분야
docx1. How did Matsushita succeed in displacing Philips as No. 1? What were its distinctive competence and incompetency?
2. What do you think of the change each company has made to date – the objectives, the implementation, the impact? Why is the change so hard for both of them?
[Philips]
Van Reimsdijk, Rodenberg and Dekker (1971 - 1987)
Van der Klug (1987 - 1991)
Timmer (1991 – 1996)
Boonstra (1996 – 2001)
Kleisterlee (2001 - )
[Matsushita]
Yamashita & Tanii(1982 - 1992)
Morishita(1993 - 1999)
Nakamura(2000 - 2005)
Ohtsubo(2006 - )
3. What recommendations would you make to Gerald Kleisterlee? To Eumio Ohtsubo?
To Kleisterlee, Philips
To Ohtsubo, Matsushita,
Philips has set up its organization to change from national focused company to globally efficient company by adapting lots of traits to move forward product focused firm. It has been putting an effort to restructure its firm to downsize and get rid of inefficient business units. However, the process was not toward strategically considered decision which usually refers to revisiting core competence. Then deciding which division to eliminate comes next step. As of now, it somehow successfully finished its restructuring process but took long time to establish current system. It reveals that the change has not been always good change and it actually is pretty difficult to downsize whereas diversifying is easier choice.
Matsushita started from strongly product focused firm to achieve economic of scale and scope in its domestic market. Founder’s spirit to achieve outstanding production system has led to success in establishing efficient system. It helped firm to go global, however, international expansions has brought many different issues for Matsushita to overcome. Especially relationship between head quarters and subsidiaries was usually to-down decision making relationship which led to frequent conflicts between head quarters and subsidiaries. Technology transfer and respond to local needs were not sufficient enough. Firm has tried many different methods to overcome its product division focused structure to spread its system over globally. But its change did not necessarily meet local market needs. In addition, economic crisis on Japanese economy had huge negative impact for Japanese companies to downsize its firm size and restructure. Following summaries indicate more in detail about how CEOs of each companies at different era tried to transform its company.
[Philips]
Philips’s decentralization had started since 1919 when Philips broadened sales organization and product line. The Great Depression forced Philips to build local production facilities and
