full Annual Report 2003(5.9
full Annual Report 2003(5.9
full Annual Report 2003(5.9
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Principal Tactics<br />
1. Augment profitability of the construction business<br />
(1) Secure orders by enhancing marketing initiatives<br />
• Assist clients to coordinate pre-construction tasks, provide clients with technical advice<br />
that makes strategic sense, and integrate marketing/design/construction staff in ways that<br />
allow this marketing approach to work most efficiently.<br />
• Aggressively pursue projects where Kajima’s know-how and expertise can have the greatest<br />
impact. Specifically targeted are “engineering” and “environmental” fields and reinforcing<br />
renovation operations.<br />
(2) Improve project profit margins by boosting cost-competitiveness<br />
2. Strengthen involvement in overseas business<br />
3. Diversify and expand sources of profits<br />
(1) Real estate operations in Japan<br />
• Launch complex, large-scale development projects in strategically selected CBD or railwaylinked<br />
locations.<br />
• Achieve sufficiently high returns on equity by structuring deals such that the funds invested<br />
by Kajima are minimized and/or quickly recovered.<br />
• Launch a real estate investment fund (tentatively called the Kajima Fund) with a mission to<br />
acquire and manage income producing properties that will generate stable fees/dividends<br />
over the long haul.<br />
(2) Enhance involvement in PFI projects<br />
(3) Building life-cycle management<br />
• Enhance capabilities in the area of building maintenance and operation as well as consulting<br />
on related tasks.<br />
4. Focused research and development<br />
Stay focused on innovations that enable cost reduction, shortening of works schedules, and<br />
improvements in other areas of importance to Kajima.<br />
5. Cut fixed costs and selling and administrative expenses<br />
(1) Downsize the workforce<br />
(2) Revamp the retirement benefit system, etc.<br />
(3) Slim the administrative divisions and cut back on selling and administrative<br />
expenses<br />
6. Restructure the head office and branches<br />
7. Reinforce Group management systems (enhance revenue<br />
generating capacity and increase in consolidated profits)<br />
8. Improve risk management and return on assets<br />
Reduce assets by disposing of asset holdings (shares, real estate, etc.) and reduce interestbearing<br />
debt (target for fiscal 2006 year-end: reduce consolidated interest-bearing debt to<br />
¥480 billion or less).<br />
9. Strengthen the Kajima brand<br />
5
Change language