Listen to Wisdom - The Secret Skills of Top CEOs in the World

Author: Jia Bao / Country: Mainland China
Publisher:
Publish Date: 2006-07-01
Features:
Chapter 2: Masaharu Matsushita, the renowned founder of Panasonic, a Japanese electronics company, was an entrepreneur, philanthropist, and author. He was a recipient of Japan's highest medal, the Grand Cordon of the Order of the Rising Sun, and held numerous honorary titles such as "Patriarch of the Financial World," "Father of Japanese Electronics," and "God of Business." However, his childhood was exceptionally difficult. Due to poverty, he attended only three years of primary school before leaving for Osaka to become an apprentice. At the age of 16, he worked at an electric lamp factory, and before turning 20, he briefly attended Kansai Business School. Afterward, he began independently establishing a small workshop and embarked on the arduous path of entrepreneurship. In 1918, he founded the Matsushita Electric Manufacturing Works; by 1935, it had expanded into Matsushita Electric Industrial Co., Inc., with Matsushita himself appointed as its general manager. After World War II, thanks to Matsushita's adept business acumen, the company rapidly grew into a global powerhouse, ranking among the top in Japan in terms of annual revenue. In 1965, he was awarded an honorary doctorate in law by Waseda University. He authored works such as On the Philosophy of Life and My Dream, Japan's Dream, Japan in the 21st Century. He passed away in 1989 at the age of 96.
Wisdom (2): CEO's Words on Starting from Scratch
When facing setbacks, do not lose hope but instead summon courage to steadfastly move toward your predetermined goals. Solutions will naturally arise. If one can focus their mind entirely and concentrate with unwavering dedication, they can hear the blessings of heaven descend at this very moment. I advise everyone to maintain mental tranquility and determination. Do not let minor setbacks diminish your resolve. In this way, nothing in the world is beyond achievement.
While the prayers of ordinary people may vary, they generally revolve around material benefits: some pray for happiness, others for health, and some for financial prosperity. No one, however, prays for additional hardships and toil from the gods. Thus, it was natural for people at the time to find Matsushita's prayers for seven trials and eight tribulations puzzling. I believe that Matsushita's prayers for such hardships were intended to test and motivate himself through adversity.
— Masaharu Matsushita
Matsushita spent over six years as an apprentice. By the 1920s, Japan had already developed its electrification industry. Many households and shops in Osaka had installed electric lights, and the city was fully equipped with tram tracks. These innovations captured Matsushita's attention, and he sought to become involved in this burgeoning field. First, he joined Osaka Electric Light Company as an inside wireman, later becoming a full-time technician and even taking on apprentices. Due to his excellent performance, his supervisor allowed him to work as a professional inspector. Inspectors primarily reviewed the quality of engineering projects undertaken by technicians within the company. Compared to production work, this role was considerably less demanding and highly regarded by clients, making it a sought-after position that many envied.
However, after working as an inspector for a few months, Matsushita began to feel a sense of loss and gradually lost his earlier enthusiasm for the job. He found himself spending more time chatting at the office or wandering around aimlessly, growing increasingly dissatisfied with his routine. "I'm doing well, and others are satisfied with me. But is this all I'll ever do?" he questioned himself. After much deliberation, he decided to quit his job and start manufacturing electric lamp sockets to sell to the company.
Creating even small sockets proved challenging. First, he faced a lack of funds—his savings amounted to only 100 yen, accumulated over years of apprenticeship, barely enough to buy a machine or tools. Next, he needed manpower. His newly married wife and sister helped, along with two additional workers, bringing his team to five people in total. For the location, he gave up his rented home and rented a larger but cheaper one in the suburbs, which served as both housing and a workshop. These issues were resolved, but the bigger challenge lay in technology. None of the five were experts, so they relied solely on passion and hard work.
The outer casing of the power sockets was made of synthetic materials, but they didn't know the exact composition. Matsushita sought information and learned that it was roughly made of asphalt, asbestos, and talcum powder. They began experimenting but failed repeatedly. The problem was the incorrect ratio of materials. Just when they were at their wit's end, Matsushita heard that a former colleague, T, was also researching similar products. He traveled to Tokyo to seek advice. T admitted that his attempts had not yielded ideal results but shared some ideas. After exchanging thoughts, Matsushita realized that their methods were very close to the correct process—they just needed a key insight. They resumed their experiments and finally succeeded in producing qualified products.
"Finally, we've made it! Let's sell them quickly," urged his new wife. Matsushita, though confident in his products, now felt uncertain: Would they sell? Where would he sell them? How would he price them? A series of new questions troubled him. Among the five, a young man named Iida was particularly enthusiastic. He volunteered to take some samples to Tokyo to see electric appliance dealers and find out how much they would pay and who might buy them. Matsushita agreed.
After several days, Iida returned, dejected. "It's very difficult to sell! I've never faced such a tough challenge." He then reported the details: One dealer made him wait for a long time before dismissing him without even looking at the products; another asked irrelevant questions like, "How many people work at your factory? What materials do you use? If you have other products, we might order some." None of it was related to actual sales. Disheartened by the news, everyone felt discouraged, but Matsushita remained determined. Since they had already come this far, he couldn't give up now. He decided to personally go door-to-door to sell the products. After weeks of effort, he managed to sell over 150 units and recouped part of the costs.
What next? Based on customer feedback, Matsushita believed the sockets needed further improvement. But where would the funds come from? The months of trial production had already exhausted their savings, even making it difficult to afford food. The two hired workers decided to quit, leaving only Matsushita, his wife, and sister. At this point, Matsushita was unsure what to do. To continue meant facing immense challenges; to give up meant abandoning his efforts, which he found deeply unsatisfying.
However, by his mid-twenties, Matsushita had already endured over a decade of hardship. He was no longer easily discouraged. After more arduous efforts, on March 1928, Matsushita finally hung a sign outside his home: "Matsushita Electric Appliance Manufacturing Works." From then on, "Matsushita Electric" entered a new chapter.
Matsushita had no formal education in advanced philosophical thought, but his life, work, and entrepreneurial experiences shaped his character, values, and spirit. Starting with the production of electric fan bases, he gradually developed his unique business philosophy: serving the people by creating abundant, continuously updated products to make life more convenient and fulfilling. Guided by this belief, over the decades, Matsushita Electric produced tens of thousands of home appliances—double-ended light plugs, battery-powered lamps, electric irons, rice cookers, radios, record players, air conditioners, refrigerators, video recorders, bicycles, telephones, televisions, and more—truly establishing itself as the "Kingdom of Electronics." Matsushita also became the true "God of Business."
Looking back at the growth of Matsushita Electric, it is evident that Masaharu Matsushita himself had immense confidence and hope in the electrical industry. It was precisely this unwavering spirit that allowed Matsushita to face any setbacks, failures, or misfortunes with resilience, ultimately achieving invincible success.
P35-38