Philips versus Matsushita: The Competitive Battle Continues 1) The major issues in this case are as follows: * Choosing the best organizational design; restructuration/ reorganization of multinational corporations: Philips and Matsushita.
Philips: Problematic relation between product divisions (PD) and national organizations (NO)- responsibility issue, lower speed of reaction; NO had the real power and independency (power struggle issue)
Matshushita- difficulties with too centralized organization * Improving control systems: Lower morale among middle management caused by cutting costs and layoffs policy as well as by standardization (ignoring new worldwide market demands for more segmented products and higher consumers’
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Opportunities: Usage of licensing, potential of adaptive product-market strategy, emerging markets’ presence
Treats: Competition from emerging markets and Japan especially in consumer electronics
7) My suggestion:
When it comes to Philips I would definitely suggest differentiation among products lines. There is necessity to define what are the organizational core value products and the ones, which are not-core products. I would invest in R&D, because without it Philips is loosing its competitive advantage that was its strong point. There is also necessity to divide responsibilities between national organizations and product divisions. They have already decreased number of PD, which I perceive as a good move. In my opinion they should also invest in training, maybe team-building, something to increase the cooperation between managers from NO and PD.
If we take into consideration Matshushita’s (Panasonic’s) current market position I would suggest them further development of R&D as well as decentralization, however to some point. They do admire Philips’ structure but they do not know how problematic can become managing organization if it is decentralized like Philips.
8) Alternative option: There is plenty alternative options presented in the case. Each CEO tried to pursue it’s own vision, but they did not work well, however Philips could as well concentrate its operations mostly on licensing, but in my opinion they already
By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the
My recommendation is for the company to stay focused on its main competitive advantage of supplying a
3.1.10. Management and Leadership ................................................................................. 8 Context Analysis ............................................................................................................ 8 Competitors and Industry Analysis .............................................................................. 11 Key Competitors ................................................................................................... 13 Market segmentation and target market group ..................................................... 16 Customer Analysis ....................................................................................................... 14 Collaborators ................................................................................................................ 17
As mentioned the author attempted to accomplish the above goal through a field study where the management control systems on a restaurant chain was assessed. That being said in order to determine if the motivation of the article was achieved is to analyze the
Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).
For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
Without efficient resource allocation & lack of communication between R&D and Brands, the conflict between departments generated in following steps. Even more, each steps make overall inefficient resource management.
The performance of each company is different from time to time based on their two different international strategies. Philips, for instance, showed poor struggles between national organizations and product divisions since there was no centralized decision –making terminal. In the end, the national organizations held the power because they were in control of the assets. Being in control of assets, the national organizations had more influence on the management team. Also the lack of clarity between the two’s responsibilities did not allow Philips to function effectively as a whole. They did have one thing going for them though. Philips was able adapt to changing markets based on their localization strategy. They
CompuCo is attempting to move from a domestic producer to that of an international producer. In order to achieve this feat, the company must have an international focus in regards to its overall business operations. It is quite apparent from the case, that CompuCo does not have the will or desire to be proactive with its international subsidiaries. In order to achieve greater international success, Dr. Durand must first alter the company culture. First, all international subsidiaries should be treated as a primary business irrespective of their individual performance. It seems, through reading the case, that much more emphasis is placed on French product development and applications that is given to its international counterparts. This is a detriment to business as many of CompuCo's international customers have differing tastes and sentiments in regards to product offerings. The case cites numerous examples of this between both French and American consumers. French consumers, for example, like to read product manuals and prefer complexity over simplicity. Their American counterparts however prefer ease of use, and a simple design. The company was slow to discern these changes in consumer demands and elected instead to emphasize its French product design. This created consumer ill-will and
The Daniel Gill, the chairman and CEO faces the possibility of changing the organizational structure of Europe, Asia/Pacific, and the Western Hemisphere. The current organization includes an International Division which oversees production and marketing for countries outside the United States. The goal of changing the organizational structure of these three regions is to increase sales growth internationally and decentralize responsibility away from headquarters to field operations.
Wilfred Livingston the president of Crosby Manufacturing Corporation had called a meeting with the department managers to resolve the problem they have with their management cost and control systems (MCCS). In order to update the current MCCS and to increase the company’s
New Product Development : the aggressive investment strategy into R&D division led to speed in releasing new products in the market. This gave the company higher ROI returns projections. The faster cycle of innovation led to multiple product availability in the market which led to further increasing the gap between them and the competitions and also the company indulged in manufacturing self brand products rather than Co-branded or Partnerships.
The purpose of this paper is to analyze a case study related to issue of control and how organizations can utilize different approaches of control in order to improve quality and performance in all arenas, domestic and global. The focus of this case revolves around Lincoln Electric, an Ohio based company that has set the bar for how to develop and implement a successful management system. This paper will use the Lincoln Electric case analysis to present recommendations on how managers can use control methods to enhance employee performance, increase employee participation and empowerment, and improve organizational quality in
The main differences between Matsushita and Sony’s products are that, Matsushita product line is more involved in the household appliances market as it is the world leader in this category, while Sony strives to be the globe’s technological leader and has a product line that is driven by advanced consumer electronics. “While companies such as Matsushita concentrates on being customer intimate, Sony has differentiated itself by focusing on product leadership.” Matsushita is the largest home appliances and household equipment (HAHE) producer in the world. Some of Matsushita’s products include: microwave ovens, refrigerators, irons, fax machines, air compressors, automatic washers and dryers, vacuum cleaners, air
This paper analyzes the problems facing SMA: Micro-Electronic Products Division (A) as requested by Guido Spichty, vice president and general manager. After a rough period in 2008, sales are finally back up but the company is still facing a time of high competition, low morale, lack of confidence, trust, and coordination. Divisions are constantly arguing with each other, which is affecting sales and profits. Key managers feel Spichty is not involved enough in the day-to-day operations. Some feel he does not listen to their problems and does not have the ability to face conflict. There are several solutions to remedy these problems facing MEPD, which would