Philips vs Matsushita

Topics: Management, Organization, Multinational corporation Pages: 4 (972 words) Published: March 26, 2012
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’ needs) * Choosing the most fruitful coordination system as well as the best way to manage the knowledge. * Division of responsibilities between national organizations and product divisions * Lack of strong culture and common mission at Philips and strongly centralized structure at Matshushita. Protagonist: Senior executives of both companies

2) In my opinion the most important question raised but not answered by the case would be the one regarding how both companies eventually would improve coordination system and manage their knowledge.

3). The most important issues would be:

* Choose the optimal organizational design.
* Resolve conflict between NO and PD’ managers
* Finding better way to control and coordinate as well as manage the knowledge.

4) The relevant case considerations/information for each problem area: It seems that Philips was doing great when it concentrated on one product in one country. When the company started to broader its present to other geographical locations succeeding became more complicated. Issues:

* Extremely volatile portfolio, lack of well defined strategy * Shared but competitive leadership
* National Organizations (NOs) possessed real power, what diminish...
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