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GLobal marketingTRANSCRIPT
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
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.
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.”