PHILIPS MATSUSHIT A

BY: VANIA UTAMI, HENDRY LUKITO, PI-JEN HSUEH

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

Decentralized, highly autonomous responsive national organizations Technology-driven innovation

Matsushita built its success on its centralized, highly efficient operations in Japan Market-driven rapid innovation

VALUE CHAIN
Philips
Research

Product Development

Manufacturing

Sales & Marketing

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 operations: research, innovation and product development.

Marketing and Services within national market

Centralized

Decentralized

SUCCESSIVE LEADER
Philips
Gerard Philips and Anton Van Riemsdijk and Rodenburg Wisse Dekker Van der Klugt Timmer Boonstra Kleisterlee

Matsushita Konosuke Matsushita Yamashita Tanii

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

Matsushita Too Centralized

Highly centralized services:
Centralized product development

Subsidiaries too dependent to parent company

Less responsive to customer demand and preference

Management by Technical and commercial consensus

Slow of respond

Communication between overseas subsidiaries and parent company Product Divisional structure
Too deep competition can make an internal conflict

Inefficient production due to local production centers

 We need to Balance the decision making between Centralized and Decentralized

LESSON FROM CASES

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