CHAPTER-1

INTRODUCTION & LITERATURE

REVIEW
 INTRODUCTION – DAIKIN
Technology and People Driving Foresight
In May 2014, Daikin, a global company with No. 1 sales in the global air conditioning industry,
held a ceremony and reception in Osaka to commemorate the 90th anniversary of its founding.
A stirring taiko drum performance kicked off the reception, and 41 guests attending as
representatives of Daikin companies from around the world took center stage. The
representatives entered the venue in alphabetical order from Australia to Vietnam with placards
and large flags leading them. The scene reminded many of the opening ceremony at the
Olympic Games and reinforced the global nature of the Daikin Group. Daikin Industries, Ltd.,
which started as a small factory with 15 people, including the president, has transformed into
the world’s leading air conditioner and fluorochemicals manufacturer with operations in 145
countries and 82 manufacturing sites. Leveraging this growth, the company has achieved
annual net sales of ¥1.915 trillion and employs 60,013 people worldwide on a consolidated
basis (fiscal 2014). Of these sales, 74%, or ¥1.416 trillion, is generated overseas, and non-
Japanese employees comprise 80%, or 48,115 people, of its workforce. Daikin has become a
truly global company.
Over its 90 years of history, Daikin has achieved its most impressive growth in the last 20 years
after the current chairman, Noriyuki Inoue, first assumed the presidency. In particular, the last
10 years have seen the company aggressively execute its strategy of global expansion.
President Masanori Togawa reflected upon this during the anniversary ceremony: “Growth of
the Daikin Group has been the result of Chairman Inoue’s visionary management in which
decisions are swiftly made by quickly detecting changes, continually taking on challenges, and
repeatedly taking action.” He continued, “Furthermore, our growth has been supported by the
capabilities we possess as seen in our foundation of creating unique technologies as well as in
our People-Centred Management that draws out motivation and acceptance from employees
and establishes an environment in which potential is maximized.”
As an impartial outside observer of Daikin, I am intrigued:
What is the true nature of this visionary management in which Daikin takes pride? What lies
beneath this People-Centred Management which forms its basis? These management
methodologies and philosophy can be called Daikin’s DNA, but how have they been
transferred to overseas Group companies and what has Daikin Industries done in Japan to pass
down its DNA to the next generation?
Let us try to unlock the secret behind Daikin’s rapid growth by listening to employees from the
Daikin Group companies describe their work and experiences during the breakneck expansion
seen in these past 10 years of global M&A.

Anxieties and Surprises of the Acquired Company

How is Daikin’s management style, which values the trust and culture of its overseas Group
companies and practices People-Centred Management, seen in other countries and what are
the views of people who work in its Group companies?
Daikin Airconditioning Central Europe GmbH (DACE), which is a sales company located in
Austria, ranked fourth in the country in April 2013 on the Best Workplace list (in the
category of companies with 50 to 250 employees). This is a ranking conducted by the Great
Place to Work Institute headquartered in the United States and is active in over 40 countries
throughout world. The ranking is based on questionnaires to employees and an investigation
of company profiles, culture, and human resources systems.
DACE won high acclaim as being a workplace “where teamwork 4 n Prologue: Global
Daikin The 90-Year Story of Daikin Industries n 5 and camaraderie can be felt, managers
trust and delegate work to employees, all members feel a sense of participation regardless of
title, and employees have confidence in the company’s products and services.” Karin Scasny,
senior manager of DACE’s HR and General Affairs Department, observes, “We realized that
the People-Centred Management we practice has been vindicated by the high praise received
from external organizations. This has made us very happy. Employees, more than anyone
else, are proud of this honor.”
What underlies Daikin’s working environment and pleasant working atmosphere at Group
companies is the mindset of People-Centred Management, as described by the senior
manager of HR and General Affairs at DACE. Having an international organization honor
activities carried out by Daikin and its Group companies can be said to be proof of global
recognition of People-Centred Management.
Nonetheless, employees of the acquired companies must have had initial reservations about
Daikin, particularly concerning People-Centred Management, and they must have had some
anxieties toward a Japanese multinational company exhibiting such sudden and rapid growth.
Martin Krutz, who was president at the time DACE was ranked in the list of Best Workplace,
knows this from experience. His former company was acquired by Daikin. Klimex, a
medium-sized HVAC company in Austria, was purchased by Daikin in 1999 when he was a
sales manager.
Klimex had been a Daikin distributor, so Krutz was familiar with People-Centred
Management. When his company was actually acquired, however, certain anxieties crossed
his mind. “Employees of the acquired company have many questions. I was anxious about
what would happen in my future. I don’t want to hear bad news, but if I know what is
happening tomorrow, I can overcome the nail-biting somehow. We become nervous and
worried when treated only to uncertainty.”
However, once Daikin acquired his company, he experienced the exact opposite of his
reservations. Senior managers from Daikin Europe came to Klimex and made a point of
clearly stating Daikin’s intention, “We want all of you to continue working for the company.
We hope this is acceptable with all of you. You will stay, won’t you?”
The company became a Daikin subsidiary and was renamed DACE. Krutz, who became
senior manager in charge of sales, realized that working for a global company brings about a
feeling of security from the perspective of having stable employment. Seven years later in
2006, McQuay Italy, the company where Claudio Capozio served as COO in charge of
Europe and the Middle East, became a Daikin Group company after its parent company,
O.Y.L. Industries Bhd., was acquired by Daikin. Capozio respected and regarded Daikin’s
HVAC technology as the best in the world and had wished someday to become a member of
Daikin as an engineer. When his dream came true, one would think he was overjoyed, but
this was not the case. Award ceremony for the Great Place to Work (2013)
6 n Prologue: Global Daikin The 90-Year Story of Daikin Industries n 7
“When my company was acquired, I harbored conflicting feelings—a positive feeling of
relief along with anxiety over whether everything would work out or not. On one hand, I was
happy knowing that I would be able to learn Daikin’s technologies, which I respected, and on
the other, I knew nothing about Japanese companies, not to mention Daikin. American
companies tend to get rid of people after an acquisition, and so we were all concerned that
Daikin would be the same.”
But Caposio’s anxieties were also swept away. “Daikin is different. We discovered that
Daikin’s behavioral pattern is absolutely different from those of American companies.” What
was unexpected when his company became a Daikin subsidiary was its ability to become a
part of the Daikin family in such an exceptionally short period of time. “This was possible
because of the people at Daikin, but we also had a strong desire to work hard as a member of
the Daikin Group.” Not only Capozio, but all the employees at McQuay Italy were happy.
“Daikin is a well-known company and lives up to its management philosophy of valuing its
employees and its business strategies. Now none of us can imagine working at any other
place than a company under the Daikin umbrella.”
Capozio started working for McQuay Italy in 1980. Its parent company, U.S. McQuay was
acquired by Snider General in the United States. Capozio left the company detesting Snider’s
investor-driven culture and worked for a small Italian HVAC company. Later on, because
OYL bought McQuay, he returned to McQuay Italy, which had then been acquired by
Daikin. Therefore, he worked under several bosses of different nationalities, including
German, French, American, English, Malaysian, and Chinese bosses. His last boss was
Japanese. He reflected on his experiences in saying, “I learned from each one of my bosses.
The Americans are quick in making decision, very open, fair and impartial or, another way to
put it, value transparency. On the other hand, Europe, Italy, and Japan have long histories and
established ways of doing things, so it is not that easy to move forward.
“Each country has its differences and above all, I still believe that Japan’s culture is
completely foreign to us.” “For a European coming from outside to understand Japanese
culture is at first difficult. But once understood, the integrity and strength of Japanese culture
is compelling. Japanese people have a predisposition to insist on what you might call
sophistication or preciseness in things. Of all cultures that I have known, I believe Japan has
the most sophisticated, although it is absolutely different from any other. Japan has earn the
respect of the entire world and is fully worthy of that respect. Working in a Japanese
company is an ideal way to wrap up my career for me.” To the eyes of Capozio, who has seen
many top leaders from various countries, what surprises him greatly is the fact that elderly
leaders take command at the frontlines.
“Young managers typically become the driving force of substantial reforms at other
companies but at Daikin, the top leaders, such as Chairman Inoue and Mr. Yamada (Senior
Executive Officer), are not young. Their management style, however, is extremely young,
almost as young as a 35-year-old American manager. Managers, as they grow older, cannot
help but become adverse to risk and conservative. Meanwhile, Daikin’s top management is
more forward-minded than any other I have ever experienced. This is a noteworthy feature of
Daikin.”
Practice of People-Centred Management in China
The success of Chinese employees at Daikin is striking. They 8 n Prologue: Global
DaikinThe 90-Year Story of Daikin Industries n 9 have responded to the trust Daikin has
placed in them and are practicing People-Centred Management at bases throughout China.
The most prominent example of this is Fang Yuan, who plays an active role as director and
vice president of Daikin (China) Investment and associate officer of Daikin Industries in
Japan. Fang joined the Shanghai Office when it opened in May 1994 and has been a member
of Daikin since the start of the China business. In 2001, Ken Tayano, president of Shanghai
Daikin at the time, asked Fang to be the general manager of the Guangzhou Branch. Fang’s
heart jumped, because even though it was a branch office, it was an unexpected opportunity
for a Chinese national to become a leader at a Japanese company. On the other hand, he also
felt pressure from the weighty responsibility of being the first local general manager. Tayano
smiled and reassured him, “The Guangzhou Branch continues to post a deficit every year.”
To which he added, “It can’t get any worse, so just go and don’t worry about pressure.”
Fang went to Guangzhou in high spirits but was taken aback when he got there. Facing a
mountain of red ink and inventory, the employees had lost their motivation. In Shanghai, he
had been a senior sales executive, but he had no experience in business management.
“Chairman Inoue taught me about management,” says Fang, and he came to rely on People-
Centred Management.
To increase employees’ sense of belonging, he told them that each of them was a leading
player and that the company was a family. He thought, “Top management shouldn’t be the
only ones awake at night worrying. Everyone should lose sleep thinking about getting results
and having work delegated to them. This becomes the power to achieve growth.” Then he
promoted employees who had good sales performance and encouraged unmotivated
employees to quit. He did this to make employees understand that employees could grow
with the company and people who worked hard would be rewarded, while people who did not
would be weeded out. To enhance employee awareness of participating in management, he
held management committee meetings once a month with the general managers of each
division. He drafted the annual policy after holding discussions and having salespersons
present targets for it. In addition, he adopted his own HR policy of reviewing appointments
each year to create a sense of urgency among senior managers.
These measures based on People-Centred Management started lifting employees morale, and
the 2 million RMB deficit that he had inherited when he assumed the position turned into a 5
million RMB profit by the end of the year. Inventory was cleared away in three months.
Looking back, Fang comments, “It’s not that they didn’t have the capacity, but rather they
were not able to demonstrate their potential.”
People-Centred Management, the ability to implement it in earnest, putting trust in
employees, and knowing the importance of having a sense of belonging... all of these things
were part of the transformation. The Daikin Chinese employees, especially the leaders,
unanimously say the same thing. Their superiors trusted them, delegated important work to
them, and gave them credit for the results of their hard work. Because they have experienced
People-Centred Management firsthand, understand and accept it, they are believers.
Practicing People-Centred Management in the United States
Daikin made efforts to infiltrate People-Centred Management also in Group companies in the
United States. While respecting different culture of places where it develops business, the
concept underlying 10 n Prologue: Global Daikin The 90-Year Story of Daikin Industries n
11 People-Centred Management, which is Daikin’s fundamental philosophy, needs to be
understood by all Group companies. Among the companies in the O.Y.L. Group which
Daikin acquired, some are American companies. Of all the companies, American Air Filter
International (AAF), based in Louisville, Kentucky, was the company that was the most
enthusiastic about introducing People-Centred Management.
Darren Allsop, COO of the company reflects on that time, “When we became a member of
the Daikin Group, we were, at first, not able to understand how People-Centred Management
differed from past management approaches. The Power & Industry (P & I) business unit to
which I belonged is a group of engineers and is an organization that places people at the
center, evaluates individual expertise, competency, and experience. So what we heard our
employees say on People-Centred Management was: This is something we are already
practicing.” (Daikin Times, Spring 2012) After discussions were repeatedly held and
employees responded to questionnaires on concrete items concerning the Daikin’s
management philosophy, however, results showed that several items, including
communication, development of human resources, and a sense of belonging, fell short of
expectations.
Recognizing the difficulties in practicing People-Centred Management (PCM), AAF initiated
activities aptly named PCM. With both Daikin Industries in Japan and O.Y.L. fully
supporting this initiative as a test case of the Group, a project team comprising 10 people
from various departments in AAF began organizational reform through PCM activities. The
focal point of the activities was “a relationship based on mutual selection, in which the
company and the individuals are equals.” To be a company that is selected, AAF made efforts
to improve its work environment and enhance communication, and it provided opportunities
to ensure that employees could see their contributions to company development. As for HR
development, AAF improved its conventional training program that employees had had little
interest and changed it to reflect the opinions of its employees. As a result, increasingly more
people participated in training programs and set their own stretch goals. Subsequently, the
ratio of people participating in the training also improved.
Because of these activities, AAF received the Investors in People Silver Award, an
accreditation for being an excellent company in developing people, in November 2010 from
the Institute of Personnel and Development in the United Kingdom and the Gold Award in
April the following year. Furthermore, in July 2011, Daikin Industries was bestowed the
“Best Employers for Workers over 50 Award” by the U.S. based American Association of
Retired Persons (AARP), the world’s largest support organization for people over 50 years of
age. This is an award in recognition of achievements that include:
“development and deployment according to specialty and individual attributes,” “provision of
flexible work conditions such as shorter working hours and three-day workweeks for those 60
years of age Award ceremony for Best Employers for Workers Over 50 (2011) (DIL Senior
Executive Officer Yoshiyuki Uemura pictured holding trophy)
12 n Prologue: Global DaikinThe 90-Year Story of Daikin Industries n 13 and older,” and a
“rehiring rate for retired employees aged up to 65 years old and wishing to work that exceeds
80 percent.” AARP selects 50 companies annually from the United States, and 15 companies
and organizations from around the world to present this award. Daikin was the first Japanese
company to receive it.
“By meeting individual expectations on HR development and work environment, companies
will be able to elicit loyalty from and grow together with each employee. When the direction
of the company and people are aligned and they commit to each other, a driving force for
growth and development is generated to take the lead over other companies,” says Allsop,
whose confidence has further increased in PCM.
There is also a person who joined the Daikin Group because he identified with People-
Centred Management from the outset. He is Cliff Adams, currently a colleague emeritus of
Daikin Industries and advisor of Daikin America, Inc (DAI). The company Adams worked
for in the past became a target for acquisition and was visited by both an Italian company and
Daikin. Adams still remembers today the first thing that Yutaka Kometani, a Daikin board
member, said at the time: “Daikin is a company that truly values people.” His former
company was ultimately acquired by the Italian company and Adams, who disagreed with a
management philosophy that was at the other extreme of Daikin’s, left the company in 1991
to join DAI as general manager of the Decatur Plant. Soon after joining the company Adams
came to Japan as a member of the KAF Preparation Office which was established for Daikin
to start up a chemical plant in the United States. He worked at the Yodogawa Plant for
approximately seven months. For Adams, the work approach at the plant was a new
experience. Adams was strongly individualistic and was not thrilled to work in a team. In the
KAF Preparation Office, he expressed his response to a problem with confidence but other
members, one after another, voiced opinions that were equally as good, if not better. Counter
arguments ensued. After intense discussions, one solution gradually became identified as the
best. Adams reflects on that experience, “I felt the importance of working in a team, rather
than working alone. I was able to reach a higher level exceeding my previous bests because
of my experience with Daikin, for which I am grateful.”

HISTORY
Founded in Namba, Osaka, in 1924, Daikin Industries began as a town factory with no more
than 15 employees, including the president. Thirty-five years later in the late 1950s just after
I joined the company, Daikin had grown to become a manufacturer employing 3,000 people
and handling both air conditioners and refrigerants. By the time the company welcomed the
90th anniversary of its founding in 2014, Daikin had transformed into a global company
operating in 145 countries and employing over 60,000 people. Capital had expanded at 85
billion yen, and the company had become the global No. 1 in sales of air conditioning
equipment.
The driving force of Daikin growth has been strategic planning that stays a half-step or a step
ahead of the times through management with foresight followed by employee initiative in
Introduction which employees fearlessly take action at the workplace. Especially in the past
10 to 20 years, Daikin has grown and developed by making bold decisions from new
perspectives that cast aside past successes; by establishing innovative strategies such as
global expansion and open technology; and by having these strategies implemented through
the concerted efforts of employees.
Since its founding, Daikin has always been a company that has not only valued people but
has made people its focus. Founder Akira Yamada strongly encouraged conciliation and
cooperation inside the company saying “a company is like a ship,” and Minoru Yamada, the
third Daikin president, said, “A company is made up of people eating from the same pot and
sharing the same fate.” With the approach of our founder and his son as my touchstone, I
pressed management forward with deep appreciation for the dynamism and boldness
generated by providing opportunities to people with passion and desire to challenge
themselves and by giving these people room to grow. Work was entrusted to them based on a
management philosophy that believes in the inherent goodness of people and their infinite
potential. Policies were implemented to allow a culture recognizing diversity to take root in
the organization while enabling employees to fully demonstrate their capabilities and have
employee efforts linked to results.
This type of corporate culture that Daikin has cultivated over its many years of corporate
activities could be said to be, in a manner of speaking, Daikin’s DNA, but conveying the true
significance of that culture in one word is indeed difficult. In this book People. At the heart of
our DNA, we have collected a series of narratives centred on practical examples that describe
the footprints of the gruelling struggle of countless senior colleagues beginning with our
founder, the difficult management decisions such as M&A, partnerships, and alliances during
the past 20 years, the cooperation engineers demonstrated to clear the difficult issues for new
product development, and the progress made to expand in overseas markets with little
understanding of the local language. Within that, we can see just how Daikin employees
demonstrated the full extent of their capabilities.
To our employees of the Daikin Group, I hope you gain from these testimonials an
understanding of the essence of the Daikin Group DNA: namely, management with foresight
and People-Centred Management. With a firm understanding of this, I ask that you
continuously impart that same spirit to those following in your footsteps. To all shareholders,
business partners, and distributors, I hope this book provides useful insight into our corporate
culture.
Noriyuki Inoue
Chairman of the Board and
Chief Global Group Officer
 PROFILE

Vision

 To be India’s most preferred air conditioning company

Mission

 To contribute to the society by providing the most advanced

air-conditioning solutions
 To ensure continuous customer satisfaction
 To establish Daikin Brand as a brand of trust and confidence,
which our customers and channel partners believe in.

Daikin India

Daikin Airconditioning India Pvt. Ltd. ( DAIPL) is a 100%

subsidiary of Daikin Industries Ltd., Japan, a global leader in
the manufacturing of commercial-use and residential air
conditioning systems. Backed by the superior technology, the
organization offers a wide range of energy efficient air
conditioning solutions to the Indian customers. It has been
successfully offering premium air conditioning solutions in
the Indian market for large-scale projects. Robust growth is
forecasted in India’s air-conditioning market in the future and
Daikin intends to further increase its market share of
residential and large-scale projects
The profile contains critical company information including:
Business description – A detailed description of the company’s operations and business divisions.
Corporate strategy – Analyst’s summarization of the company’s business strategy.
SWOT Analysis – A detailed analysis of the company’s strengths, weakness, opportunities and
threats.
Company history – Progression of key events associated with the company.
Major products and services – A list of major products, services and brands of the company.
Key competitors – A list of key competitors to the company.
Key employees – A list of the key executives of the company.
Executive biographies – A brief summary of the executives’ employment history.
Key operational heads – A list of personnel heading key departments/functions.
Important locations and subsidiaries – A list and contact details of key locations and subsidiaries of
the company.
Detailed financial ratios for the past five years – The latest financial ratios derived from the annual
financial statements published by the company with 5 years history.
Interim ratios for the last five interim periods – The latest financial ratios derived from the
quarterly/semi-annual financial statements published by the company for 5 interims history.
Highlights

Daikin Industries Ltd (Daikin) is a manufacturer of air conditioners and refrigerants. It provides a
wide range of products and technologies related to air-conditioning, refrigeration systems, oil
hydraulics, defense systems, chemicals, and other electronics. The company’s air conditioners are
widely used in residential, commercial, and industrial applications. Daikin also offers chemical
products such as fluoroplastics, chemical engineering machinery, fluorocarbons and fine chemical
products. The company offers industrial hydraulic equipment and machinery, mobile hydraulic
equipment, components for guided missiles and oxygen therapy equipment. It operates in Asia,
Africa, Oceania, the Americas, Europe and the Middle East. Daikin is headquartered in Osaka, Japan.

Daikin Industries Ltd Key Recent Developments

Oct 15,2018: Daikin Announces first U.S. supermarket retrofit of R-22 to Creard R-407H Refrigerant.
October 15, 2018Daikin America has partnered with TOPS Friendly Markets LLC to complete the
first refrigera tion conversion of a U.S. supermarket from R-22 to Creard R-
Oct 03,2018: Certificate of Appreciation from Indonesian Government for Forest Conservation
Activities on the Island of Java
Oct 03,2018: Certificate of Appreciation from Indonesian Government for Forest Conservation
Activities on the Island of Java
Sep 06,2018: TOPC : Changes in Faribault: $40.3 million expansion planned for Daikin[TDN
Alerts : Others]

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 CHAPTER-2
RESEARCH OBJECTIVES &
METHODOLOGY
2.1 What is research?
Research comprises "creative and systematic work undertaken to increase the stock of
knowledge, including knowledge of humans, culture and society, and the use of this stock of
knowledge to devise new applications." It is used to establish or confirm facts, reaffirm the
results of previous work, solve new or existing problems, support theorems, or develop new
theories. A research project may also be an expansion on past work in the field. Research
projects can be used to develop further knowledge on a topic, or in the example of a school
research project, they can be used to further a student's research prowess to prepare them for
future jobs or reports. To test the validity of instruments, procedures, or experiments,
research may replicate elements of prior projects or the project as a whole. The primary
purposes of basic research (as opposed to applied research) are documentation, discovery,
interpretation, or the research and development (R&D) of methods and systems for the
advancement of human knowledge. Approaches to research depend on epistemologies, which
vary considerably both within and between humanities and sciences. There are several forms
of research: scientific, humanities, artistic, economic, social, business, marketing, practitioner
research, life, technological, etc.
Research has been defined in a number of different ways, and while there are similarities,
there does not appear to be a single, all-encompassing definition that is embraced by all who
engage in it. One definition of research is used by the OECD, "Any creative systematic
activity undertaken in order to increase the stock of knowledge, including knowledge of man,
culture and society, and the use of this knowledge to devise new applications." Another
definition of research is given by John W. Creswell, who states that "research is a process of
steps used to collect and analyze information to increase our understanding of a topic or
issue". It consists of three steps: pose a question, collect data to answer the question, and
present an answer to the question. The Merriam-Webster Online Dictionary defines research
in more detail as "studious inquiry or examination; investigation or experimentation aimed at
the discovery and interpretation of facts, revision of accepted theories or laws in the light of
new facts, or practical application of such new or revised theories or laws"

2.2 Forms of research

• Original research
It is research that is not exclusively based on a summary, review or synthesis of earlier
publications on the subject of research. This material is of a primary source character. The
purpose of the original research is to produce new knowledge, rather than to present the
existing knowledge in a new form (e.g., summarized or classified).Original research can take
a number of forms, depending on the discipline it pertains to. In experimental work, it
typically involves direct or indirect observation of the researched subject(s), e.g., in the
laboratory or in the field, documents the methodology, results, and conclusions of an
experiment or set of experiments, or offers a novel interpretation of previous results. In
analytical work, there are typically some new (for example) mathematical results produced,
or a new way of approaching an existing problem. In some subjects which do not typically
carry out experimentation or analysis of this kind, the originality is in the particular way
existing understanding is changed or re-interpreted based on the outcome of the work of the
researcher. The degree of originality of the research is among major criteria for articles to be
published in academic journals and usually established by means of peer review. Graduate
students are commonly required to perform original research as part of a dissertation.
• Scientific research
It is a systematic way of gathering data and harnessing curiosity. This research provides
scientific information and theories for the explanation of the nature and the properties of the
world. It makes practical applications possible. Scientific research is funded by public
authorities, by charitable organizations and by private groups, including many companies.
Scientific research can be subdivided into different classifications according to their
academic and application disciplines. Scientific research is a widely used criterion for
judging the standing of an academic institution, but some argue that such is an inaccurate
assessment of the institution, because the quality of research does not tell about the quality of
teaching (these do not necessarily correlate).
• Research in the humanities
It involves different methods such as for example hermeneutics and semiotics. Humanities
scholars usually do not search for the ultimate correct answer to a question, but instead,
explore the issues and details that surround it. Context is always important, and context can
be social, historical, political, cultural, or ethnic. Historians use primary sources and other
evidence to systematically investigate a topic, and then to write histories in the form of
accounts of the past. Other studies aim to merely examine the occurrence of behaviours in
societies and communities, without particularly looking for reasons or motivations to explain
these. These studies may be qualitative or quantitative, and can use a variety of approaches,
such as queer theory or feminist theory.
• Artistic research
It also seen as 'practice-based research', can take form when creative works are considered
both the research and the object of research itself. It is the debatable body of thought which
offers an alternative to purely scientific methods in research in its search for knowledge and
truth.
• Historical research
The historical method comprises the techniques and guidelines by which historians use
historical sources and other evidence to research and then to write history. There are various
history guidelines that are commonly used by historians in their work, under the headings of
external criticism, internal criticism, and synthesis. This includes lower criticism and sensual
criticism. Though items may vary depending on the subject matter and researcher, the
following concepts are part of most formal historical research.
• Identification of origin date
• Evidence of localization
• Recognition of authorship
• Analysis of data
• Identification of integrity
• Attribution of credibility
2.3 Steps in conducting research
Research is often conducted using the hourglass model structure of research. The hourglass
model starts with a broad spectrum for research, focusing in on the required information
through the method of the project (like the neck of the hourglass), then expands the research
in the form of discussion and results. The major steps in conducting research are:
• Identification of research problem
• Literature review
• Specifying the purpose of research
• Determining specific research questions
• Specification of a conceptual framework, sometimes including a set of hypothesis.
• Choice of a methodology (for data collection)
• Data collection
• Verifying data
• Analyzing and interpreting the data
• Reporting and evaluating research
• Communicating the research findings and, possibly, recommendation
Most research begins with a general statement of the problem, or rather, the purpose for
engaging in the study. The literature review identifies flaws or holes in previous research
which provides justification for the study. Often, a literature review is conducted in a given
subject area before a research question is identified. A gap in the current literature, as
identified by a researcher, then engenders a research question. The research question may be
parallel to the hypothesis. The hypothesis is the supposition to be tested. The researcher(s)
collects data to test the hypothesis. The researcher(s) then analyzes and interprets the data via
a variety of statistical methods, engaging in what is known as empirical research. The results
of the data analysis in rejecting or failing to reject the null hypothesis are then reported and
evaluated. At the end, the researcher may discuss avenues for further research. However,
some researchers advocate for the reverse approach: starting with articulating findings and
discussion of them, moving "up" to identification of a research problem that emerges in the
findings and literature review.

2.4 Research methods

There are two major types of empirical research design: qualitative research and quantitative
research. Researchers choose qualitative or quantitative methods according to the nature of
the research topic they want to investigate and the research questions they aim to answer:
• Qualitative research
This involves understanding human behaviour and the reasons that govern such behaviour, by
asking a broad question, collecting data in the form of words, images, video etc. that is
analysed, and searching for themes. This type of research aims to investigate a question
without attempting to quantifiably measure variables or look to potential relationships
between variables. It is viewed as more restrictive in testing hypotheses because it can be
expensive and time-consuming and typically limited to a single set of research subjects.
Qualitative research is often used as a method of exploratory research as a basis for later
quantitative research hypotheses. Qualitative research is linked with the philosophical and
theoretical stance of social constructionism.
• Quantitative research
This involves systematic empirical investigation of quantitative properties and phenomena
and their relationships, by asking a narrow question and collecting numerical data to analyse
it utilizing statistical methods. The quantitative research designs are experimental,
correlational, and survey (or descriptive). Statistics derived from quantitative research can be
used to establish the existence of associative or causal relationships between variables.
Quantitative research is linked with the philosophical and theoretical stance of positivism.
The quantitative data collection methods rely on random sampling and structured data
collection instruments that fit diverse experiences into predetermined response categories.
These methods produce results that are easy to summarize, compare, and generalize
Quantitative research is concerned with testing hypotheses derived from theory or being able
to estimate the size of a phenomenon of interest.

2.5 OBJECTIVES OF STUDY

TO STUDY THE IMPACT OF GST ON TEXTILE INDUSTRY.

2.6 RESEARCH DESIGN

A detailed outline of how an investigation will take place. A research design will typically
include how data is to be collected, what instruments will be employed, how the instruments
will be used and the intended means for analysing data collected.

TYPES OF RESEARCH DESIGNS

a. Exploratory Research: Just as the word implies, it explores, that is to find out about
something by answering the question in “what” or “How” manner.
b. Descriptive Research: This is a more in-depth research that answered the question
what and how.
c. Explanatory Research: This seeks to explain the subject matter being researched and
tries to answer the question what, how and why.
 d. Evaluation Research: This is quite extensive as it measures the effectiveness of a
program

IN THE PRESENT STUDY DESCRIPTIVE RESEARCH DESIGN IN USED.

2.7 SAMPLING

Sampling is a process used in statistical analysis in which a predetermined number of

observations are taken from a larger population. The methodology used to sample from a larger
population depends on the type of analysis being performed but may include simple random
sampling or systematic sampling.

TYPES OF SAMPLING TECHNIQUES

Probability Sampling – Uses randomization and takes steps to ensure all members of a
population have a chance of being selected. There are several variations on this type of
sampling and following is a list of ways probability sampling may occur:

 Random sampling – every member has an equal chance

 Stratified sampling – population divided into subgroups (strata) and members are
randomly selected from each group
 Systematic sampling – uses a specific system to select members such as every
10th person on an alphabetized list
 Cluster random sampling – divides the population into clusters, clusters are randomly
selected and all members of the cluster selected are sampled
 Multi-stage random sampling – a combination of one or more of the above methods

Non-probability Sampling – Does not rely on the use of randomization techniques to select
members. This is typically done in studies where randomization is not possible in order to
obtain a representative sample. Bias is more of a concern with this type of sampling. The
different types of non-probability sampling are as follows:

 Convenience or accidental sampling – members or units are selected based on

availability
  Purposive sampling – members of a particular group are purposefully sought after
 Modal instance sampling – members or units are the most common within a defined
group and therefore are sought after
 Expert sampling – members considered to be of high quality are chosen for participation
 Proportional and non-proportional quota sampling – members are sampled until
exact proportions of certain types of data are obtained or until sufficient data in different
categories is collected
 Diversity sampling – members are selected intentionally across the possible types of
responses to capture all possibilities
 Snowball sampling – members are sampled and then asked to help identify other
members to sample and this process continues until enough samples are collected

2.8 DATA COLLECTION

There are two types of data Primary Data and Secondary Data →

1 .Primary Data → Raw data or primary data is a term for data collected at source. This type
of information is obtained directly from first hand sources by means of surveys, observations
and experimentation and not subjected to any processing or manipulation and also called
primary data. Example- Questionnaire etc.

2. Secondary Data → It refers to the data collected by someone other than the user i.e. the
data is already available and analysed by someone else. Common sources of secondary data
include various published or unpublished data, books, magazines, newspaper, trade journals
etc.

IN THE PRESENT STUDY PRIMARY DATA HAS BEEN COLLECTED USING

QUESTIONNAIRE.

2.9 STATISTICAL ANALYTICAL TOOLS

Data was analysed with the help of MS EXCEL, Pie Charts & graphs in this study
 CHAPTER-3
DATA RATIO ANALYSIS &
INTERPRETATION
3.1 Daikin Industries Ltd (6367) - Financial and Strategic SWOT Analysis
Review

- provides you an in-depth strategic SWOT analysis of the company’s businesses and
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Business description – A detailed description of the company’s operations and business
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Corporate strategy – Analyst’s summarization of the company’s business strategy.
SWOT Analysis – A detailed analysis of the company’s strengths, weakness, opportunities
and threats.
Company history – Progression of key events associated with the company.
Major products and services – A list of major products, services and brands of the
company.
Key competitors – A list of key competitors to the company.
Key employees – A list of the key executives of the company.
Executive biographies – A brief summary of the executives’ employment history.
Key operational heads – A list of personnel heading key departments/functions.
Important locations and subsidiaries – A list and contact details of key locations and
subsidiaries of the company.
Detailed financial ratios for the past five years – The latest financial ratios derived from
the annual financial statements published by the company with 5 years history.
Interim ratios for the last five interim periods – The latest financial ratios derived from the
quarterly/semi-annual financial statements published by the company for 5 interims history.

3.3 Highlights
Daikin Industries Ltd (Daikin) is a manufacturer of air conditioners and refrigerants. It
provides a wide range of products and technologies related to air-conditioning, refrigeration
systems, oil hydraulics, defense systems, chemicals, and other electronics. The company’s air
conditioners are widely used in residential, commercial, and industrial applications. Daikin
also offers chemical products such as fluoroplastics, chemical engineering machinery,
fluorocarbons and fine chemical products. The company offers industrial hydraulic
equipment and machinery, mobile hydraulic equipment, components for guided missiles and
oxygen therapy equipment. It operates in Asia, Africa, Oceania, the Americas, Europe and
the Middle East. Daikin is headquartered in Osaka, Japan.

Daikin Industries Ltd Key Recent Developments

Oct 15,2018: Daikin Announces first U.S. supermarket retrofit of R-22 to Creard R-407H
Refrigerant. October 15, 2018Daikin America has partnered with TOPS Friendly Markets
LLC to complete the first refrigera tion conversion of a U.S. supermarket from R-22 to
Creard R-
Oct 03,2018: Certificate of Appreciation from Indonesian Government for Forest
Conservation Activities on the Island of Java
Oct 03,2018: Certificate of Appreciation from Indonesian Government for Forest
Conservation Activities on the Island of Java
Sep 06,2018: TOPC : Changes in Faribault: $40.3 million expansion planned for Daikin[TDN
Alerts : Others]

Key benefits of buying this profile include:

You get detailed information about the company and its operations to identify potential
customers and suppliers.
The profile analyzes the company’s business structure, operations, major products and
services, prospects, locations and subsidiaries, key executives and their biographies and key
competitors.

Understand and respond to your competitors’ business structure and strategies, and capitalize
on their weaknesses. Stay up to date on the major developments affecting the company.
The company’s core strengths and weaknesses and areas of development or decline are
analyzed and presented in the profile objectively. Recent developments in the company
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Equip yourself with information that enables you to sharpen your strategies and transform
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Opportunities that the company can explore and exploit are sized up and its growth potential
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Financial ratio presented for major public companies in the profile include the revenue trends,
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Gain key insights into the company for academic or business research.
Key elements such as SWOT analysis, corporate strategy and financial ratios and charts are
incorporated in the profile to assist your academic or business research needs.

Note: Some sections may be missing if data is unavailable for the company
3.4 DATA RATIO ANALYSIS & INTERPRETATIONS
 FINDINGS

Talking about good thing first. Daikin AC offers Coanda airflow in which the blade
swings upward, precluding cold air from directly hitting the users head sitting in the air-
conditioned room. Another big advantage with Daikin AC is their air purification
system. It is arguably the best in the business. They employ a lot of technologies from
streamer discharge to silver particle, from titanium filter to PM 2.5 filter to make sure
the dispersed air is pure and odor-free. In fact, their air filtration system is
acknowledged by National Asthma Council. R22 refrigerant a hydro chlorocarbon
(HCFC) which results in ozone depletion is being completely avoided in the new
models from Daikin. So, for all the present day new models, you will only find Daikin
ACs either with R32 or R410 refrigerant. These refrigerants have zero ozone depletion
potential. Finally, usage of the copper condenser in all new ACs is another big plus for
Daikin as the condenser made of aluminum are pretty difficult to repair and have
durability issues.

Non-availability of windows AC is where Daikin seems to lose some prospective Indian

customers as still there are families which would prefer windows AC over a split AC.
Though most of the ACs from Daikin comes with an inverter technology, dual inverter
technology used in LG is better and slightly more energy efficient. Also some models
from Daikin have a lower operating temperature of 46oC which make them ineffective
in peak summers in some cities with high temperatures in India. So do make sure that
you check the operating temperature before you buy a Daikin.
 LIMITATIONS

first disadvantage is it it will not work proper as it works in initial days and the second
thing is it doesnt cool up suddenly

it takes approximately 10 minutes or above .

second thing you have to be known is to be is its sounds like a vehicle moving in
highway road but it is at the starting time only I think it is not a big problem .

I think its major disadvantage is it don't work for up to its efficiency for 3 years [repeat
use only]

comparing to other ACs for this prize I think it is the best one . it is satisfactory for people
who doesn't use for longer times
 RECOMMENDATIONS

1. Filter Cleaning
When the filter inside the air conditioner is obstructed, intake air amount decreases, while the
amount of electricity necessary to cool the room increases.

 Cleaning the filter once every two weeks is recommended.

 Clean filter of dust by washing with water or using a vacuum cleaner.
 When extremely soiled, wash in lukewarm water with detergent and dry in a shady place away
from direct sunlight.
 For models with an automatic cleaning function, use this function to clean the filter.

2. Cleaning of Cooling Fan (Heat Exchanger)

Cleaning not only the filter but also cleaning the cooling fan （heat exchanger） in the back is
effective for keeping electricity consumption low.

 Before cooling season begins , confirm that cooling fan is clean.

 If the dirt of the fan is noticeable, contact your local distributor.
 CONCLUSION

Daikin is an established air conditioner brand which adopts the state-of-art technologies and
components. Desistance from the usage of R22 refrigerant, aluminum condenser, and
production of windows AC is the testimony of that. Daikin is a fast-growing AC brand in India
with growth rate being around 20-22%. Efficient cooling with the ease of installation makes
Daikin one of the respected brands even in the global air conditioning market.

Premium Daikin ACs come with a smart human sensor which detects when someone is actually
in the room and adjusts automatically to save on energy. Coanda 3D airflow delivers thorough
cleaning without being concentrated only in the line of air swing. The 2-in-1 models take care
of chilly winters by reversing the AC operation to make the room warm. Stabilizer-free
operation and auto-restart shields the AC from vagaries of power cut and makes sure AC
resumes with its operation smoothly after the power cut without hampering the pre-set
settings. Inverter technology makes sure the ACs deliver the optimum cooling with precision
being 0.5oC. So, if you are someone who wants a durable AC coming with a good purification
system and only prefer copper condensers, then Daikin would be an ideal choice. Similarly,
Daikin should be your preferred brand if your abode is close to water bodies like a lake, river,
sea etc or near the industrial area where the discharge of harmful gases and fumes is recurring.
Because Daikin’s Anti Corrosion series is specifically designed to protect the ACs from the
harsh environment.
 BIBLIOGRAPHY

 https://www.google.co.in/search?sxsrf=ACYBGNQoLN14sAeZ1fq5e4XYl-
otFoEzCw%3A1573551835206&source=hp&ei=237KXffFCoL5rQHW7ajQCw&q=daikin+c
ompany+history&oq=da&gs_l=psy-
ab.3.0.35i39l2j0i67l8.1480.2407..4400...0.0..0.150.417.0j3......0....1..gws-
wiz.....10..35i362i39j0j0i131.YT-2gtbprfY
 https://en.wikipedia.org/wiki/Daikin
 https://www.daikinindia.com/about-daikin/daikin-india
 https://www.referenceforbusiness.com/history2/34/DAIKIN-INDUSTRIES-LTD.html
 https://www.daikin.com/investor/financial/