Académique Documents
Professionnel Documents
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BACKGROUND
Philips
Founded in 1892 by Gerard Philips in Eindhoven, Holland Innovation and product development core strengths:
Single product focus Gerrards Technology Prowess
Matsushita
Founded in 1918 by Konosuke Matsushita in Osaka, Japan First Japanese company to adopt the divisional structure
One-product-one-division Internal competition among divisions
Matsushita built its success on its centralized, highly efficient operations in Japan Market-driven rapid innovation
VALUE CHAIN
Philips
Research
Product Development
Manufacturing
Services
Centralized initial Multinational/decentralized management, product development, manufacturing, research & innovation sales and services through PDs & NOs within national/local market
Matsushita
Research Product Development Manufacturing Sales & Marketing Services
Centralized
Decentralized
SUCCESSIVE LEADER
Philips
Gerard Philips and Anton Van Riemsdijk and Rodenburg Wisse Dekker Van der Klugt Timmer Boonstra Kleisterlee
Yoichi Morishita
Kunio Nakamura
NET INCOME
CHALLENGES FACED
Philips Too Decentralized
Powerful and autonomous National Organizations (NOs)
Lack of company-wide strategic among NOs Lack of accountability in NO/PD matrix
Communication between overseas subsidiaries and parent company Product Divisional structure
Too deep competition can make an internal conflict
All the operation decision need to take by subsidiaries while strategic decision need to consult to HQ My dream company which is Samsung has similarity with Matshushita. Almost the decision is decided by HQ, but some operation decision is decided by subsidiaries, like technical issue in plant, employee recruitment , after market service