How to inherit the president of Yanai?
Do you know UNIQLO? This is one the biggest clothing store in Japan. Now UNIQLO stores are located 13 countries of the world. Of course, there are 3 stores also in the United States. The first president of UNIQLO was Mr. Yanai and he opened the first UNIQLO store in 1984. Then, the company continued to grow during 1990’s, then, there were more than 400 stores in 2000. Especially, about 10 million UNIQLO’s fleeces were sold in Japan during 2001 and 2002, so this means about one tenth Japanese people bought the fleece. This is surprising incident for fashion industry because people tend to keep originality in their fashion. However, after changing president from Mr. Yanai to Mr. Tamatsuka in 2002, the revenue and profit had not been so good. Then, Mr. Yanai came back in 2005 and he had improved their revenue and profit. I pick this topic because this is good case the growth rate of company was different depends on the president. I think this links with the reading topic “Do you have the right leaders for your growth strategy?” In fact, Mr. Yanai was known as charisma leader in Japan.
In 2002, Mr Yanai drawn rapid growth strategy, however, he thought “I am founder president and I should not remain for a long time, so, I should retire and inherit younger member.” Then, he decided to inherit the president to Mr. Tamatsuka, and he said to him “Our target is that our revenue will be 1 trillion yen and our profit will be 150 billion yen in 2010” The revenue in Tamatsuka’s first year was 300 billion in 2003 and this was the same as his target, however the revenue in 2005 was only 3800 and he decreased the profit. After that, Mr. Yanai decided to go back the president. This is because he thought we need structural reorganization to achieve our revenue and profit goal in 2010, and he expected Mr. Tamatsuka to implement an aggressive strategy like M&A and start-up business and so on. But Mr. Takatsuka did not do like this, so Mr. Yanai thought we need the man who has founder spirit like spirit of challenge.
Mr. Yanai, as his experience, he learned he could not bring up his successor by himself. On the other hand, he also thought good business leader have to had a business experience. Therefore, he tended to make a place to grow future leaders by themselves, then, he divided his authority and function, and he entrusted to his subordinates by way of international business, M&A, and founding holding company. Can he produce “Mr. Yanai”?
I think Mr. Yanai has high management ability, and he is not charisma like genius but he had his effort step by step and brought up his ability. This is because I read his book and he said he won one time while he lost nine times, so, I thought he tried many times and he educated his ability as his experience. This means he can produce “Mr. Yanai”. How do you think?
Hired president could not achieve target in Fast Retailing
How will be the problem of Mr. Yanai’s successor?
Fast Retailing’s financial data