This is a rental service of the equipment. Before they started this service, a security company sent the guard man to its customers. However, this system was not effective to make the company large because if the company became larger, the manager should employ too many people to manage. To avoid this situation, SECOM decided to change the security system from employing people to leasing the machine. In order to come true this system, Iida and Toda had to calculate the cost and profits in very detail. SECOM’s service covers many kinds of fields such as medical-fields, informational-fields and environmental-fields.
This is because SECOM wants to give the total safe to its customers. Even if SECOM’s service fields spread, it still keeps its own philosophy and strategy based on philosophy. Thus, SECOM has been a strong enough company to survive Japanese unstable economy. However, there is a problem in the company: a successor problem. 3. Problems Now, SECOM has a strong leader, Makoto Iida, but he is 61 years old and has to think about a successor. However, there is no appropriate person who can lead the company and survive in this society. 4. Analysis of the current situations 1) One cause for the successor problem is the growing speed of the company. SECOM has been growing for 30 years, but these years are not enough to think about a successor. (2) Another cause for the successor problem is the difficulty for raising a leader. SECOM’s philosophy is also Iida’s philosophy, and he wants his successor to follow this philosophy. However, any successor will be different from Iida. Iida thinks that “What I can tell him is no more than a half of all that he must learn (Keio Business School, 1994). ” 5. Propose strategic solutions
Solution A: Iida will help the successor until the new system will be stable as an outside chairman. Pros: Iida can advise to his successor when the successor cannot make clear decision. Moreover, the successor can follow the Iida’s philosophy and strategy. Cons: If Iida disappear suddenly, the system and company will be shocked by his disappearance. Solution B: To choose an efficient leader from other company. Pros: (1) SECOM does not have to think about raising the successor, because this new leader is already efficient for running the company. (2) By receiving an outside person, SECOM can get a new point of view in it.
Cons: (1) An outside person, who does not know the culture of the company, may break the old but efficient system for SECOM. (2) The new leader comes from other company, so he may not be able to have support from the company’s member and may be isolated. 6. Decision-making Solution B will be the most appreciate solution of the successor problems. 7. Conclusion SECOM is growing with Iida and Toda and with their strategies. However, it needs new points of view to survive this society. Any company should adapt to the changeable society, or it will disappear.