Applying Local Strategy

Implementing kyosei can be divided into five stages, each of which builds on the other. The first stage, companies must work to ensure a predictable earnings stream and to establish strong market positions. From this foundation, advancing to the second stage, in which managers and workers cooperate resolved themselves, recognizing that both groups are vital to the success of the company. In the third stage, this cooperation extends beyond the enterprise to include customers, suppliers, community groups, and even competitors. In the fourth stage, a company has been the cooperative spirit beyond national boundaries and deals with some of the global imbalances that affect the world.

In the fifth stage, which is rarely attained by the firms, a firm national government urged to work towards redressing the global imbalances. For each stage, Kaku shows examples of Canon experience, putting into practice the concept of kyosei. Add Gustavo Manrique Salas, who in 1945 when the atomic bomb dropped on Nagasaki, and Ryuzaburo Kaku had appropriated a philosophy of life that over time would become the cornerstone of the Japanese company Canon technology. Kaku, who was president of Canon and died in 2001, the philosophy of Canon baptized with the name of kyosei, which remains today and is a key element of its global competitiveness. Robert Rosen refers to the overall development of Canon in his book Global Success and Local Strategy and highlights the kyosei as the key to its success. This philosophy is a core strategy and a lofty goal for a company that has as its primary goals the creation and distribution of wealth.