Sysmex

their thoughts and solutions.

As to investors, Shiseido persists that its investors are secured the right to knowing crises responding details such as the introduction of crisis responding system, and the measures have been taken under emergencies. To regulators, though without acknowledging specific responsibility, Shiseido insists to actively cooperates with its regulator with integrity as the cornerstone of responsibility fulfilling.

Conceptual Framework of Additional Factors of Shiseido

Figure 6.4.5 illustrates the additional concerns of Shiseido with respect to its overall resiliency.

The efficiency of signal identifying is considered vital to the company. In practice, Shiseido assures this efficiency underlay by fact confession and quick decision-making process. Moreover, Shiseido also values on constructing experience internalization system a lot. On the one hand, the company makes judgments under crises root in the feedback of its frontline staff. On the other hand, the company conducts drills regularly as a simulation of a crisis occurring, which aims to cultivate better performance on crises responding.

Further, on business continuity, Shiseido deploys the BOP system that responds to crisis events with careful review. However, both participants failed to provide the full name of the BOP.

Meanwhile, the company is sensitive to the external impact, as the need for alternating its oversea customers. Finally, the company is less likely to consider replacing top leaders while they were not available in an interim manner because the company believes it is not easy to do so.

Figure 6.5.1 Corporate Governance Structure of Sysmex, By Sysmex, 2020

Figure 6.5.2 Concept Tree of Strategy of Sysmex

Figure 6.5.3 Concept Tree of Resilience of Sysmex

Figure 6.5.4 Concept Tree of CSR of Sysmex

Figure 6.5.5 Concept Tree of Additional Factors of Sysmex

Case Analysis

Conceptual Framework of Business Strategy of Sysmex

As portrayed in Figure 6.5.2, Sysmex considers five elements strategically on resilience.

According to the richness of child-nodes of each parental node, the company values the adversity caused by crisis events and encountering methods of crises as equally vital. On concerns of adversities, the participant describes that the crisis events will lead to a value decrease of the stock price, then triggers the investment declining on various aspects and ultimately result from trusting losing massively in public. As for the crisis encountered system deployed by the company in detail, while there is any crisis occurred, the company implies it would predict all possible consequences at first. Based on the prediction, Sysmex would proactively respond to the concerns raised by its customers while maintaining normal business operations.

However, considered with less significance, the rest three nodes have remained in the mindset of a strategy of Sysmex. Firstly, Sysmex is aware of risks of dynamics of technological innovation, which could significantly impact the development direction of the company, such as the product it would design and produce, the business model it would take, and the relationship it would establish with its customers. Regard on clarifying the bottom line of its business operation, Sysmex set the routine of ensuring the investment in the research and development programs, which are the cornerstones of revenue conducting. Securing product quality is an important matter that Sysmex had learned by observing its competitors with valid cases. In other words, Sysmex obtains a mechanism that enables the company to absorb the experience of crisis handling from its

competitors as a strategic task.

Conceptual Framework of Business Resilience of Sysmex

Sysmex put the system of crisis-responding of the top management as the priority on resilience, as shown in Figure 6.5.3. To be specific, the company operates this system as setting duties of each crisis-response engaged personnel initially, then later digging out the reasons for the crisis, followed by distributing instruction, processed by a management review system, from top management.

Moreover, the company regards its leadership efficiency during crisis events as a significant factor that assures Sysmex's resiliency. Up to date, leadership efficiency is evaluated adequately for the top leader of Sysmex is secured to deliver clear instructions discussed collectively with authorized personnel. Meanwhile, the company values the function of experience internalization significantly.

The company established a case study system that shares the crisis cases that take place externally to its staff to alert them of the risk points with the absence of crisis events hitting Sysmex.

Moreover, the company always prepares information that concerns its shareholders in the shareholder meeting, which is the action put under this category. With the equal importance of the previous two nodes, the company, as well, recognizes the risk detection efficiency conducted by the crisis-responding system as weak in mindset but well performed in terms of process.

There still exist additional nodes that complete the puzzle of resilience consideration, nevertheless with less significance. In speak of external attention in crisis events, Sysmex argues that it would be intervened by authority institutions similar to the FDA (Food and Drug Administration) on the quality-issue relevant crisis. Regard to the information needed by the company, Sysmex claims it only requires the intelligence about the adverse effect on the patients caused by its products.

Further, the participant partially acknowledges the function of crisis-revealing of its financial information, which would expose crisis events by revealing the dramatic decline of the stock price of the company. Once more, the participants emphasized the reactions that would be executed by the board of directors on the crisis response system. Last but not least, Sysmex believes that its middle managers need not shoulder the responsibility of crisis-dealing individually so the company could better perform its compliance management.

Conceptual Framework of CSR of Sysmex

As reveals in Figure 6.5.4, the framework of CSR consideration of crisis events of Sysmex is straightforward. The company only recognizes its responsibilities to two groups of its stakeholders.

On the one hand, the company needs to allow it, employees, to report the information about competition under crisis breakout. On the other hand, Sysmex must maintain its loyalty to its investors because its investors highly expect the company.

Conceptual Framework of Additional Factors of Sysmex

Under this category, Sysmex highly focused on maintaining its business continuity. In practice, on supplying products, the company implement a customer-focused mechanism to meet the need and

inquiries from its customers. Moreover, the company would assign the manufacturing mission from an overloaded factory to other available ones to continuing its overall business operations. In other words, Sysmex acquires a redundant production system.

On identifying a crisis signal, the company organizes a monthly meeting designed for analysis advantages and disadvantages of its business operation for each month. Signals tell approaching crises could reveal by look into the weak points with sufficient discussion. Meanwhile, the participant suggests that withholding sensitivity to the crisis could contribute to enhancing the performance of crisis response to Sysmex.

However, the company speaks highly of its CEO, its top leader. Hence the company would entirely rely on the performance of its CEO regardless of his availability.