The fantastic story of Panasonic, which was founded by a
23-year-old 100 years ago
The company survived economic crises and World War II,
driven by a mission to make affordable mass-produced appliances.
Panasonic, a Japanese electronics company, began
manufacturing parts and expanded to produce entire appliances. The company
survived World War II while benefiting from post-war prosperity but also
struggled with the political aftermath. It also weathered various economic
crises. Panasonic has continually reoriented itself, expanded globally, and
continues to look to the future of technology today, including its
collaboration with Tesla. Below is a brief look back at the business's first
period:
Panasonic was started on March 7, 1918, by Konosuke Matsushita,
who was 23 centuries old. Before that, he lived with his wife, Mumeno Iue, and
their teenage brother, Toshio, in a two-room tenement house. After working as
an apprentice at a hibachi and bicycle manufacturer and at the Osaka Electric
Light Company, Matsushita developed a new type of light socket design.
Although discouraged by his supervisor, Matsushita and his
family tried to sell the devices from their home. They even sold some of their
most valuable possessions to make ends meet. Meanwhile, Matsushita diversified
its product offerings and eventually fulfilled an order for insulating panels
for electric fans.
This allowed the trio to move into a larger home, and
Matsushita Electronic Housewares Business Works was born. Matsushita quickly
expanded the business's product line to include a top-mounted plug and a
two-sided outlet. For the former, metal screws from used light bulbs were
reused. By the end of 1918, the corporation had grown to 20 staff.
Matsushita was ahead of its time in its organization line.
When the business was two years old and had 28 employees, he established the
"Hoichi Kai," which translates as "One Step Society" It
transported staff together to play sports and participate in other recreational
activities.
Another unconventional leadership tactic Matsushita pushed
was transparency. In the early 1920s, employee retention was a major problem in
Japan, first because of competition between companies and then the economic
downturn. So Matsushita embraced a philosophy of trust and absolute share trade
confidence even with new employees to size trust at all company levels. By the
end of 1922, the business had 50 employees and a new factory.
He said, "We will not cut production by laying off
workers, but will make them work only half days. We will continue to pay them
the same wages as now, but there will be no vacation. All staff should do their
best to sell stock." According to Panasonic, the plan worked.
Around this time, the company began making irons and radios.
In addition, Matsushita explained other of his business philosophies. A
long-term visionary, he also proposed a 250-year plan for the company, divided
into ten 25-year periods, which would be divided into a ten-year build-up
period, a ten-year active period, and a five-year fulfillment period.
