law as a fundamental economic value, which is cherished and harnessed to enhance the country’s reputation as a premier business centre and a leading legal hub in Asia. Singapore’s commercial legal system is renowned for its fairness and impartiality, making it the natural choice of venue for dispute resolution, especially mediation and arbitration, and trial in Southeast Asia. Furthermore, Singapore’s legal services industry is rich in talent.
Best place in the world to do business
Top institutions monitoring economic and business activity worldwide agree on Singapore’s attractiveness as a business destination. The country has been ranked #1 by the World Bank as the World’s Easiest Place to Do Business, for seven consecutive years to date. It is ranked second by the World Economic Forum in its 2011-2012 Global Competitiveness Index, and was Asia’s leading city in the PwC 2012 Cities of Opportunity Study. According to Gallup’s 2010 Potential Net Migration Index, Singapore was the global leader as the Most Desirable Immigration Destination.
Entry Options for Foreign Companies
Foreign companies interested in establishing a presence in Singapore have several straightforward options as summarized below.
Generally, a Singapore subsidiary company is the preferred registration option for small to midsize foreign businesses that intend to establish their presence in Singapore. Singapore allows for 100% foreign ownership of locally-incorporated companies. Such a structure offers protection against liabilities and can also be very tax efficient. The Singapore Subsidiary Registration guide provides a comprehensive overview and the incorporation process.
A foreign company may wish to set up a branch in order to legally commence its business activities in Singapore. A branch, although a registered legal entity, is treated as an extension of the foreign company, and therefore, its liabilities extend to the foreign company and its income is not eligible for tax exemptions and incentives, which may otherwise be available to tax resident companies in Singapore. A complete guide to setting up a branch office is found in the Singapore Branch Office Registration guide.
Foreign companies that are interested in exploring potential business opportunities in Singapore and the region may wish to set up a representative office (RO) before committing to any business venture or large-scale investments. The RO is a temporary setup with no legal persona, and therefore it cannot engage in any trading or business activities; only market research and feasibility studies are permitted. However, the cost for registering an RO is considerably lower, making it an ideal avenue for foreign companies that wish to first study the business environment in Singapore. More information can be found in the Representative Office Registration guide.
For a detailed comparison of the three options, see Subsidiary vs Branch Office vs Representative Office.
Singapore continues to attract record investment commitments despite the challenging global economic environment. The country’s extensive network of double tax treaties, strategic location within the centre of all major growing markets, together with its economic and political stability, its renowned legal system, its extensive connectivity and talent resources, its innovative business environment, and the immense opportunities for business growth within the Southeast Asian region, are just a few factors that drives Singapore’s success as a preeminent business centre of the modern global economy.
|Posted by thehrdiary on December 11, 2013 at 3:00 AM||comments (0)|
Thursday, November 14 2013, 10:54 AM
4 Big investors ready to leave Indonesia
Yoseph Pencawan, Arsyad Paripurna
BATAM--Indonesian Employers Association (Apindo) of Riau Island noted four large-scale foreign companies will relocate their industries from Batam City due to minimum wage hike and escalating labor protest.
According to the Chairman of Apindo Riau Island I.R. Cahya, those four companies are PT Becthel, Conocophillips, PT Smoe Indonesia and PT Siemens Hearing Instruments Batam.
“Several large investors want to leave this country, especially those four companies,” he said, Wednesday (11/13/2013).
PT Becthel is one of the companies operating in Kabil Industrial Park with 3,000 workers. The company engaging in oil and gas sector will relocate its industry to Thailand.
Based on Bisnis’ research, Becthel is one of five top construction and engineering companies in the US. The San Francisco-based company has a total of 53,000 workers within its corporate group in various countries.
Meanwhile, ConocoPhillipis Batam owns more than 1,000 workers in Kabil. It plans to relocate its industry to Johor.
PT Smoe Indonesia is also operating in Kabil. This oil and gas company from Singapore will also relocate its business, although it is still unclear where they will move to.
Meanwhile, the hearing aid company PT Siemens Hearing Instruments Batam that operates in Batamindo Industrial Park is getting ready to go out of Batam and even from all over Indonesia.
In addition to this relocation plan, Apindo Riau Island has also received accurate information regarding some investors who are delaying the plan to establish new entity or to expand their business.
|Posted by thehrdiary on December 11, 2013 at 2:40 AM||comments (0)|
GM to move intl HQ to Singapore from China
Updated: 2013-11-13 14:49
General Motors Co said on Wednesday it will move its international operations headquarters to Singapore from Shanghai in the second quarter of 2014.
The shift comes after GM split its China operations from its international unit earlier this year, saying that would make it easier to focus on the Chinese auto market, the world's largest.
The move is likely to come as a blow to Shanghai, which has been trying to compete with the likes of Singapore and Hong Kong as a place for multinational companies to base their Asia headquarters.
GM said it had considered other locations for the relocation and looked into keeping the headquarters in Shanghai, but eventually decided on Singapore.
"It offers several advantages, including greater proximity to key CIO markets such as ASEAN and India, the Middle East and Africa," said Lori Arpin, vice president of communications at GM International Operations.
Many multinational companies are lured to Singapore's shores by its competitive tax rates, use of the English language, skilled workforce and high standards of living.
Its headline corporate tax rate is 17 percent, though companies that base their regional headquarters there can benefit from a lower rate if they meet certain criteria such as providing jobs and spending a certain level of money in the city-state.
Singapore though, is one of the most expensive countries in the world in which to own a car and is not known as a major base for automakers.
General Motors said it would have about 120 employees in Singapore who would oversee "key parts" of the company's business in the Asia-Pacific region, Africa, the Middle East and Chevrolet and Cadillac Europe.
The new base though will house some of its sales and marketing, finance, government relations, human resources, IT and legal functions.
|Posted by thehrdiary on October 12, 2011 at 11:35 PM||comments (0)|
Matching an Organization Type With Its Structure
by Malik Sharrieff, Demand Media
An organizational structure defines how your business will function. The structure you choose to implement in your business will dictate how employees, departments, and divisions work or don’t work with each other, and how work will be channeled through your organization. Because certain organizational structures work better than others when applied to different organizations, it is very important to consider how well the structure you select will work in your type of company.
Review the different organizational structures most commonly used. Understand that a functional structure organizes workers by the job performed, a divisional structure is organized by product or service produced, and a matrix structure is a combination of the two.
Review your business size. Because few businesses that employ less than 12 to 15 employees have the manpower to implement the divisional or matrix structure, it is likely that a firm of this size will need to implement a functional structure. Recognize, however, if you intend your company to grow rapidly and recruit heavily that you may begin with a functional structure and plan for an evolution into one of the other structures as they become more appropriate.
Analyze the organizational structures of your competitors. See if there are any variations in the structures they use and if those differences attribute to comparable business success. Research each company’s history to see if there have been any deviations from their current structure, and what were the reasons and the impacts of the changes in structure.
Identify the standard structure used throughout your industry. See if there are any significant reasons why that structure is the best for your particular product or service. Recognize, for example, if the markets your industry serves are typically located in different regions, then a divisional structure may be more appropriate than any other. Identify how your industry typically locates its work groups, such as an import businesses based at international ports. This could indicate whether your business type can support a decentralized divisional structure or a more centralized functional one.
Review the costs of maintaining the different organizational structures. Maintaining a divisional structure requires that each division operates as an independent business unit and cost center resulting in higher operational costs compared to a centralized functional structure. Recognize that the matrix structure creates redundancies by incorporating elements of both functional and divisional structures, so operational costs are even higher than the other two.
Weigh the benefits that each structure can bring to your organization. Know that although the divisional structure offers more flexibility than the functional structure, it does not offer the level of operational control, and the matrix offers the benefits of both. Identify if the implementation of one of the three structures will offer any significant advantage that will make your company more competitive in the market.
|Posted by thehrdiary on October 12, 2011 at 9:55 PM||comments (0)|
The Organizational Structure of Innovation: How Toyota, Procter & Gamble , GE, 3M, IBM, Google, Microsoft, Sony, Hewlett-Packard, DuPont, Honeywell, Whirlpool
Can the organizational structure of a company contribute to the acceleration of the innovation management in the spirit of Fast Innovation? The innovation machines Toyota, Procter & Gamble, GE, 3M, IBM, Google, Microsoft, Sony, Hewlett-Packard, DuPont, Honeywell and Whirlpool answer this question in the affirmative. In addition to an effective and efficient innovation process they have adopted an organizational structure of innovation that enables them to launch innovations faster.
In organization science we distinguish between process organisation and organisation structure. Over the last few decades the process orientation of enterprises has continuously gained priority. Accordingly, in the context of innovation management the innovation process and its optimization received maximum attention, above all also in relation to the question how innovations can be launched into the market-place more rapidly in the spirit of Fast Innovation. Due to this, the organizational structure of innovation management receded a bit into the background. Which is not justified.
The innovation machine Toyota as well as Procter & Gamble , GE, 3M, IBM, Google, Microsoft, Sony, Hewlett-Packard, DuPont, Honeywell and Whirlpool have adopted an oranizational structure of innovation that significantly facilitates Fast Innovation.
They have taken the following seven key actions in order to structure their innovation management and organization for Fast Innovation:
1. Delegation of Decisions to Innovation Teams
Despite best intentions, if all important decisions in the innovation process are made dependent on (top) management´s agreement a time delay will result.Therefore decisions need to be delegated to the innovation team in order to avoid these delays and enable Fast Innovation. The consent of (top) management is in this case only required at the milestones or gates of the innovation process. The members of the innovation team should be available to the team with 100% of their time in order to get the innovations to market as quickly as possible.
Nowadays most companies use innovation teams for innovation management. The degree to which decisions are delegated to the teams and the degree of availability of the members for the innovation teams differ, however. Big companies such as Toyota, P&G, 3M, IBM, Sony, Whirlpool and others typically have fully dedicated innovation teams with 100% availability of their members..
2. Integration of R&D into the Business Units
The organizational integration of the majority of R&D into the business units makes innovation management more effective. It fosters the collaboration with the other departments of the business unit and the orientation towards the customer (customer pull) in lieu of an exclusive focus on the technology (technology push). Furthermore it improves the preconditions for Fast Innovation.
At the end of 2003, the innovation machine 3M restructured its innovation organization and decentralized its R&D organization along these lines. Consequently, 3M´s technicians got closer to the business and the market. 400 members of 3M´s central laboratory were assigned to the divisional labs. Simultaneously, the heads of the divisional labs who until then had a direct reporting line to the Senior Vice President, Research & Development got an exclusive direct reporting line to the divisional heads. Honeywell, too, restructured its R&D organization in a similar way at the beginning of this decade. Honeywell´s big R&D organization was broken up into four labs. Each of these labs was assigned to one of the four Honeywell divisions - Aerospace, Transportation Systems, Speciality Materials, and Automation and Control Solutions. This organizational structure of innovation management was designed to facilitate Fast Innovation.
3. Co-Location of Teams and Departments
Although we are living in a time of powerful electronic communication, the organization structure of co-located teams and co-located divisional departments maintains at least the same relevance as formerly. Co-Location fosters the integration of teams and departments and a free-flowing communication. By locating all innovation team members and relevant departments of a division in the same place, companies can make sure that everybody hears the same thing at the samte time. This way information does not get distorted. Spontaneous communication and exchange of ideas are facilitated. Co-location raises the probability that in the management of an innovation the necessities of the market-place and of the technology are simultaneously taken into consideration, and that the innovation gets to market faster.
Procter & Gamble is a fervent supporter of Fast Innovation and of organizing for innovation via co-location. So is Google. And IBM and Sony as well, even for globally composed teams. Under IBM´s leadership e.g. the IBM-Sony-Toshiba „Cell Chip“ Team, which comprised 400 team members and was charged with developing, amongst others, the high-performance chip for Sony´s Playstation 3, was located in one place, at IBM´s Sony-Toshiba-IBM (STI) Design Centre in Austin, Texas.
4. Central Innovation Teams
The management of disruptive innovations, and the management of innovations that will result in a new category or a new market or that will cut across multiple categories often necessitates the use of central innovation teams that are not assigned to individual divisions. Such a central innovation team then reports to a manager at the corporate headquarter. As an alternative organizational structure of innovation management central innovation teams are established at the divisional level, and they will report to the head of the division, and not to to the head of an individual category, product group or brand. Such central teams are mainly utilized in cases when the motivation and ressources of individual divisions, categories, product groups or brands are insufficient in order to get the respective innovation to market with maximum effort and at maximum speed despite the daily pressure and distraction from the established operation. In such cases an organizational structure of innovation management which allocates the responsibility for getting the innovation project off the ground to a central innovation team and thus enables Fast Innovation is superior to a decentralized project organization. For a successful innovation management it is, however, important that the innovation project from its very beginning has a division, category, product group or brand assigned as its sponsor and “home” for future commercialization.
Procter & Gamble has an organization of central innovation teams at the corporate level which goes by the name Future Works. At the business unit level its central innovation teams belong to the New Business Development Organization.
5. Central Innovation Funds
The innovation projects which later will be led by central innovation teams in most cases need a special budget to get funded because the divisions shy away from making funds available given the typically high risk of such projects. Without a central innovation fund these innovations would not be launched fast, if they would get to market at all. Fast Innovation would be impossible.
P&G has established the P&G Corporate Innovation Fund (CIF) for such purposes which provides financing for the development of disruptive innovations and of new businesses. P&G´s innovative Crest Whitestrips were, for instance, seed funded by the CIF. Also GE´s CEO disposes of a central Venture Fund that is to finance so-called „Imagination Breakthroughs“, i.e. innovations with expected incremental annual sales of at least 100 million US$. When Whirlpool´s CEO decided around the turn of the century to transform his company into an innovation champion he as a first step established a central seed fund and, additionally, seed funds for each of Whirlpool´s regions in order to quickly test new ideas by means of prototypes in the spirit of Fast Innovation. Hewlett-Packard´s innovation management possesses a central innovation fund called Innovation Program Office (IPO) which has a mission similar to P&G´s Corporate Innovation Fund. Honeywell´s innovation management, too, has a central innovation fund which they name Honeywell Growth Board. At the divisional level Honeywell funds its central innovation teams via its Venture Funds.
6. External Interface for Open Innovation
Open Innovation is a core strategy of innovation management in order to get innovations to market more rapidly and enable Fast Innovation. In order to execute Open Innovation and to channel external solutions and ideas into the company, innovation management needs an effective external interface.
For this purpose P&G has established its External Business Development Organisation and its Connect & Develop Organisation. The Mission of these departments is to realize the innovation potential, which slumbers in the outside world, via the development of external networks. Not the least because of its Open Innovation P&G has dramatically increased its innovation speed. An innovation which in the past would have taken there years or more to get to market these days can be rolled-out globally within 18 months. DuPont, too, has an external interface such as P&G´s which it calls DuPont Ventures.
7. Merger & Acquisition Department
A special organizational structure of managing for Fast Innovation via Open Innovation is the M&A department which is involved in the acquisition of innovative companies. Via acquisitions an enterprise can signficantly strengthen its innovation management, and can be in the market-place with innovations much faster.
The role model for this M&A strategy of innovation management is Cisco. Since its first acquisition in 1993, Cisco up to now has acquired 126 mostly young companies. Most high-tech companies own strong M&A departments in order to accelerate their innovation activities in the spirit of Fast Innovation. So do e.g. Google, Microsoft and IBM.
|Posted by thehrdiary on October 12, 2011 at 9:20 PM||comments (0)|
Lenovo Mobile Unveils New Organizational Structure
May 22, 2008
Lenovo Mobile, which was separated from Lenovo Group in late April 2008, has now worked out a brand new organizational structure and marketing structure under the leadership of its newly appointed president Lv Yan.
On the operational level, the company has added a Shanghai platform and Xiamen platform and decreased its marketing structure in the Chinese domestic market from originally 28 areas to now only 20 areas. At present, Lenovo's marketing structure consists of four regions of East China, South China, West China and North China, which are further divided into 20 sub-regions.
The change in organizational structure also brings a change in personnel. As a result of the integration of the marketing structure, principals and staff of some of the original business areas have to leave.
Chen Gang, general manager of Lenovo Mobile's South China Region, is quoted in local media as saying the company's original marketing structure was complicated and the new structure can help the company improve operational efficiency.
|Posted by thehrdiary on October 12, 2011 at 9:15 PM||comments (0)|
Nokia announces new organizational structure
May 11, 2010 By Posted By: Thomas Bloemer
Author: Thomas Bloemer
Nokia of Espoo, Finland, announced a simplified company structure for its devices and services business, which will become effective July 1, 2010. The move aims to accelerate product innovation and software execution in line with the company’s goals of integrating content, applications and services into its mobile computer, smartphone and mobile phone portfolio, the company said.
The new Mobile Solutions unit will concentrate on the company’s high-end mobile computer and smartphone portfolio. Based on both the MeeGo and Symbian software platforms respectively, these devices will be tightly integrated with Nokia’s Internet services to increase the combined value for consumers.
The renewed Mobile Phones unit will focus on maintaining Nokia’s position in the feature-rich mobile phone market and driving the direction of Series 40, the world’s largest mobile operating system. Both the Mobile Solutions and Mobile Phones units will have dedicated portfolio management, including product planning, R&D and dedicated software assets. The Markets unit will be responsible for Nokia’s ‘go-to-market’ activities, including sales and marketing, management of Nokia’s global supply chains and sourcing operations.
The organizational realignment includes also changes among Nokia’s senior executives:
The Mobile Solutions unit will be headed by Anssi Vanjoki and be comprised of MeeGo Computers, led by Alberto Torres, and Symbian Smartphones, led by Jo Harlow. As part of the Mobile Solutions unit, Services – led by Tero Ojanpera – will continue to develop Ovi as an integrated service into smartphones and mobile computers, and lead the development and deployment of new services into Nokia’s mobile phones. Nokia has also appointed Rich Green to the position of Chief Technology Officer, assuming responsibility for driving common technology architecture across Nokia. Green brings to Nokia comprehensive experience from his time in Silicon Valley, including a number of years at Sun Microsystems. He will report to Anssi Vanjoki.
Headed by Mary McDowell, the Mobile Phones unit will work closely with Services to add value to lower-end devices through offerings such as Ovi Life Tools, Ovi Mail, Ovi Store and Nokia Money.
The Markets unit will be headed by Niklas Savander and continue to focus on Nokia’s overall sales and marketing efforts, solution selling, transformation to digital marketing and consolidation and globalization of Nokia’s supply chain and sourcing.
Kai Oistamo assumes the role of Chief Development Officer and head of Corporate Development.
Rick Simonson, who currently heads Mobile Phones, has decided to retire from full-time duties at Nokia. He will also leave the Nokia Group Executive Board effective June 30, 2010. However, Simonson will continue as a senior advisor to Nokia, focusing on Nokia Siemens Networks, until the end of the year. Simonson will also remain a member of Nokia Siemens Networks’ Board of Directors after he leaves Nokia.
|Posted by thehrdiary on October 12, 2011 at 9:05 PM||comments (0)|
Nippon Paper decide to reorganize Sales Organization to become a real "Customer Focused Company". New Sales Organization starts from April 1, 2000.
Nippon Paper Industries Co., Ltd.
We set up Business Reengineering Promotion Office in October 1998 and it has been reviewing our business process and company organization for the purpose of making the company a real "Customer Focused Company". As the first step of this reform, the senior management has decided to implement the organizational reform and this new sales organization will be formed on April 1, 2000.
We define "Customer Focused Company" as the company where not only sales force but every member of the company continuously pursues customers' best interest.
1. Reorganization: from product-supply focused structure to customer focused one
•For the purpose of developing closer relationship with customers which enables us to identify customers' needs and deliver superior products and services timely, we will introduce customer oriented sales organizational structure.
•Our sales organization consists of three divisions, namely Newsprint Sales Division, Paper Sales Division and Communication Paper Sales Division. Each division is currently divided into several departments according to products they sell, but under the new organization , Paper Sales Division will consist of customer-based departments. The current Paper Sales Div. has Fine Paper Dept., Coated Paper Dept. and so on. The new one will consist of Publisher Dept., Wholesalers Dept. and Special Customers Dept. etc. Another example is that Newsprint Sales Div. will be called Newspaper Div. and it will sell newspaper publishers not only newsprint but also printing and writing paper.
2. Newly established Marketing Division
•We will establish Marketing Division. It is a cross-divisional organization that will formulate marketing strategies and provide three sales divisions with support services in order to help them execute those strategies.
•Marketing Division will consist of Marketing Planning Dept., Operational Planning Dept., Logistics Dept. and Quality Assurance Dept.
•Marketing Planning Dept. will formulate marketing strategies including product development plan and also coordinate sales, production and product development organizations to implement those strategies. It will also promote more customer focused sales activities by introducing information technologies and management system for customer satisfaction etc.
•Operational Planning Dept. will centrally control production and delivery planning to achieve the optimal operation of the company as a whole.
•Quality Assurance Dept., which used to belong to Technical and Engineering Div. will become a part of Marketing Div. and work more closely with sales force to provide better technical services to customers.
As we mentioned above, this reorganization is the first step of our business reform. We have just formed the project team to implement other recommendations made by Business Reengineering Promotion Office on the basis of the concept of Supply Chain Management. This team will reform business process including order taking, production planning, logistic planning and delivery service by introducing a new computer information system in to improve customer satisfaction as well as to realize optimal corporate operation.
To become a real "Customer Focused Company", we will also inspire customer oriented shared value to every single member of the company. We further continuously try to cope with rapidly changing business environment proactively by using the most advanced information-technology related business tools including e-commerce trading.