The animation industry in Japan originated with Toei Animation, which has produced a large number of capable artists. Although Toei Animation experienced financial difficulties, from the mid-70s to the early 80s, the company succeeded in managing its financial recovery using a large-scale merchandising strategy. The management of Chiaki Imada, the company president during this period, was investigated. Although Imada determined the character of Toei Animation during his service, his influence over the company has not been studied sufficiently. Based on accounting information, Imada’s speeches during his lifetime, and new interviews with his polices, Imada’s administration was analyzed from his original perspective. The results showed that Imada’s basic policy was flexibility. This policy not only led to new sources of earning, but his magnanimous attitude also created a steady work environment, which established a solid foundation for the development of Toei Animation. The long presence of this company in the precarious animation industry suggests many instructive cases.