Download - Philips Vs Matsushita
A report of case“Philips vs. Matsushita”GROUP MEMBERS: JOIS JOSEPH JIANCHAO LI YINTIAN WU
PEIYAN HUANG YING GU
Outline
1. Introduction 2. Review 3. Analysis for Philips 4. Analysis for Matsushita 5. Conclusion & Recommendation 6. Q & A
Introduction & ReviewA NEW CENTURY, A NEW ROUND
Keywords
Electrical Industry
Development Factors
Co-operate Management
Competitive Environment
Philips Analysis SENSE AND SIMPLICITY
———— PHILIPS
Structure of Philips
Western culture —— Low-context culture
Individualism
Low power distance
Matrix organization structure
Problem: the loyalty problem —— sub company control and management
Alternative: Formulate new policy and introduce new company culture
Restructure the organization in order to increase control
Strategy of Philips
From 1898 to 1930’s Philips has devoted to:
Product R & D
Technology innovation
Market expansion
Strategy of Philips
Reorganizations From 1970’s to 1990
Van Riemsdijk and Rodenburg, 1970’s.
Wisse Dekker, 1982.
Van der Klugt, 1987.
Timmer, 1990.
Strategy of Philips
What did they do?
1. Close plants and factories.
2. Cut the production of some product type.
3. Dismiss a large amount of employees.
Strategy of Philips
Alternatives
1.Alter the company strategy into global strategy,
2.Diversify the company culture.
3.Efficient restructuring of the organization.
Matsushita Analysis IDEAS FOR LIFE
———— PANASONIC
Structure of Matsushita
Eastern culture —— High-context culture Collectivism High power distance
Divisional organization structure
Problem: decreased independent innovation abilities Alternative: encourage innovation and reform innovation
team of the subsidiary companies
Strategy of Matsushita
1.Global planning
2.Operration localization
3.Personnel localization
4.Over control
5.Local culture & communication & innovation function
Conclusion for both companies
“ALTHOUGH BOTH THE COMPANIES HAVE ENTIRELY DIFFERENT STYLE OF MANAGEMENT AND FUNCTIONAL OBJECTIVES, THE MANAGEMENT IS INEFFICIENT TO COPE UP WITH THE BALANCE BETWEEN THESE FACTORS.”
RecommendationsFOR THE FOLLOWING 5 YEARS
Philips
Culture Vision
Mission Goal
Philips
R & D department
Technology
Philips
Market research
Philips
Communication
Matsushita
Local & Expatriate
Matsushita
Marketing research
Political network
Matsushita
Authority
Q & AANY QUESTIONS ARE WELCOMED
Reference
The End THANKS FOR WATCHING!