Olympus, the Japanese camera manufacturer has been in the news the last few weeks. The problem is that the news is not related to new product launches or partnerships but rather financial irregularities. Everyone is aware of the idea that there is “no such thing as bad press coverage” but in Olympus’s case the timing could not have been worse.
As I mentioned earlier in the month, South East Asia is at the moment rebuilding after the floods. The global financial climate is at present one of uncertainty and the dreaded “Recession” word is constantly on the tip of the financial world’s tongue. Companies are thus trying to stay out of the press as it could lead to stock price decreases and potential staff cuts.
The Olympus saga started when their British CEO, Michael Woodford started asking questions over Mergers and Acquisition costs and he received little or no explanation from the Olympus board. The standoff between him and the board became so intense that he left the country due to feeling that his personal security was in danger. It perhaps did not help that he had also mentioned the Yakuza (Japanese organised crime syndicate) and their possible involvement. The fallout has been a string of resignations by very senior Olympus staff members and an investigation of the irregularities by the Japanese government. What is very interesting to note is that Woodford has made it clear that he is willing to return to the position of CEO.
The Japanese consumer electronics manufacturers are a source of national pride for the Japanese population. May it be Sony, Seiko, Sharp or Olympus, their national importance is seen in a different manner to other corporates in other countries. They are seen as “role models” and need to act in a responsible manner otherwise they will bring shame onto their families and their businesses.
I wonder what the total impact of this financial saga will be and also how it will impact Olympus’s worldwide sales during the festive season. Will the Japanese investigation into Olympus impact your decision on buying a digital camera?
