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Philips vs Matsushita

Satisfactory Essays

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’ …show more content…

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

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