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Matsushita Panasonic Case Study

1.0 MATSUSHITA (PANASONIC) AND JAPAN’S CHANGING CULTURE 1.1 What were triggers of culture change in Japan during the 1990s? How is cultural change starting to affect traditional values in Japan? Cultural change in Japan was triggered by the economic recession in the 1990’s. Traditional Confucian values focused on loyalty, high moral and ethical values and set the pathway for relationships with others in traditional Japanese businesses. When the generation born after 1964 lacked the same commitment to traditional Japanese value as their parents but they grew up in a world that was richer, where western ideas were beginning to make themselves felt, and where the possibilities seemed greater. Because of they did not want to be tied to a company for life, so they become a salary man. Traditional ways of doing business and perceptions of the loyal, hard-working salary-man were slowly being replaced by movements toward individualism among workers. After witnessing older workers being laid-off during economic slumps, younger generations believed loyalty would no longer be reciprocated. In addition, a shift toward western values in a world where the new generations were freer, richer and individualistic meant that Japanese firms had to change the way they appealed to new generations.

Essay Philips vs Matsushita Case Analysis

2229 WordsNov 27th, 20109 Pages

Philips versus Matsushita Case Analysis
Competing Strategic and Organizational Choices

Erik F. Spear
Lynelle C. Vidale
Vannessa. D. Williams
IMAN601, Section 9040
Dr. Mariana Feld
November 2, 2010

Philips versus Matsushita Case Analysis
Competing Strategic and Organizational Choices
Royal Philips NV and Matsushita (owner of the Panasonic brand among others) are two of the world’s biggest electronics multinationals. After successfully building their global empires in the early twentieth century, they have both suffered financially in recent decades. It is therefore interesting to look at why this has happened and what their future prospects are.

Porter’s Five Forces Analysis: Strengths and Weaknesses…show more content…

If suppliers are limited, they have a greater opportunity to charge higher prices for raw materials, and they may also pose a threat of forward integration to the industry. Similarly, if an industry has few buyers, or buyers can cheaply and easily change suppliers, they can make demands for less expensive higher quality products, causing impact to profit (Porter, 2008, p. 83).
Philips’ Organizational Structure: Strengths and Weaknesses

The arrival of Gerald Kleisterlee in 2001 brought organizational changes to Philips that is evident in the marketplace today. The new CEO restructured the company by outsourcing mobile phone production to CEC of China and the production of VCRs to Funai in Japan. This was followed by the outsourcing of TVs, CD players and components with simultaneous movement of remaining in-house production to countries like China, Poland and Mexico, who had lower costs. He also sold off several businesses, including the core semi-conductor business. What evolved was Kleisterlee’s vision for a new Philips – a lifestyle company centered on health and well-being – which organized around healthcare, lighting and consumer lifestyle. The strength of Philip’s current organizational structure lies in the fact that it organizes around market needs, rather than products and core competencies. The company continued to bring

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