Planning years.The company target for 2020 are net

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Planning is a process where managers coordinate organizational
activities to achieve the goals. A plan provides a “road map” for an action to
pursuit organizational goals. The purpose of planning is simple which is to
ensure that organization is both effective and efficient in its activities
(Goodman et al., 2016). In addition, planning is necessary to ensure proper
utilization of human and other non-human resources and it help to avoid
confusion, risks and wastages (“Functions of Management, n.d.).  

            Shiseido Group formulated
a Medium-to-Long Term strategy that runs through 2020 named “VISION 2020” to
sustain growth for the next 100 years.The company target for 2020 are net
sales of over 1 trillion yen, operating income of over 100 billion yen and ROE
of 12 percent or higher and it aim to become a global winner with their
heritage. To achieve this strategy, the company establish a new global supply chain management base in Ibaraki,
Osaka. Furthermore, it expected to enhance the system for producing and
providing high-quality skincare products that meet the needs of the Japanese as
well as the global markets. New Shiseido Osaka Factory include in this base
(“Shiseido establishes a new global supply chain management base in Osaka”,
2016). The construction of this factory begin in 2018 and expected production
capacity approximately 1.5 times higher than current facility that able to
increase output by 50% while cost of production reduce due to reliance on
robotics. Under company’s global supply chain management vision, the factory
will play the role of primary factory making skincare products (Campbell,
2016). On the same premises, a new flagship distribution base, Shiseido Kansai
Integration Center with the functions to distribute products within Japan and
overseas as well as storing and shipping products (“Shiseido establishes a new
global supply chain management base in Osaka”, 2016).

            Besides, the company reached and signed an agreement of
transferring shares of its consolidated subsidiary, Zotos International,
Inc. which offering professional hair care products and related business assets
to Henkel. The company believe Zotos will achieve further growth as it owns
well-known professional brands in U.S. after be a part as Henkel which expanded
its Beauty Care Professional business in Europe. It give an opportunity for the
company to use the resources gained from this transaction to concentrate and
boost its investment in the professional market in Asia to implement the
company “New Strategy to Accelerate Growth” in the next three years of VISION
2020 (“Notice of transfer of Zotos International,Inc, 2017).

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            Shiseido Group has reinforce in investment to accomplish
the VISION 2020 and decided to build a new basic research base, the Global
Innovation Center, This center will be the company’s new global innovation hub
of R&D functions and create a new value of “fusion and innovation” through
communication with various people including consumers. This center scheduled to
open at the end of 2018 and located in the Minato Mirai 21 area of Yokohama,
Kanagawa Prefecture. The company aim to become a company that responds to the
expectations of active consumers by providing a Beauty Bar in the center that
enable them to try the cosmetic products and communicate directly with
researchers and Active Beauty Station for consumers who seek healthy and active
beauty ( Spencer, 2016).

Categories: Management


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