Annual Report 1999 ［ PDF：672KB ］ - Shiseido group website

Message from the Management
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“Global No. 1” Long-Term Vision for the 21st Century
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“Global No. 1“ Basic
Policy to Raise Corporate
Value
Since fiscal 1997, Shiseido has pursued the initiatives outlined
in its medium-term management plan in line with
our “Global No. 1” long-term vision. This vision entails
becoming a truly distinctive company in the eyes of
customers worldwide, rated highly and supported by
customers for quality not only of products and services
but also of employees, marketing and management itself.
As we realize our corporate vision, we will work
aggressively to create “customer benefit,” which we interpret
as meeting the “desire of customers for enhanced beauty.”
In our quest to raise management quality, in fiscal 1998
we formulated “ ” as a statement
of principles guiding our corporate activities. In the year
under review, we introduced a “stakeholder index” as a
concrete method of evaluating our progress in
implementing “ .”
At Shiseido, we firmly believe that success in raising
corporate and shareholder value depends directly on our
ability to realize our “Global No. 1” vision through the
relentless pursuit of “customer benefit” and self-checks
of management quality.
Annual Report 1999
2
Akira Gemma
President & CEO
(Representative Director)
Fiscal 1999—An Important Year in Our Mission
to Raise Corporate Value
◆ Revision of Medium-Term Management Plan
In fiscal 1999, Shiseido’s financial performance was badly affected by such factors as stagnation in the
Japanese economy. Consolidated net sales declined for the first time in four years, and net income was
down for the second consecutive term. Under these operating conditions, we made crucial decisions
in our renewed desire to raise corporate value. Specifically, we revised our medium-term management
plan, aimed at ensuring that Shiseido evolves into a company that is renowned worldwide in the
21st century. The revised plan, which is based on our understanding of the need to accelerate growth
in overseas markets and raise profitability, focuses on two key areas—reforming our brand strategy
and further restructuring our core businesses—to reflect changes in markets and economic environments.
In recognition of the current operating environment, we have restated fiscal 2003 as the target
year for achieving consolidated net sales of ¥800 billion and overseas sales of at least 25% of net
Yoshiharu Fukuhara
Chairman of the Board
(Representative Director)