With the spread of the coronavirus, many companies are facing a transitional period regarding the continuation of their operations. Many restaurants are trying to maintain their operations by increasing the number of delivery products or partnering with delivery services such as “Uber Eats” and “Delivery Kan. Restaurants can be said to be an industry sector that has been able to mitigate the decline in sales with “slight changes in business conditions” by enhancing delivery services. However, even in the same restaurant industry, some high-end clubs in Ginza were unable to expand their delivery service and sold their businesses due to financial difficulties.
On the other hand, in industries other than the food and beverage industry, it is difficult to make even a slight change in existing business conditions in order to get out of the Corona recession, and there are cases of companies entering completely new and unknown fields. For example, Kanagawa Prefecture-based staffing agency “Jovia” is an innovative new entrant that hydroponically grows vegetables for use in restaurants on the first floor of a building on the third floor. Also, a travel agency, Kinki Nippon Tourist, has recently attracted attention for its innovative business of taking on PTA operations.
The author recently heard a talk by Dr. Shunkon Chung, chief researcher of the Eurasia Foundation, a general incorporated association. In the course of the discussion, he talked about the changes in the community with a view to the post-Corona era. I was impressed by some of the useful information on the operation and changes in the community, which is now called corporate management in Japan, which is at a crossroads. I would like to introduce some of them.
A person belongs to about four “communities” that are formed by people to people. These include nations, companies, hobby groups, and so on. The state is the largest of these communities, and can be said to be the mechanism that “guarantees the life, property, and freedom of the individual.
By belonging to a community called a nation, humans are protected from physical harm by other nations, and through the transition and continuity of the national community, culture and civilization have evolved, and human descendants have flourished. In order for humans to survive, we must build and develop mechanisms to ensure the longevity of our communities.
In the past, there was a “big difference in civilization” between developing and developed countries, but with the current shift to information technology, this difference is disappearing. The Eurasia Foundation has been conducting lectures at 500 universities around the world, and also offers remote classes via ZOOM. Sometimes they are conducted in developed countries in Europe and the U.S., and other times in developing countries such as Mongolia and Cambodia. When classes were held in developing countries such as Mongolia, Internet communication was uninterrupted and classes proceeded smoothly, but when classes were held at a U.S. university, communication was interrupted and the professor was unable to respond, even involving students in the restoration process. It made me wonder, “Who is more advanced, the U.S. or Mongolia? It made me wonder, “Who is the more advanced country, the United States or Mongolia?” That is how advanced technology is now shared regardless of national level.
The world is also undergoing changes in the nature of community due to the spread of the new coronavirus and Russia’s invasion of Ukraine.
There have been various countries in the world that have been called hegemonic powers. In the past, there were Persia and Rome, and in modern times, the United Kingdom and the United States. The common point among the hegemonic powers is that they did not lead in terms of land area or capital, but rather, “diverse and inclusive countries” have become hegemonic powers and led the world.
The U.S. has embraced a diverse population and shaped its economy and professional fields. In fact, 41% of U.S. companies are said to be “immigrant built” companies. It can be said that the U.S. has achieved its current position through diversity. If the U.S. now adopts policies that deny diversity, such as “white supremacy,” it will cease to be a hegemonic power.
The body is composed of 38 trillion cells, and 10 billion cells are reborn each day. The reason for this intense change on a daily basis is to maintain a healthy body. In the case of the cells that make up the body, “no change = death. Change is necessary for the survival of not only all life forms and organisms, but also of nations, peoples, and other communities. Today, companies that survive in a corona-disaster society are making some changes. If they do not, they will disappear.
Political scientist Tocqueville mentions that “if you only know about one country, it is the same as knowing nothing. To state that you do not know about other countries is to admit that you do not even know your own country, and it is necessary to train yourself to see things from a broader perspective. It is important to analyze the current situation, etc., in order to know the truth. When we look at things from a broad and diverse perspective, we can see the truth.
When we discussed these issues with company executives, they told us the following story, which they said has some links to corporate management.
In the Corona Disaster, company management is making various changes to the company in order to protect the corporate community. That is, they are changing the headquarters function from a large company building to a smaller office, or reducing the number of employees. In the case of restaurants, they are also making changes that are extensions of their existing businesses, such as expanding delivery services. While these can be considered small-scale changes, some companies are showing large-scale changes, such as changing their business format or embarking on new businesses. For example, an Internet telecommunications company has embarked on a successful corona test.
To keep the corporate community going, managers are making all kinds of changes, but only a few of them are able to take on new businesses. This is partly due to capital issues and partly due to the availability of know-how for new businesses. If the new staff hired for a new business is malicious, the business may end up losing money, and in the worst case scenario, the company itself may collapse. Management is required to make bold decisions, but they must be prepared to accomplish them.
When undertaking a new business, we take into consideration the nature of the business, the initial speed at which it is launched, and the abilities, goals, and will to achieve them of the employees in charge of the project. When a subordinate makes a proposal for a new business, we do not reject it from the outset, but rather consider it in light of the nature of the business and the proposer’s aspirations. In this way, new business risks can be mitigated. Corporate managers can do anything on a “spur of the moment” basis, and they can manipulate the company in any way they see fit. However, this can lead to changes that can destroy the company as a community. The days of the old days, when a tyrannical manager who grew up in the founding family could survive, are over. With the Corona disaster, managers are now expected to be more precise, constructive, and developmental. This is the key element of “change” that will ensure the longevity of the corporate community.
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