Konosuke Matsushita
Encyclopedia
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese industrialist, the founder of Panasonic, a company based in the suburb of Kadoma
Kadoma, Osaka
is a city located in Osaka, Japan.As of 2010, the city has an estimated population of 128,034 and the density of 10,430 persons per km². The total area is 12.28 km²....
(on the Keihan line), Osaka
Osaka
is a city in the Kansai region of Japan's main island of Honshu, a designated city under the Local Autonomy Law, the capital city of Osaka Prefecture and also the biggest part of Keihanshin area, which is represented by three major cities of Japan, Kyoto, Osaka and Kobe...
in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
. For many Japanese, he is known as "the god of management". A biography of Matsushita's life called Matsushita Leadership was written by American business management specialist John Kotter
John Kotter
John Paul Kotter is a professor at the Harvard Business School and author, who is regarded as an authority on leadership and change. He outlines eight steps that organizations need to implement to successfully change:1...
in 1998.
Childhood
Konosuke Matsushita was born on November 27, 1894. He was the youngest of eight children. His father was an affluent landlord in the farming village of Wasa, in the Wakayama PrefectureWakayama Prefecture
is a prefecture of Japan located on the Kii Peninsula in the Kansai region on Honshū island. The capital is the city of Wakayama.- History :Present-day Wakayama is mostly the western part of the province of Kii.- 1953 Wakayama Prefecture flood disaster :...
. Matsushita was born into a well-to-do family but the family became impoverished because his father made some bad investment decisions, primarily in rice speculation. In 1899, the family's entire fortune was gone and anything of value was sold off. The family was forced to move to a cramped three bedroom city apartment where conditions were less than sanitary. There was always a lack of food, clothing, and medical care. Within several years, Matsushita's health declined rapidly and three of his older siblings died due to infectious diseases. His family’s misfortunes further meant that Matsushita could no longer enjoy the privileges of the wealthy, including education. Matsushita's formal education ended at the age of nine.
Teenage Years and Early Adulthood
Shortly after Matsushita left school, he was sent away to Osaka to become an apprentice for a hibachi store. Not even a year into his apprenticeship, the hibachi shop failed and Matsushita was left looking for another source of income. His next stint was spent working as an apprentice in a bicycle shop. He did this till the age of fifteen. It was during this time that the use of electricity was becoming more widespread in Japan and Matsushita felt that this technological discovery would be the dawn of a new era. Matsushita was determined to be a part of this industry and this propelled him to apply for a job with the Osaka Electric Light Company, an electrical utility company. Originally, he was hired to work as a wiring assistant but because of his willingness to learn, he quickly became an electrician. Over the next couple of years, Matsushita’s position rose within the company as he was promoted several times. During this time, Matsushita was introduced to one of his sister's friends and shortly thereafter, he married Mumeno Iue. Matsushita was now responsible for a family and this newfound burden was not lost on him. At the age of twenty-two, Matsushita was promoted to the position of an electrical inspector. Such a position was considered somewhat prestigious as the salary was considerably attractive, given the fact that Matsushita was, to a certain degree, uneducated. It was during this timeframe that Matsushita attempted to introduce his boss to an invention of a new and improved light socket that he had perfected in his spare time. However, his boss was less than enthusiastic and Matsushita became predictably deflated. Because Matsushita no longer felt challenged in his career, he soon grew dissatisfied with his job. This became the turning point in his life.Matsushita Electric Industrial Company
In 1917, Matsushita left Osaka Electric Light Company to set up his own company. Without capital, a formal education, and experience in manufacturing, it would appear the company would fail before it even began. However, whatever resources Matsushita lacked, he made up with ambition and determination. Matsushita set up his shop in the basement of his tenement and with his wife, brother-in-law, and several assistants, he began creating several samples of his product. He attempted to peddle his samples to several wholesalers but was unsuccessful because he did not offer more than one product. Eventually, Matsushita's assistants left his company and he was left with only his wife and brother-in-law. Matsushita would have eventually became bankrupt but he was "saved by an unexpected order for a thousand insulator plates for electric fans.". From there, Matsushita was able to continue producing his light sockets and eventually they became popular as wholesalers began realizing the product was better in quality and less expensive than comparable products in the existing market. Matsushita's products were originally marketed under the name brand of "National" and later moved on to the more recognizable names of Panasonic, Quasar and Technics.One of Matsushita's best products was his invention of a more efficient battery-powered bicycle lamp
Bicycle lighting
Bicycle lighting improves the visibility of the bicycle rider to others in dark conditions, i.e. to increase the rider's conspicuity and to enhance the ability of the rider to see, illuminating the way forward. Both reflectors and active lights are used to make the rider more visible, and many ...
. During the 1920s, bicycle lamps were either powered by candles or by oil-burning lamps. These types of lamps were highly inefficient as they usually only lasted for three-hours. Matsushita created an oval-shaped lamp that used a battery for power and a lightbulb for illumination. At first, Matsushita could not get wholesalers interested in his products as they were skepical of the concept of using a battery-powered lamp. Matsushita took it upon himself to personally market his products to retail bicycle shops. Once the idea caught on, his sales for the battery-powered bicycle lamps took off.
Expansion
Matsushita learned a very important lesson in terms of growing a company while he was trying to introduce his bicycle lamp to wholesalers. He realized that even if he had a product that was superior to anything out in the market it would not matter if he could not sell the product. As a result, Matsushita began devising ways to create sales channels for his products by concentrating less on manufacturing and more on building a sales force. This led to a retail store network and finally placed Matsushita's company on the map in the Japanese's electrical manufacturing and retail industry.In 1929, Matsushita began setting up a new structure for his company. The company was structured as a parent company and branches of divisions that specialized in a particular product were created. There were three specific products that were being created in Matsushita's company at this time: the bicycle lamp and battery division, the electrical socket division, and the radio division. For each of these products, a national sales department was formed with regional offices established in strategic locations. These regional offices were responsible for the coordination of sales and manufacturing. Products were manufactured based upon the demand for the products. As a result, manufacturing was dependent on sales.
Matsushita and the post-war period
In post-war Japan, the company came under severe restrictions imposed on large Japanese companies by the AlliesAllies
In everyday English usage, allies are people, groups, or nations that have joined together in an association for mutual benefit or to achieve some common purpose, whether or not explicit agreement has been worked out between them...
. Matsushita was in danger of removal as president, but was saved by a favourable petition signed by 15,000 employees.
In 1947, Konosuke lent his brother-in-law Toshio an unutilized manufacturing plant to manufacture bicycle lamps, which eventually became Sanyo Electric
Sanyo
is a major electronics company and member of the Fortune 500 whose headquarters is located in Moriguchi, Osaka prefecture, Japan. Sanyo targets the middle of the market and has over 230 Subsidiaries and Affiliates....
.
From 1950 to 1973, Matsushita's company became one of the world’s largest manufacturers of electrical goods, sold under well-known trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
s including Panasonic and Technics. Matsushita retired in 1973. Since 1954, Matsushita also gained a significant shareholding in manufacturer JVC
JVC
, usually referred to as JVC, is a Japanese international consumer and professional electronics corporation based in Yokohama, Japan which was founded in 1927...
by forming an alliance. It still retains a 50% share today.
In retirement, Matsushita focused on developing and explaining his social and commercial philosophies, and wrote 44 published books. One of his books, entitled “Developing a road to peace and happiness through prosperity”, sold over four million copies.
In 1987, he was awarded the Grand Cordon of the Order of the Paulownia Flowers
Order of the Paulownia Flowers
The ' is an order presented by the Japanese Government. Established in 1888 during the Meiji Restoration as the highest award in the Order of the Rising Sun; however, since 2003 it has been an Order in its own right...
Chronic lung
Lung
The lung is the essential respiration organ in many air-breathing animals, including most tetrapods, a few fish and a few snails. In mammals and the more complex life forms, the two lungs are located near the backbone on either side of the heart...
problems lead to his death from pneumonia
Pneumonia
Pneumonia is an inflammatory condition of the lung—especially affecting the microscopic air sacs —associated with fever, chest symptoms, and a lack of air space on a chest X-ray. Pneumonia is typically caused by an infection but there are a number of other causes...
on 27 April 1989, at the age of 94. He died with personal assets worth US$3 billion, and left a company with US$42 billion in revenue business.
Awards and Honours
- Grand Cordon of the Order of the Rising SunOrder of the Rising Sun
The is a Japanese order, established in 1875 by Emperor Meiji of Japan. The Order was the first national decoration awarded by the Japanese Government, created on April 10, 1875 by decree of the Council of State. The badge features rays of sunlight from the rising sun...
- Grand Cordon of the Order of the Paulownia Flowers
Order of the Paulownia Flowers
The ' is an order presented by the Japanese Government. Established in 1888 during the Meiji Restoration as the highest award in the Order of the Rising Sun; however, since 2003 it has been an Order in its own right...
- Knight Commander of the Order of the Defender of the Realm
Order of the Defender of the Realm
The Most Esteemed Order of the Defender of the Realm is a Malaysian federal award presented for meritous service to the country...
(Panglima Mangku Negara which carries the title "Tan Sri")
Further reading
- Matsushita Leadership by John Paul KotterJohn KotterJohn Paul Kotter is a professor at the Harvard Business School and author, who is regarded as an authority on leadership and change. He outlines eight steps that organizations need to implement to successfully change:1...
, Simon and Schuster (1998)
- Matsushita Konosuke (1894-1989) His Life & His Legacy: A Collection of Essays in Honor of the Centenary of His Birth by Matsushita Konosuke, PHP Research Institute(1994)
- The Matsushita Perspective, A Business Philosophy Handbook, Published by PHP Institute, Inc. First edition 1997.
- Michi wo hirakuMichi wo hiraku, literally meaning Open the path and often translated as The Path, is a book written by Konosuke Matsushita, a Japanese industrialist and founder of Panasonic. The book was first published in 1968, and has been a perennial bestseller since then, with nearly 4.5 million copies sold worldwide....