Why did performance deteriorate so rapidly in the mid-1980s?

1. How was Komatsu able to evolve from a $169 million company with low-quality products to become a real challenge to Caterpillar by the early 1980s? How would you evaluate Mr. Kawai’s performance?

Komatsu was able to evolve because of the TQS ( Total Quality Control) and PDCA (Plan Do Check Act) that Mr. Kawai implemented. He knew what Komatsu needed in order to improve its quality to compete with Cat, that’s what made him implement TQC and PDCA. Facing competitors always challenging, I would evaluate him and the performance as top notch.

2. Why did performance deteriorate so rapidly in the mid-1980s? What grade would you give to Mr. Nogawa’s term as CEO?

1982 marked the beginning of an era of falling demand, worldwide price wars and heightened trade frictions throughout the industry. Mr. Nogawa also focused more on cost cutting and aggressive sales tactics than he did on internationalization pf the stagnating construction industry. I don’t believe Nogawa was a great CEO because he ignored focusing on improving the company and instead tried to cut too man costs risking quality and holding the business back during his term as CEO.

3. How appropriately did Mr. Tanaka deal with the problems he inherited? What is your evaluation of his brief tenure as CEO?

Mr. Tanaka handled and dealt with the problem in a good way with great strategy to get rid of the overall growth and focusing on profits. However leadership would made him more successful. Overall he did well in terms of profit but failed to compete against CAT.

4. How effectively did Mr. Katada take charge? How would you assess his new vision for the company? His new strategy? His new cultural and behavioral objectives? What grade would you give him for his performance?

The new management style made it really an effective strategy. This assisted managers to participate in creating a Komatsu’s new mission. They created a new slogan to show the change technology and how it is becoming more innovative and creative.


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