1. LXXXI Asamblea Nacional “La Globalización: Retos y oportunidades”
(Muchisima gracias para su introducción, muy amabile.) Thank you for your kind introduction.
(Estimado convidados y amigos, perdona me, por favor, para hablar en Ingles　－ y para usar illustracion con texto in Ingles, Japones y Espanol.)
Distinguished guests and friends. Please forgive me for making this presentation in English, using slides with texts that are mixtures of English, Japanese and Spanish.
Today, I would like to talk to you about the “Risks and Opportunities” based on my experiences of wearing three hats.
I would like to begin by addressing this theme from the perspective of the Japan Society of San Diego and Tijuana, talking about what “true globalization” has meant for Japan, focusing on its successes and mistakes that Japan has made throughout the history.
Next, I would like to introduce Kyocera to you, how it developed from a very small venture business (PyMES), and the challenges it meet in achieving its vision of becoming a truly global corporation.
Finally, allow me to wear my hat as an old university professor to theorize on the future of globalization and the important role that Mexico can play in this. I would like to aim this specifically at the four Objectives of this National Assembly.
México Japón E. U. A.
Michael S. Inoue, Ph.D.
Presidente, Sociedad Japonesa de San Diego y Tijuana (JSSDT)
Senior Advisor, Kyocera International, Inc. (KII)
A Former Professor, Oregon State University

2. Objetivo #1
Identificar las oportunidades, los retos y las amenazas que la globalización plantea en particular a los empresarios (Kyocera Mexicana, SA de CV) y en general para el desarrollo de México (y Japón).
Namely: Challenges and Risks of globalization on sub-contractors from Kyocera’s perspectives, and on the general development of a country, using the example of Japan.

3. Objetivo #2
Urgir a los responsables de las decisiones nacionales, a los políticos y en general a los mexicanos (japonés) a que unamos esfuerzos en pro de la competitividad como una fórmula indispensable para afrontar los retos y amenazas que plantea la globalización.
#2: Challenges and Risks of globalization on sub-contractors from Kyocera’s perspectives, and on the general development of a country, using the example of Japan.

4. Objetivo #3
Proponer a la sociedad puntos de consenso indispensable en México (Japón y Kyocera) para hacer posible el incremento de la competitividad y en consecuencia abatir la pobreza en un mundo crecientemente globalizado.
#3: How Japan and Kyocera had grown out of “poverty” and gain their competitiveness in an increasingly competitive global market.

5. Objetivo #4
Llamar a los empresarios mexicanos (Kyocera) para que se unan a los que ya están en Coparmex (e.g. JETRO) en la búsqueda de la economía competitiva y socialmente responsable que necesita el país (Japón) frente a la globalización.
#4: The roles that an organization similar to COPARMEX (Jetro in the case of Japan) can play in economic competitiveness and social responsibility globalization of a country, Japan.

6. ¿Qué es precisamente la globalización? (Case of Japan)
1549
Francisco de Javier 8/15/1549; a Mexican missionary included in 26 Martyrs of Nagasaki (2/5/1597)
1650
Isolation
1817
Commodore Matthew Perry visits Japan
1882
Japanese Navy visits San Diego, Acapulco
1900
Colonialization (Manchuria, Korea, Taiwan, …)
1940
Militarism
1945
End of WWII; survival (imitations); Protectionism
1959
Economic boom; Acquisition of foreign companies
1998
Bubble bursts
In the case of Japan, the country was first opened by trade and religious missions, notably Saint Francis of Xavier who came to Japan in As Christianity spread rapidly, alarmed Shogun began persecuting missionaries, crucifying 26 martyrs in 1957, including a Mexican friar.
Then the country entered into isolation, closing all ports to foreign vessels, except Nagasaki, until Commodore Perry of the US Navy forced Japan to end its isolation.
Japan built its armed forces and the first Japanese Navy Vessel, Tsukuba, visited San Diego in

7. ¿Qué es precisamente la globalización?
Stage 0
Isolation and Protectionism
Stage 1
Regional and inter-state commerce
Stage 2
Colonialization (Foreign capital, technology)
Stage 3
Bilateral commerce
Stage 4
International companies
Local production by foreign subsidiaries
Stage 5
Multinational corporation
Local R&D, product design
Stage 6
Global corporation
A group of multinational companies
So, what is “Globalization”? I think that globalization is a dynamic concept that continues to evolve, even today.
Stage 0 is a complete isolation and protectionism, trying to safeguard what we now have, avoiding any competition. Today, even countries North Korea and Cuba recognize that they cannot continue to exist in isolation. However, companies use isolation and protection to safeguard R&D and new business ideas to incubate.
Stage 1 is for regional and inter-state commerce within a country. This is where most small to medium size companies start.
Stage 2 is what I call colonialization, where capitals and technolgies are imported and products are exported.
Stage 3 is where we have two-way trades that benefit both countries and their companies. Trading companies are established.
Stage 4 is where international companies are established with local production in addition to sales. Technologies are transferred from the parent.
Stage 5 is a truly Global Corporation with

8. ¿Qué es precisamente la globalización? (Case of Kyocera)
1959
Dr. Kazuo Inamori establishes Kyocera in Kyoto with 27 employees, US$10,000 in capital. Sales: $5K/mos.
1965
Texas Instruments (‘65), IBM(‘66) place orders.
1969
Kyocera International, Inc. established in Sunnyvale, CA.
1972
KII Production in San Diego, (1st Japanese Mfg in CA)
1976
ADR listed on NYSE
1984
Established KDDI (then DDI)
1990
Merged AVX, the first stock swap merger of a Japanese company with a foreign company
1995
20% listed AVX on NYSE $1B sales, Profit grew x5
2000
Established Kyocera Wireless Corp.(from QUALCOMM)
1959: 27 employees and US$10,000 in capital, dreamed to be:
First in the neighborhood
First in Kyoto
First in Japan
First in global “technical ceramic” business
1965: Used a Japanese trade company to market overseas.
1969: Established Kyocera International, Inc., in Sunnyvale, CA, USA as a sales company.
1972: Become the first Japanese Manufacturing Plant in California
1976: ADR listing on NYSE
1984: Established Kyocera Chairs at MIT, CWRU, University of Washington
1984: Established DDI Corporation (now KDDI) and Inamori Foundation
1990: Effected merger of AVX
1995: Published “Passion for Success” from McGraw Hill; DDI enters cell phone business;
Re-list AVX on NYSE with sales doubled to US$1B; profit grew over 500%)
2000: Established Kyocera Wireless Corp. (formerly QUALCOMM Handset Division)

9. Introducing Kyocera Corporation (1)
Founded : April 1959
Headquarters : Kyoto, Japan
FY00 Sales : Trillion Yen (about $10.2 Billion)
General Facts : >80% of sales derived from telecom, information processing and Internet-related businesses
Leading Products : Telecom & information equipment (wireless phones, copiers, printers, faxes); advanced ceramics; electronic components; semiconductor packages; solar power systems; cameras

10. Introducing Kyocera Corporation (2)
Workforce: Approximately 42,000 worldwide
Research and Development Centers:
Central Research Center, Kagoshima
Yokohama Research Center, Yokohama
Keihanna Research Center, Kyoto
Kyocera Mita R&D Center, Osaka
Advanced Ceramics Technology Center, Vancouver, WA, U.S.A.
Advanced Products Technical Center, Myrtle Beach, SC, U.S.A.
Israel Research Center, Jerusalem, Israel
Manufacturing Plants: 61
Japan: 18
ROW: 43
Named by IndustryWeek among “The World’s 100 Best-Managed Companies”

11. Strategic Market Directions

12. Fine Ceramic Group Share of Kyocera Group’s FY01 Net Sales: 28.3%
FY01 sales: ¥363 billion
($2.881 billion)
up 34.0%
Fine Ceramic Parts
Semiconductor Parts
Consumer-related Products

13. Electronic Device Group Share of Kyocera Group’s FY01 Net Sales: 30.6%
FY01 sales: ¥393 billion
($3.116 billion)
up 46.6%
Electronic Components

14. Share of Kyocera Group’s FY01 Net Sales: 36.3%
Equipment Group
Share of Kyocera Group’s FY01 Net Sales: 36.3%
FY01 sales: ¥467 billion
($3.709 billion)
up 117.3%
Telecommunications Equipment
Information Equipment
Optical Instruments

15. Business Segment Information
Semi
34.0%
Fine Cer
Consumer
30.6%
36.3%
Telcom
Info
Optical

16. Global Manufacturing THE AMERICAS 20 Manufacturing Plants
San Diego, CA CDMA wireless phones
San Diego, CA Semiconductor packages
Beaverton, OR Semiconductor packages
Mountain Home, NC Structural ceramic parts
Vancouver, WA Structural ceramic parts
Scottsdale, AZ Solar energy products
Irvine, CA Carbide Cutting Tools
Biddeford, ME (AVX) Electronic components
Colorado Springs, CO (AVX) Electronic components
Conway, SC (AVX) Electronic components
Myrtle Beach, SC (AVX) Electronic components
Raleigh, NC (AVX) Electronic components
Olean, NY (AVX) Electronic components
Sun Valley, CA (AVX) Electronic components
Tijuana, Mexico Semiconductor packages
Chihuahua, Mexico (AVX) Electronic components
Juarez, Mexico (AVX) Electronic components
San Salvador, El Salvador (AVX) Electronic components
Sao Paulo, Brazil Optical instruments
Manaus, Brazil (AVX) Electronic Components
Provincia de Buenos Aires, Argentina Solar energy products

17. Global Manufacturing JAPAN 18 Manufacturing Plants
Hokkaido Kitami Optical ceramics, telecom equipment,
electronic components
Fukushima Tanagura Telecom equipment
Chiba Sakura Solar systems
Nagano Okaya Optical instruments, electronic components
Tokyo Ohme Optical lenses
Mie Ise Solar power systems
Mie Tamaki Laser printers
Shiga Semiconductor packages, electronic components,
structural ceramic components, solar products
Kagoshima Sendai Semiconductor packages, electronic components,
structural ceramic parts
Kagoshima Kokubu Semiconductor packages, electronic components,
Kagoshima Hayato Electronic components
Kyocera Elco Corp. Electronic connectors
Kyocera Optec Co. Ltd. Optical instruments
Kyocera Mita (5 plants) Copiers and facsimile equipment

18. Global Manufacturing EUROPE / MIDDLE EAST 12 Manufacturing Plants
Paignton, England (AVX) Electronic components
Newmarket, England (AVX) Electronic components
Biggleswade, England (AVX) Electronic components
Coleraine, N. Ireland (AVX) Electronic components
Larne, N. Ireland (AVX) Electronic components
Betzdorf, Germany (AVX) Electronic components
Seurre, France (AVX) Electronic components
Beaune, France (AVX) Electronic components
Saint Appolinaire, France (AVX) Electronic components
Lanskroun, Czech Rep. (AVX) Electronic components
Uherske Hradiste, Czech Rep. (AVX) Electronic components
Jerusalem, Israel (AVX) Electronic components

19. Major Operating Subsidiaries and Affiliates
PRODUCT / SERVICE
Telecommunications common carrier
Mobile and portable telephone services
PHS communication services
Amusement and leisure
Multimedia services
Leasing services
Telecom & information systems services
Electronic Components
Electronics Connectors
CDMA wireless phones
Copiers, faxes
Electronic components
COMPANY
DDI Corporation
Cellular Telephone Companies
DDI Pocket Telephone Companies
Taito Corporation
Kyocera Multimedia Corporation
Kyocera Leasing Co., Ltd.
Kyocera Communication Systems Co., Ltd.
Kinseki, Ltd.
Kyocera Elco Corporation
Kyocera Wireless Corp.
S.K. Teletech Co., Ltd.
Kyocera Mita Corp.
AVX Corporation

20. Necesidades Fisiológicas
Triángulo de Braham H. Maslow ( ) sobre las necessidades humanas (Inoue, Murray y Blanco, p.28)
Crea-
tividad
Auto
Estima
Pertenencia
Segridad
Necesidades Fisiológicas
So how do we tie these together? The common thread that would tie Mexico, Japan, and the world in our discussion of Globalization?
As the basis, I would like to use Braham H. Maslow’s model of human needs.

21. National Development Arts, sciences Sovereignty Autonomy
Education, social development
Security (Laws and Order)
Food, Clothing, Shelter, Energy
A nation follows a same path.

22. Maslow’s Triangle for a Global Corporation
Morality
Mission
Co. Structure
Inspired Leadership
Dedicated Workforce
Safety, security, compensations

23. Maslow’s Triangle for Kyocera
“Respect the Divine Co.
And Love People” Motto
Philosophy Kyocera Philosophy
Amoebas Co. Structure
Inspired Leadership “Formula for
Dedicated Workforce Success”
Safety, security, profit, compensations

24. Maslow’s Triangle for a Corporate Location
Tech-
nology
Logistics
Infrastructure
Quality labor cost
Prospect for profitability,
Safety, security, water, food, housing

25. Kyocera Formula for Success
The Result of our work
Or of our life =
Ability (0~100%) x
Effort (0~100%) X
Attitude (-100%~100%)

26. Kyocera Philosophy P. A. S. S. I. O. N. Dr
Kyocera Philosophy P.A.S.S.I.O.N. Dr. Kazuo Inamori, Founder Kyocera & KDDI
Purpose/Profit
Ambition
Sincerity
Strength
Innovation
Optimism
Never Give Up

27. Global Prosperity and Happiness Mexico, Japan and EUA can lead the world

28. Consolidated BUSINESS OVERVIEW For the year ended March 31, 2001
Kyocera Corporation
Consolidated
BUSINESS OVERVIEW
For the year ended March 31, 2001

29. Presentation Outline 1. Introducing Kyocera Corporation
2. Strategic Market Directions
3. Business Segment Information
4. Global Manufacturing
5. Organization
6. The “Inamori Group”
7. North American Operations
8. Fiscal 2000 Sales by Product Line
9. Major Operating Subsidiaries & Affiliates

30. Telecommunication Environment Quality of Life
Kyocera Strategy
Products for
Telecommunication Environment Quality of Life