Business Policy & Strategic Management

CASIO

Dhaval Devmurari
15050
Div-B

Submitted To: K.S.PRASAD

Preface
As per the curriculum prescribed by the Sardar Patel University, the students
of management are required to prepare a report as a part of their Business Policy &
Strategic Management course. The objective behind preparing this project report is to
relate the management subject taught in the classroom to their practical application and
to get insight into practical situation.
The topic of the project Casio Organization I have prepared this project
report on the basis if the information gathered from various sources which include site
visits, websites.
This project allowed us to acquaint with the effort and knowledge necessary
to business plan setting various components of organizational strategies for effective,
efficient and adaptive operations in dynamic business environment.

Acknowledgement
Studying Business Policy & Strategic Management between four walls of classroom is
surely an incomplete circle.
I would like to thank Dr. Y.C. Joshi (Director of Department) for providing me an
opportunity to undertake the project. I would like to thank Dr. K.S. Prasad for providing
valuable guidance throughout preparation of project. We are also thankful to our friends
and classmate for providing us Technical Knowledge and support for my project.
Last but not least I would like to thanks everybody who has been associated with my
project at any stage but whose name does not find a place in this acknowledgement.

Thank you all.

Dhaval Devmurari

Table of Contents4
Sr. No.

Particular

Page
No.

Introduction of Casio

Product

Strategic Lenses

3.1

Interview with Chairman Recently

3.2

Strategy as a Idea of Casio

3.3

Strategy as a experience of Casio

10

PESTEL Analysis

11

SWOT Analysis of Casio

18

Bibliography

20

1. Introduction of Casio
Casio
was
established
in
April
1946
by
Tadao
Kashio,
an engineer specializing in fabrication technology. Kashio's first major product was the
yubiwa pipe, a finger ring that would hold a cigarette, allowing the wearer to smoke the
cigarette down to its nub while also leaving the wearer's hands free. Japan
was impoverished immediately following World War II, so cigarettes were valuable, and
the invention was a success.

After seeing the electric calculators at the first Business Show in Ginza,
Tokyo in 1949, Kashio and his younger brothers (Toshio, Kazuo and Yukio) used their
profits from the yubiwa pipe to develop their own calculators. Most of the calculators at
that time worked using gears and could be operated by hand using a crank or using a
motor (see adding machine). Toshio possessed some knowledge of electronics, and set
out to make a calculator using solenoids. The desk-sized calculator was finished in 1954
and was Japan's first electro-mechanical calculator. One of the central and more
important innovations of the calculator was its adoption of the 10-key number pad; at
that time other calculators were using a "full keypad", which meant that each place in
the number (1s, 10s, 100s, etc...) had nine keys. Another distinguishing innovation was
the use of a single display window instead of the three display windows (one for each
argument and one for the answer) used in other calculators.

In 1957 Casio released the Model 14-A, sold for 485,000 yen,[5] the world's
first all-electric compact calculator, which was based on relay technology. 1957 also
marked the establishment of Casio Computer Co., Ltd.

In the 1980s, its budget electronic instruments and its line of affordable
home electronic musical keyboard instruments became popular. The company also
became well known for the wide variety and innovation of its wristwatches. It was one of
the earliest manufacturers of quartz watches, both digital and analog. It also began
selling calculator watches during this time. It was one of the first manufacturers of
watches that could display the time in many different time zones and of watches with
temperature,
atmospheric-pressure,
altitude,
and
even Global
Positioning
System displays.

A number of notable digital cameras innovations have been made by Casio,

including the QV-10, the first consumer digital camera with an LCD screen on the
back (developed by a team led by Hiroyuki Suetaka in 1995), the first consumer three
5

megapixel cameras, the first true ultra-compact model, and the first digital camera to
incorporate ceramic lens technology.

2. PRODUCTS

Calculator
Watches
Musical instrument
Digital cameras
Film cameras
Digital dairies etc.

3. Strategic lenses
These lenses are:
A
design lens views strategy development
as
the
deliberate positioning of the organization through logical, analytical, structured and
directive processes led by top management through careful and objective analysis and
planning which help optimize economic performance.

3.1. Interview with the Chairman Recently

3..

Can you summarize Casios business performance in fiscal?

For the fiscal year ended March 31, 2015 (fiscal 2015), Casio earned an alltime high in net income of 26.4 billion yen, due to successful strategies to strengthen
our business segments. The company also set a new record for earnings per share, at
100 yen. The timepiece business delivered strong performance, and we saw similar
success with our high-end digital cameras and our calculators localized to the needs of
markets such as in China and India.

2. Could you tell us future management policy and specific

strategies?
Fully leveraging business resources to double profits

As CEO, I am not satisfied with our current level of net sales and profits. I
think we can realize greater growth by fully leveraging all of our assets including our
powerful, world-class brand, product development capabilities, global sales network, and
financial resources. We have set ourselves the target of doubling fiscal 2015 operating
income within the next three years to further strengthen our business position.

Strengthening profits from existing businesses In the timepiece business, we

will expand sales of products such as hybrid timepieces which display exact time
virtually anywhere by receiving both GPS and radio wave time-calibration signals, and
Bluetooth models that link to smartphone. In the digital camera business, we will
introduce new products in genres that Casio commands. In the process, we will make full
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use of Casio signage solutions in our marketing promotion for these businesses. In
calculators, we will keep expanding our lineup of localized products, and in electronic
musical instruments, we will secure growth by strengthening the lineup of higher-priced
instruments and delivering new DJ products for the younger market. In the projector
business, we will bring out strategic models that deliver high cost performance to make
the business profitable.
Creating new businesses to generate new revenue streams we will work to
create new businesses that pioneer new markets which other companies have not
tapped, developing them into drivers of new growth. For instance, we are moving
forward with our signage business, which is a powerful marketing tool for companies. We
are also developing a human resources development system which can help our
corporate customers to secure better business results by rapidly developing their
personnel. We are also working on some highly original wrist devices.

New management team to drive business reform In order to achieve these

new business goals, we are implementing a new management approach capable of
developing and executing a comprehensive business strategy under strong leadership.
This is why we have decided to introduce a new management team in order to build a
platform for long-term management for the future. As the new president and I work
closely together, Casio can accomplish more than it would under me alone.

Strategy as design:
Logical analytical process
Planned implementation
Top-Down, management driven process

Strategy as experience:

Adaption of past strategies based on experience

Influence by taken for granted assumption
Bargaining and negotiation between mangers
Potential for drift

Strategies as ideas:
Importance of variety and diversity for innovation
Emergent strategy from which and round the organization
Top managers create the condition for this to take place

3.2. Strategy as idea of Casio

Casio president talks digital camera strategy
One of the first companies you think about when purchasing a digital camera
is probably not consumer electronics giant Casio Inc., but the company intends to
change that in the future. With a strong brand and almost 50 years experience in the
consumer market, Casio executives understand the challenges that lie in front of them
and are executing their strategy, making innovation a top priority.

Were trying to position ourselves as not just taking an old 35mm user and
converting them to digital, but rather convert users and bring more people into the
market,
One of the ways Casio sees a way to increase its overall popularity with
consumers is to continue innovating in the market; something Clough said has been high
on their list as a digital camera maker from the beginning.
We were the first to put a cradle in every product in our line; we were one
of the first to put large LCD displays in cameras; and we were the first to focus on
extended battery life, said Clough.
Were not the high-end and were not the low-end we really try to design
the cameras with an emphasis on ease of use and practical functionality,

3.3. Strategy as experience of Casio

Casio's strategy is to popularize multimedia with innovative products that

capitalize on new opportunities, that expand creativity for their users, and that can be
used now--with existing infrastructure and new media--for reasonable prices. With
unique functions and product concepts, we are expanding our product lineup for various
lifestyles and consumer groups. We are also helping businesses increase creativity and
productivity with advanced data and communications equipment. Our experience and
exclusive technologies allow us to create personalized devices that are light, compact,
and
energy
efficient.

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4. What is PESTEL model?

A PESTEL analysis is a framework or tool used by marketers to analyze and
monitor the macro-environmental (external marketing environment) factors that have an
impact on an organization. The result of which is used to identify threats and
weaknesses which is used in a SWOT analysis.

Political
Govt. stability
Taxation policy
Foreign trade
regulation
Social welfare policies
Technological
Govt. spending on
research
Govt. and industry focus
on technology effort
New
discoveries/developments
Speed of technology

Environmental
Business cycle
GNP trends
Inflation
Money supply
Disposable income
Unemployment

Environmental
Environmental
protection laws
Waste disposal
Energy consumption

The
Organizat

Sociocultural
Population
demographics
Income distribution
Social mobility
Lifestyle changes
Attitudes to work and

Legal
Competition law
Employment law
Health and safety
Product safety

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Brief PESTEL Analysis of the Casino Industry

In terms of the political or legal aspect of the industry, the United States has
engages in regulations that open up the industry, for the purpose of improving its
performance. The economic environment significantly impacts the situation of the casino
and gaming industry in the United States. The recent recession that started in 2008 led
to a decline in the revenues of the industry from 2008 to 2010. In addition, the overall
demand for hotels influences the demand for casino services because Casinos usually
have hotels. In relation, real estate market impacts casino performance because the
attractiveness of the locations of casinos is partially dependent on the real estate value
of such locations.

Social values also affect the casino industry. For instance, the attitude of
Americans towards gambling has provided support for the growth of the industry.
However, current emphasis on treating casino gaming as addiction tends to counteract
such American openness to the industry. The technological aspect of the industry is also
significant, with new technologies providing increased efficiency in the performance of
the casino or gaming companies. Ecological or environmental concerns are minimal
12

among casinos. Foreign competition remains low because there are only a few locations
around the world that have thriving casino industries.

Key Success Factors in the Casino Industry

The key success factors that should be considered in the casino and gaming
industry include innovation in products and services. The competitive rivalry in the
industry is high, such that mediocre products and services would attract only a small
percentage of the market. For a casino company to succeed, it needs to effectively
integrate its products and services. Such innovation could attract more clients into the
casinos. The attractiveness of casinos based on such innovation helps in developing
loyalty among repeat customers.

Another key success factor is the ability of casino companies to continue to

reach for affluent populations. Affluent people are the greatest sources of revenues for
the industry. Casino companies need to target these affluent populations. However,
casino companies also need to attract the vast majority of the population to ensure a
buffering of the performance of their businesses. The vast majority of the population
helps in ensuring stability and steady flow of revenues for casinos.

Social impacts:

Because it is arduous to separate economic impacts from social influences,

social impacts are regarded as the most difficult phenomenon for researchers to
measure scientifically (Oh, 1999). Many studies have utilized the economic concept of
cost to objectively measure and analyze social impact phenomena; thus the term
social cost has become the dominant medium to identify the strength and dimension
of social impacts. However, this approach, which is based on the perspective of
economic impacts to analyze and discuss social cost, has triggered many controversial
debates of what social cost is and what the definition of social cost should be in
social science. Walker, 2003 and Walker, 2007, who used a different angle to examine
the social costs of gambling, suggested that a cost must, by definition, fulfill the
following three criteria for it to be counted as a social cost of gambling:

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(1) the cost has to be social rather than private or personal, (2) the cost has
to result in a real decrease in societal wealth, and (3) the cost has to result exclusively
from gambling. Thus, the current related studies on the social costs of gambling have
been concentrated on discussions from the following perspectives: cost-of-illness
approach (Single, 2003), an economic standpoint (Collins & Lapsley, 2003), and a public
health perspective (Korn, Gibbins, & Azmier, 2003). In contrast, Fong, Fong, and Li
(2011) noted seven indexes of social costs in gambling that relate to social impacts:
treatment costs, prevention costs, family/friends physical and psychological costs, legal
costs, rent-seeking costs, regulatory expenses, and the public costs of training,
promotion and research. In addition, these researchers suggested that these social costs
have paid for the liberalization of casino gambling in Macau. This research asserted that
the social cost of gambling in Macau had risen appropriately 163% (i.e., from $40 million
to $106 million U.S. dollars) from 2003 to 2007. Similarly,Thompson and Schwer
(2005) examined the dollar value of the social costs of gambling in Southern Nevada and
discovered that each compulsive gambler imposed $19,711 (U.S. dollars) in social costs
on other community members.

Studies concerning the social impacts of casino gambling suggest that this
industry has distinctively yielded both positive and negative effects toward local
communities and the lives of local residents. For instance, Giacopassi et al.
(1999) interviewed 128 community leaders in seven new casino jurisdictions in the USA
and found that 59% of the respondents favored casino establishments in their
communities, 65% believed that casinos enhanced the quality of their lives, and 77%
agreed that casinos led to positive effects on their communities' economy. Gonzales,
Lyson, and Mauer (2007) associated casino gambling with improvements in the quality of
life regarding the social and economic well-being of both Indian and non-Indian
populations in Arizona and New Mexico.
In contrast, although some researchers have found that the development of
casino gambling has no direct associations with an increase in criminal activities (Janes
& Collison, 2004), most studies have shown that casino gambling may be correlated with
the following social deviations: domestic violence, divorce, bankruptcy, drug and alcohol
abuse, risky or illicit sexual behavior (especially prostitution), and problem gambling
(Allcock,
2000, Chhabra,
2007, Harrill
and
Potts,
2003 and Petry,
2003).
Additionally,Stokowski (1996) and Long (1996), who studied gaming towns in Colorado
and South Dakota, clearly indicated that the rates of criminal activities increased due to
the development of casino enterprises in these two locations.

The increase in the number of pathological gamblers is another concerning

issue regarding the development of casino gambling. Janes and Collison (2004) found
that problem gambling had risen in the studied site from 1995 to 2000, and community
14

leaders have also noticed that issues concerning child neglect and family problems had
become more challenging and widespread during this period. Long (1996) found that
there were growing demands for child protection, marriage counseling, and other social
service programs in these gaming communities. However, other studies have claimed
that casinos do not directly cause the issue of problem gambling (Braunlich,
1996 and Room et al., 1999).

After analyzing the perspectives of residents, Pizam and Pokela

(1985) studied these residents' perceptions toward the development of casino gambling
in the Adams and Hull areas of Massachusetts and found that these residents did not
perceive this development as an improvement in their standard of living. Ironically, these
residents thought that the development of casino gambling had increased their cost of
living. Similarly, Roehl's (1999) research found that only one-third of the survey
respondents agreed that the casino gambling establishment made their community a
better place to live. Overall, the majority of the investigated respondents stated that
they would not recommend the implementation of legalized gambling in other
communities (Long, 1996). However, even in the discussion of the negative social
impacts of casino gambling, there could be significant determinants (such as the
community size and the magnitude of the casino industry) to induce differentiated
strengths and extensions of negative social impacts on the host communities
(Eadington, 1996) (for example, in comparison with the magnitude of casino gambling
between Macau and Singapore).

As indicated by Lee, Kim, and Kang (2003) based on their studies of casino
gambling in Korea, the positive socio-cultural impacts would lead to advocacy for the
development of casino gambling by residents, but the negative impacts would provoke
opposition from residents against the existence of casino gambling.

Economic impacts:

When discussing the economic impacts of tourism, the multiplier process

should be the most well-known and frequently applied approach to measure the
economic contributions of tourism industry extensively on macroeconomic fields,
involving investment (including the flows of income and the numbers of jobs), export,
governmental expenditure (such as, constructing public infrastructures and facilities)
and taxation revenue, tourist consumption, and so forth. However, the greatest
challenge associated with calculating the multiplier process originates from the
complexities of collecting the necessary data and defining acceptable numbers of
15

parameters. Therefore, different approaches for measuring the economic impacts of

tourism have been developed: the use of an inputoutput measure, tourism expenditure
modeling, the development of satellite accounts, and local impact studies utilizing a
number of ad hoc measures (Ryan, 2003, pp. 158179). Witt, Brooke, and Buckley
(2013) indicated that there are three effects of the multiplier process: direct effect
(taking place only in the industry that is immediately affected), indirect effect
(concerning inter-industry interaction), and induced effect (relating to changes in
household income). Because casino gambling (or the gaming industry itself) belongs to a
segment of the tourism industry, the examinations of the economic impacts of casino
gambling could be definitely applied in studies related to the economic impacts of
tourism.

The fact that opening casino gambling establishments could bring large tax
revenues for governments is undoubtedly the best economic benefit that the gaming
industry can contribute (Anderson, 2005 and Gu and Li, 2009). Kang et al.
(2008) suggested that casino gambling could foster local economic developments and
bring more beneficial opportunities to commercial activities. Furthermore, some
researchers have demonstrated that casino gambling operations generally provide
substantial economic benefits through increased employment opportunities (Long,
1996 and Pizam and Pokela, 1985). McLain and Maheshwari (2006), who compared the
employment opportunities and personal incomes of residents within thirty casino
communities in America, declared that increases in job opportunities and incomes are
not completely correlated and that only the regions with economic achievements above
the national average experienced significant benefits from casino gambling operations.
In addition, economic benefits that are generated by casino operations are more obvious
in rural areas, where they often lead to greater business developments and wage
increases (Garrett, 2004).

Apart from direct economic benefits, the establishment of casinos could also
enhance opportunities associated with recreational, leisure, and entertainment activities
within these cities. Many casinos offer gaming opportunities, and other forms of
entertainment, such as restaurants, bars, pubs, and retail outlets (Buultjens, 2006).
However, these related service industries could only be recognized as auxiliary industries
compared to casino gambling. For example, Janes and Collison (2004) indicated that
guests spend much more time participating in casino gambling than other leisure
activities. Room et al. (1999) also found that people spent less money at other
entertainment venues after the opening of certain casinos. In other words, the economic
improvements due to the establishment of casino gambling could only benefit certain
businesses and regions instead of holistic dimensions of the national macro-economy. As
indicated by Grinols (1994), casinos in Illinois have not provoked many outstanding
improvements on the job opportunities in the state. Garrett (2004) also observed that
16

casino operations do not promise to create local employment if they are established in
rural or developing areas, where the workforces may be relatively unskilled, because
these casinos are more likely to hire more skilled labor from outside instead of
preferentially employing locals. A few studies have even indicated that the opening of a
casino did not lead to any improvement or have any positive impact on recreation
options (Carmichael et al., 1996 and Long, 1996).

The construction of casinos sometimes has negative influences on the

sources, revenues, and job opportunities of other industries, and may even destroy their
development (Garrett, 2004, Grinols and Mustard, 2006, MacIsaac, 1995 and Wan and
Kong, 2008). For instance, Truitt (1996) found that riverboat casinos in Illinois did not
generate the anticipated tourism and economic growth, because gamblers did not stay
in the riverboats long enough to accommodate the hotels' rooms or to eat meals at the
local restaurants. The local customers may also be compelled to spend and eat at the
casino's facilities (Rephann, Dalton, Stair, & Isserman, 1997). As indicated by the study
conducted by Oddo (1997), during the four years after casinos began to operate in
Atlantic City, New Jersey, the number of retail businesses declined by one-third, and the
number of restaurants was down-sized from 243 to 146.

Environmental impacts:

Several studies have indicated that casino businesses produce positive local
environmental outcomes, including the protection of natural environments and
ecological resources, the conservation of historical buildings and cultural heritage, the
improvement of public transportation, upgrades in electrical facilities, higher medical
standards, revitalization of city landscapes, and increases in recreational playgrounds
(Lee and Back, 2006, McCool and Martin, 1994 and Snaith and Haley, 1999). Nicholas
(1998)indicated that the establishment of casinos in Atlantic City, New Jersey, led to the
redevelopment of tourism industries, convention facilities, foundational infrastructures,
and tourist capacities. In contrast, through a study of the viewpoints of the local
residents of Cheju Island of South Korea, Ko and Stewart (2002) found that the levels of
residential satisfaction toward the community's environment influenced their attitudes
toward casinos. Those respondents who displayed higher levels of satisfaction with the
environment usually held more positive attitudes toward casinos. Similar findings were
reported by Perdue et al. (1995) in South Dakota and Colorado, as well as by Carmichael
et al. (1996) in the Foxwoods Tribe.

17

Regarding the negative environmental impacts of casino gambling, the

following aspects are usually mentioned by researchers: traffic jams, parking difficulty,
escalation of trash, soil erosion, poor air quality, decline of scenic beauty, demolition of
public infrastructure, and large tourist gatherings (Harrill and Potts, 2003, Ko and
Stewart, 2002, Snaith and Haley, 1999 and Yoon et al., 2001). For instance, Stokowski
(1996) noted that Colorado State Highway 119 exhibited many serious traffic jams within
the first month after the opening of a casino in Colorado. Such environmental problems,
particularly those caused by a lack of holistic considerations, are the price that the locals
have to pay in order for a casino to be opened (Carmichael et al., 1996 and Long, 1996).

From the perspectives of the local residents of Macau regarding the

association between the negative environmental impacts of and attitudes toward
casinos, Vong (2008)acknowledged that the residents of Macau attributed the following
negative environmental impacts to the development of local casinos: worsening traffic
congestion, air pollution, and overcrowding. Undoubtedly, after facing such negative
environmental impacts, Macau residents developed more conservative attitudes toward
gambling (Vong, 2009). Some studies have found that the perceptional strength of local
residents toward negative environmental impacts is practically reduced after the
opening of a commercial casino. For instance, Lee et al. (2003) indicated that the survey
respondents appeared to perceive negative environmental impacts as being less
worse after the casino opened than they did before the casino's opening. Otherwise,
the study conducted by Lee, Kang, Long, and Reisinger (2010), who compared the
residents' perceptions of casino impacts in South Korea to the perceptions of Colorado
residents, found that three factors of the residents' perceptions and support were
significantly different in these two study sites. Therefore, it is obvious that the
correlation between negative environmental impacts and the residents' attitudes toward
the development of casinos would exhibit certain degrees of differentiation in every
community depending on the different stages of development, the magnitudes of the
local population, and other social characteristics of the local community.

5. SWOT Analysis of Casio

18

What makes SWOT particularly powerful is that, with a little thought, it can
help you uncover opportunities that you are well-placed to exploit. And by understanding
the weaknesses of your business, you can manage and eliminate threats that would
otherwise catch you unawares.
More than this, by looking at yourself and your competitors using the SWOT
framework, you can start to craft a strategy that helps you distinguish yourself from your
competitors, so that you can compete successfully in your market.
Originated by Albert S Humphrey in the 1960s, the tool is as useful now as it
was then. You can use it in two ways as a simple icebreaker helping people get
together to "kick off" strategy formulation, or in a more sophisticated way as a serious
strategy tool.

19

Strengths
Casios G-Shock, Baby-G, Edifice and Pathfinder as sub-brands are targeted for
different groups and marketed accordingly. Thus, targeting for each sub group is
clear and focused.
Casio is been positioned as being technology advanced. Casio designed worlds
first LCD watch having a full auto calendar. These, with many other innovations are
synonymous with the brand image
Casio has sponsored events in the area of sports that can prove beneficial to the
brand image
Considered value for money and excellent quality
Casio brand is protected with 1,986 registered trademarks in 187 countries around
the world

Weaknesses
Perceived more as a watch brand than as an electronics brand
Design of the watches more often than not is visually too simple

Opportunities
Tie-up with fashion houses and sponsoring events
More innovative designs and styles to attract the youth

Threats
Facing threat of counterfeit Casio products
Competition in watches with the sport look in the market is heavily populated and
can prove to be a threat

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6. Bibliography

www.mbaskool.com Brand Guide Lifestyle and Retail

https://en.wikipedia.org/wiki/Casio
www.professionalacademy.com/blogs-and-advice/marketing-theories--pestel-analysis

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