Chapter 4
Option Power
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4-4.  Birth of the Strawberry Corporation

  But, as I mentioned at the end of the last chapter, "I was worried if there would be anyone who would raise their hand."
  The situation I refer to occurred around February 1996, our 50th anniversary. This was because the most important fact in the success of challenging to reform management principles through the Strawberry Corporation (not actually named at the time) was personnel.
  The "Declaration of Uncommon Practices," by Richard Branson, a close friend, was published in the January 1999 issue of "Venture Club" magazine.

  1. We're complete virgins at business.
  2. Small is beautiful.
  3. We must challenge big companies.
  4. Nothing ventured, nothing gained.

  Richard Branson quit high school in 1967 at the age of 16 and founded the magazine "Student." In 1970, he established a mail-order record sales company called Virgin. His profile as leader of the Virgin Group, which runs more than 200 affiliated companies throughout the world, is now familiar to all.

  Yes, regardless of the type of company, all were initially venture corporations, and regardless of the type of administrator, all were initially "virgins."
  However, the reason my worry was so deep at heart concerning the new organization Kato Spring was attempting to start up was because I had indicated as a condition to Katoites solicited for the project, "There is no road back to Kato Spring." Although this is a natural thing to do when setting up a separate company, or when somebody wants to become independent, I wondered whether Katoites who had been at Kato Spring for several years would raise their hands at the cost of cutting off their return route back to the company.
  All of my frustration was needless worrying. By the deadline of the middle of March, four candidates for president had volunteered and we received 20 applications from general Katoites when they were solicited later. In the end, 11 directors and company members ranging in age from 25 to 44 were hired, and our challenge into venture business began.

  The name of the new organization emerged in a surprising manner. I was eating with one of the candidates at a restaurant. When we opened the menu, it contained a strange entry, "Strawberry Soup." As I was wondering, "What is it like?," without pause, he said, "I'm going to try it."
  The first words out of his mouth when he tried it were "This tastes awful." Later on, when it became time to consider names of the new company, other company members said, "What about strawberry?" From the past, I had thought that "a globally minded person is one who is full of curiosity, who looks at a menu and orders something never before experienced." When one travels overseas, a bond cannot be formed with the local people unless one eats what they eat. Using "people full of curiosity" as a standard for a company dispatching people overseas is simple, and I don't think it is off target. Therefore, I promptly responded, "Let's do it," and the name of Strawberry Corporation was chosen. We decided to always think back to this scene when talking about venture firms.
  As a result, the new firm debuted with the name of Strawberry Corporation. Unlike the packed strawberries found year-round at supermarkets, this name generates the image of the shiny fresh strawberries found in local markets in the morning. I had a strong desire to blow this fresh feeling back into Kato Spring itself somehow.

  Kato Spring, which was celebrating its 50th anniversary that year, had a firmly established culture and was proud of being a world-class precision spring manufacturer. Furthermore, Katoites accepted this as the natural climate, but I was concerned that the air was becoming stagnant.
  The man who ordered the strawberry soup was Masahiro Oizumi. He was 36 at the time he was selected to run the new company. In an interview with Nikkei Sangyo Shimbun (an industrial newspaper), he didn't soften his answer when he said, "The previous aura of a 'wild samurai group' that Kato Spring possessed has weakened. The building of an organization for the organization has begun to stand out." In other words, symptoms of large corporation sickness had begun to emerge at Kato Spring as well.
  It is not easy to change a corporate culture weighted down with a history of 50 years all at once. Doing so requires drastic measures. I want to build the new culture being sought by Strawberry Corporation, demonstrate its power, achieve results and import that into the head office of Kato Spring in order to stimulate reforming of the head office's constitution. This is my major aim. Failure will not be forgiven. Special favors will not be forgiven either.
  Eighty-five percent of the initial 80 million yen in paid-in capital of Strawberry Corporation was contributed by Kato Spring with the remaining 15% coming from its initial company members. The company is aiming for an annual divided of 15%. Sales in the first nine months of the initial fiscal year (1996) totaled 800 million yen. In 1997, the level rose gradually to 1.2 billion yen and the target for the year ending in March 2000 is 2 billion yen. During this period, the company achieved the target for the first fiscal year and it has continued to post rapid growth through dynamic management even though we are facing negative economic conditions.
  Although the business is precision parts, the manufacturing and sales are outsourced, and resources are focused on development and marketing. Teams of three to four people who are responsible for design, purchasing and marketing are formed for each development project and handle their respective areas. This organization has succeeded in developing a high-performance hinge that possesses performance different from conventional hinges and has used this unique marketing niche to fuel further growth.

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