News On Japan

Inside Japan’s Great Transformation: Mazda’s Five-Year Reform Plan

HIROSHIMA - Mazda, the automaker synonymous with Hiroshima — a prefecture of 2.7 million people — is fighting to reinvent itself from within as the global automobile industry undergoes a once-in-a-century transformation. The company is launching a five-year internal reform to reshape its corporate culture and stay competitive amid the global shift to electric and eco-friendly vehicles.

Inside its training center in Hiroshima, employees of all ages and departments, many meeting for the first time, are engaged in workshops exploring the company’s corporate culture, known as “food,” and what it should represent. Participants first reflect individually, then discuss in pairs, and finally present their ideas to the group — a process repeated across various themes.

The cultural reform initiative, launched in November 2023, is a cornerstone of Mazda’s five-year transformation plan. In May, the company rented a local soccer stadium to train 4,000 employees, and nearly all staff have now completed the program. The project unfolds in three phases: first, defining the desired culture through training; second, embedding it in everyday workplace behavior; and third, establishing it as a daily habit. Mazda sees this internal evolution as essential for survival as electrification, environmental concerns, and other sweeping changes reshape the industry. “We’re not a large company by scale,” one executive noted, “so human creativity, imagination, and uniqueness are critical to generating new value. We must cultivate our organizational culture anew.”

The company’s journey is not without resistance. Some employees question whether management fully supports the changes, while others see altering executive mindsets as key to success. Yet the resolve remains strong as Mazda pushes toward a future where a new corporate culture becomes its competitive edge.

Beyond corporate reinvention, Japan is also witnessing groundbreaking research aimed at addressing the climate crisis. On August 5th, temperatures in Gunma Prefecture hit a record 41.8°C — the highest ever recorded in Japan — with the Meteorological Agency warning that above-average heat could persist through November. As the world works to reduce CO2 emissions from vehicles and fossil fuels, a pioneering project in Tanegashima, Kagoshima Prefecture, is exploring a domestic biofuel alternative derived from sugarcane.

At the center of the effort is Satoshi Obara, a special professor at the University of Tokyo, who has spent two decades developing new sugarcane varieties in collaboration with the Kyushu Okinawa Agricultural Research Center. One such variety, named “Haru no Ougi,” yields 30–50% more than conventional strains and withstands the island’s frequent typhoons without bending — making it ideal for mechanical harvesting. Obara, who once worked on biofuel commercialization in the private sector, left his company to pursue this vision independently. His goal: to create a renewable, domestically produced fuel without relying on imported oil or external electricity — a bold attempt to build a sustainable energy future from Japan’s farmland.

Meanwhile, in the resort sector, Spa Resort Hawaiians — a tropical-themed leisure facility in Iwaki, Fukushima Prefecture, known for its towering 40-meter waterslide and daily “Hula Girl” dance shows — is fighting for survival. Operated by local company Joban Kosan and celebrating its 60th anniversary next year, Hawaiians has faced severe financial challenges. The 2011 Great East Japan Earthquake forced a six-month closure, while the COVID-19 pandemic caused an additional three-month shutdown, leaving the company with about 28 billion yen in debt and aging facilities.

In November 2023, U.S. investment fund Fortress Investment Group, which manages over 7 trillion yen in assets and previously acquired Seibu Holdings, launched a takeover bid, acquiring more than 85% of Joban Kosan’s shares. “Given the current financial state, it would be difficult for Hawaiians to remain competitive over the next 50 or 60 years without major change,” said Shunsuke Yamamoto, who led the acquisition. Fortress plans a sweeping overhaul of the resort, investing heavily to modernize facilities and align them with the expectations of Japanese travelers who have experienced Hawaii firsthand.

Hawaiians’ transformation is part of a broader trend of foreign investment reshaping Japan’s hospitality landscape. Large-scale resorts from the bubble era are being rebuilt from the ground up, reflecting a strategic push to redefine domestic travel experiences.

But not all of Japan’s battles involve boardrooms or laboratories — some are fought in the fields. In Tochigi Prefecture, wild boars, once rare, have proliferated in recent years, wreaking havoc on agriculture. They destroy sweet potato fields, trample rice paddies, and even roll in fields to remove parasites, knocking over crops and reducing grain quality. Damages nationwide from wild animal incursions now total 16.4 billion yen annually. Despite these losses, Japan’s hunter population has fallen to less than half its previous size, with about 60% now over 60 years old.

Local governments are struggling to respond. Veteran hunter Kiyoshi Sekiguchi, 75, who captured 30 boars last year, says manpower is the biggest obstacle: “There’s nobody left to set traps or check them.” Municipalities offer 16,000 yen per animal, but the shortage of younger hunters — many of whom cannot leave their jobs for extended periods — remains a critical challenge.

The consequences go beyond crops. Wild animals cause traffic accidents, spread disease, and pose risks to human safety. Yet new business models are emerging to tackle the crisis. In Chiba Prefecture, companies are making it easier for people to enter the hunting industry, including offering training for trap licenses. In Hokkaido, female entrepreneurs are launching ventures that connect hunters with consumers seeking game meat, creating a market-driven incentive for wildlife control.

Source: テレ東BIZ

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