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Philips VS. Matsushita

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Eidin Madjidpour

on 13 November 2012

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Transcript of Philips VS. Matsushita

Philips Philips vs. Panasonic How to accomplish a transnational structure to remain competitive? by
Eidin Madjidpour
Johanna Hurtz
Constantin Grefe
Sarah Tramp AGENDA Industries:
Consumer Electronics
Medical Systems
Domestic Appliances
Personal Care 1892 Founded in Eindhoven, 1892 1899 Starting to export to diverse Markets, 1899 1990 Biggest light bulb producer in Europe,1990 1912 creation of local joint ventures,1912 1918-1930 1920 multidomestic structure,1920 1930 Management to US, research UK,1930 1960 Reorganizing,1960 one of the largest japanese electronics producer
world's fifth largest tv manufacturer

Home appliances

2012: 7,846.2 billion yen
330,767 1918 1920 1930 1933 1950/1960 1960 1970 1980 1st.oct.2008 Founded by Konosuke Matsushita rapid growth and product line expansion Matsushita becomes first Japanese company to adopt the divisional structure Trade liberalization and lower shipping rates lead to a healthy export business Manufacturing costs increase in Japan; M shift to low-wage countries start of export because of slowing domestic demand (open Plant in canada and europe) Matsushita passes Philips to gain global leadership Organizational Configuration Models So what is the transnational challenge then? Centralized Federation Decentralized Federation Coordinated Federation Formal line structure Nonline structure Microstructural tool's Divisons:
Philips Consumer Lifestyle
Philips Healthcare
Philips Lighting In 2006 $39.6 billion in sales
employs around 122,000 people
more than 60 countries
largest lighting manufacturer in the world Multicultural Teams Lifeblood = Flow of information Divisions:
Rasonic Communication channels Decisison making process Anatomy Physiology A set of explicit or implicit corporate values and shared beliefs Greatly influences the way a company operates The Organization Discussion Question The new model (emerging change process) suggests that change starts with the psychology and ends with the anatomy.

Do you think the new model is a better approche and if so, in which way can the organization reshape its psychological structure? refer to reading 4.3 1) Company introduction
Philips & Panasonic

2) Timeline
Philips & Panasonic

3) Organizational Configuration Model
Interactive work

4) Building an Organization
Human Model

5) EBCJ Consulting
Firms need to achieve all three organizational characteristics and their perspective key capabilities of demanding

responsiveness &
learning Psychology Merger (Is there a way for Philips and Panasonic to remain competitive?) Is there a way for Philips and Panasonic
to remain competitive? How can they both reach a transnational organization in order to remain competitive? Analysis Solution Conclusion EFFENCIENCY (GLOBAL)
RESPONSIVENESS (DECENTRALIZED) Multicultural Challenges 1.Direct vs. indirect communication 2.Trouble with accents and fluency3.Differing attitudes toward hierarchy and authority4.Conflicting norms for decision making Can create Barriers How to overcome Barriers?
•Adaptation: acknowledge cultural gaps and work around them •Structural intervention: reorganization of team•Managerial intervention: set norms early or bring in higher level manager •Exit: Remove team members ! Managing executive attention in the global company Situation:
You are the manager of a subsidiary in Ireland.

infrequent contact with top management
make them aware of growing opportunities in your market
management is focusing on the highly volatile markets

What market are you in? What strategy could you use to attract attention? Attracting Attention --> Strategies

•Weight (critical markets)
•Initiative taking:
strategically selecting projects or ventures to grow subsidiary, build reputations

•Profile building:
improve image, credibility, and reputation within broader corporate network

•Build stellar track record
•Support corporate objectives
•Work as internal brokers
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