Olympus fires its CEO- camera division now safe?

[cannedpineapples]

Olympus fires their CEO, who had wanted to get rid of their camera division and their R&D division. I guess this is good news for us Oly users, but maybe not Oly shareholders.

http://www.nytimes.com/2011/10/15/business/global/in-rare-move-olympus-fires-its-chief.html?hpw

"Mr. Woodford had taken the helm at Olympus at a tough time. In the year ending last March, net profit at Olympus plunged 85 percent from the previous year, to 7.4 billion yen (about $95 million), as losses at its camera division weighed on the company’s profitable medical equipment business. The camera division lost 15 billion yen, a performance Mr. Woodford had called “unacceptable.”"

"Among differences that Olympus cited Friday were disagreements between Mr. Woodford and other top management over restructuring the company’s research and development division."

 

[jlpk007]

Ex-Olympus chief questioned payments - FT.com

more and more stories coming out......

 

[Agrivar]

Wow. Conspiracy theory

 

[geikou]

If there is really funny business going on, this is bound to blow up sooner or later. Not good for Olympus.

Of course as consumers, we want to see the imaging division live on. Must at least tahan until somebody else give up lah...

 

[s598719]

Wow. Funny biz going on. If other listed company's history is any guide, more share price drop is expected soon, Olympus becomes a takeover target. Perhaps, Pana buys over & dominates micro 4/3 market?

 

[cannedpineapples]

Honestly, it doesn't sound like corruption- maybe just inproper kickbacks. A third of the 2.2Bn is a huge amount, and probably everyone on Olympus' board knew about it.

To me a bigger problem is probably his 'western-style' take no prisoners approach.

 

[NazgulKing]

Corruption is endemic in Japan. You just don't notice it. Kickbacks are the norm.

Anyway, Olympus has some really serious issues with regard to direction of their digital camera division. They need to do things better.

 

[Mikefellh]

The camera division lost 15 billion yen, a performance Mr. Woodford had called “unacceptable.”

Then isn't it "Mr. Woodford's" fault?

Then again on "Dilbert" the pointy-headed boss said it best when he said, "success travels up, failure travels down".

In other words when the company does well it's due to the work of the CEO, and when the company does badly it's the fault of the employees!

 

[geikou]

Did he really want to end the camera division? It's not mentioned in these reports. Perhaps it was mentioned in other earlier reports?

 

[s598719]

Corruption is endemic in Japan. You just don't notice it. Kickbacks are the norm.

Anyway, Olympus has some really serious issues with regard to direction of their digital camera division. They need to do things better.

Do u mean their product lines need to be more clear and up to date? Like having a 16MP sensor for EP3. Or having a better differentiation bet EPM1 and EPL3?

 

[NazgulKing]

Do u mean their product lines need to be more clear and up to date? Like having a 16MP sensor for EP3. Or having a better differentiation bet EPM1 and EPL3?

Yes. Along with deciding once and for all the fate of their 4/3 line. I do not for the love of anything cannot understand why Sony can come up with a solution for their Alpha lenses on E-mount but Olympus for the dear love of its own life cannot do the same.

 

[cannedpineapples]

It's my general impression that Japanese companies are bad at strategic decision making (eg. what products to keep vs kill) and at revolutionary change. Nintendo is one big exception.

On the other hand they will 'stay the course' forever and ever, so you don't have to worry about their ideas failing because they gave up too soon. They are also good at taking something and making it better in incremental, small steps. Which is why we've seen minor improvements on the same sensor now for three whole generations.

 

[NazgulKing]

It's my general impression that Japanese companies are bad at strategic decision making (eg. what products to keep vs kill) and at revolutionary change. Nintendo is one big exception.

On the other hand they will 'stay the course' forever and ever, so you don't have to worry about their ideas failing because they gave up too soon. They are also good at taking something and making it better in incremental, small steps. Which is why we've seen minor improvements on the same sensor now for three whole generations.

My personal suspicion is that to keep costs low, they bought so many of the old sensors that they have a **** tonne to use. Whereas Panasonic has been more cautious on the purchase and thus can easily transit to new sensors.

 

[geikou]

According to reports, it's because Olympus is tied to their agreement to use Panasonic sensors. Not sure if it is true. The agreement is supposed to be due soon, however, sometime this year.

 

[pinholecam]

In some ways, I see the 'stasis' of the m4/3 sensors as a good thing for consumers.
I don't need high ISO to the point that I can shoot a documentary of nocturnal animals.
Don't care that much for noise as long as its "film like even" and they don't matter that much at normal viewing sizes.
In the days of film, I did not ask or look forward to a new film emulsion every year.
Current m4/3 do the job of capturing images well enough for most needs (except for the documentary part I mentioned earlier)

As such, the slower moment of the sensor is 'good'.
Less to look forward to on camera bodies, and more focus of the money on lenses, more about just taking pictures (or keep in the bank)
A used EPL1 or GF1 at $350, with as good image qualities as a new EPL2 or 3.
I rather like that.

 

[NazgulKing]

In some ways, I see the 'stasis' of the m4/3 sensors as a good thing for consumers.
I don't need high ISO to the point that I can shoot a documentary of nocturnal animals.
Don't care that much for noise as long as its "film like even" and they don't matter that much at normal viewing sizes.
In the days of film, I did not ask or look forward to a new film emulsion every year.
Current m4/3 do the job of capturing images well enough for most needs (except for the documentary part I mentioned earlier)

As such, the slower moment of the sensor is 'good'.
Less to look forward to on camera bodies, and more focus of the money on lenses, more about just taking pictures (or keep in the bank)
A used EPL1 or GF1 at $350, with as good image qualities as a new EPL2 or 3.
I rather like that.

Unfortunately, this is a very competitive environment, and Olympus cannot expect its competitors to stay still, least of all Panasonic which is pushing the segment pretty hard.

 

[st3v4nt]

It wasn't mega pixel race that I worried about olympus slow pace...but rather about olympus breakthrough in technology that can please existing and new user of m4/3....

 

[Mr Khaw]

Four Thirds wont last long. Its a world of its own and no way to expand. If it expands out of four third, they will be killing the thing they tried to promote.

 

[NazgulKing]

It wasn't mega pixel race that I worried about olympus slow pace...but rather about olympus breakthrough in technology that can please existing and new user of m4/3....

There was no breakthrough in the latest round of Pens in the area of image quality. We would have to be really hoping very very hard for a jump in image quality next.

 

[theITguy]

All out war

Fired Olympus President Met U.K.

Fired Olympus Corp. (7733) President Michael C. Woodford said he met with the U.K.’s Serious Fraud Office to request an investigation of payments made by the Japanese company to advisers in a 2008 acquisition.