Originally posted by monochrome I agree entirely - that is exactly what he did and why he was hired, because we like him. I like Ned just from his sociability and accessibility. It feels like he is one of us.
Which is precisely why he shouldn't be the CEO. At a time like this the CEO by definition must be an Executive Officer who manages managers from the distance of the corporate office. Ned should be managing the person who steps forward and explains what is going on, in a way that is empathetic, yet not overly revealing.
Because he is one of us Ned must either break his compact with us (the prices are what the prices are and don't complain about it) or break his compact with Ricoh (the prices are what they are for a few months until we can clean up the retail channel, then here's what we're going to do for you . . .)
Neither response works - damned if he does and damned if he doesn't - so he needs to make a list over Easter weekend. What a thankless, horrible position to be in.
When I criticize Pentax _USA - and from time to time express criticism of JC and NED it is really criticism of Hoya for putting them in the position they are in.
Huh?
Unilateral pricing is probably worldwide for Pentax. It's called unilateral in the US for reasons related to the Colgate lawsuit.
Likely Ned has limited mess with which to react to pricing issues as the cost structures are overseas. His main job is probably to monitor the currency/inventory ratio, warranty, and keeping the channel happy.
It is Ricoh in Japan who are likely insisting on a per unit margin regardless of where product is sold.
It is likely that a worldwide [ricing scheme is going to have some major wrinkles as new stock and old stock collide, and retailers say their piece by jacking prices in response to heavy-handed pricing from Tokyo.
Guess what? People will stop buying, volumes will drop, ad Tokyo will alter its practices. For the "right now dammit" consumer, this is a big deal. But for a company that thinks QtQ, it's something that is an issue at the next Board meeting.
I have no idea what Ricoh's plans are for Pentax. Ricoh appears to be happy as a (very) niche seller of high-margin cameras and has scrupulously avoided margin wars with Canon, Nikon, Sony, Olympus, Panasonic, etc. in the camera arena. They were like that in the film camera biz as well and were one of the few companies to make a decent transition to digital without losing their heads (Yashica, Konica, Minolta, etc.). Perhaps this is the first salvo in that strategy. It is hard to say.
One thing about Ricoh is that it is a *very* Japanese company in its focus. The company appears to be a home market/away market setup as far as I can tell. I bet Ned's comments to head office in Japan are courteously y listened to, and then all discussion are done behind closed doors in Tokyo.