The “Nine Key Attributes of Reputation” used by FORTUNE Magazine for their ranking

Canon’s press release of yesterday, when they told us the company is among Fortune Magazine’s most admired companies of 2015 turned out to be based on some misunderstanding of the involved figures.

DIY Photography posted a lengthy article where they point out why the “prestigious accolade” Canon put in the title of the press release isn’t so prestigious after all. First and foremost, Canon got it wrong with the nine key attributes Fortune used to rank companies (and so did I for that matter). Canon writes:

Canon received its highest ranks in innovation, social responsibility and long-term investment value.

Well, it’s exactly the opposite. The nine key attributes are listed in the picture on top. A higher number means a lower ranking. Canon didn’t receive the highest ranks for innovation, social responsibility and long-term investment value, but for Quality of products/services, Financial soundness, and Global competitiveness. Oops.

There are more critical issues in DIY Photography’s post. For instance they stress that

[…] the “World’s Most Admired Companies” list is actually the “World’s Most Admired Companies By Other Companies” list. Client satisfaction or feedback from the general public was not calculated into the scores

While I do not agree with all of the reasoning in the original post (it is still a good thing that Canon tops for the quality of their products), I recommend you have a look at DIY Photography to get the entire story.

Reuters reports:

Chief Executive Fujio Mitarai said his company had the funds and willingness for more acquisitions this year after a planned 23.6 billion Swedish crown ($2.8 billion) takeover of network video surveillance leader Axis AB (AXIS.ST).

Mitarai has been leading efforts to find higher-growth businesses to complement Canon’s imaging expertise, and help the Japanese company expand beyond a camera market under attack from smartphones sporting competitive image-capturing capabilities.

Canon’s offer for Axis represented a premium of nearly 50 percent to the stock price before the announcement, a price some analysts said was high enough to ward off rival bids.

“If you buy a cheap company, you need to spend on drastic restructuring,” Mitarai told Reuters in an interview on Tuesday. “I only buy good companies, even if they’re expensive.”

Read the rest of the story at Reuters –>

Press release:

Canon U.S.A. Announces New Company: Canon BioMedical, Inc.

The New Subsidiary Will Serve as Worldwide Headquarters For Life Science and Healthcare Businesses

MELVILLE, N.Y., March 2, 2015 – Canon U.S.A., Inc., a leader in digital imaging solutions, today announced the establishment of Canon BioMedical, Inc., a new wholly owned subsidiary that will serve as a worldwide headquarters for its biomedical business. The new company will conduct development, manufacturing and marketing operations relating to Canon’s life science and molecular diagnostics platform and seek to expand the use of Canon technology into other medical fields.

Based in Melville, New York, Canon BioMedical will be under the leadership of President and CEO, Ms. Akiko Tanaka. The new company will look for long-term future growth opportunities in previously untapped markets for Canon such as life science, healthcare, and medical analysis through the use of existing and emerging Canon technology, as well as strategic partnerships.

“We are truly excited and proud to launch Canon BioMedical, Inc., an American-born worldwide headquarters committed to bringing to market innovative technologies and solutions,” said Joe Adachi, chairman and CEO, Canon U.S.A., Inc. “We look forward to bringing Canon technology to clinicians and scientists all over the world in an effort to assist in improving human health and in advancing science.”

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