Execution and Resource Allocation Risks Associated with Strategic Business Expansion
First written in FY2016. 2 of 5 entries say "Restated". Latest entry: FY2024.
Daiichi Jitsugyo moved to the "Worse" side of this theme in 2024.
1 other company's latest entry also says "Worsened".
- FY2024WorsenedAnnual report
「The Group's business model has expanded from one specializing in agency sales for machinery manufacturers to providing production support and technical support for customers' plants in response to technological innovation. Accordingly, the scope of its business has expanded from transactions involving only physical goods to transactions involving services, while the scale of individual projects has also increased and transactions have become more complex and extended over longer delivery periods.」
The business-expansion risks explicitly include the larger scale, greater complexity and longer delivery periods of projects associated with the shift from selling physical goods to transactions involving services. - FY2023RestatedAnnual report
「As these strategies and plans extend over the medium to long term, the risks described here may remain latent in the existing businesses over the medium to long term. In addition, if the business-related investments and other investments being actively promoted do not produce sufficient results, they could affect the Group's business results and financial position.」
The Company continues to disclose execution and resource-allocation risks associated with the longer investment horizons of V2030 and MT2024, with post-investment progress analysis and decisions on changes serving as countermeasures. - FY2021WorsenedAnnual report
「However, the impact of COVID-19 cannot be underestimated, and it may affect order-taking activities and delivery schedules. In addition, depending on the business environment of customers and their customers' business partners, a chain reaction of concerns over creditworthiness and other problems could occur. Moreover, depending on the costs required for strategic business expansion and the appropriateness of the timing, scale and other aspects of allocating management resources effectively in line with business progress, the Company may lose revenue opportunities and incur greater financial burdens, which could affect its business results and financial position.」
The risks associated with business expansion under the medium-term plan now additionally specify the effects of COVID-19 on orders and delivery schedules and the chain reaction of credit concerns through customers. - FY2017RestatedAnnual report
「However, depending on the costs required for strategic business expansion and the appropriateness of the timing, scale and other aspects of allocating management resources effectively in line with business progress, the Company may lose revenue opportunities and incur greater financial burdens, which could affect its business results and financial position.」
The Company continues to disclose the risks of business expansion costs and management-resource allocation associated with DASH 2018. - FY2016First statedAnnual report
「Depending on the costs required for strategic business expansion and the appropriateness of the timing, scale and other aspects of allocating management resources effectively in line with business progress, the Company may lose revenue opportunities and incur greater financial burdens, which could affect its business results and financial position.」
This is explicitly identified as a risk associated with the DASH 2018 business expansion itself.