Swot Analysis Of Olympus

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Olympus was founded in October 12, 1919 and is headquartered in Shinjuku, Japan. The company’s core business areas are: Camera and Audio, Industrial Testing instruments, Life Science Imaging Systems, and Medical and Surgical Products. Olympus operates in Asia, North & South America, Europe, Australia, The Middle East and Africa1. According to Olympus’ 2011 Annual report its primary competitive advantage is its expertise in endoscopes, having the leadership position with 70% global market share due to its continual research to development in ground-breaking technology. Olympus created uniqueness in the photo industry with the successful launch of E-M5 compact camera in 2012. Since the scandal Olympus has embraced “Back to Basics”, slogan which has maintained their advantage in their product and service offering27. Olympus is one of the few companies in the world, with development and manufacturing technologies which provides services and products which serves needs between diagnosis and treatment28. Olympus’ values and philosophies are: • Meeting the challenge of becoming number one in technology • Dedication to meeting and exceeding customer needs • Strengthening our brand through quality • Personal development through manufacturing2. In 2011, Olympus was exposed when the Board fired their new CEO and 30-year veteran Michael Woodford. The scandal revealed concealment (Tobashi) of at least 177 billion Yen in investment losses and questionable payments for two decades as well as suspicion of linkage and payments to criminal organizations. Some magazines suggested Yakuza, an organized criminal group, were the beneficiaries of the funds. It became one of the biggest and longest loss-concealing financial scandals in the history of Japa... ... middle of paper ... ... diligence to ensure independence and adequate financial and business acumen. The board should replace overly aggressive financial initiatives with achievable goals and report transparent results. To ensure results are transparent the board should have auditors review reports for errors or misdoings. The auditors should feel comfortable in providing results and the board empowered to take action. At the management level, ethical behaviour should be promoted with organizational training and communication to reinforce that employees at all levels have the responsibility to report unethical behaviour. Lastly, there should be an official company-wide code of conduct along with a whistleblower/fraud hotline25. The general counsel office should have an independent party and periodically review the hotline processes to ensure reports are being documented and investigated.

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