Matsushita Strength Building Process Essay

846 words - 4 pages

3. Matsushita strength building process

In late 1980s, Matsushita had been able to take the opportunity from market changes and was successfully overtook Philips. As mentioned, the globalisation era shift electronics market competition from local fulfillment to global price competition. Compared to the Philips decentralized structures, the centralized Matsushita’s structure with its ability to respond to market opportunities enabled Matsushita to became global leader in this era.

Firstly, while Philips autonomous subsidiaries lowered their speed of reaction, the Matsushita ability to adopt the innovation supported by its centralised structure was providing significant productivity. As argued by Daft (2009), during the internationalisation companies usually still want to achieve ”common organizational goals”. However, it is difficult for them to choose between focusing on global standardisation or national responsiveness. Philips structure was geographic/product matrix with emphasis on the national responsiveness while Matsushita adapt the product matrix structure with power delegation to the subsidiaries. As illustrated in F During the period where forces for global integration are high and national responsiveness is low, Matsushita structure and mass production capabilities provides them advantages in delivering standardised low price product during that period.

Figure 1. Model to Fit Organisation Structure to International Advantages
Source: Roderick E. White and Thomas A. Poynter, “Organizing for Worldwide Advantage,” Business Quarterly (Summer 1989), 84–89. Adapted by permission of Business Quarterly, published by the Western Business School, the University of Western Ontario, London, Ontario, Canada.

The main strategic competence of Matsushita is efficiency, which resulted from its centralized organizational structure with localization operation strategy. The financial control, which reflected by the corporate treasury acted as a commercial bank that provides loan, triggered each product department to higher their efficiency. Matsushita also tries to maintain spirit of “hunger” by adapting “one-product-division” policy. Moreover, the internal competition that established from the historic routine was also its key advantage. Matsushita established “small business” environment that enabled them to maximise research on new products and further development of technology.

Matsushita also able to face the globalisation challenges by having control of their subsidiaries. According to Daft (2009), increased complexity and differentiation is one of the biggest challenges companies have to face during the process of globalization. To face this challenges, Matsushita established special entity called Matsushita Electric Trading Company (METC) to control the growing subsidiaries. The METC was accountable for supervising global sales and marketing as well as subsidiaries that produce broad product line. Other wholly owned single product global...

Find Another Essay On Matsushita Strength Building Process

Globalisation. Essay

1738 words - 7 pages decentralized their organizational assents and capabilities to allow foreign operations to respond to the differences that distinguished national markets. The following figure shows the characteristics of a multinational organization.A multinational organization is defined by these characteristics: a decentralized federation of assets and responsibilities, a management process defined by simple financial control system overlaid on informal personal

Strategy of international business Essay

2136 words - 9 pages cost economies are plant based. This is true for most learning effects as well as for the economies of scale derived by spreading the fixed costs of building productive capacity over a large output.Thus, one key progressing downward on the experience curve as rapidly as possible in ti increase the volume produced by a single plant as rapidly as possible. A firm that serve a global market from a single location is likely to build accumulated volume

Philips: A New Century, A New Round

1663 words - 7 pages effectively through its national organizations and the skill in developing cutting edge technologies. Philips' production process, in contrary to other competitor's strengths in low cost production and imitating existing technologies, could not be built up as a competitive advantage, but has rather been proven to be a stumbling block in history. In order to consolidate on its innovative mindset and strength of market globally as well as extend its

Change Management Theory

2000 words - 8 pages , (1996) outlines an actionable eight-step process for implementing successful transformations increasing urgency, building a guiding team, getting the right vision, buy-in positioning, empowering action and removing obstacles, creating a series of short-term wins, maintain a constant implementation vigilance, and maintain the changes (Shirvani, Dehaghani & Mossavi, 2013). Bridge’s Transition Model: According to Bridges and Mitchel, (2012), the

Newton´s Third Law of Motion

1756 words - 7 pages & Construction). It is importance that building structures have the ability to withstand the design load. Failure of structural load design can result in structural failure. All the properties of materials including strength, weight hardness and elasticity are to be determined in the design phase of the building process along with the structural calculations to ensure that the structure will withstand all applied forces and natural forces such as wind, rain

How Can Artificial Intelligence Help Us?

3108 words - 12 pages . Expert systems are primarily used as specialized problem solvers. The areas that this can cover are almost endless. This can include law, chemistry, biology, engineering, manufacturing, aerospace, military operations, finance, banking, meteorology, geology, and more. Expert systems use knowledge instead of data to control the solution process. "In knowledge lies the power" is a theme repeated when building such systems. These systems are capable of

Frederick Taylor and Management

2543 words - 10 pages publication in 1911 it was translated into French, German,Dutch, Swedish, Russian, Italian, and Japanese (Wren, 2011). There is no doubt that Taylor’s work is of great importance but how relevant is it to today’s modern management arena? According to Konosuke Matsushita founder of Sanyo, Technics and Panasonic “We are beyond the Taylor model. Business is now so complex and difficult…..survival depends on the day to day mobilisation of every ounce

Competency Traps

2519 words - 10 pages want leaders to be decisive, yet also contemplative. Such ambiguities and paradoxes are rarely captured in trait lists (Red and Bullis 20004)."In the personal field, competency trap may inhibit the success of top performers. This is because star performers get into a circle of confidence and they believe that "their insights are unique and rarely vulnerable (Jacobs 2005)." Consequently, the person can become arrogant in the process and fall into

Sony Corporation: Car Navigation Systems

7198 words - 29 pages system on the road. The Japanese market for car navigation systems was the world largest in 1995 with sales of 580,000 units and $840 million. Sony's competitors in Japan were Pioneer, Mitsubishi, Matsushita and Alpine.The European market stood behind the Japanese market for five years. The market began to develop when major companies like Bosch and Philips introduced products in Germany and France, which became Sony's competitors in Europe.In the

This essay is about Global Strategic Management.

2418 words - 10 pages slow.Matsushita is a good example of a company that followed a global strategy. This strategy resulted in:*Strong global distribution network*Company-wide mission statement that was followed closely*Financial control*More applied R&D*Ability to get to market quickly and force standards since individual country buy-in was not necessary.The global strategy presented Matsushita with the following challenges:*Problem of strong yen*Too much

Bhagavad Gita and Super Management.

6030 words - 24 pages song of the Spirit, song of the Lord. The Holy Gita has become a secret driving force behind the unfoldment of one's life. In the days of doubt this divine book will support all spiritual search.This divine book will contribute to self reflection, finer feeling and deepen one's inner process. Then life in the world can become a real education--dynamic, full and joyful--no matter what the circumstance. May the wisdom of loving consciousness ever

Similar Essays

Philips Vs Matsushita Essay

1738 words - 7 pages local specifics. Similar to Philips, corporate direct control over divisions gradually weakened. Central product divisions now monitored not the inputs, but measures of output, such as quality and productivity). As opposed to its rival, Matsushita's traditional strength was not innovation, but its ability to produce on mass scales at low prices. Matsushita has been known to let other companies pioneer a technology before coming up with cheaper

Philips And Matsushita Essay

3382 words - 14 pages understand the company's management process alone. The expatriate manager also provided better judgment of a situation to the parent company than the numbers and figures that were faxed daily. Their successful implementation of this strategy was one of their core-competencies and was achieved through proper judgment and communication.The excessive control however, also attributed to an incompetency that Matsushita had in its international

Geography Essay

749 words - 3 pages implications of such changes for the Japanese economy? (c) How did traditional Japanese culture benefit Matsushita during the 1950s-1980s? Did traditional values become more of a liability during the 1990s and early 2000s? How so? (d) What is Matsushita trying to achieve with human resource changes it has announced? What are the impediments to successfully implementing these changes? What are the implications for Matsushita if (a) the changes are

Sony Vietnam: Building Quality, Building Confidence.

8373 words - 33 pages bilateral communication causes frustration, mainly in Vietnamese managers?Sony?s competition strength is in danger - In 1997 only a very few Japanese spoke English and the problem affected a lot of Japanese companies. ?The Japanese are not globalised in thinking mainly because of the language barrier? If Matsushita wants to be stronger than Sony, Matsushita should be more global than Sony. The most potent symbol of globalisation is English.?IV.4.2