As the company grew it expanded into a wide range of products from electronic components to consumer electronic products, home appliances, factory automation equipment, information and communications equipment, and housing-related products. By 1991, the company's 6,599 billion yen revenues were the contribution of 49% traditionally strong business areas and of 51% new business areas (see figure 1.1). Over the next three years, its revenues moved forward to new business area (61% in 1994). .
Figure 1.1 Revenues by Major Product Segment.
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1.2 Company vision and business philosophy.
In 1932, Konosuke Matsushita came to recognize the true mission of a business enterprise, and set forth the basic business philosophy in the form of the basic management objective: "Recognizing our responsibilities as industrialists, we will devote ourselves to the progress and development of society and the well-being of people through our business activities, thereby enhancing the quality of life throughout the world." The company's philosophy was codified into Seven Principles, which remains unchanged until now:.
1. Contribution to Society.
2. Fairness and Honesty.
3. Cooperation and Team Spirit.
4. Untiring Effort for Improvement.
5. Courtesy and Humility.
6. Adaptability.
7. Gratitude.
Matsushita's philosophy was translated into a set of Basic Business Principles, which included an emphasis on profitability as the measure of contribution to society, a respect for competition as the stimulus of the improvement, and a belief in autonomous business units. The Principles were broad enough to serve as effective guidelines, yet also allowed differences in interpretation. The Principles do not change, although interpretations and implementation naturally evolve to fit changing circumstances.
1.3 Business policy in Europe.
1.3.1 Manufacturing.
Like many other Japanese electronic firms, MEI set up numerous factories in Europe. The first manufacturing plants were established in Belgium (1970), Spain (1973), and the UK (1974).
