Itochu

"In any industry, it is not only extremely difficult, but almost impossible in practice, to stop the profitable business from past to present and shift to an unknown new business. Of course, Itochu also has a track record in resources and machinery. But the company grew big mainly through the painstaking, small-scale businesses of textiles and food. That’s why it was good."

"In 2017, four years after the introduction of morning-style work, Okafuji implemented a management policy that one would hope other company presidents would imitate as well. It is support for employees who are fighting long-term illnesses and, sadly, for those who have lost their lives. When he became president, an employee in the textiles division was battling cancer. That employee sent an email to Okafuji expressing gratitude for “the extremely long leave period, high coverage rate of medical expenses, and organizational support.” The end of the email said: “In my mind, Itochu is the best company.” However… The employee who sent the email passed away a month later at the young age of 56. Okafuji, who rushed to the funeral, sobbed uncontrollably without worrying about those around him, and made a vow in front of the altar. “Now, what I can do is to make this company, which you said was the best and a good company, an even more wonderful company, and report back to you in the near future."

"After becoming number one in non-resources, Itochu was called one of the two powerhouses and finally boldly declared, “As a trading company, let’s aim for the triple crown: number one in net profit, stock price, and market capitalization.”"

"In the president’s office, the three characters “Ka-Ke-Fu” are framed and displayed. They stand for “earning (profits), cutting (wastes), protecting (from losses).” He regarded “Ka-Ke-Fu” as the principle of business of the Omi merchants he admires, and has put it into practice. Instilling in employees the awareness to keep an eye on both offense and defense in business is what propelled Itochu to the top of the trading industry."

"why did so many Omi merchants emerge who left their region and went to other provinces from Omi, Shiga Prefecture? Why was it from Shiga Prefecture, and not urban centers like Kyoto or Osaka? Several sources give three reasons. (1) It was a key transportation route. (2) The region was rich in products. (3) There was an accumulation of commercial activity. From looking at a map, it’s clear it was a key transportation route. Major highways such as the Nakasendo, Hokurikudo, and Tokaido passed and intersected from the east to the southern tip of Lake Biwa. And there was water transport. The water transport on Lake Biwa, which takes up one-sixth of Shiga’s area, had been utilized since medieval times. Both land and water made it a key transportation route."

"In the fiscal year ending March 2021, Itochu surpassed the long-standing industry leader, Mitsubishi Corporation, in three indicators: net profit, stock price, and market capitalization."

"The work of general trading companies can be broadly divided into two: the first is trading, that is, product intermediation and wholesaling; the second is investing in businesses."

"Okafuji decided not to rely on resources, but to nurture people. As a trading company, he simply did what should be taken for granted."

"When companies grow large, it’s difficult to imitate others’ successes, even if you see that their performance has improved. Looking back at Okafuji’s messages since he took office, he did not make bold declarations like “We will become number one in the industry” from the start. He used carefully thought-out strategies even in PR both internally and externally."

"For Mitsubishi Corporation and Mitsui & Co., importing natural gas, oil, coal, and iron ore and supplying them to steel and power companies has been a major pillar of their profits. On the other hand, since Itochu was originally a “textile trading company,” it could not rely on resources as a major source of profit. For this reason, it had to go around businesses in non-resource fields such as textiles and food, and make do by steadily generating small profits. They have honed their wisdom to gather small profits. That is why, with changing circumstances, they leaped to the top. They adapted to an era in which resource prices fluctuated wildly and the presence of heavy and large-scale industries declined."

"Kobayashi, who has experience as an escort, carries two huge suitcases and travels alone. One of the suitcases is a care package for local employees. Inside are large amounts of rice, yokan, and a handwritten message from Okafuji. A subordinate once said, trying to sound knowledgeable, “Vice President Kobayashi, it would be more efficient to send those.” Kobayashi scolded him. “There is meaning in me personally carrying heavy things.” Even now, Kobayashi boards planes carrying over 20 kg of rice, then transfers to cars, trains, boats, and hires rundown taxis to reach the remote offices. Just because he is a vice president of a general trading company doesn’t mean he can simply socialize at fancy golf clubs."

"According to “Reading Japanese History Anew from Omi” (Akira Imatani, Kodansha Gendai Shinsho)"

"Since Itochu is a trading company, it has employees working overseas. Locations like New York, London, and Shanghai serve as hubs, so many people work there. On the other hand, in cases of personnel in charge of resources, food, lumber, etc., sometimes they work completely alone — in so-called “one-man offices” in remote areas. These are cases where they leave their families in Japan and go on foreign assignments alone. They live at natural gas or metal mining sites more than 10 hours away from major cities, with no opportunity to meet other Japanese people. Even if the president or an executive visits from Japan, they won’t travel all the way into the jungle for a meeting. There are quite a few people who are always working remotely. That, too, is the nature of work at a trading company."

"At Itochu, “no matter how many children there are, we pay until all of them complete graduate school.” Shouldn’t this be a policy every company adopts? It’s not about the money, but about spirit. Because this is equivalent to saying: “No matter what happens, we will support you and your family.”"

"Only someone like him, who constantly chants “Think market-in, not product-out,” would implement such a measure."