Mitsubishi Ufj Financial Group Sun Zi’s Art of War & Business Strategies

1.0 Introduction

Mitsubishi UFJ Financial Group (MUFG) is the largest banking group in Japan. This company was headquartered in Chiyoda, Tokyo, Japan. MUFG was formed on October 1, 2005 that merged from the predecessor of Tokyo-based Mitsubishi Tokyo Financial Group (MTFG) with the title of Japan’s second largest banking conglomerate and Osaka-based UFJ Holdings, which was Japan’s fourth-largest banking group. Today, MUFG was chaired by Takamune Okihara as chairman and the President and Chief Executive Organization (CEO) was hold by Nobuyuki Hirano.

Mitsubishi UFJ Financial Group was positioned in the industry of financial and banking services. This company provided the services such as personal banking, corporate banking, investment management, wealth management, mortgage and credit cards services. The vision of MUFG is to “be the world’s most trusted financial group”. Besides, the corporate vision will also be the foundation for management decisions, including the formulation of management strategies and management plans, and will serve as the core value for all employees. Furthermore, the mission of MUFG is “to be a foundation of strength, committed to meeting the needs of our customers, serving society, and fostering shared and sustainable growth for a better world”.

In the financial industry, there may exist of many competitors. Then, the competitors for MUFG includes of Mizuho Financial Group which headquartered in Marunouchi, Japan and provides the services such as consumer banking, corporate banking, investment banking, global wealth management and financial analysis. Besides, the other competitor which is Sumitomo Mitsui Financial Group that located with similar headquarters of MUFG and the services provided also similar.

Market segmentation always was defined as the process of defining and subdividing a large homogeneous market into clearly identifiable segments having similar needs, wants, or demand characteristics. For MUFG can be differentiate deeply into several segments such as Integrated Retail Banking Business Group segment, Integrated Corporate Banking Business Group segment, Integrated Trust Assets Business Group segment and Integrated Global Business Group segment.

2.0 Applications

2.1 Detailed Assessment and Planning

From Chapter 1 Sun Zi Art of War, Sun Tzu said: “The conduct of war is a matter of vital importance to the nation.” It determines the survival or death of the country. It is a matter of life and death (of the people and their ruler). It must be studied and examined thoroughly.

Mitsubishi UFJ Financial Group (MUFG) applied the Sun Zi’s philosophies in implementing and deploying its business strategies. MUFG is one of the world's largest comprehensive financial groups, comprising a diverse range of leading companies in a wide array of financial businesses. MUFG provide effective execution in syndicated loan markets worldwide with a presence in world financial centers and an integrated team of experienced market professionals. MUFG group companies promote syndicated loan businesses globally, across the Americas, EMEA (Europe, Middle East and Africa), and Asia by offering a broad range of financial solutions.

Sun Zi stated that “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”

MUFG business strategy is to increase overall global financial strength and to contribute to the restoration of the Japanese market. Based on the largest customer foundation and world-wide network among Japanese financial institutions and their solid financial standing, MUFG target to enhance corporate value continuously by strengthening cooperation among Group companies, their retail/corporate divisions, and their domestic/overseas divisions

2.2 Strategic Attack

In Chapter 3 in Sun Zi’s Art of War, Sun Zi stated that “Know the other side, then know yourself. If you know the enemy and know yourself, you need not fear the result of a hundred battles.”

Organization should know their strength and focus on their strength in order to win in the competition. As a world-class comprehensive financial group, MUFG leverage the expertise of each MUFG group company to provide a robust portfolio of financial solutions, including banking, trust banking, securities, credit cards, and leasing. MUFG also offer a suite of products and services that provide financial solutions in the consumer and SME markets through strategic acquisitions and investment alliances.

MUFG are focused on their customer segments, it make every effort to refine the balance between risk and return to generate steady growth in bottom line results. Management control functions have been strengthened to increase capital efficiency, and continue to establish financially sound and globally competitive business platforms.

2.3 Forces

Sun Zi’s Art of War Chapter 5 stated that “the person adept at warfare is able to use indirect approaches, strategies and troops in such infinite ways like the ever-changing forces and elements of nature.”

MUFG announced the creation of a Governance Committee to advise the Board of Directors and an increase in the number of outside directors as measures to further strengthen its fair and high transparency corporate governance regime which stresses an external perspective.

MUFG created a Governance Committee composed of a majority of outside members, chaired by an outside director and reporting to the Board of Directors. The Governance Committee will be primarily composed of outside directors and outside experts and will deliberate on matters pertaining to the state of corporate governance, relevant policies and approaches. By advising and reporting to the Board of Directors the committee will work to improve the Group’s corporate governance.

Besides, from the perspective of advising, supervising and placing limits on directors who execute business throughout Group management, MUFG has made three of its 15 directors outside directors and non-executive directors with high independence from MUFG.

MUFG had formed The Risk Committee and elected a new outside expert, Kenzo Yamamoto. As the globalization of the Group's business progresses, by strengthening approach to governance and improving management framework, MUFG will continue to strive to realize corporate vision which is to be the world's most trusted financial group.

2.4 Weaknesses & Strengths

Chapter 6 of Sun Zi’s Art of War stated that “Defend places where the enemy dares not attack because the defence is so