N.V. Philips (Netherlands) and Matsushita Electric (Japan) are among the largest consumer electronics companies in the world. Their success was based on two contrasting strategies – diversification of worldwide portfolio and local responsiveness for Philips‚ and high centralization and mass production for Matsushita. Royal Philips Electronics of the Netherlands began as a small light-bulb factory in Holland‚ and by the turn of the century‚ was one of the largest producers in Europe. One-product
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organizational structure is embedded in its capabilities and competencies. The first obvious example is Matsushita’s highly centralized mode of production which dictates global operations unlike its competitor in the electronics market‚ a conglomerate‚ Philips‚ who has very little centralized mode of coordination. Matsushita’s management style was very traditional‚ since it was established. It is believed that they chose this form of structure and structure because of the nature of the market the organization
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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
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Case 4: Philips versus Matsushita: A New Century‚ a New Round Steve Kotarski MGT380 – Dr. Tang Case Synopsis Two major competitors in the global consumer electronics industry‚ Philips of the Netherlands and Matsushita of Japan‚ both have extensive histories that can be traced back more than a century. They have each followed different strategies and have had significant capabilities and downfalls along the way. In general‚ Philips built its tenured success on a portfolio of responsive
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Philips versus Matsushita Case Analysis Competing Strategic and Organizational Choices Erik F. Spear Lynelle C. Vidale Vannessa. D. Williams IMAN601‚ Section 9040 Dr. Mariana Feld November 2‚ 2010 Philips versus Matsushita Case Analysis Competing Strategic and Organizational Choices Introduction Royal Philips NV and Matsushita (owner of the Panasonic brand among others) are two of the world’s biggest electronics multinationals. After successfully building their global empires in
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and structures of Philips and Matsushita? What are their distinctive competencies and incompetencies? 2. What are the key organizational challenges that each company is facing at the end of the case? What recommendations would you give to the respective CEOs? 1. The two companies‚ each from different regions of the world‚ have an extensive history that have caused for different cultures‚ strategies and structures to be implemented (Bartlett & Beamish‚ 2010: 301). Philips‚ as an European
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Philips was founded by Gerard Philips and his father in 1892 in Eindhoven‚ Holland . Then‚ they recruited Anton Philips (Herard ’s brother)‚ an excellent salesman and manager‚ and soon after they became the third largest light-bulb producer in Europe. However from its beginning on it always took care for his workers. As an example in Eindhoven it built company houses‚ bolstered education‚ and paid its employees so well that other local employers complained. When larger electrical product companies
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followed by Philips and Matsushita. How and why do they differ? Philips and Matsushita had followed very different strategies. Philips adopted the localization strategy and built its success on a worldwide portfolio of responsive national organizations. On the other hand‚ Matsushita adopt the strategy of global standardization. The structure of the organization has been matrix based whereas Matsushita followed a more hierarchical structure. The management is more decentralized at Philips; that is
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Philips: Internal Strengths: * 1900 – Philips was third largest light bulb producer in Europe due to recruitment of Gerard Philips’ brother‚ an excellent salesman. (C85) * From the beginning‚ Philips developed a tradition of caring for workers. Built company houses in Eindhoven along with bolstering education and paying employees very well (C85) * Philips refused to diversify in the beginning‚ keeping a one-product focus and creating significant innovations (C85) * Became leader
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Problem Identification * How can Philips achieve a balance between centralization to achieve global integration and decentralization to achieve national responsiveness while maintaining their competitive advantage in the emerging global market conditions? - Does Philips’ business strategy provide for a global competitive advantaged - Are Philips’ core competencies still advantages? Hypothesis * Philips needs to simplify its structure through consolidation of product divisions and making business
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