Management Philosophy
Made in Japan
(Pride as a Manufacturer)
Kaaz Engine Spirit
(An Unwavering Commitment to Engines)
Prologue
The ultimate purpose of a company is continuity?to endure and remain in business. Even the pursuit of profit is merely a means to achieve that end.
For KAAZ to continue into the future, two things are indispensable: an unwavering Management Philosophy and a transition away from family-centered management.
Management Philosophy
When we face a management crisis, when we find ourselves groping our way through complete darkness, or when we are uncertain about what decision to make, the one thing we can always rely on is our Management Philosophy.
Conversely, when business is going well and success causes us to become complacent or overconfident, it is our Management Philosophy that brings us back to our roots.
It is something we must uphold under any circumstances. And at the same time, it is the principle that gives us confidence that, as long as we remain true to it, we will find a way forward.
That is what our Management Philosophy means to KAAZ.
Made in Japan
For KAAZ, an export-oriented manufacturer, a strong yen is one of the most severe external challenges we can face.
Following the Plaza Accord in 1985, Japanese exporters were confronted with a rapidly appreciating yen for the first time. Since then, Japan has experienced repeated periods of extreme yen appreciation. In 2011 in particular, the yen reached a historic high of \75.32 to the U.S. dollar.
Japan's so-called “Lost 30 Years” were, in many respects, also a history of the strong yen.
Most Japanese manufacturers responded by shifting production overseas.
Overseas production can certainly be effective when it is strategically established close to the markets being served. However, through an overly easy shift toward overseas production, many manufacturers lost not only their own manufacturing technologies and capabilities, but even part of their corporate identity.
Ironically, some of those same companies began proclaiming “Made in Japan after all” or “a return to Japan” as soon as the yen weakened. To us, such an approach lacks consistency and conviction.
KAAZ, by contrast, has remained committed to Made in Japan throughout its history.
There were times when this commitment placed our business under severe financial pressure. We were even criticized and called incompetent management.
Nevertheless, we continued to uphold Made in Japan.
Why?
Because it is our Management Philosophy.
There is no greater reason than that.
We manufacture products in Japan that can compete even under a strong yen.
We believe this represents the pride of a Japanese manufacturer?and the pride of KAAZ.
KAAZ Engine Spirit
Regardless of the various arguments surrounding environmental issues, the global trend toward electrification is unstoppable. For certain applications, the convenience and advantages of electrification are highly valued.
KAAZ, however, will not enter the field of electrification?now or in the future.
In 2022, as KAAZ celebrated its 100th anniversary, we added a new principle to our Management Philosophy so that future generations of KAAZ would never have to hesitate over this fundamental management decision.
・KAAZ will remain unwaveringly committed to engines.
・We will respond to environmental regulations through engine technology.
To express this philosophy in a way that can also be clearly understood by our customers around the world, we named it.
KAAZ Engine Spirit
Moving Beyond Family-Centered Management
The Responsibility of the Founding Family
There are industries in which history and tradition themselves become part of a company's value. There are also family-owned companies blessed with substantial assets that have successfully developed their own unique philosophy of family management.
For KAAZ, however, history, tradition, and family ownership have no value simply for their own sake.
A company may be founded by a family?but a family can also be the very reason a company is destroyed.
There are countless examples of companies that became so focused on preserving family control that they lost sight of their true purpose, ultimately bringing hardship not only upon the family itself but upon their employees as well.
What must be protected is not the family.
What must be protected is the company.
And it is my mission to ensure that KAAZ continues.
To achieve this, we must establish the systems necessary for the future, strengthen our financial foundation, develop our people, and build a corporate culture that can be passed down from generation to generation.
In other words, we must create and preserve what I call.
“The Heart of KAAZ.”
As the last president of KAAZ from the founding family, I believe that creating this foundation is my final responsibility and duty.