1. Linköping University A Case on Global Integration or Local Responsiveness – “Phillips and Matsushita” Group #2--- Verena Mooyoung Alex Umer Thomas Marina

2. Linköping University Contents PHILIPS Matsushita I/R GRID OBSTACLES MAIN ISSUES & FURTHER STEPS CONCLUSION

3. Linköping University Giant of consumer electronics company PHILIPS One-product strategyDecentralization Consumer preference Strong research capability Equipment Self-sufficiency PHILIPS

4. Linköping University Responding to market condition Localization Development capability Technology 1 2 Distinctive competencies PHILIPS

5. Linköping University Difficulties on sales Sales NOs VS HQ Fragmentation 1 2 Distinctive Drawbacks PHILIPS 3 Implementation Slow

6. Linköping University AIM Direction PHILIPS Efficient Leverage Change to Marketer & Inventor Focus on Existing Technologies Redefine Power of NOs Streamlining of Organizational Structure

7. Linköping University Why they are No.1 Company? Matsushita Outsourcing Fast Introduction Efficiency One product – one division Awareness Integrated approach Matsushita

8. Linköping University Distinctive Competencies Matsushita Adaptive Lean operation Centralized control Finance Competition Matsushita

9. Linköping University Distinctive Drawbacks Matsushita Distribution Centralized control Non-core competencies Brand Matsushita

10. Linköping University AIM Direction Matsushita Higher Local Responsiveness Collaboration Move of Operational Control Search for Strong international Structure

11. Linköping University I/R Grid Matsushita Responsibility Integration PHILIPS Year 197019902000 I/R GRID Value Management Centralized Basic scientific innovation, develop new products Decentralized (NOs) Adapt, manufacture, market, and service products within national markets ResearchDevelopmentManufacturingMarketing Service, etc. Matsushita Value Management ResearchDevelopmentManufacturingMarketing Service, etc. Centralized Applied product and process innovation Centralized (PDs) Develop and manufacture products Decentralized (NOs) Market and service products within national markets Non-related Producing Slow implementation

12. Linköping University Obstacles - Internal PHILIPS Matsushita Low control R&D not market-oriented Frequent CEO changes Job cuts  Loss of knowledge Poor efficiency Lost focus of core competencies Ethnocentric approach Lack of brand awareness Lack of distribution networks Unwillingness of management OBSTACLES

13. Linköping University Obstacles – External PHILIPS Matsushita Great depression War II bombardment Loss of leadership Fast paced industry Increasing competition Slow growth after war Pressure from government Japanese economic crisis Fast paced industry Increasing competition

14. Linköping University Main issues and further steps PHILIPS Concentration on core-activities Outsourcing Balance of productivity & design Complicated structure Loss of control MAIN ISSUES & FURTHER STEPS

15. Linköping University Main issues and further steps Matsushita Destruction and creation program Customer service orientation Decreasing domestic demand Increasing competition Financial losses Dependent oversea offices

16. Linköping University Conclusion Balance between integration and responsiveness Core competence identification Global competition Highly segmented markets Sophisticated customer demand CONCLUSION

17. Linköping University The End