cing almost all of its components and parts in-house, which made them the largest producer of steel castings in Japan (Bartlett, Rangan 1985). Their products were manufactured in 14 different Komatsu plants, in which 13 were in Japan. During this time, they also stressed a lot toward their research and development (R&D). By 1983 their R&D expenditure was 5.8% of sales. A lot had gone into integrating their engineering and electrical labs.
By 1984, Komatsu had a very good reason financially to be proud of their entire organization. They had managed to maintain a 60% market share within Japan, while upholding 50% of their sales through their exports abroad. Komatsu was beginning to gain momentum in the worldwide EME market.
Yashinari Kawai, Komatsu¡s president in their early years, was a graduate from an elite Tokyo University, and had served in the government bureaucracy. Yashinari¡s goal in this industry was survival. He knew that this organization was going to need to set intense goals in order to stay competitive in th
...