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## Business Reorganization 

As the business environment becomes ever more demanding and less forgiving, Toshiba is determined to devise an operational frame- work that provides management direction for the overall Group, while supporting individual businesses facing different circumstances and different requirements. A comprehensive review of our operations has made it clear that the time constraints, business cycles and particular demands that our in-house companies face are growing increasingly diverse. In response, we have adopted a four-fold approach to reor- ganization: the integration of in-house companies with Group companies, complete autonomy where it will enhance efficiency, full independence to pursue alliances and collaboration with other com- panies, and freedom to adopt a particular management style or organization to reinforce strength and operations. 

As a result of this approach, the Display Devices & Components Com- pany, e-Solutions Company, Medical Systems Company and Home Appliances Company have all been spun off and integrated with Group companies, and are now developing new operating structures. 

## Introducing Business Groups 

As already noted, Toshiba needs an organization that provides a clear direction. To that we must add the need for faster, more reso- lute decision-making. In pursuit of this, our structural reforms include the establishment of business groups that bring together those operations with similar time constraints and growth rates. Each group comprises several in-house companies and Group com- panies, and will develop the management approach best suited to its businesses. 

As a result of the above measures, the pace of management deci- sion-making will be significantly accelerated and the management 

