Information Meeting In November 2021, Murata Manufacturing held its information meeting to share its Vision 2030 and Mid-term management plan. Murata Manufacturing is a Japanese multinational electronics company and was […]
In November 2021, Murata Manufacturing held its information meeting to share its Vision 2030 and Mid-term management plan. Murata Manufacturing is a Japanese multinational electronics company and was founded in 1944. Its head office is located in Kyoto, Japan. Murata contributes to the advancement of society and the electronics industry by creating innovative products and solutions. In addition, the Japanese company values close cooperation with its customers and other stakeholders.
There are several key highlights in Vision 2030 as well as Mid-term management plan. Before referring them, the Japanese company reflects its result in 2021 compared the plan in 2018. Based on its comparison, the company achieved the goals including operating margin and ROIC (Return On Invested Capital). However, it could not reach the sales target in 2021 that was set in 2018.
Also, Murata mentioned three important issues relating to entire group companies. They are portfolio management, increase of productivity and establishment of stable supply chains, and harmony among people, organization and society. In fact, the company understands there are several issues to be solved while executing former mid-term management plan from 2018 to 2021.
First of all, Murata is carefully considering its external business environments. This is because they can be either opportunities or risks for the company. For example, the company wants to make our society more sustainable. Thus, if it can do so, most of its stakeholders will be able to satisfy the potential results. However, if Murata cannot realize it, stakeholders will criticize the company. Also, there are other important issues including geopolitics, digitalization, population structure and others.
While understanding these external business environments, Murata tries to make use of its assets such as human resources, experience, technology, finance and others. As a result, it tries to realize its vision that the company realizes both economic and social value. Also, the Japanese company wants to contribute to the society to be more sustainable and more satisfied. It is Murata’s Vision 2030. Also, the Japanese electronics giant aims to be the top global supplier.
In order to achieve Vision 2030, Murata defines key business areas that are telecommunication, mobility, environment and healthcare. In fact, our media has already reported that Murata tries to increase its presence in the healthcare market through the acquisition. What’s more, it focuses on execution through digital transformation (DX). The company wants to realize a good cycle between economic value creation and social value creation.
Mid-term Management Plan
While having its long-term vision or Vision 2030, Murata thinks of its mid-term management plan as well. There are several issues relating to mid-term management plan such as capital allocation and portfolio management. In addition, the Japanese company seriously tackles carbon neutrality by 2050. In fact, it wants to increase the ratio of renewable energy from 25% in 2024 to 50% in 2030. That is why Murata introduced the solar power system in Japan as well as Thailand. Also, it has invested in rechargeable batteries.
In summary, Murata has defined its clear vision and plan in both mid- and long- term. Therefore, we can see how it implements through the years.