Term Paper: Philips vs. Matsushita

Sample Term Paper

Words 1,760

This term paper discusses two electronic giants Philips and Matsushita. This term paper will first analyze each company separately, and then in conclusion give recommendations.

Introduction

Philips Electronics of Netherlands and Matsushita Company of Japan are two electronic giants today, according to the case under study, both the organizations started out as dynamic entities and were world leaders at different times in history, however recently both have experienced losses and have been forced to make strategic changes that would make the organizations competitive and profitable in the today’s global climate. This paper will first analyze each company separately, and then in conclusion give recommendations.

Philips Electronics

Philips Electronics of the Netherlands, one of the world’s biggest consumer electronics makers and Europe’s largest, is active in the areas of lighting, consumer electronics, domestic appliances, semiconductors, and medical systems. Philips has been shedding non-core businesses and acquiring and forming joint ventures in its core sectors, such as consumer electronics and medical imaging. An analysis will show the different aspects of the organization.

It is important to analyze the reasons behind Philips’ success since its inception. From the very beginning, Philips always emphasized research and technology by investing a great deal in its labs and research units; this made it one of the leading innovators of technology and helped in keeping its hold on the market. Another factor was the organizational competitiveness between the two major functional divisions of the company, with marketing technology vying to outdo one another.

This would have continued with the Netherlands as the center of production and different marketing units worldwide, however the threat of Second World War changed everything, from its base in Netherlands, Philips transferred its asset to two countries, United States and United Kingdom. But after the war national organizations were created which were highly independent units, which produced and sold products according the requirements of their regional areas.  The role of the central management in Netherlands decreased to a formality. Initially this was strength of the company as each National unit catered to the local demand, and helped it to grow till the 1960’s. Another strength of the organization is its’ relationship with its employees, the employees are one of the most well-paid, and the strength of the relationship was visible through innovation and productivity.

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