Panasonic to undergo reorganization

Japan-based Panasonic Corporation has announced that it will go through a group-wide reorganization in line with its fundamental business concepts, said Fumio Ohtsubo, president of the company, during its business policy meeting announcing the firm’s business policy for the financial year ending March 2012.

 Panasonic, a global leader in the development and manufacture of electronic products for a broad range of business, consumer and industrial needs, will be reorganized into three business sectors by business platform: Consumer, Components and Devices, and Solutions. Currently, it comprises five business sectors by technology model.

In these three business segments, Panasonic will set up a marketing division and nine internal companies known as “business domain companies”. The company will create an optimum business model for every business sector, aiming to optimize synergies among the group companies.

Under the Solutions business sector, there will be four business domain companies: Factory Solutions, Healthcare and Medical Solutions, Environment and Energy Solutions, and Systems and Communications.

Under the Factory Solutions, the company will look at new business opportunities in production processing. In the current business areas, it will inject manufacturing, development and sales resources in emerging markets, and actively use its sales partnerships in the North American region.

The group and global head office will also be grouped based on job functions. Among the manufacturing-related functions (manufacturing innovation, environment, quality and technology, logistics and procurement), the head office function of the logistics, procurement and portion of manufacturing innovation functions will be shifted to Asia. The company will also strengthen other functions at its Asian base. Placing these functions under the Global Manufacturing Division, the company will work harder to improve its manufacturing capability level by using outside resources, improving local procurement and developing robust manufacturing basis.

In addition, PEW Sanyo and Sanyo will run businesses and administer assets that can’t be incorporated into the new domain companies, like OEM manufacturing of products competing with the domain companies in addition to joint ventures formed by Sanyo abroad. PEW’s businesses will be totally integrated into the new domains, with PEW and Panasonic operating them in a unified approach.

Meanwhile, after more than a month since the strong earthquake that severely hit Japan, Panasonic said its factories have been steadily recovering, though interruptions in its supply chain are still affecting its business operations.

Nevertheless, the company is extending help to those affected by the earthquake and is speeding up efforts to restore normal operations and prepare the company for future risks.