1. Approaching the 1990s

In the early 1980s, our company aimed to become a “Trillion-Yen Company,” continuously striving for business growth and strengthening our corporate structure. Despite the low-growth era brought about by the oil shock, our car air conditioners, electronics-related products, and overseas markets were performing well. This support made it seem likely that we could achieve 1 trillion yen in sales ahead of schedule.

However, the situation changed dramatically. Triggered by the Plaza Accord in 1985, the yen began to appreciate rapidly. As a result, the domestic economy fell into a “yen appreciation recession.” In the overseas market, even Japanese cars, which were gaining popularity for their fuel efficiency, were hit hard as export profitability declined. This double shock of domestic recession and export stagnation made it clear that our company needed to restart under a new policy to ensure business growth.

In November 1986, President Kengo Toda formulated “DENSO Principles for the 1990s” as a compass for management over the next decade.

Reference：Overview of DENSO Principles for the 1990s

The basic concept was to “operate globally as a specialized manufacturer of automotive parts.” As a new growth target, the goal of achieving “2 trillion yen in consolidated sales in 10 years” was set. To achieve this, we aimed to create “more than 15 products with the largest market share in the world.”

When formulating these guidelines, our company realized that we needed to approach the situation with a different mindset than before. We had to achieve greater results in strengthening our corporate structure and required more immediate and effective measures that fit the current reality. Therefore, we utilized the Total Quality Control (TQC) method. At that time, TQC activities were being vigorously promoted company-wide. During these activities, various issues were pointed out from a field perspective, and solutions were also proposed.

Prior to the formulation of the new guidelines, President Toda implemented the “Executive and Director TQC Training” in 1983. This was the first attempt where executives and directors unearthed company-wide issues from a management perspective, discussed the direction of responses collectively, and took the initiative in solving these problems.

During that year's Executive and Director TQC Training, we intensively discussed the challenges and countermeasures for securing sales using QC concepts and methods. Many of the ideas generated here became important foundations for the new guidelines. Furthermore, the candid discussions significantly strengthened the cohesion among executives and directors, accelerating the implementation of initiatives related to the new DENSO Principles.