The turning point of Xerox dates back to 1979, when Mr. Kearns took a close look at the strategies and products of Fuji Xerox and other Japanese companies. Xerox engineers were surprised by Fuji Xerox`s rejection rate for parts, which was a fraction of the U.S. rate, and the much lower production costs of the joint venture. During visits to Fuji Xerox facilities, Xerox executives were introduced into the “benchmarking” practice, which systematically tracks costs and performance in all sectors of operations compared to the best in this field. Xerox`s own calibration studies have helped encourage Kearns` efforts to revitalize his organization with new vision and determination. Perhaps because of the need to obtain the “correct” structure for the alliance, it took a year for companies to negotiate the X.I.P. agreement. From the beginning, the aim was to create a structure that would encourage cooperation. Mr. Marcus, who was responsible for these negotiations, explained his philosophy: “I am not a fan of management, but of the organization.
An agreement must be self-policeman. The negotiating teams worked hard, he noted, “A lot of smart people were fighting in all the alleys to look for future problems. We spent our time considering all the questions on the “what if” topic. We have dismantled the agreement and re-enter the agreement. Because of this research, it should be pretty smooth. In all of these arguments, we have maintained a long-term vision. Fuji Photo Film was a manufacturer of photographic films that took second place in this field after Kodak. With a turnover of $90 million in 1962, it was about the size of Xerox, although it did not grow as fast. The company has tried to diversify its business away from silver photography and has already experimented with xeeriography and its clear text technology. Yet Fuji Xerox — not Fuji Photo — has been granted exclusive rights to xerographic patents on its territory under the Xerox-tier agreement. (5) Fuji Xerox announced on Sunday that it would not renew its agreement, giving Fuji Xerox control over Xerox`s sales in the Asia-Pacific region. With the end of the partnership, Fuji Xerox will also have the right to use the Xerox brand on its devices: the new provision has also helped Fuji Xerox improve its capabilities more quickly.
Tommy Tomita, a Fuji Xerox planner, summed up the company`s impact in 1993: “X.I.P. threw Fuji Xerox into a new arena. Today, we can adopt Canon through the discipline we have learned from the U.S. market. X.I.P. helped us understand the need for low-cost engineering and showed us how to meet the needs of our customers. This proposed combination provides Xerox shareholders with significant cash capital in the financial statements and a significant interest in significant improvement of the combined business. Under the agreement, Xerox shareholders will receive a special dividend of $2.5 billion, or approximately $9.80 per share1, funded by the combined company`s balance sheet and holding 49.9% of the combined business at closing. The cash dividend represents more than 30% of Xerox`s unaffected share price, or $30.35 based on the closing price as of January 10, 2018. Fujifilm will own 50.1% of the combined company and provide significant operational support and transformational leadership.