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Assignment
Kao Corporation Ltd.
Japan
Submitted By:-
Arun Sharma
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Contents Of The Assignment
1. About Kao Corporation
2. THE KAO WAY
3.Mission
4.Qualitative analysis
5.Quantitative analysis
6.Observation
7.Bibliography
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ABOUT KAO CORPORATION
Kao Corporation is a chemical and Cosmetics Companyheadquartered in Tokyo, Japan Kao began as domestictoiletry soap in 1890 by Tomiro Nagase. Until 1940, theywere known as Nihon Yuki Company, changing their namethen to Kao Soap Company, and finally in 1985 to KaoCorporation. Kao entered the North American and Europeanmarkets in 1986-1989, purchasing the Andrew JergensCompany. A research project on face powders resulted inthe discovery of a dispersing system that was ideal for the
management of magnetic particles spread over floppy discs,and Kao in 1985 established a U.S. subsidiary called KaoInfo systems Company to manufacture such discs. Their U.S.brands operations are based in Cincinnati, Ohio and theCanadian subsidiary is based in Mississauga, Ontario
Their products in North America include Enova oil, Jergenslotions, Bioré skin care/beauty products, John Frieda haircare products, and Ban deodorant. In East and SoutheastAsia, where they market soaps, shampoos (Feather brand),Sanitary and baby napkins, fabric softeners, detergents(Attack brand) as well, many of their products carry the Kaoname, or its equivalent in Chinese speaking nations
In 2005, Kao acquired Molton Brown, a British beautybrand that produces luxury skincare, hair care and bath & body care products in the UK. In 2006, It acquired Kanebo
Corporation, a major Japanese cosmetics company.
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THE KAO WAY
"Mission": What we exist for
"Vision": Where we want to go
"Values": What we believe in
"Principles": How we behave
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Development of the Kao Crescent Moon logo
The corporate name, "Kao," originated with the name of the first product, Kao
Soap, launched in 1890. Although the characters for "Kao" actually mean "king of
flowers," the pronunciation is the same as the word for "face" in Japanese. High
quality facial soap was called "kao arai" in Japanese to differentiate it from othersoaps of lower quality used for other purposes. Originally selected because it
symbolized beauty and cleanliness, the Kao Crescent Moon logo has been
gradually revised over the course of time.
1890 1897 1912 1925 1943 1948
1953 1985
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Principles of Corporate Ethics
Kao Corporation seeks to be an honest and exemplary company, guided by sensible and
fair actions and driven by a fundamental adherence to ethical principles that go beyond
mere compliance with laws to earn the true respect of all stakeholders.
We shall not pursue profits at the expense of the ethical principles set out in Kao’sBusiness Conduct Guidelines.
Even within a legally acceptable scope, we shall take the most exemplary initiatives.
Illegal and unethical action is prohibited even if for the purpose of seeking to benefit the
company or if following instructions from a supervisor.
We shall not ignore illegal, unethical or other questionable conduct. All such conduct
should be brought to the attention of a supervisor, the Legal & Compliance Division orother appropriate department.
Kao shall protect and safeguard, to the maximum extent practicable, the identity of
anyone who reports information regarding illegal, unethical or other questionable conduct
or seeks consultation about such conduct.
No unfavorable treatment shall be accorded to anyone for providing such information or
seeking such consultation.
If an employee of a Kao Group company breaches these guidelines, such employee will
be subject to disciplinary actions based on the internal regulations of the company to
which such employee belongs.
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Business Activities
The Kao Way is shared by all Kao Group members as our corporate philosophy.
Based on The Kao Way, members of individual Kao Group companies and
divisions that operate on a global basis are engaged in business activities aiming at
Yoki-Monozukuri that will really satisfy our customers and enable us to share our
joy with them.
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Business Fields
Kao Corporation's principal business field is consumer products, especially the areas of
"beauty care," including cosmetics, skin care and hair care products; "human health care,"
covering beverages and cooking oils in the "health food product" category specified by
the government; as well as sanitary products and "fabric & home care" products, such as
laundry detergents and household cleaners. In the "chemicals" business, Kao
manufactures industrial products with detailed attention to the needs of various industries.
In these fields the company aspires to make its contribution with a view towards
enriching the everyday lives and the lifestyles of people around the world, through "better
manufacturing" from the perspectives of its customers and consumers.
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RELATIONSHIP WITH CUSTOMERS
Since the launch of the first-ever high quality domestic toiletry soap in Japan
in 1890, Kao Corporation has taken a consumer driven principle as its basicstance in engaging in business. Despite changes in lifestyles, sense of values and market
environment, the pursuit of Yoki-Monozukuri* to provide wholehearted satisfaction to
global consumers and customers is the goal of each Kao Group member as well as the
Company’s driving force.
Through businesses related to products and brands in the fields of cleanliness, beauty,
health, and chemicals, we aim to be a company that shares joy with consumers and
customers in Japan and around the world.
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Consumer Communications
Kao is committed to taking consumers’ “voices” seriously, and to reflecting such“voices” in its corporate activities to help develop and improve its products and
services. To embody this concept, the Kao Consumer Communication Center
strives to understand exactly what Yoki-Mono (good products) consumers demand
through direct communication with them.
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Satisfaction and Enrichment of the lives of
People
Kao has been working on community and cultural activities dedicated to the
development and maintenance of a prosperous society under the theme "Nurturing
the Next Generation." Also, the Company established the "Kao Foundation for Arts
and Sciences," to support the development of the arts and science.
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KAO’S CORPORATE SOCIAL
RESPONSIBILITY
Promotion of EnvironmentalConservation
Support for Education
Support for the Community
Promotion of a Barrier-free Society
Support for Arts
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Identifying tasks and promoting our CSR
activities based on The Kao Way
As to the corporate philosophy that forms the basis of our business activities, Kao
reviewed its previous “Kao Management Principles” from a global point of view. InOctober 2004, we formulated the “Kao Way” to manifest Kao’s unique corporate culture
and its spirit of enterprise. For Kao, CSR is simply to act based on the Kao Way.
Previously, each division was engaged in its own CSR activities. To integrate such
divisional efforts into overall group engagement and develop our efforts even further, the
CSR Committee and CSR Department were established in July 2004. At meetings of the
Committee, chaired by the President & CEO, CSR challenges for the entire company are
discussed and the divisions can then tackle such challenges.
We are enhancing and reinforcing the four fundamental structures for our CSR activities:
1) corporate governance structure, 2) compliance structure, 3) quality assurance structure,and 4) responsible care (RC) activity promotion structure. Our aim is to promote
communications with stakeholders and global environment conservation activities.
Meanwhile, we still have major challenges concerning the global implementation of our
CSR activities, the introduction of the activities into the supply chain and the full
utilization of our employees’ diverse capabilities. We are in the process of examining
specific measures to identify the most effective approaches.
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KAO’S SUPPLY CHAIN MANAGEMENT
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BUYER-SELLER RELATION
Kao conduct fair and transparent transaction with the relevant suppliers. Aside from usual
business meetings, they hold periodic meetings with the retailers to share information
through Kao nationwide network. Kao get information from the retailers for
development/improvement of product and enhancement of sales activities.
Buyer and seller relationships have become an integral part any
origination. Kao’s corporation maintains this relationship very smartly. Because their
main focus is to satisfy customer by delivering the best and innovative one so that
customer were always satisfied. Here Kao corporation play both roles in other words Kao
as a buyer for suppliers of raw materials and seller for consumer. Kao has created good
relation with suppliers and consumer to achieve their goals.
As Buyer:- As a buyer Kao has to maintain good relation with supplier, because it is
they who provide us with require raw material, with just in time concept. Even it’s them
who can extend credit period of buyer. Hence a buyer has to maintain good relation with
supplier.
As Seller:- As a seller Kao have good relation with consumer. This is achieved by
providing the superior quality of product on desired price & also customization of the
product by their R&D department .they also develop product of excellent value &
outstanding performance for satisfying their customer.
Kao Co.
Ltd.
Retailers
Supermarket,
Drug store
Consumers