Mazda's Overall Direction
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At the end of 1999, Mazda established a new corporate philosophy underscored by “Vision,” “Mission” and “Value.” How do you plan to cascade these fundamental concepts throughout the organization?
Taking a pyramid approach, at the top is our new corporate philosophy, which consists of “vision,” “mission” and “value.” Our vision is “to create new value, excite and delight customers through the best automotive products and services.” Our endeavor “to create new value” is a legacy of Mazda, defined not only by innovation in technology and packaging but also by recognizing the definition of value through our customers' eyes.
President
At the same time, we must continue to create new value for our stakeholders. “To excite and delight our customers” is about being very focused as a company on our brand, how we define our brand and how we execute our products.

Our mission is simple: “With passion, pride, and speed, we actively communicate with our customers to deliver insightful automotive products and services that exceed their expectations.” Again, this is about taking the consumer point of view in realizing insightful solutions.

To put this shared corporate philosophy into action, we have identified six key imperatives to ensure the future success of Mazda. These objectives include: understand the future, build the customer base for the future, build the structure to thrive in the future, efficiently plan and build profitable products for the future, fund the future and enable our people for the future. These imperatives are not going to change year to year, but will serve as a framework for the Company to come together. The pyramid, with “vision,” “mission” and “value” at the top, and the six imperatives and associated initiatives underneath, defines where we want to take the Company.

This year, the Company began the next level of implementing Mazda Worldwide Brand Management through actions targeting all customer levels. What tangible milestones and progress have been achieved since introducing this strategy in the previous fiscal term? What are the next steps to strengthen Mazda's brand image?
Mazda Brand Management is about “building the customer base for the future.” The goal is to enhance customer satisfaction by improving product quality and enhancing brand image. Mazda recognizes the importance of a strong brand image and has introduced brand management as a key initiative.

In developing a brand strategy, we have made significant progress in communicating key concepts based on a Worldwide Brand Positioning underscored by brand personality and product attributes. Throughout the organization, including our dealerships, we have achieved a keen understanding of what the Mazda brand strategy is and what it stands for. In Japan, we are seeing third party endorsement that our brand is strengthening.

The next phase involves taking the brand philosophy and making it operational from a consumer communications aspect. This entails many facets, from the way we present external communications and promotional materials to the way we design our auto show displays. In essence, everything must tie together to reflect the Mazda brand.

During fiscal year 2001, we will roll out a plan to establish the Mazda brand at the forefront of the sales process. At dealerships, for example, we will increase efforts to enhance the Mazda brand in showrooms. When customers enter a showroom, they should experience the Mazda brand in the way they are treated and in the look and feel of the showroom in a consistent fashion.
Mazda has continuously emphasized people as its most important asset. What initiatives are you undertaking to develop professional and leadership skills?
One of the six imperatives involves “enabling our people for the future.” Understanding the need for change is intrinsically linked to understanding the needs of the organization. Focusing on direct and open communication and education, we are cascading a unique initiative called the Mazda Business Leader Development (MBLD) program. This course will give our employees at all levels of the company a clear and comprehensive understanding of the business, and teach them how to be business leaders.

MBLD was taught initially by Mazda top management to senior management in July, thereafter cascading down to middle management and all employee levels from August through December. We will use this program to clarify the vision and direction of the Company, present a case for change to ensure our survival, and educate employees concerning external factors and the overall state of the Mazda business.

Further, each employee will tackle real-world problems and opportunities and will come up with solutions at his or her job site. We will share these success stories company-wide on the Intranet. MBLD began initially in Japan and will eventually be implemented worldwide.
Information technology (IT) is considered a key element in raising efficiency. How does Mazda measure up in meeting the IT demands of today and in the future?
IT will increase efficiency in every phase of operations. Mazda Digital Innovation (MDI), an extension of IT, is a cutting-edge information system that allows our engineers to design vehicles more efficiently and to simulate manufacturing processes in three dimensions. In addition, through an integrated database called “Product Information Management (PIM),” planners, designers and product and manufacturing engineers can share engineering results and other information simultaneously. Recently, we entered the third phase of MDI, which focuses on virtual tests of a wide range of vehicle tests including performance and durability.

Computers and virtual reality reduce costs and product development lead times. MDI supports our business imperatives to build a profitable structure to thrive in the future. This means increased flexibility and speed to meet the changes of the market, as well as enhanced efficiency and quality.

E-commerce can have a major impact on sales since it can help strengthen customer relationships. We will use the Internet to expand marketing and sales activities. We plan to begin Internet referral sales for new models of all passenger cars in the near future. To move quickly on business-to-consumer approaches, we established the Internet Marketing Department in March.

Other marketing initiatives include Mazda Telematics, a newly introduced DVD-based car navigation and communication system. The Mazda Telematics Center, established in June 2000, provides information to customers using the Internet, car navigation system, and computer. Through services of mobile handsets, customers can enjoy more information service options. Any customer can use Mazda Telematics services by registering for membership. Mazda Telematics will serve as an important link to the future Intelligent Transport Systems (ITS) project, a major effort to achieve a smoother, safer and more comfortable domestic transportation system.

From a business-to-business standpoint, the Internet-based Mazda Supplier Network (MSN) was established in June 2000 as an information exchange for approximately 350 parts suppliers. Through the website, suppliers can download design change information, exchange business documents, and refer to parts procurement information. In the future, these suppliers are expected to increase to 1,000 domestic and overseas suppliers for the procurement of parts, materials and tools and equipment.
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