General Overview of “Made In Japan - By

Akio Morita and SONY”

A Great Inspirational Source For An Entrepreneur’s Dream

By: Sabin Nepal

BRIEF INTRODUCTION

Made in Japan is the autobiography of the late Akio Morita, the Japanese cofounder and former

chairman of the Sony Corporation. It was written with the assistance of Edwin M. Reingold and

Mitsuko Shimomura. The book not only narrates the story of Mr. Morita, but also of the Sony

corporation's formation in the aftermath of Japan's brutal defeat in World War two, and its

subsequent rapid rise to fame and fortune. The book also provides insights into Japanese culture

and the Japanese way of thinking, particularly their business management philosophies and

styles. The Japanese behavior is explained by putting it into a context based on Japan's history,

recent and ancient.

Morita introduces the origins of his family, and how Sony was founded. Chapters picture the war,

early tape recorders, and various conclusions on international markets. The transistor was

invented in North America in the 1950's, and Sony took advantage of it. The biography gives

authentic details about patent issues, business conferences in various countries, and the

invention of the Walkman.

The book is narrated by Mr. Morita in an intensely personal, down to earth, conversational style.

Sections Of The Book

War

Peace

Selling To The World (My learning curve)

On Management (It's all in the family)

American and Japanese Styles (The difference)

Competition (The fuel of Japanese Enterprise)

Technology (Survival Exercise)

Japan and The World (Alienation and Alliance)

World Trade (Averting Crisis)

• Akio Morita was born on January 26, 1921, the first son and fifteenth-generation heir

to a sake-brewing family in Kosugaya village, near Nagoya in Japan. Influenced as a

boy by his mother's love of classical music, Morita developed a keen interest in

electronics and sound reproduction.

• He became so engrossed in his electronic experiments, he even built his own home

radio.

• he entered the prestigious Eighth Higher School as a physics major. At Osaka Imperial

University, he assisted his professor in research for the Imperial Japanese Navy.

• After his graduation in 1944, Lieutenant Morita supervised a special project group of

the Aviation Technology Center on thermal guidance weapons and night-vision gun

sights. There he met Masaru Ibuka, an electronics engineer 13 years his senior. The

two became close friends and eventually cofounded Sony Corporation. After World

War II, Morita became a physics professor while working part time in Ibuka's new

telecommunications lab.

Book Overview

• In March 1946, Morita and Ibuka established Totsuko, with only $500 capital and

roughly 20 employees, in a rented office in a burned-out department store in Tokyo.

• By investing six to ten percent of its annual sales in research and development, Sony

took the lead in developing new consumer products independently of the

government help.

• A pioneer of products ranging from transistorized radios to solid-state television sets to

the Walkman and Discman to VCRs.

• By 1990, Sony employed more than 100,000 workers and was the world's leading

maker of consumer, non-consumer, industrial, and professional electronics and

entertainment software.

• Morita was a pioneer in marketing as well. His initial failure to sell tape recorders

developed in 1950 convinced him that market creation must accompany product

development. On his first trip to Europe in 1953, he was deeply impressed and

encouraged by the success of N.V. Philips, which had grown from a small light bulb

maker in a rural Dutch town into the world's leading electronics maker.

• Morita then decided to target the world market, particularly the affluent U.S. market,

rather than the poor and congested Japanese domestic market.

• Recognizing the importance of establishing company’s identity in the world market,

Morita adopted "Sony" (finding a Western root from the Latin sonus, meaning "sound,"

and combining it with the English nickname "Sonny"), a name that foreign customers

could easily remember, as his company's trademark in 1955. And thus, Totsuko

became Sony Corporation in 1958.

• In the mid 1950’s, most Japanese producers relied on giant Japanese trading

companies to export their goods, but Morita decided to build his own distribution

route in which the message of the new technology and its benefits could be directly

passed on to the consumer.

• In 1960, Morita established Sony Corporation of America and Sony Overseas S.A.

(Switzerland) as its sales arms.

• In 1961, Sony became the first Japanese company to offer its stock in the United

States in the form of ADRs(American Depositary Receipts).

• In February 1960, Sony established the Sony Corporation of America; and in less than

two years, they became the first Japanese company to offer its stock in the United

States.

• Sony acquired CBS Records in 1988 and Columbia Pictures and Tri-Star film studios in

1990 (now Sony Pictures Entertainment) to expand its business in entertainment.

• Morita was often a spokesman for Japanese management. In articulating his own

ideas, he emphasized the importance of teamwork and of motivating people by

providing challenging work in a family-like environment; engineers in industrial

companies particularly need targets for their creativity.

• Above all, management must treat workers not as tools but as fellow human beings.

Morita argued that manufacturing determines the strength of the economy and

blamed excessive financial dealings to create paper profits for undermining this

base.

• Morita praised familialism and loyalty to the company as facilitating long-range

planning and investment.

• Morita was also outspoken on U.S.-Japanese relations. He warned, for example,

against "hollowing out" the economy in the United States by moving manufacturing

plants overseas to exploit cheap labor.

• Morita became executive vice-president of Sony Corporation in 1959, president in

1971, chairman and chief executive officer in 1976.

• In 1972, 1976 and 1984,Sony was awarded an Emmy by the National Academy of

Television Arts and Sciences for the development of Trinitron , U-Matic video tape

recording system and one-inch helical-scan videotape recording respectively.

• In 1985, Billboard gave Sony its Trendsetter Award for their revolutionary small D-5

compact disc player.

• Morita, himself, received the Albert Medal of the Royal Society of Arts for

“outstanding contributions to technological and industrial innovation and

management, industrial design, industrial relations and video systems, and the

growth of trade relations."

• Morita became chairman of the board in 1989. As vice-chairman of Keidanren

(Japan Federation of Economic Organizations). Morita was active in educating

Japanese companies abroad to become good citizens of local communities.

• On November 30, 1993 at the age of 72, Morita suffered a cerebral hemorrhage.

• Besides the Sony Corporation's concerns, much of Japan worried about what the loss

of Morita from the helm would mean for the country.

• Morita has lately been acknowledged even in Japan as the country's "most powerful

and persuasive voice“

• The Institute of Electrical and Electronics Engineers (IEEE) presented Akio Morita with

its Founders Medal for his distinguish leadership and bringing advanced technologies

to consumer electronics products.

• Morita's 1993 stroke left him partially paralyzed.

• Morita gave up his honorary chair position, but is still considered "Sony's patriarch“.

• His power and influence are still prominent factors in Sony's efforts.

• Akio Morita was awarded an honorary Doctor of Law degrees from the University of

Pennsylvania and Williams College and various medals of honor in Japan, Great

Britain, France, West Germany, Austria, and Brazil.

• In 1995, he was presented with the Japan Society Award for outstanding

contributions to better United States-Japan understanding.

• Throughout his career Morita remained an avid sportsman.

• Morita and his wife, Yoshiko, have two sons and a daughter.

Some of the Quotes from his Autobiography

“THERE IS NO SECRET INGREDIENT OR HIDDEN FORMULA RESPONSIBLE FOR THE SUCCESS OF THEBEST JAPANESE COMPANIES."

“THE MOST IMPORTANT MISSION FOR A JAPANESE MANAGER IS TO DEVELOP A HEALTHYRELATIONSHIP WITH HIS EMPLOYEES, TO CREATE A FAMILY-LIKE FEELING WITHIN THECORPORATION, A FEELING THAT EMPLOYEES AND MANAGERS SHARE THE SAME FATE."

“ 'THERE IS A MAJOR DIFFERENCE BETWEEN YOU AND ME,' I TOLD HIM. 'YES, I AM RICH. BUT YOUARE WEALTHY. AND THAT IS WHY YOU CAN BUY SUCH (EXPENSIVE) JEWELRY (FOR YOUR WIFE)AND WHY I CANNOT.’ ”

"THE CONCEPT OF LIFE-TIME EMPLOYMENT AROSE WHEN JAPANESE MANAGERS AND EMPLOYEESBOTH REALIZED THAT THEY HAD MUCH IN COMMON AND THAT THEY HAD TO MAKE SOME LONG-RANGE PLANS."

"WHAT WE IN INDUSTRY LEARNED IN DEALING WITH PEOPLE IS THAT PEOPLE DO NOT WORK JUSTFOR MONEY AND THAT IF YOU ARE TRYING TO MOTIVATE, MONEY IS NOT THE MOST EFFECTIVETOOL."

"THE INVESTOR AND THE EMPLOYEE ARE IN THE SAME POSITION, BUT SOMETIMES THE EMPLOYEEIS MORE IMPORTANT, BECAUSE HE WILL BE THERE A LONG TIME, WHEREAS AN INVESTOR WILLOFTEN GET IN AND OUT ON A WHIM IN ORDER TO MAKE A PROFIT."

"WE WANT TO KEEP THE COMPANY HEALTHY AND ITS EMPLOYEES HAPPY, AND WE WANT TO KEEPTHEM ON THE JOB AND PRODUCTIVE.“

"I ESTABLISHED THE RULE THAT ONCE WE HIRE AN EMPLOYEE, HIS SCHOOL RECORDS ARE AMATTER OF THE PAST AND ARE NO LONGER USED TO EVALUATE HIS WORK OR DECIDE ON HISPROMOTION.“

"I BELIEVE ONE OF THE REASONS WE WENT THROUGH SUCH A REMARKABLE GROWTH PERIODWAS THAT WE HAD THIS ATMOSPHERE OF FREE DISCUSSION."

"I HAVE ALWAYS MADE IT A POINT TO KNOW OUR EMPLOYEES, TO VISIT EVERY FACILITY OF OURCOMPANY, AND TO TRY TO MEET AND KNOW EVERY SINGLE EMPLOYEE.“

"A COMPANY WILL GET NOWHERE IF ALL OF THE THINKING IS LEFT TO MANAGEMENT."

"THE IMPORTANT THING IN MY VIEW IS NOT TO PIN THE BLAME FOR A MISTAKE ON SOMEBODY,BUT RATHER TO FIND OUT WHAT CAUSED THE MISTAKE."

"IN ALL MY YEARS IN BUSINESS I CAN RECALL VERY FEW PEOPLE I HAVE WANTED TO FIRE FORMAKING MISTAKES."

"OF COURSE WE HAVE TO MAKE A PROFIT, BUT WE HAVE TO MAKE A PROFIT OVER THE LONGHAUL, NOT JUST THE SHORT TERM, AND THAT MEANS WE MUST KEEP INVESTING IN RESEARCHAND DEVELOPMENT - IT HAS RUN CONSISTENTLY ABOUT 6 PERCENT OF SALES AT SONY - AND INSERVICE."

"TO GAIN PROFIT IS IMPORTANT, BUT YOU MUST INVEST TO BUILD UP ASSETS THAT YOU CAN CASHIN IN THE FUTURE."

"IF YOU ARE NOTHING BUT PROFIT-CONSCIOUS, YOU CANNOT SEE THE OPPORTUNITIES AHEAD."

"ADVERTISING AND PROMOTION ALONE WILL NOT SUSTAIN A BAD PRODUCT OR A PRODUCT THATIS NOT RIGHT FOR THE TIMES.

"ONCE YOU HAVE A STAFF OF PREPARED, INTELLIGENT, AND ENERGETIC PEOPLE, THE NEXT STEP ISTO MOTIVATE THEM TO BE CREATIVE."

"WE ALL LEARN BY IMITATING, AS CHILDREN, AS STUDENTS, AS NOVICES IN THE WORLD OFBUSINESS. AND THEN WE GROW UP AND LEARN TO BLEND OUR INNATE ABILITIES WITH THE RULESOR PRINCIPLES WE HAVE LEARNED."

"THE KEY FACTOR IN INDUSTRY IS CREATIVITY. I SAID THERE ARE THREE CREATIVITIES: CREATIVITY INTECHNOLOGY, IN PRODUCT PLANNING, AND IN MARKETING. TO HAVE ANY ONE OF THESEWITHOUT THE OTHERS IS SELF DEFEATING IN BUSINESS."

"FROM A MANAGEMENT STANDPOINT, IT IS VERY IMPORTANT TO KNOW HOW TO UNLEASHPEOPLE'S INBORN CREATIVITY. MY CONCEPT IS THAT ANYBODY HAS CREATIVE ABILITY, BUT VERYFEW PEOPLE KNOW HOW TO USE IT."

"MY SOLUTION TO THE PROBLEM OF UNLEASHING CREATIVITY IS ALWAYS TO SET UP A TARGET. THEBEST EXAMPLE OF THIS WAS THE APOLLO PROJECT IN THE UNITED STATES."

"THE ‘PATRON SAINT’ OF JAPANESE QUALITY CONTROL, IRONICALLY, IS AN AMERICAN NAMED W.EDWARDS DEMING, WHO WAS VIRTUALLY UNKNOWN IN HIS OWN COUNTRY UNTIL HIS IDEAS OFQUALITY CONTROL BEGAN TO MAKE SUCH A BIG IMPACT ON JAPANESE COMPANIES."

“I OFTEN SAY TO MY ASSISTANTS, "NEVER TRUST ANYBODY," BUT WHAT I MEAN IS THAT YOUSHOULD NEVER TRUST SOMEONE ELSE TO DO A JOB EXACTLY THE WAY YOU WOULD WANT ITDONE.“

"IN THE UNITED STATES, BUSINESSMEN OFTEN DO NOT TRUST THEIR COLLEAGUES. IF YOU TRUSTYOUR COLLEAGUE TODAY, HE MAY BE YOUR COMPETITOR TOMORROW, BECAUSE PEOPLEFREQUENTLY MOVE FROM ONE COMPANY TO ANOTHER.”

"THE AMERICAN SYSTEM OF MANAGEMENT, IN MY OPINION, ALSO RELIES TOO MUCH ONOUTSIDERS TO HELP MAKE BUSINESS DECISIONS., AND THIS IS BECAUSE OF THE INSECURITY THATAMERICAN DECISION MAKERS FEEL IN THEIR JOBS, AS COMPARED WITH MOST TOP JAPANESECORPORATE EXECUTIVES."

"THE DIFFERENCES BETWEEN U.S. AND JAPANESE COMPANIES GO BEYOND THE CULTURAL.”

"AMENITIES ARE NOT OF GREAT CONCERN TO MANAGEMENT IN JAPAN.”

"WE WANT EVERYBODY TO HAVE THE BEST FACILITIES IN WHICH TO WORK, BUT WE DO NOTBELIEVE IN POSH AND IMPRESSIVE PRIVATE OFFICES.”

"I BELIEVE PEOPLE WORK FOR SATISFACTION."

"JAPANESE ATTITUDES TOWARD WORK SEEM TO BE CRITICALLY DIFFERENT FROM AMERICANATTITUDES. I BELIEVE IT IS A BIG MISTAKE TO THINK THAT MONEY IS THE ONLY WAY TOCOMPENSATE A PERSON FOR HIS WORK. PEOPLE NEED MONEY, BUT THEY ALSO WANT TO BEHAPPY IN THEIR WORK AND PROUD OF IT."

"THE COMPANY MUST NOT THROW MONEY AWAY ON HUGE BONUSES FOR EXECUTIVES OR OTHERFRIVOLITIES BUT MUST SHARE ITS FATE WITH THE WORKERS."

"YOU CAN BE TOTALLY RATIONAL WITH A MACHINE. BUT IF YOU WORK WITH PEOPLE, SOMETIMESLOGIC OFTEN HAS TO TAKE A BACKSEAT TO UNDERSTANDING."