America: My Time

Chapter 883 Morita Akio’s doubts

Chapter 853 Morita Akio’s doubts
"Damn it, those guys at Toyota are really patient. They haven't contacted me again. Do they have a new plan and don't need my help anymore? Or are they just too greedy to give me any benefits?" After waiting for a long time without receiving a reply from Toyota, Akio Morita felt a little nervous. After all, Sony wasn't having an easy time either. The huge loan was making it hard for him to breathe. He no longer had the arrogant and conceited attitude he used to have.

With the bursting of Japan's real estate bubble, Sony is burdened with substantial debt and losses, a problem that cannot be resolved quickly. Hopes for assistance from Toyota seem unlikely; with the collapse of the Japanese economy, everyone is struggling, including Toyota. If it weren't for the relatively strong gaming market, Sony's situation would be precarious. The North American acquisitions were a significant burden, and with the additional acquisitions now underway, losses this year are inevitable—the only question is how much. This is the consequence of its reckless expansion.

However, for Akio Morita, acquiring the convenience store business was the right thing to do. At least the convenience store business was developing very smoothly and had a steady stream of cash flow, which could become a profitable department for Sony. But other acquisitions were not like that, especially the investment in real estate, which resulted in huge losses. They really lost everything, and many projects were put on hold.

Looking back at John's decision now, although he didn't profit from the high prices, he managed to extricate himself perfectly, without being greatly affected by the real estate bubble. If there was any impact, it was only that the value of some of his real estate holdings depreciated, but there were no problems with his business operations.

"Why is John, this little fox, coming to Japan at this time? Is it for an acquisition or something else?" Akio Morita pondered John's question after berating Toyota. In fact, this was something all of Japan's top management wanted to know. However, before John made his move, they needed to be cautious. He was a Wall Street tycoon, and someone with substantial loans in Japanese banks; nobody knew what he was up to.

"Riko, what's the situation with Naoko? And is there any progress on Nakamori Akina's matter? What are those Sumitomo guys doing? What is Sanwa doing?" Soon, Akio Morita asked Riko. Riko was the one who helped handle some things in the entertainment field, especially matters related to John.

"Naoko won't be back anytime soon. She needs to go to France in a while. As for Akina, there's still no result. Ken-on is still waiting, perhaps for Akina's decision, or perhaps for Mr. John's attitude. But this matter is getting bigger and bigger, and Ken-on probably won't be able to hold out for long. As for other things, it's too chaotic. With the bursting of the real estate bubble, everyone is in chaos."

This is the current state of affairs in Japan. Chaos is the true nature of all conglomerates. They didn't pay attention to John immediately because they were struggling to protect themselves and had too many things to deal with. Every conglomerate has a mountain of problems. After all, greed is human nature. Under the lure of profit, those guys stepped into the stock market and real estate bubbles. These successive problems have directly plunged them into chaos from which they cannot extricate themselves.

"You're keeping an eye on Akina Nakamori's situation; there should be results soon. Also, try to find out more about John's situation. He couldn't have come to Japan just for a woman; he must have other plans!"

Akio Morita was also helpless in the face of this crisis in Japan. If Sony had not expanded in real estate and had not frantically acquired those assets, it would not be in its current state. However, he was powerless to stop it now, as it was an inevitable trend that no individual could resist.

While Akio Morita was making arrangements, Lee Boo-jin, accompanied by Hitomi Kuroki, had already begun her investigation, gaining a thorough understanding of the 7-Eleven convenience stores in Japan. She was surprised to learn that although 7-Eleven had suffered significant losses, it was remarkably stable and without any major problems. If there was any issue, it was that its coverage area was somewhat small; it didn't have its own physical stores, everything was franchised, and the headquarters were leased. In terms of assets, it had almost nothing, but its potential was considerable. At least its core team was quite strong, and most importantly, it was profitable, and with substantial profits.

"Why is this happening? Wasn't it said that 7-Eleven in Japan was severely damaged after selling its assets? How is it maintaining such unexpected profits now?" Lee Boo-jin asked Kuroki Hitomi, feeling puzzled by Japan's situation. She could accept other 7-Eleven stores, but it was hard to understand why Japan, despite suffering a major blow, was still able to persevere and even make a decent profit.

"I'm not entirely clear on all of this, but profits have indeed been increasing in recent months. Perhaps this is related to the overall economic situation in Japan. More and more restaurants are closing down, and people are increasingly opting for convenient, low- to mid-range consumption. This is true almost throughout Japan. I don't know how long this situation will last. If it continues like this, even more businesses will go bankrupt, and the unemployment wave will become even more severe. Currently, many restaurants and high-end venues in Tokyo are in trouble, and even nightclubs have been affected. You can imagine how serious the situation is in Japan right now." Lee Boo-jin nodded thoughtfully. Although Kuroki Hitomi's words were still quite plausible, attributing everything to economic problems, it also made her understand the true state of Japan's economy. It seemed that Japan couldn't recover in a short time, which explained why John valued Japan so much.

The consumption of a large number of middle and lower-income people is not a small amount. If this market segment is controlled, the impact would be enormous. This made her understand why Japan's strategy is different from that of South Korea, Hong Kong, and even Taiwan.

Today, 7-Eleven convenience stores have gradually caught up with their previous numbers in the Tokyo metropolitan area. However, most of these stores were established after the stock market crash, and more so in the last few months. Although the market in the Tokyo metropolitan area still exists, it is not large. Further expansion would affect their profits, making expansion inevitable.

"Are you sure? 7-Eleven is going to expand into Nagoya, Osaka, Sapporo, and Fukuoka. With such an expansion, can its supply chain keep up? You know, the supply chain was previously in our hands!" Upon learning of 7-Eleven's full-scale expansion, and that it was targeting the entire country of Japan, Akio Morita frowned. This was something he hadn't expected. He didn't understand why John had such confidence to let a novice do all this.

"That's right. It was Kuroki Hitomi who accompanied the other party to take over 7-Eleven. Dollar Tree will also be expanded. This news will be announced soon. 7-Eleven is currently selecting personnel for its four major divisions."

"He's trying to reclaim the convenience store market in Japan. There's really no need for this kind of expansion; he could just reacquire them. The current economic climate isn't great, and many convenience stores aren't doing very well. So why is John doing this?" Akio Morita couldn't quite understand John's decision. Acquiring stores is much faster than building them from scratch, and it allows for the rapid formation of a network.

"Could it be a problem with the real estate? Acquisitions require taking over the other party's real estate, and many convenience stores have debts. Although acquisitions can quickly complete the network layout, they will also increase the debt of the acquiring party. The current 7-Eleven convenience stores have no debt, so the pressure of expansion is not too great for them. Moreover, expanding at this time can also make the 7-Eleven brand more popular, after all, the reputation of 7-Eleven convenience stores has not disappeared."

Riko's words made Akio Morita look at her in a new light. He had to admit that after following him for so long, her abilities had indeed improved; she could see through so many things, and reputation was indeed important. However, he couldn't do that with his convenience stores right now. He didn't have enough funds to maintain their expansion. Most importantly, Akio Morita didn't value the convenience stores' profits; after all, the profits were still pitifully small, with most going towards loan repayments.

"That's possible, but that's not important. What's important is the attitude John is expressing to the outside world. He's coming with goodwill in his investment, and that's what everyone's most concerned about. At least it can put some pressure on the officials. After all, he's a Wall Street tycoon. Don't be fooled by his lack of activity; he's always had a proven track record. With such a Wall Street tycoon arriving at such a sensitive time, do you think people won't be worried?"

Akio Morita's words prompted Riko to nod thoughtfully. The current economic climate in Japan was extremely unfavorable; a hostile takeover might not be difficult, but a well-intentioned investment was a different story. However, even understanding John's goodwill, Akio Morita still didn't want to take the initiative or contact John directly. He worried that John might try to reclaim those assets, especially the game company.

Akio Morita is overthinking it. John has no intention of taking back those assets, nor does he want to acquire or sell the game companies. What he wants is not those things, but talent—Japanese scientific research talent. He wants to use the strength of these Japanese talents to complete his new round of strategic planning, particularly in the semiconductor and materials fields.

(End of this chapter)