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!